NU Online News Service, Nov. 1, 3:15 p.m. – The Principal Financial Group, Des Moines, Iowa, today introduced a financing vehicle for nonqualified deferred compensation plans for small and growing companies.
The company calls the new product Benefit Variable Universal Life and bills it as part of its portfolio of corporate owned life insurance products.
The plan is a small-employer version of Principal’s Executive VUL product, which it released in June for larger-premium COLI cases.
“The Principal now has a complete offering of financing options for employers providing nonqualified plans to their employees,” says Jerry Patterson, vice president of marketing, Principal Financial.
Benefit VUL has traditional features of life insurance, such as tax-deferred earnings, tax-free withdrawals and loans for the life of the policy. In addition, it offers a number of investment options similar to those found in qualified retirement plans.
Benefit VUL offers 73 investment divisions from 26 investment advisors, including American Century, Fidelity, Janus, MFS, Putnam and Vanguard, Principal Financial says.