Principal Growth Annuity

A Deferred Annuity With Strong Guarantees, Flexible Premiums And A First-Year Bonus

The Principal Growth Annuity is a flexible-premium, deferred annuity offering a 1.00% first-year bonus on each deposit.

One-Year Rate Guarantee Followed By Competitive Renewal Rates

The series offers a one-year interest rate guarantee period on each deposit, which secures the crediting rate for that duration. At the end of the guarantee period, your client benefits from competitive renewal rates based on the current interest-rate environment and current market conditions. In addition, a contractual bailout rate is set at 1.00% less than the initial crediting rate for each deposit.

Principal Guarantee

Every contract includes a principal guarantee, which ensures that your client will never receive less than total premium payments, less any previous withdrawals.

Choice Of Surrender Periods With Flexible Withdrawal Options

Surrender-charge periods vary based on the contract selected. Each contract offers a variety of ways for your client to access funds before the end of the surrender-charge period without paying a surrender charge. In addition, there is no window at the end of the surrender-charge period, during which time owners are generally required to make a decision prior to a restart of surrender charges.

Target Clients

The Principal Growth Annuity is an ideal savings vehicle for those seeking the benefits of tax-deferred growth, principal protection and generous access to funds.

This annuity is also an excellent way to enhance your client’s retirement-savings plan and can be used to fund 403(b) TSAs, IRAs and SEPs.

  • Return of Premium Guaranteed
  • Principal Growth Annuity 5
    • 1-Year Rate Guarantee on Each Deposit
    • 1.00% First-Year Bonus Included
    • 5-Year Surrender-Charge Period (8%, 7%, 6%, 4%, 2%)
    • Bailout Feature: 1.00% Less Than Initial Crediting on Each Deposit
  • Principal Growth Annuity 7
    • 1-Year Rate Guarantee on Each Deposit
    • 1.00% First-Year Bonus Included
    • 7-Year Surrender-Charge Period (9%, 8%, 7%, 6%, 5%, 4%, 2%)
    • Bailout Feature: 1.00% Less Than Initial Crediting on Each Deposit
  • Principal Growth Annuity 9
    • 1-Year Rate Guarantee on Each Deposit
    • 1.00% First-Year Bonus Included
    • 9-Year Surrender-Charge Period (9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%)
    • Bailout Feature: 1.00% Less Than Initial Crediting on Each Deposit
  • $5,000 to $1,000,000 initial premium (higher amounts may be permitted with prior home-office approval)
  • Ongoing Premium Accepted
  • 45-Day Rate Lock
  • Issue to Age 90
  • No Automatic Surrender Reset
  • Surrender-Charge-Free Withdrawal Options
    • 10% Annual Withdrawals (after the first contract year)
    • Payments of Interest Earnings (beginning immediately)
    • Nursing Home Waiver
    • Terminal Condition Waiver
    • Death Benefit
    • Annuitization
    • Substantially Equal Periodic Payments
    • IRS Required Minimum Distributions
  • No Market Value Adjustment
  • No Annual Contract Fees

100% Principal Guarantee

Regardless of economic fluctuations your client will never receive less than total premium payments, less any previous withdrawals or outstanding loan balances. This is a guarantee that many other investments cannot provide.

45-Day Rate Lock

A rate lock allows 45 days from the time a request for a rollover, transfer or exchange is received in the home office. If funds are received within the 45-day window, your client will receive either the held rate or the current rate, whichever is greater.

Bailout Rate Feature

Each deposit is assigned a bailout rate of 1.00% less than the initial crediting rate. If that deposit’s renewal rate falls below its bailout rate, your client may withdraw all or a portion of that premium and any of its associated interest earnings without surrender charge.

Ongoing Deposits

Each deposit can be no less than $1,000 and the maximum deposit made in any contract year must not be greater than the initial contract year’s total premium amount, without prior home office approval. Additional premiums will be credited with the rate in effect at the time they are received.

No Surrender Reset

Your client will be spared the hassle of the typical 30- or 60-day window at the end of the surrender-charge period.