THE PRINCIPAL FINANCIAL GROUP INDIVIDUAL ANNUITY INTEREST RATES EFFECTIVE 03/15/2015.

Transcription

1 THE PRINCIPAL FINANCIAL GROUP INDIVIDUAL ANNUITY INTEREST RATES EFFECTIVE 03/15/2015. FIXED DEFERRED ANNUITIES Principal Preferred Series Annuity Effective March 01 Effective March 15 Guaranteed Minimum Interest (GMIR) =0.50% (all states except NY) =1.00% (NY Only) Yield on Yield on 3-year guarantee* - without Return of Less than $50, % 0.00% 1.05% 1.05% 1.25% 0.00% 1.25% 1.25% $50,000-$99, % 0.45% 1.50% 1.20% 1.25% 0.45% 1.70% 1.40% $100,000 and more 1.05% 0.95% 2.00% 1.37% 1.25% 0.95% 2.21% 1.57% 3-year guarantee* - without Return of ( NY only) $50,000-$99, % 0.45% 1.50% 1.20% 1.25% 0.45% 1.70% 1.40% $100,000 and more 1.05% 0.95% 2.00% 1.37% 1.25% 0.95% 2.21% 1.57% The Principal Preferred Series Annuity 3-year guarantee with return of premium option is currently not available for new sales 4-year guarantee* - without Return of Less than $50, % 0.00% 1.35% 1.35% 1.55% 0.00% 1.55% 1.55% $50,000-$99, % 0.50% 1.85% 1.47% 1.55% 0.50% 2.05% 1.67% $100,000 and more 1.35% 0.90% 2.26% 1.58% 1.55% 0.90% 2.46% 1.78% 4-year guarantee* - with Return of Less than $50, % 0.00% 1.00% 1.00% 1.20% 0.00% 1.20% 1.20% $50,000-$99, % 0.50% 1.55% 1.17% 1.25% 0.50% 1.75% 1.37% $100,000 and more 1.05% 0.90% 1.95% 1.27% 1.25% 0.90% 2.16% 1.48% 4-year guarantee* - with Return of (NY only) Less than $50, % 0.00% 1.00% 1.00% 1.20% 0.00% 1.20% 1.20% $50,000-$99, % 0.50% 1.55% 1.17% 1.25% 0.50% 1.75% 1.37% $100,000 and more 1.05% 0.90% 1.95% 1.27% 1.25% 0.90% 2.16% 1.48% 5-year guarantee* - without Return of Less than $50, % 0.00% 1.45% 1.45% 1.60% 0.00% 1.60% 1.60% $50,000-$99, % 0.75% 2.31% 1.70% 1.70% 0.75% 2.46% 1.85% $100,000 and more 1.60% 1.00% 2.61% 1.80% 1.75% 1.00% 2.76% 1.95% 5-year guarantee* - with Return of Less than $50, % 0.00% 1.15% 1.15% 1.30% 0.00% 1.30% 1.30% $50,000-$99, % 0.75% 2.00% 1.40% 1.40% 0.75% 2.16% 1.55% $100,000 and more 1.35% 1.00% 2.36% 1.55% 1.50% 1.00% 2.51% 1.70% 6-year guarantee* - without Return of Less than $50, % 0.50% 2.05% 1.63% 1.70% 0.50% 2.20% 1.78% $50,000-$99, % 1.00% 2.56% 1.72% 1.70% 1.00% 2.71% 1.87% $100,000 and more 1.55% 2.00% 3.58% 1.89% 1.70% 2.00% 3.73% 2.04% 6-year guarantee* - with Return of Less than $50, % 0.50% 1.95% 1.53% 1.60% 0.50% 2.10% 1.68% $50,000-$99, % 1.00% 2.46% 1.62% 1.60% 1.00% 2.61% 1.77% $100,000 and more 1.45% 2.00% 3.47% 1.78% 1.60% 2.00% 3.63% 1.94% S:\RISFINL\RetAnnPrc\s\NOTIFY\RISANNRATECOMM1_MEMO.xls Page 1 of 6

2 Principal Preferred Series Annuity (cont.) Guaranteed Minimum Interest (GMIR) =0.50% (all states except NY) =1.00% (NY Only) Effective March 01 Effective March 15 1st Yr. Yield on 1st Yr. Yield on 7-year guarantee* - without Return of Less than $50, % 0.00% 1.75% 1.75% 1.90% 0.00% 1.90% 1.90% $50,000-$99, % 0.85% 2.61% 1.87% 1.90% 0.85% 2.76% 2.02% $100,000 and more 1.75% 1.20% 2.97% 1.92% 1.90% 1.20% 3.12% 2.07% 7-year guarantee* - with Return of Less than $50, % 0.00% 1.55% 1.55% 1.70% 0.00% 1.70% 1.70% $50,000-$99, % 0.85% 2.51% 1.77% 1.80% 0.85% 2.66% 1.92% $100,000 and more 1.65% 1.20% 2.86% 1.82% 1.80% 1.20% 3.02% 1.97% Additional Details: In the state of NY, the minimum premium on the 3-Year guarantee is $50,000. In the state of FL, the product automatically renews into a 1-year guarantee period and surrender charges do not restart. Return of premium feature must be elected at issue and is set for the life of the contract. *If no additional premiums are made after contract issue, the initial base rate is guaranteed until the end of the initial guaranteed period. **Represents the average annual interest rate earned during the guarantee period. Principal Select Series Annuity Yield on Yield on Fixed Deferred Annuity Products with MVA Guaranteed Minimum Interest (GMIR) =.05% 3-year guarantee * ( <$100,000) 1.10% 0.00% 1.10% 1.10% 1.35% 0.00% 1.35% 1.35% 3-year guarantee * ( $100,000 or more) 1.25% 0.00% 1.25% 1.25% 1.50% 0.00% 1.50% 1.50% Yield on Yield on Fixed Deferred Annuity Products with MVA Guaranteed Minimum Interest (GMIR) = 1% 4-year guarantee ( <$50,000) 1.10% 0.00% 1.10% 1.10% 1.20% 0.00% 1.20% 1.20% 4-year guarantee ( $50,000-$99,999) 1.10% 0.00% 1.10% 1.10% 1.20% 0.00% 1.20% 1.20% 4-year guarantee ( $100,000 or more) 1.10% 0.50% 1.60% 1.22% 1.20% 0.50% 1.70% 1.32% 6-year guarantee ( <$50,000) 1.25% 0.50% 1.75% 1.33% 1.35% 0.50% 1.85% 1.43% 6-year guarantee ( $50,000-$99,999) 1.30% 1.00% 2.31% 1.47% 1.40% 1.00% 2.41% 1.57% 6-year guarantee ( $100,000 or more) 1.30% 2.00% 3.32% 1.63% 1.40% 2.00% 3.42% 1.73% Yield on Yield on Fixed Deferred Annuity Products with MVA Guaranteed Minimum Interest (GMIR) =.05% 9-year guarantee * ( <$100,000) 2.05% 0.00% 2.05% 2.05% 2.15% 0.00% 2.15% 2.15% 9-year guarantee * ( $100,000 or more) 2.20% 0.00% 2.20% 2.20% 2.30% 0.00% 2.30% 2.30% 9 year guarantee period approved in all states except NY *GMIR and base rate for the 3 & 9 year guarantee periods is 1.00% in CT and NY. **Represents the average annual interest rate earned during the guarantee period. S:\RISFINL\RetAnnPrc\s\NOTIFY\RISANNRATECOMM1_MEMO.xls Page 2 of 6

3 Principal FPDA Plus Yield on Yield on Guaranteed Minimum Interest (GMIR) = 1% 1-year guarantee ( <$100,000) 1.00% 0.30% 1.30% 1.10% 0.30% 1.40% 1-year guarantee ( $100,000 or more) 1.00% 1.30% 2.31% 1.10% 1.30% 2.41% 5-year guarantee* No longer available for new sales 1.00% 0.00% 1.00% 1.00% 0.00% 1.00% 7-year guarantee* No longer available for new sales 1.00% 0.00% 1.00% 1.00% 0.00% 1.00% *Applies to All s. If no additional premiums are made after contract issue, the initial base rate is guaranteed until the end of the initial guaranteed period. Principal Secure Fixed Annuity No Longer Available for New Sales Yield on Yield on Guaranteed Minimum Interest (GMIR) = 1% 4-year guarantee Less than $50, % 0.00% 1.00% 1.00% 1.00% 0.00% 1.00% 1.00% $50,000-$99, % 0.00% 1.00% 1.00% 1.00% 0.00% 1.00% 1.00% $100,000 and more 1.00% 0.00% 1.00% 1.00% 1.00% 0.00% 1.00% 1.00% 6-year guarantee* Less than $50, % 0.00% 1.00% 1.00% 1.00% 0.00% 1.00% 1.00% $50,000-$99, % 0.00% 1.00% 1.00% 1.00% 0.00% 1.00% 1.00% $100,000 and more 1.00% 0.00% 1.00% 1.00% 1.00% 0.00% 1.00% 1.00% *If no additional premiums are made after contract issue, the initial base rate is guaranteed until the end of the initial guaranteed period. **Represents the average annual interest rate earned during the guarantee period. Principal Guaranteed Fixed Annuity No Longer Available for New Sales Yield on Yield on Guaranteed Minimum Interest (GMIR) = 1% 1-year guarantee** ( <$100,000) 1.05% 0.00% 1.05% 1.05% 0.00% 1.05% 1-year guarantee** ( $100,000 or more) 1.05% 0.00% 1.05% 1.05% 0.00% 1.05% 3-year guarantee* (All s) 1.00% NA 1.00% 1.00% NA 1.00% 5-year guarantee* (All s) 1.00% NA 1.00% 1.00% NA 1.00% *If no additional premiums are made after contract issue, the initial base rate is guaranteed until the end of the initial guaranteed period. **Principal Guaranteed Annuity 1-year guarantee Includes an Interest Bail-Out rider, which gives clients the ability to surrender the entire accumulated value without surrender charges if their current renewal rate is less than the Bail-Out stated in their contract. Note: this rider is not available in New York and effective May 15, 2010 is not available in Washington. **Bail-Out is 1.01% effective 03/15/2015 Principal FPDA No Longer Available for New Sales Guaranteed Minimum Interest (GMIR) = 4% Yield on Yield on (All s) 4.00% NA 4.00% 4.00% NA 4.00% S:\RISFINL\RetAnnPrc\s\NOTIFY\RISANNRATECOMM1_MEMO.xls Page 3 of 6

4 INDEX ANNUITY Principal Performance Annuity 7* Index Cap % Index Cap % Fixed Indexed Annuity Product# Minimum Index Cap = 3% Participation % <$50, % 0.00% 3.00% 0.00% 3.25% $50,000 or more 100% 0.00% 3.25% 0.00% 3.50% *Approved in all states except: NY. The rate lock-in procedures give the client the better of the index cap when the application is signed and the index cap when the money is received in the home office. #Contracts are only issued on the 2nd, 9th, 16th and 23rd of each month. INCOME ANNUITIES Income Annuity Payouts (SPIA) Benefit Option 10 Year Fixed Period Effective March 1 $ Effective March 15 $ Male, Life w/cash Refund, Age 70 $ $ Female, Life w/cash Refund, Age 70 $ $ Male, Life w/cash Refund, Age 80 $ $ Female, Life w/cash Refund, Age 80 $ $ d on $50,000 nonqualified premium, issued to an Iowa resident; payments are assumed to be monthly and deferred one period. The in income annuity payouts vary by income benefit option selected (i.e. some may increase, some may decrease, or remain und). Please contact the Principal Salesdesk for a current illustration. DEFERRED INCOME ANNUITIES Deferred Income Annuity Payouts (DIA) Benefit Option Male, Life w/cash Refund, Age 60, 3 Year Deferral Male, Life w/cash Refund, Age 60, 5 year Deferral Male, Life w/cash Refund, Age 65, 3 Year Deferral Male, Life w/cash Refund, Age 65, 5 year Deferral Male, Life w/cash Refund, Age 67, 3 year Deferral Male, Life w/cash Refund, Age 67, 5 year Deferral Male, Life w/cash Refund, Age 70, 3 Year Deferral Male, Life w/cash Refund, Age 70, 5 year Deferral d on $100,000 nonqualified premium, issued to an Iowa resident; payments are assumed to be monthly. The in income annuity payouts vary by income benefit option selected (i.e. some may increase, some may decrease, or remain und). Please contact the Principal Salesdesk for a current illustration. VARIABLE ANNUITIES Guaranteed Minimum Interest (GMIR) = 1% Principal Investment Plus VA Fixed Account Principal Investment Plus VA DCA - 6 month rate Principal Investment Plus VA DCA - 12 month rate Principal VA Fixed Account Principal VA DCA - 6 month Principal VA DCA - 12 month Principal Freedom VA Application Signed or Received Dates 03/2-03/15 03/16-04/1 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Interest Interest 1.00% 1.00% 2.00% 2.00% NOTES: All products may not be available to all distribution channels. Principal Variable Annuity and Principal Freedom VA are no longer available for new sales. S:\RISFINL\RetAnnPrc\s\NOTIFY\RISANNRATECOMM1_MEMO.xls Page 4 of 6

5 Interest Lock Procedures Variable Annuity Interest Procedures for the Fixed Account and/or DCA Accounts : Interest Lock-In Procedures for Interest rate is guaranteed only if the application is received in the Principal Home Office (h.o.) within 10 business days from the application signature date and initial premium is received in the h.o. within 90 calendar days of the client's signature date. Notes: If the lock-in box is not checked on the application the interest rate in effect at the time the money is received will apply. The rate lock-in only applies to the first premium payment received in the h.o. Interest Procedures for Additional s If additional premiums are allowed, the interest rate for the additional premium will be based on the rate in effect on the date the premium payment is received in the h.o. Fixed Deferred Annuity Interest Procedures Interest Lock-In Procedures for Interest Lock-In Procedures for Exs/Rollovers/Direct Transfers Interest Lock-In will be the greater of: 1) the initial base interest rate in effect on the date the client signs the application, or 2) the initial base interest rate in effect on the date the funds arrive in the Principal home office (h.o.) Applications and funds must be received in the h.o. within 14 calendar days following the client's signature date on the application of the client will receive the current initial base interest rate in effect at the time the funds are received in the h.o. Interest Lock-In will be the greater of: 1) the initial base interest rate in effect on the date the client signs the application, or 2) the initial base interest rate in effect on the date the funds arrive in the Principal home office (h.o.) Applications must be received in the h.o. within 14 calendar days following the client's signature date on the application and funds must be received in the h.o. within 60 calendar days following the application signature date or the client will receive the current initial base interest rate in effect at the time the funds are received. Interest Procedures for Additional s If additional premiums are allowed, the interest rate for the additional premium will be based on the rate in effect on the date the premium is received in the home office. NOTE: for products with a premium credit, the 1st year annual yield on initial premium is used instead of the initial base rate. S:\RISFINL\RetAnnPrc\s\NOTIFY\RISANNRATECOMM1_MEMO.xls Page 5 of 6

6 Guaranteed Minimum Interest (GMIR) s and Effective Dates Product Effective Date Principal Preferred Series Annuity** 0.50% 01/01/2015 Principal Secure Fixed Annuity, Principal Guaranteed Fixed Annuity, and Principal FPDA Plus 1.00% 01/01/2015 Principal Select Series 3 & 9 Year Guarantee Periods* 0.05% 01/01/2015 Principal Select Series - All Other Guarantee Periods 1.00% 01/01/2015 Variable Annuity Fixed Accounts 1.00% 08/01/2010 NOTE: the GMIR is set at contract issue and is set for the life of the contract, with the exception of Principal Preferred Series Annuity which resets at the end of the guarantee period *GMIR is 1.00% in CT and NY **GMIR is 1.00% in NY Guaranteed Minimum Cap and Effective Date Product Cap Effective Date Principal Performance Annuity % 01/04/2011 NOTE: All products may not be available to all distribution channels. For registered representative and internal information only. Not for use with customers or the public RF 1866 S:\RISFINL\RetAnnPrc\s\NOTIFY\RISANNRATECOMM1_MEMO.xls Page 6 of 6