Principal Offers Variable Universal Life Policy to Help Entrepreneurs

The Principal Variable Universal Life Income II aims to help owners address both a desire to growth their business and business stability, the company said.

A company announcement said the Surrender Value Enhancement Rider gives policyholders the opportunity to accumulate high cash value early in the policy helping to create assets needed to grow their business. At the same time, the policy offers long-term death benefit protection, giving more stability for business owners or key employees.

The Principal explained that the cash value of a business owned policy is an asset on the balance statement of the company. The rider increases the cash surrender value in the first seven years of the policy, which reduces the hit to company earnings created by the difference between the premium and the cash value of the policy, according to the company.

The offering has several additional features including:

  • Return of Cost of Insurance Rider will refund all cost of insurance charges incurred up to the latter of the 15th policy year or when the insured turns age 60.
  • Life Paid Up Rider keeps the policy from lapsing when a policy is used for supplemental retirement income.
  • Death Benefit Guarantee Rider allows the policyholder to choose a premium level that guarantees death benefit to age 65, 85 or 100 at no additional charge.