Principal Variable Universal Life – Business (VUL-Business) insurance was specifically designed for the needs of your business owner and executive clients. This flexible product can help fill multiple needs that business insurance is often relied upon, including death benefit, living benefits, deferring or minimizing taxes (income and estate), timing challenges, and cash flow management. VUL-Business combines protection, business-focused features and market-based growth potential all in one product. Note: The product is only available for coverage that will be employer-owned or employer-sponsored.
- High early cash surrender values – The Modified Cash Surrender Value rider provides enhanced cash values in early policy years that can help boost a business' balance sheet.
- Quality investment options – Clients can select from more than 100 investment options featuring many well-known fund families and investment managers.
- Preferred partial surrenders – Available in the first 15 policy years.
- Guaranteed zero net-cost loans after year 10 – All outstanding policy loans automatically convert to zero net-cost after policy year 10.
- Automated income – Recurring distributions can be scheduled by completing one form, one time. Distributions automatically switch from partial surrenders to loans once cost basis is removed.
- Automatic over-loan protection – The Life Paid-Up rider activates automatically when certain conditions are met to protect against policy lapse.
- Three death benefit options – Provides choice to meet individual client needs.
- Small- to medium-size (SMB) clients seeking ways to attract, reward and retain key employees
- Financing option for business planning concepts, including:
- Principal SERP SelectSM
- Principal Select Reward
- Principal Executive Bonus PlusSM
- Principal S Owner PlusSM
- Principal LLC BonusSM
- Exit planning concepts such as Multi-Owner Buy-Out and Entity Purchase when living benefits are important
- Key Person and ESOP Repurchase for business protection
- Available only for coverage that will be employer-owned or employer-sponsored
- Issue ages: 20-75: Maturity: age 121
- Preferred/Standard Non-Tobacco and Tobacco rates; Substandard ratings from Table 2-16
- Minimum face amount: $100,000
- Minimum premium requirement of $25,000 per case
- Business underwriting programs for ages 20-70 with Standard Non-Tobacco/Tobacco rates: Simplified Issue (min. five lives) and Guaranteed Issue (min. 10 lives)
- Death benefit option 1, 2 and 3 available
- No surrender charges
- Minimum guaranteed interest rate for Fixed Account = 2%
- For more information about VUL-Business, go to:
This product is a great fit for the Power of 3 approach, which combines quality products with time-saving features that allow you to shorten underwriting process and make automatic income simple.
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Materials approved for use with consumers. Key materials listed below.
Investor Guide - Benefit VUL II and VUL-Business (BB11305)
Helps determine client investment objectives and tolerance for financial risk.
Before investing, carefully consider the investment option objectives, risks, charges, and expenses. Contact a financial professional or visit principal.com for a prospectus or, if available, a summary prospectus containing this and other information. Please read it 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.
The policy rider descriptions are not intended to cover all restrictions, conditions or limitations that may apply. See the policy and rider for full details. Riders are subject to state variations and may not be available in all states. Some riders may require additional premium.