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Principal Unveils UL Policy

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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.