NU Online News Service, Sept. 22, 2003, 12:13 p.m. EDT – Principal Financial Group Inc., Des Moines, Iowa, has introduced the Principal Annuity Legacy, a product that combines a single-premium, immediate annuity with a universal life insurance policy.
A consumer who buys the product can annuitize an existing deferred annuity or exchange it for a fixed-period, single-premium immediate annuity issued by Principal Life Insurance Company.
Principal will use the payouts from the single-premium immediate annuity to buy and fund a universal life insurance policy with secondary guarantees.
“The policy is owned outside of the individual’s estate, and the heirs receive the death benefits,” Principal says.
Principal will withhold income taxes and pay the life insurance premiums automatically, Principal says.