Principal Releases Section 7702 Compliant IUL Accumulation II

Written By Jon Gold
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From Principal:

You likely already know that Principal Indexed Universal Life Accumulation II (IUL Accumulation II) is an attractive option to help your clients meet their protection and accumulation potential needs. Now, we’re pleased to let you know that it has new rates that generally improve long-term cash value growth and is updated to meet Internal Revenue Code Section 7702 guidelines.

IUL Accumulation II offers your clients a simple, transparent design they can have confidence in. It’s ideal for use in the business market, including key employee retention/retirement and business owner retirement solutions—and it has key features such as:

  • Choice of three index-linked accounts

  • Optional high early cash surrender value rider that can provide businesses a balance sheet boost

  • Innovative automated income platform that helps maximize distributions and helps protect against unplanned tax events

Key Features

  • Three account options:

    • S&P 500® Price Return index-linked account (one-year point-to-point)

    • S&P 500® Price Return High Cap index-linked account (one-year point-to-point)

    • S&P 500® Total Return index-linked account (one-year monthly average)

    • Fixed Account

  • Choice of standard or alternate loans

  • Accumulated value enhancement feature that provides a bonus to boost long-term values

  • High early cash surrender values available for businesses via optional rider

  • Three death benefit options

  • Automatic trigger of over-loan protection

  • Living benefits provided through accelerated benefit riders for chronic illness and terminal illness

Transition Rules

  • September 1, 2021

    • New rates doer IUL Accumulation II are effective in all states except: CA, DE, FL, ND, NY and SD

    • The Principal illustration system and WinFlex are updated with new rates

    • IUL Accumulation II applications in underwriting will be issued at rates applied for unless new rates are requested

  • September 30, 2021

    • We'll accept applications for the original rates until this date

    • All applications received in the Home Office after September 30, 2021 will be issued with the new rates. No exceptions will be granted

Jon Gold
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