The Principal Expands Nonqualified Plan Offering

Small and mid-size businesses have a new nonqualified deferred compensation (NQDC) plan option from The Principal Financial Group.

The new Modified Cash Surrender Value rider, available with Executive Variable Universal Life II (Executive VUL II), brings new choice and flexibility for employers looking to informally finance their NQDC plans, according to the company.

“Corporate-Owned Life insurance (COLI) product strength is usually reserved for larger employers, and we looked for a way to address the strong need among small and mid-sized businesses as well,” says Gary Dorton, vice president, nonqualified solutions. “Adding this rider to our current product can bring stronger cash values plus extensive investment options to more small to mid-sized businesses than are available today.”

Benefits of using Executive VUL II with the Modified Cash Surrender Value rider include:

  • Greater flexibility to finance NQDC plans efficiently;
  • High early cash surrender value to build employer assets;
  • More than 100 investment options to offer individualized investment choice; and
  • Complete policy and plan administrative services for both employers and their plan participants.

Employers may also receive tax benefits while the rider continues to help grow assets on their company balance sheet.