Principal Secure Fixed Annuity —
Frequently Asked Questions
- » What are the current interest rate guarantees?
- » What are the potential advantages of the Principal Secure Fixed Annuity?
- » Is interest compounded during the contract term?
- » What are the early withdrawal fees if I chose to end my contract early and take out all of my money?
- » Can I make partial withdrawals without paying surrender charges?
- » What is the death benefit?
- » What charges, if any, are deducted from my premiums or my contract value?
- » How long is the term of the Principal Secure Fixed Annuity?
What are the current interest rate guarantees?
For information, including how to purchase, please call 1-877-210-5565 ext. 356. Click here for the current rates.
What are the potential advantages of the Principal Secure Fixed Annuity?
It guarantees that your premiums (contributions) will grow at a fixed interest rate. The contract value is guaranteed by Principal Life. You may withdraw part or all of the money at any time, but, during the initial guaranteed period (four or six years), withdrawals may be limited or subject to surrender fees. You also have the right to convert the contract into a stream of guaranteed income payments from Principal Life.
Is interest compounded during the contract term?
Yes, interest is compounded so that previous interest credits also earn interest.
What are the surrender charges if I chose to end my contract early and take out all of my money?
Charges apply only during the initial guaranteed period (four or six years). The charts below contain the surrender charge schedule.
| 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% |
Please call the 1-877-210-5565 ext. 356 for details because these charges do not always apply.
Can I make partial withdrawals without paying surrender charges?
Yes. During the initial guaranteed period (four or six years, you have the right to withdraw up to 15% of the contract value each year without paying a fee. After the initial guaranteed period, there are no fees charged on withdrawals. Also, as explained in your contract, there are no surrender fees for withdrawals made under certain conditions; for example while you are in a nursing home. Keep in mind, however, if you are not yet 59½, you may have to pay an additional 10% tax penalty on top of ordinary income taxes.
What is the death benefit?
The death benefit is the full contract value.
What charges, if any, are deducted from my premiums or my contract value?
Nothing is deducted from your contract value, except for the withdrawals that you make, surrender charges, if applicable, and state premium taxes in a few states (California, Ohio, Iowa, Maine, Nevada, Puerto Rico, South Dakota, West Virginia, and Wyoming. See Access to Your Money for the details. Please call Principal Life to learn if a premium tax would apply to your purchase; call 1-877-210-5565 ext.356.
How long is the term of the Principal Secure Fixed Annuity?
Annuities are long-term vehicles designed for retirement, so the Principal Secure Fixed Annuity lasts until the owner makes a complete withdrawal of the contract value. Withdrawal rights become unrestricted after the initial guaranteed period (four or six years). Before that time, surrender charges 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