NU Online News Service, April 1, 2003, 3:55 p.m. EST – Principal Financial Group Inc., Des Moines, Iowa, has introduced the Principal Variable Universal Life Accumulator II, a group variable-universal life policy.
Small employers can use the policy to set up savings programs for highly paid employees who have already contributed the maximum amount to 401(k) plans, Principal says.
VUL policies give participants the ability to invest in investment options that resemble mutual funds.
Traditionally, many financial experts have recommended that investors “dollar cost average,” or invest a set amount of cash on a periodic basis.
The new Principal VUL policy comes with special dollar-cost-averaging accounts that now pay an interest rate of at least 7.5% while transferring an employee’s money into the investment options that the employee has chosen, Principal says.
Principal is writing the VUL policy through its Principal Life Insurance Company unit.