NU Online News Service, Feb. 24, 2005, 4:05 p.m. EST
A Des Moines, Iowa, insurer has introduced a life insurance product aimed at business owners and executives.[@@]
The insurer, Principal Financial Group Inc., says the new Principal Universal Life Accumulator policy is designed so that, under certain conditions, a business can book a net surrender value asset of about 70% of the first-year premium.
In other cases, the net surrender value asset may amount to as much as 90% of the first-year premium, Principal says.
The policy could be useful in cross-purchase buy-sell arrangements, key-person insurance and “economic benefit regime split-dollar” arrangements, Principal says.