• Overview
• Key Features
• Decision Guide
• Value to You
• Q&A

TOOLS

• Questions & Answers
• Retirement Research
• For Employers
• Glossary of Terms
• About Us
• Contact Us
• Links

Key Features

Income Payments

The ELM^sm Income Annuity provides you with an automatic steady stream of income payments for the rest of your life, or for a specific period of time that you determine (10, 15 or 20 years).

Start Date

Income payments may begin immediately or the start may be delayed up to 12 months after payment of the premium. The longer you delay your initial payment, the larger the monthly income you’ll receive.

Survivor Benefits

You may elect that a percentage of the income payments that you select (50%, 75% or 100%) will continue to a survivor, in the event of death.

Security

Benefit payments from the ELM Income Annuity are guaranteed by and subject to the credit of Principal Life Insurance Company. Also an insulated separate account provision provides that premiums and interest for ELM Income Annuities will be unavailable to other policyholder obligations of Principal Life or to creditors of Principal Life, until the benefits due under the ELM Income Annuities are fully funded. (This provision is available in most, but not all, states. Please call 1-877-210-5565 ext. 356 to check for availability in your state.)

Inflation Protection

Selecting an inflation protection option helps maintain the future purchasing power of your guaranteed income. You may choose either:

• a fixed annual increase (from 1-5%) in your income benefit, or
• full inflation protection, under which your income benefit is increased annually by a percentage equal to the annual percentage increase in the Consumer Price Index-Urban (cpi-u) as determined by the US Department of Labor.

The full protection option also provides that future income payments will only increase or stay the same. They will not decrease, if the cpi-u growth measurement is negative in a given year. Any decrease in the annual cpi-u will be used solely to offset against future annual increases.

Death Benefit Protection

You have the flexibility to select a decreasing return of premium benefit paid to a beneficiary, in the event of the premature death of all annuitants (within 10 or 20 years of purchase). The portion of the premium that is returned to the beneficiary is selected at the time of purchase (between 0% and 100%). That amount is then reduced by either 10% a year or 5% a year, as you may chose. (This feature has a patent application pending).

Contract Cancellation

The contract comes with a twenty day Free Look Period, or longer if required by your state of residence. You should carefully examine the contract when it arrives because, after the Free Look Period, there is no provision for cancellation of the contract or for a refund.

How to Buy

The ELM^sm Income Annuity is sold only through the toll free number dedicated to this product at the Principal Financial Group®. Your call will be answered by a qualified, salaried, ELM Income Annuity specialist. Talk to a specialist now by calling 1-877-210-5565 ext. 356.

Our Decision Guide offers some suggestions for preparing to speak with an ELM Income Annuity specialist, but feel free to call at any time with questions.

The Elm Income Annuity is issued by Principal Life Insurance Company, a member of the Principal Financial Group®, Des Moines, IA 50392. ELM Income Group^sm is not affiliated with any member of the Principal Financial Group.

» Continue to “Decision Guide” Section