ELM Income Group Inc. has added new provisions to insulate holders of its ELM Income Annuity against economic turmoil.
ELM, Washington, an insurance agency, designs and sells the policy, which is issued by a life insurance unit of Principal Financial Group Inc., Des Moines, Iowa.
The provision puts each contract’s earnings and premiums in a separate account.
The assets in the separate account “are unavailable to the insurer’s other policy holders or creditors until the benefits of all ELM Income Annuities in the separate account are fully funded,” ELM says. “In addition, under the terms of the ELM contract, the insurer’s general account must supplement the separate account to pay benefits, if necessary.”
The provision helps ensure that, no matter what corporate, regulatory or industry changes occur in the future, a customer’s benefit will be protected, ELM says.
The feature is common in group annuity contracts but rarely seen in individual contracts, ELM says.
ELM has come out with a new approach to calculating death benefits.