What is an ANNUITY?
An annuity is a contract from an insurance company that offers to pay income to…
Why buy the ELM INCOME ANNUITY?
This contract, issued by Principal Life Insurance Company, is for your consideration…
Why buy the ELM INDEX ANNUITY?
This contract is for your consideration if you are not yet ready to turn your assets into regular income payments, and desire both protection against market loss and opportunity for growth.
Value to You
If you purchase the ELMsm Index Annuity, early withdrawal fees may apply for the first seven years of the contract, as explained above. If this does not disturb your plans, here are some potential advantages of the ELM Index Annuity you should consider:
- To help preserve what you have, the contract will never lose value because of market declines
- To allow choice for changing circumstances, there are three interest options available each contract year
- For upside potential that can fit your outlook, three interest options are available and two of them link the interest credits to the S&P 500 Index
- Over the long term, the contract may offer more growth than other fixed interest alternatives
- All interest credited is tax-deferred until withdrawn. Please note: tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may not be available if the annuity is owned by a “non-natural person” such as a corporation or certain types of trusts.
Early withdrawal fees: All amounts withdrawn in year one, and all withdrawals in excess of 10% in years two through seven will be charged the following fees (expressed as a percentage).
| Year 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 & Later |
| 7% | 6% | 6% | 5% | 5% | 4% | 3% | 0% |
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