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Principal Deferred Income Annuity
If the initial premium or sum of all premiums exceeds $2 million, approval from the Principal Life Insurance Company is required.
Guarantees are subject to the claims-paying ability of Principal Life Insurance Company.
A flexible premium deferred income annuity
Principal Deferred Income Annuity offers a
way to convert your annuity payment(s) into
a future guaranteed income stream.
A deferred income annuity can be funded
from two sources, nonqualified and qualified
investments. One example of a qualified
investment is a traditional Individual
Retirement Account (IRA). In addition,
contracts funded with qualified investments
are eligible for a Qualified Longevity Annuity
Contract (QLAC), so long as you meet the
IRS guidelines. A QLAC allows you to extend
the start of your income past the minimum
required distribution (MRD) age of 70½.
Customize your income stream with a variety of choices
Flexible premium payments
• When you purchase this product, you can
make a $10,000 minimum annuity investment.
You can also make additional annuity
investments starting at $2,000. You will receive
a confirmation of any subsequent premium
investments and the additional income amount
purchased. You may request a refund of
additional premium investments within
10 calendar days of receiving a confirmation.
• Each payment purchases a specific amount
of guaranteed lifetime income, based on
annuity purchase rates in effect at the time
each annuity payment is made.
• Multiple premium payments will be combined
into a single guaranteed income stream that
begins on the income start date of your choice.
Choice of income start date — The income
start date is the date the deferral period ends
and your annuity payments begin. Choosing the
income start date is one of the most important
decisions you will make when you purchase
your contract. This date determines when your
income will start and also affects the income
amount. Generally, the longer the deferral
period, the higher your income payments will be.
• Deferral period: Begins on the contract issue
date and ends on the income start date.
- Minimum: 13 full months from date of
contract issue
- Maximum:
• The income start date may be deferred
until the earlier of 30 years from the issue
date or until any annuitant reaches age 95.
• For traditional IRA contracts, the Income
Start Date may not be deferred past the
calendar year in which the contract owner/
annuitant attains age 70½, or age 85 for a
Qualified Longevity Annuity Contract.
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Annuity payout options — A variety of
lifetime income options offers income for one
life or two, and a choice of death benefits.
Issue ages
• Qualified: 0–68
• Nonqualified: 0–93
• Traditional IRA; 0–68
• QLAC: 0–82
Account minimums
• Minimum initial premium payment:
$10,000 qualified and nonqualified
• Minimum subsequent premium payments:
$2,000 each
Annuity income options:
• Life with Period Certain (single or joint)*
• Life with Cash Refund (single or joint)
Return of Premiums Payments — During the
deferral period, the death benefit is “Return of
Premium.”
• With joint ownership, the death benefit is
paid upon the death of the second owner.
• If an ownership change is made, the death
benefit is paid upon the death of the original
owner. (In the case of joint ownership, this
applies after the second of the two owners dies.)
After the income start date, the death benefit
is determined by the annuity income option
elected.
Income start date adjustment option
• Prior to the Income Start Date, the client
may make a one-time change to the income
start date.
• Allows client to accelerate or defer the
income start date.
• Client may accelerate the income start date
by up to five years (provided it is no sooner
than 13 months after the latest premium
payment).
• Client may defer the income start date up
to five years from the original income start
date (must be within the maximum deferral
period limits).
Keep in mind that if you change your income
start date, your annuity income payments will
be recalculated. While the income start date
may be changed, the original annuity income
option, the income payment frequency, and
the actual day of the month payments are
received cannot be changed.
Withdrawal Feature
• Automatically issued at no additional cost
• Available to exercise after income start date.
• Policy owner must be at least age 59 ½ to
exercise the payment acceleration option.
• Allows the client to receive up to six
advanced lump-sum income payments.
• Available for nonqualified contracts receiving
monthly income payments only (not available
with other payment frequencies).
• Not available for qualified contracts.
• Limited to four requests over the life of
the contract.
• Income payments must resume before this
option may be exercised again.
*Feature not available for QLAC.
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How this feature works:
• If you elect to receive four monthly income
payments in advance, you will receive a
lump sum of four scheduled monthly income
payments.
Note: If the annuitant dies before the
income payments resume, any advanced
life contingent income payment that would
not have been paid after the death of the
annuitant must be returned.
Inflation protection features*
• Annual Increase Rider — Clients can elect
to have their income payments increase
annually by 1%, 2%, 3%, 4%, or 5%. There is
no additional fee, but income payments are
lower when this rider is elected. This rider
applies during the income phase.
• Consumer Price Index (CPI) Rider — Clients
can elect to have their income payments
adjusted annually for increases in CPI-U
(Consumer Price Index for All Urban
Consumers) (if any). There is no additional
fee, but income payments are lower when
this rider is elected. This rider applies during
the income phase.
Income payment frequency
• Monthly, quarterly, semiannually,
or annually
Additional considerations
Before purchasing this annuity, you
should consider:
• The length of time between the issue date
and the time annuity income payments
begin, to assure you have other income
available to meet any interim liquidity
needs; and
• The annuity income payment amount the
joint annuitant will receive on the income
start date.
*Feature not available for QLAC.
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Contract rider descriptions are not intended to cover all restrictions, conditions, or limitations. Refer to contract for full details.
Annuities are issued by Principal Life Insurance Company, a member of the Principal Financial Group®, Des Moines, IA 50392, principal.com. Not all products described here are available in all states of the U.S.A.
Tax-qualified retirement arrangements, such as IRAs, SEPs, and SIMPLE-IRAs, are tax deferred. You derive no additional benefit from the tax-deferral features of the annuity. Consequently, an annuity should be used to fund an IRA, or other tax-qualified retirement arrangements, to benefit from the annuity’s features other than tax deferral. These features may include guaranteed lifetime income, guaranteed minimum interest rates, and death benefits without surrender charges.
Contract SF 949 and ICC14 SF 949 Riders SF 920, SF 921, SF 923, SF 924, ICC14 SF 957, SF 957, and SF 959.
Fidelity Insurance Agency, Inc., distributes this product, but it is issued by another insurance company, which is not affiliated with any Fidelity Investments company. All guarantees are subject to the claims-paying ability of the issuing insurance company.
643428.4.0 PDIA-FCTSHT-0616 05/2016 1.956732.103
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