ELM® Income Annuity —
Key Features
If you are ready to convert savings into guaranteed retirement income…
Consider allocating part of your savings to the ELM® Income Annuity. It is an immediate annuity contract issued by Principal Life Insurance Company for individuals in or near retirement. It offers you the ability to create a guaranteed income stream that fits your needs. Click below for a summary of its features.
Please call the Principal Customer Service Center at 1-877-210-5565 ext. 356 for information or to obtain a quote.
Guaranteed Income Payments
The ELM Income Annuity provides you with a guaranteed stream of income payments from Principal Life Insurance Company (Principal Life) for the rest of your life, or for a specific period of time that you determine (10, 15 or 20 years). There are no fees or charges deducted from your payments.
Income Start Date
Income payments may begin immediately, or the start may be delayed up to 12 months after payment of the premium.
Security
Benefit payments from the ELM Income Annuity are guaranteed by and subject to the credit of Principal Life Insurance Company. In most states, the ELM Income annuity also includes an insulated separate account.
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 learn more.)
Inflation Protection
You may choose to have your payments increased in the future by selecting an inflation protection option. This 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 as an offset against future annual increases.
Survivor Benefits
You may elect that a percentage of the income payments that you select (50%, 75% or 100%) will continue to a survivor, called a joint annuitant, in the event of death.
Death Benefit Protection
You may select a "decreasing return of premium" benefit that will be 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 annuity 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. The Free Look Period begins on the date the contract is issued. 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.
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® is not affiliated with any member of the Principal Financial Group.
Principal Life Insurance Company,
Des Moines, Iowa 50392-0002