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Income protection flex agreement

The Income Protection Flex Agreement (IPA Flex) offers death benefit flexibility for your clients. It allows them to choose an irrevocable settlement option that pays part or all of the policy’s death proceeds to their beneficiaries as a monthly or annual benefit over a specified number of years.


Income stream for beneficiaries

  • Provides a defined payment schedule for distribution of all or a portion of the death proceeds to beneficiaries
  • When payments begin, the remaining unpaid benefit continues to grow at a fixed rate
  • Allows the total benefits paid to your clients' beneficiaries to exceed the actual death proceeds of the policy.

Maximum accumulation potential

  • May enhance the annual policy credit,2 which can increase the policy’s accumulation value and allow for increased policy distributions while the insured is alive.

1. The amount exceeding the original benefit may be taxable as interest income.

2. Annual Policy Credit is not guaranteed and is calculated based on certain factors, including but not limited to accumulation value, interest, index credits, mortality, persistency, policy duration, premiums, policy indebtedness, taxes, expenses and additional agreements.

3. Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender, and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first 15 years of the contract. Clients should consult their tax advisor when considering taking a policy loan or withdrawal.


  • Agreement can be added at issue or after issue
  • Death proceeds can be paid in a combination of a lump-sum payment and installment payments
  • No lump-sum minimum amount or percentage required

Lump-sum choices

  • Lump-sum percentage (decrease allowed after issue)
    • Client chooses percentage of death proceeds to be paid as a lump sum (1-80%)
  • Specified lump sum (decrease allowed after issue)
    • Client chooses dollar amount of death proceeds to be paid as a lump sum (must not exceed 80% of the requested face amount)
    • Lump sum will remain constant even if the death proceeds increase
  • Specified lump sum with annual growth rate (2-10%)
    • Lump-sum amount will increase on each policy anniversary at the lump-sum growth rate but cannot exceed the Income Protection Flex Agreement amount
    • Client can change or terminate the growth rate at any time
      • Lump-sum growth rate can only be added upon issue of the agreement
      • Once terminated, the annual growth rate can no longer be changed or added

Installment payments

  • Minimum of 20% required
  • Can be paid monthly or annually
  • Policyholder selects 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: 100


Products with the Income Protection Flex Agreement:

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The Income Protection Flex Agreement (IPA Flex) provides for an irrevocable settlement for all or a portion of the policy death proceeds. 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.

The Income Protection Flex Agreement installment payment could be payable for a period up to 30 years. The installment payments and the interest rate used to calculate such payments will be shown in the policy illustration that you provide to clients either prior to or upon receipt of the policy. The income protection agreement interest rate used in the calculation of the installment payment is at least equal to the Settlement Option Guaranteed Interest Rate shown on the policy data pages. 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 proceeds.

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 charges.

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

Insurance products issued by Minnesota Life Insurance Company

Policy form numbers:  16-20077 and any state variations; ICC19-20204, 19-20204 and any state variations

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