Principal Financial Group has introduced a variable universal life insurance product for small-business owners that is designed to give policyholders easy access to cash value, the company said Wednesday.
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The policy offers a 90% to 95% cash value-to-premium ratio in the first year, according to Des Moines-based Principal Financial Services Inc.
It can be used for executive benefits to selected key employees and can also be used as a business succession planning tool. The product also offers a rider that waives part of the policy's surrender charges for a limited period, helping business owners avoid the large hit to earnings that commonly occurs with business-owned life insurance, the company said.
