Executive VUL III
Principal Executive Variable Universal Life IIISM (Executive VUL III) is designed specifically for the business market. In addition to the death benefit it provides, it can help with supplementing income, deferring or minimizing taxes, cash flow management, and liquidity needs.
Executive VUL III is used as a financing solution for a variety of business needs, including:
- Corporate-owned life insurance (COLI) for nonqualified deferred compensation. Get all the Executive VUL III materials you need to present this solution.
- Corporate-sponsored solutions to help retain and retire key employees or prepare for planned and unplanned ownership transition events. View marketing materials for these solutions below.
This product is approved in all states.
- High early cash surrender values. The Enhanced Cash Surrender Value Rider provides options for defined enhanced cash values in early policy years.
- Quality investment options. Clients can select from more than 120 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.
- Choice of underwriting option with Guaranteed Issue/Simplified Issue, Principal Accelerated Underwriting℠, or full underwriting.
- Small- to medium-size (SMB) clients seeking ways to attract, reward, and retain key employees
- Financing option for business planning concepts, including:
- Bonus plans for for-profit or tax-exempt organizations
- Bonus (LLC Member or S Owner)
- Deferred Comp (Incentive Bonus, Select Reward, or SERP)
- Exit planning concepts such as Multi-Owner Buy-Sell and Entity Purchase when living benefits, as well as death benefits, are important
- Key Person and ESOP Repurchase for business protection
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Available only for coverage that will be employer-owned or employer-sponsored
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Issue ages: 20-75: Maturity: age 121
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Preferred/Standard Non-Tobacco and Tobacco rates; Substandard ratings from Table 2-16
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Minimum face amount: $100,000
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Minimum premium requirement of $10,000 per case
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Death benefit option 1, 2 and 3 available
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Minimum guaranteed interest rate for Fixed Account = 1%
- For more information about Executive VUL, go to:
- Product Profile (BB12403) (PDF)
- Product Guide (BB12229) (PDF)
- Prospectus
Materials approved for use with consumers. Key materials listed below.
Investor Guide (BB12409)
Helps determine client investment objectives and tolerance for financial risk. (Note: this item cannot currently be used in Georgia, Mississippi, or Wyoming.)
View (PDF) • Order
Prospectus (LV924A)
Required book that must precede or accompany any Executive VUL III sale.
View
- Contact Us: Advanced Solutions, Life Sales Support
Important Information
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.
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