Principal Financial Product Overview: SUL Protector II

General Comments: This rate revision resulted in very minimal pricing adjustments. Generally, increases were less than 10%, with most being less than 5%. This results in a strong competitive ranking position of 2th thru 5th. Competitiveness strengthens when you limit the guarantee to A100. Principal removed their 7 x’s target premium limitation (for right now). There were almost no changes to targets (generally +/- 1%). Principal doesn’t offer a preferred best risk class.

Stated by carrier: “While the 7x Target First-Year Premium limit will

be lifted, a maximum first-year premium limit per insured will remain in

effect with a revised amount of $2 million for repriced 2013 products

and the new UL Flex II and UL Accumulation II. Applications with an

anticipated first-year premium in excess of $2 million will not be

accepted. Existing first-year premium limits of 7x Target and $3 million

maximum per insured will remain for the current 2012 (pre reprice)

rates of UL Protector IV and SUL Protector II, in addition to current

generation UL Flex/UL Flex (Accumulation).”

The attached analysis () provides details of the rate change.1) Percentage Premium is Higher or Lower for $1,000,000 DB, SNLG – Lifetime (single, full and short-pay scenarios)2) Percentage CSV YR20 is Higher or Lower for $1,000,000 DB, SNLG – A100 (single, full and short-pay scenarios)3) Percentage Target Premium is Higher or Lower for $1,000,000 DB, SNLG – Lifetime (single, full and short-pay scenarios)