5 Questions Agents Are Asking About the Principal News
July 6, 2021 by Allison Bell
Principal Financial Group Inc. is now preparing to go down the same road that many other competitors have taken: It’s getting ready to end sales of retail individual fixed annuities and retail individual life insurance policies, and to tilt more firmly toward the sale of variable products.
The announcement will have no effect on policies, contracts or agreements already in place, Principal says.
The life companies turning onto “Variable Products Tilt Drive” — including Ameriprise Financial, AXA, MetLife, Prudential Financial, Voya and others — hope to get more of their revenue from asset management services, mortality protection and longevity protection, and less of their revenue from protecting customers against ups and downs in stock prices or interest rates.