Download A stable option for uncertain times

The Fixed Account
A stable option for
uncertain times
Now that your organization has settled on using corporate-owned life insurance to informally finance its
nonqualified deferred compensation plan, it’s time to talk details.
When you use Principal Executive Variable Universal Life II1 insurance, you get a death benefit that can provide
survivor benefits or be used to recover plan costs. Plus, the policy builds cash value. You select how premium
payments will be invested by choosing from more than 100 sub-accounts. How these underlying investments
perform determines the policy’s cash-value growth.
“Great,” you say. “But do I have any protection in a down market?” That’s where the Fixed Account comes in.
When you choose this investment option, premiums allocated to the account earn a rate of interest set by us. So
you can enjoy more certainty — even in turbulent times.
What you get with the Fixed Account
Certainty.
Flexibility.
Versatility.
Get a guaranteed
minimum interest rate
with the potential for a
higher current rate.
Transfer assets in
and out to meet your
needs, with some
restrictions.
Enjoy stable investment
returns without giving
up the reward potential
of a variable product.
How the Fixed Account earns interest
Fixed Account assets are held in the General Account of the issuing insurance company and earn interest
1 | based on a portfolio of investments (portfolio rate). All Fixed Account values earn the same rate.
2 | The crediting rate is reviewed on a regular basis.
3 | When a new portfolio rate is declared, both current account values and any new money subsequently
added to the account are credited with the new rate.
4 | The new rate applies to all account values until the rate changes.
Fixed Account requirements
Payments/transfers to the account
Minimum amount
Maximum amount
None
•$5 million per calendar year for all
policies with the same owner/sponsor
•The account balance for all policies
with the same owner/sponsor may not
exceed $20 million
Other
•No scheduled transfers are permitted
from an investment option to the Fixed
Account
Transfers from the account
None
•Greater of $5,000 and 25% of the Fixed
Account value on December 31 of the
previous year may be transferred in a
calendar year
•One transfer per policy may be made in
the first quarter of each calendar year
•A policy’s total Fixed Account value
may be transferred to one or more
investment options over a consecutive
four-year period2
Discover the features of the Fixed Account for yourself.
Let’s connect
Contact your financial representative if you have any questions about your plan.
principal.com
Principal Life Insurance Company, Des Moines, Iowa 50392
1
ariable universal life
V
insurance products
charge fees such as
mortality and expense
risk charges, surrender
fees, and distribution and
administrative expenses.
2
lection must be
E
received by us in writing
and there must be a
Fixed Account balance
of at least $20,000. Once
made, this election is
irrevocable. During this
four-year period, no
transfers or payments
to or from the Fixed
Account may be made.
Before investing, carefully consider the investment option objectives, risks, charges and
expenses. Contact a financial professional or visit principal.com for a prospectus or, if
available, a summary prospectus containing this and other information. Please read it
carefully before investing.
Investing involves risk, including possible loss of principal.
Guarantees are based on the claims-paying ability of the issuing insurance company.
Principal Executive Variable Universal Life II is issued by Principal Life Insurance Company and distributed by
Principal Securities, Inc. 800/247-9988, member SIPC, and/or independent broker/dealers. Principal Life and
Principal Securities are members of the Principal Financial Group®, Des Moines, IA 50392.
Not FDIC or NCUA insured
May lose value • Not a deposit • No bank or credit union guarantee
Not insured by any Federal government agency
Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal
Financial Services, Inc., a member of the Principal Financial Group.
LV369-05 | 02/2017 | t170207061p | ©2017 Principal Financial Services