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Principal Plus For Life Details
GMWB B - National
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Overview
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The Principal Plus For Life Rider (PPFL) provides guaranteed lifetime income through it's Guaranteed Withdrawal Balance (GWB) and Lifetime Income Amount (LIA) features. The GWB guarantees you will be able to withdraw at least 100% of your premium payments—regardless of market performance. The LIA enables you to continue taking withdrawals for life—without annuitizing—even after the GWB is depleted.

  • You can take withdrawals up to an annual Guaranteed Withdrawal Allowance (GWA) that's based on your total premiums instead of the contract's current value. Exceeding the Guaranteed Withdrawal Allowance my reduce the allowance amount available in subsequent years. 
  • After reaching age 65, the rider's Covered Person can begin taking withdrawals up to an annual Lifetime Income Amount (LIA), a benefit that continues for the Covered Person's lifetime, regardless of whether the GWB or contract value are depleted. Exceeding the Lifetime Income Allowance my reduce the amount available in subsequent years.
  • You can increase your guaranteed withdrawals to as high as 150% of premiums, 5% for each of the first 10 contract years in which no net withdrawals are taken.
  • You can also "lock-in" gains in the contract's market value, increasing both the total guaranteed withdrawals and the annual withdrawal allowance, through the Rider's Step-up feature. Step-up opportunities are offered every 3 years for the first 9 contract years and annually thereafter:
    • Contracts issued prior to May 1st, 2007 offer Step-up opportunities up to and including the 30th contract year.
    • Contracts issued on or after May 1st, 2007 offer Step-up opportunities until the first contract anniversary after the oldest owner's 95th birthday.

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Current Guaranteed Withdrawal Balance (GWB)

The total guaranteed amount that remains available for withdrawal from your contract. Until the GWB reaches zero, you can continue taking withdrawals up to the annual allowance, even after the contract value is reduced to zero. Withdrawals up to the withdrawal allowance are deducted from the GWB dollar-for-dollar; withdrawals that exceed the annual allowance trigger a recalculation of the GWB to the lesser of the GWB after the withdrawal or the contract value after the withdrawal.
 

Guaranteed Withdrawal Amount (GWA)

The maximum total amount you can withdraw in a single contract year without adversely effecting your rider benefits. The initial GWA is calculated to be 5% of the initial GWB. Exceeding the GWA may result in a reduction of the GWB and in the GWA for subsequent contract years.
 

Remaining Guaranteed Withdrawal Amount for Current Contract Year

The amount that remains available for withdrawal in the current contract year without exceeding the GWA. This amounts is equal to the current GWA minus the total value of withdrawals you have already taken in this contract year.
 

Lifetime Income Amount (LIA)

The amount of the annual withdrawal benefit guaranteed to the Covered Person for life, regardless of the remaining contract value or GWB. The Covered Person is defined as the contract's oldest owner. The LIA is calculated on the first contract anniversary after the Covered Person's 65th birthday to equal 5% of the GWB. Exceeding the LIA may result in a reduction of the LIA for subsequent contract years.