Principal® Adds New Annuity With Guaranteed Lifetime Income Option
“A convergence of factors has accelerated the demand for annuities and heightened the need for guaranteed income in retirement,” said
Principal® Strategic Income, which is available to investors through financial professionals, builds on the first RILA Principal debuted in 2023 when annuity sales hit all-time highs1. The new RILA uses a guaranteed lifetime withdrawal benefit, the Secure Income Protector rider, to ensure individuals have a secure source of income in retirement regardless of future investment market performance or how long they live. For a lower cost than some traditional variable annuities with income riders, the Secure Income Protector rider offers two income options:
1) A level amount every year that never decreases.
2) A tiered amount that provides higher income initially and then decreases if the account value reaches zero.
Unlike many variable annuities with income riders that lock in a decision at contract issuance, Principal® Strategic Income allows individuals to change their income option one time before they start taking income payments, providing flexibility should income needs change before their first withdrawal.
The increase in demand for annuities can be correlated to the aging
Principal® Strategic Income may not be available in all states or with all broker-dealers.
Principal® Strategic Income does not directly participate in any stock, equity investments, or index. It is not possible to invest directly in an index.
Investing involves risk, including the possible loss of principal.
Before investing in registered index-linked annuities, investors should carefully consider the investment objectives, risks, charges, and expenses of the contract and underlying investment options. This and other information is contained in the free prospectus, which can be obtained from your local representative or online at principal.com. Please read the prospectus and, if available, the summary prospectus carefully before investing.
Index-linked deferred annuity contracts are complex insurance and investment vehicles. This contract is a security and there is a risk of substantial loss of principal and earnings. The risk of loss may be greater when early withdrawals are taken due to any charges and adjustments applied to such withdrawals. These charges and adjustments may result in loss even when the value of a segment option has increased. Clients should consult with a financial professional about the appropriateness of this product based on their financial situation and objectives.
Contract rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details.
Guarantees are based on the claims-paying ability of
Excess withdrawals could lower your income payment.
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© 2024
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LIMRA 2023
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Pensions & Investments, 2023
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