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Income protection agreement

The Income Protection Agreement (IPA) allows clients to elect how their beneficiaries receive the death benefit. It offers them an irrevocable settlement option that pays part or all of the policy’s death benefit as a guaranteed monthly or annual benefit over a specified installment period.


  • A guaranteed income stream for beneficiaries: Allows the insured to lock in a defined payment schedule for distribution of death benefit proceeds to their beneficiaries
  • Total benefits paid may exceed the actual death benefit: The benefit that has not yet been paid will continue to grow at a fixed rate. This allows the total benefit paid to your clients' beneficiary to exceed the actual death benefit of the policy1
  • Increased cash value accumulation potential: Potential for lower cost of insurance charges withheld from the premium payments which may improve the accumulation value and allows for increased distributions throughout the life of the policy

1. A portion of the benefit that is paid out in installments will be reportable as interest income. This taxable portion represents the amount of the benefit that exceeds the policy death benefit.


  • Minimum of 25% (up to 100%) of the death benefit must be paid out in guaranteed installments
  • Payment schedule is determined at issue and may not be altered
  • Installments can be paid monthly or annually
  • Agreement cannot be dropped once elected
  • Client can select the number of years and latest age of the insured to which installment payments will be made
    • Minimum length: 10 years
    • Maximum length: 30 years
    • Maximum age: 95 years old
  • Benefit schedule is based on the initial face amount set at issue
  • Percentage of the benefit elected to be paid in installment payments will remain the same and will be adjusted pro rata by comparing the initial face amount to the death benefit at death
  • Interest rate on installment payments is set at issue and does not change


Products with the Income Protection Agreement:

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The Income Protection Agreement requires for an irrevocable settlement for all or a portion of the policy death proceeds. Changes to this election will not be allowed while the policy is in force and the insured is alive. The beneficiary of the policy will not be able to change the manner in which the death proceeds are paid out upon the death of the insured.

Guarantees are based on the claims-paying ability of the issuing insurance company.

Additional agreements may be available. Agreements may be subject to additional costs and restrictions. Agreements may not be available in all states or may exist under a different name in various states and may not be available in combination with other agreements.

Please keep in mind that the primary reason to purchase a life insurance product is the death benefit. 

Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender periods. Variable life insurance products contain fees, such as mortality and expense charges, and may contain restrictions, such as surrender periods. There may also be underlying fund charges and expenses, and additional charges for riders that customize a policy to fit individual needs. Charges and expenses may increase over time. The variable investment options are subject to market risk, including loss of principal.

This information should not be considered as tax or legal advice. Clients should consult their tax or legal advisor regarding their own tax or legal situation.

Insurance products issued by Minnesota Life Insurance Company / Securian Life Insurance Company

Policy form numbers:  13-302 and any state variations; SL-13-302; ICC18-20150, 18-20150 and any state variations; 18-20155

The information presented above is solely intended for use by financial professionals. Such information is not intended for public consumption or dissemination.

For financial professional use only. Not for use with the public. This material may not be reproduced in any form where it is accessible to the general public.

DOFU 12-2022