Principal Secure Fixed Annuity —
Key Features
If you want help protecting your retirement assets from losing value...
Consider the Principal Secure Fixed Annuity, issued by Principal Life Insurance Company®. It offers you a choice of a four-year or six-year guaranteed interest rate period1, plus withdrawal features to help you meet your retirement needs. And, all contract guarantees are based on the claims-paying ability of Principal Life Insurance Company.
Please call the Customer Service Center at 1-877-210-5565 ext. 356 for information, including how to purchase.
Guaranteed Interest Rates
If you make one premium payment only, the initial premium payment will earn the initial interest rate, guaranteed for four or six years. On each contract anniversary after this initial guaranteed period, Principal will set a renewal interest rate which is guaranteed until the next contract anniversary. Please call 1-877-210-5565 ex. 356 for a current guaranteed interest rate quote.
If you make additional premium payments during the first contract year, each additional premium will earn interest at the rate in effect on the date Principal receives the premium until the first contract anniversary. On the first contract anniversary, the interest rate will then be the dollar-weighted average of the first year base interest rates. This interest rate will then be guaranteed until the end of the initial guarantee period (four or six years). At the end of the initial guaranteed period and each contract anniversary after, Principal will set a renewal interest rate which is guaranteed until the next contract anniversary.
Principal determines all interest rates at its sole discretion, including the contract's guaranteed minimum interest rate. The guaranteed minimum interest rate is set at contract issue and will not change for the life of the contract. You are assured that the minimum rate will never be less than one percent.
Annual Charges
There are no annual or up-front charges.
Access to Your Money
You may withdraw your money at any time. Withdrawals will, of course, reduce the value of your contract. There are no charges for amounts used to purchase an annuity income or for death benefits paid in a single sum. For other withdrawals or surrenders, the charges are as follows:
Withdrawals with Charges
Note that during the initial guaranteed period (four or six years) of your contract, surrender charges will apply to amounts withdrawn, except for the Withdrawals without Charges, summarized below and described in the contract. The surrender fees are:
| Contract Year | 1 | 2 | 3 | 4 | 5 & Later |
| Surrender Charge | 7% | 6% | 6% | 5% | 0% |
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 & Later |
| Surrender Charge | 7% | 6% | 6% | 5% | 5% | 4% | 0% |
Withdrawals without Charges
The following is a summary of the withdrawals available to you with no surrender charges:
- Withdrawals, during the initial guaranteed period (four or six years), of up to 15% per year based on the contract value at the beginning of that year.
- All withdrawals on or after the initial guaranteed period.
- Withdrawals on account of the minimum distribution required by the IRS for qualified plans.
- All conversions to a Principal life annuity (a process called annuitization).
Additional Withdrawals without Charges (if you purchase the Waiver of Surrender Charge rider)2
This optional rider offers full access to your money without surrender charges if one year after contract issuance you:
- Are diagnosed as terminally ill, with life expectancy of less than 12 months
- Are under age 65 and become totally and permanently disabled, and are eligible to receive Social Security disability benefits
- Enter a medical facility and are confined there for more than 59 consecutive days
Return of Principal is guaranteed,
Despite the above surrender charges, at full surrender of the contract, you are assured a return of the premiums you've paid (less previous withdrawals).
Payout Options
Subject to the surrender charges explained above, you may withdraw all or part of your money in a lump sum at any time, or opt for a stream of lifetime income payments.
For no additional charges, you can receive partial withdrawals on an annual, semi-annual, quarterly, or monthly basis. These amounts may be paid directly to another account (checking, savings, etc.) of your choice.
Taxes
Please note, withdrawals may be subject to ordinary income tax and tax penalties may apply before age 59½. Federal tax laws are complex and subject to change. The information in this website is based on current interpretation of the law.
While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that neither ELM Income Group nor The Principal® are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.
Contribution (Premium) Limits
The minimum initial premium payment is $5,000. The maximum without Principal Life's approval is $1,000,000. You can make ongoing contributions at any time ($2,000 minimum) in the first contract year only. However, if the interest rate in effect at the time of payment is at the guaranteed minimum rate, Principal Life reserves the right to limit or prohibit the acceptance of any premiums.
Please note that tax-qualified arrangements, such as IRAs, SEPs, and SIMPLE-IRAs are tax-deferred. You derive no additional benefit from the tax deferral feature of the annuity. Consequently, an annuity should be used to fund an IRA, or other tax qualified arrangement to benefit from the annuity's features other than tax deferral. The features may include guaranteed lifetime income, guaranteed minimum interest rates, and death benefits without surrender charges.
Restrictions
Please note that this contract is not available to anyone over age 90 (85 in OK). In addition, the minimum contract value, at all times, must be at least $5,000.
| Not FDIC/NCUA Insured | No Bank Guarantee |
| Not A Deposit | May Go Down In Value |
| Not Insured By Any Federal Government Agency | |
1 Both guaranteed interest rate periods may not be available in all states.
2 This rider is not available in all states and state variations may apply.
The Principal Secure Fixed 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