Principal Universal Life AccumulatorSM
How It Works
Principal Universal Life AccumulatorSM (UL Accumulator) is designed for the business market and offers death benefit protection with high early cash values and solid long-term accumulation.
In addition to death benefit protection, UL Accumulator with its high early cash values can:
- Help avoid a large hit to earnings commonly associated with business-owned life insurance.
- Provide executive benefits to selected key employees - Principal Life offers complete business solutions, including Principal Executive Bonus PlusSM, Principal S Owner PlusSM, Principal Split Dollar PlusSM, and Key Person insurance.
- Provide tax-free funds for business succession/planning.
- Provide cash value access to supplement income planning in later years.
Highlights
- Death benefit protection - Three death benefit options are available: DBO1 (level), DBO2 (face plus policy value), and DBO3 (face plus premiums paid less surrenders) as well as a death benefit guarantee rider1.
- High early cash values - The base policy will have strong early values as well as solid later year performance. A high early cash value rider can also be added to the policy at issue to increase the early year values with the trade-off of slightly lower values in later years2.
- Tax-free liquidity - Partial surrenders may be taken up to basis followed by loans without creating a taxable event, provided the policy is not a Modified Endowment Contract3, and the policy ends in a death benefit. Partial loans or surrenders may be subject to policy charges, surrender charges and transaction fees, and will reduce the cash values and death benefits.
- Tax-free survivor benefits - Beneficiaries receive a federal income tax-free death benefit.
1 The Death Benefit Guarantee (DBG) rider is subject to the claims-paying ability of Principal Life Insurance Company. The DBG premium requirement will be affected by loans, partial surrenders, face amount adjustments and changes in rider coverage. If the policy fails to meet the DBG premium requirement, it may be necessary to pay more and higher premiums to keep the policy in force. Payment of the minimum DBG premium may not allow clients to take advantage of the potential for accumulating significant cash values.
2 Policies with the Alternate Cash Surrender Value (ACSV) rider must be corporate-sponsored, corporate-owned or trust-owned.
3 Modified Endowment Contract as defined by Section 7702A of the Internal Revenue Code, as amended. Consult your tax advisor for more information.
Policy Form #SF722; Rider Forms #SF773, #SF774
Approval #96722007
