Corporate-Owned Life Insurance (for Nonqualified Deferred Compensation)
Nonqualified deferred compensation (NQDC) plans can help business owners attract and keep high-performing employees. And corporate-owned life insurance (COLI), including Principal Executive Variable Universal Life III (Executive VUL III), offers an attractive way to informally finance these plans. It features a valuable death benefit that can be used by the employer to recover plan costs or to provide survivor benefits. And it also offers tax-deferred cash-value buildup.
Executive VUL III insurance can help businesses finance plans of all sizes, with benefits including:
- Priced and designed specifically for deferred comp plans
- Quality investment options
- Full and business underwriting
- Comprehensive plan administration platform
Executive VUL III is approved in all states.
- High early cash surrender values through Enhanced Cash Surrender Value rider that provides options for defined enhanced cash values in early policy
- Large selection of proprietary and outside investment divisions and financial professionals
- Three death benefit options
- Preferred partial surrenders
- Death Benefit Guarantee rider to age 85
- Complete policy and plan administrative services
- Designed to finance nonqualified deferred compensation plans for corporate-owned life insurance cases, including
- Corporations
- Employers
- Trusts
- Associations or similar entities
Executive VUL III offers an array of underlying investment options for clients, managed by industry-leading investment financial professionals. These diversified offerings can help your clients find the right mix of risk tolerance and investment objectives.
For the most current investment options, see Rates & Values on www.principal.com.
Key materials listed below.
Financing with COLI Consumer Brochure (BB12001)
Help clients understand how they can finance their COLI plan with life insurance.
NQDC Underwriting Process for Clients (NQ60)
Provide to clients to help them prepare for the underwriting call.
Materials approved for use with consumers. Key materials listed below.
Prospectus
View
Principal LifeTime Accounts Brochure (PQ3483)
Show plan participants how Principal LifeTime Portfolios can help with asset allocation and diversification decisions.
View (PDF) • Order
Principal SAM Portfolios for NQDC Plans Brochure (PQ7962)
Show plan participants the simplicity of selecting investments with Strategic Asset Management (SAM) Portfolios.
View (PDF) • Order
Fixed Account Consumer Flyer (LV369)
Help COLI consumers understand the advantages of selecting the Fixed Account as an investment option.
View (PDF) • Order
- Contact Us: RVP-NQP, Life Sales Support
Important Information
Before investing in variable life insurance, investors should carefully consider the investment objectives, risks, charges and expenses of the policy and the underlying investment options or online at www.principal.com. This and other information is contained in the free prospectus and, if available, the summary prospectus that can be obtained from your local representative or online at www.principal.com. Please read the prospectus and, if available, the summary prospectus carefully before investing.
Variable life insurance is subject to market risk, including the potential loss of the principal invested.
No investment strategy such as asset allocation or diversification can guarantee a profit or protect against loss in periods of declining value.
In exchange for the death benefit, life insurance products charge fees such as mortality and expense risk charges and surrender fees.
All guarantees are subject to the claims-paying ability of the issuing insurance company.
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