Update Regarding IRC Sec. 7702 and Nonforfeiture Product Changes

We previously communicated a change to IRC Sec. 7702 that impacts all life insurance policies issued Jan. 1, 2021 and later. As part of the IRC Sec. 7702 updates, the maximum interest rate applicable under the Standard Nonforfeiture Law was adjusted and any policy issued after Jan. 1, 2022, must use the new rate. To meet this requirement, all products were updated and filed in each state for approval. In any state where our nonforfeiture filing wasn’t approved by Dec. 31, the applicable product isn’t available for sale until the updated version is approved.

As of Jan. 5, 2022, Principal Universal Life Provider Edge^SM is available for sale in the state of California. On Jan. 15, 2022, Principal Indexed Universal Life Flex II will be available for sale in the state of South Dakota.

Applications pending as of Dec. 31 will be issued as the applied for product, and the policy date must be no later than Dec. 28, 2021. We’ll communicate as approved versions of the affected products are available.