Important upcoming DI product updates

We regularly review our product portfolio to ensure our offerings continue to meet the objectives of our policy owners, distributors, and company. We want to let you know that after a purposeful and thorough analysis, we’ll be introducing some changes to the Principal® Individual Disability Income (DI) insurance product (HH750). Effective Jan. 1, 2021, the following updates will be implemented:

  • Gender-specific rates will be used for fully underwritten multi-life cases for healthcare-related occupations. This includes physicians, dentists, veterinarians, optometrists, and all other healthcare-related occupations listed as “A-M” or medical-related in the Occupational Class schedule of the Product Description & Underwriting Guide (login required). This guide will be updated to reflect the Jan. 1 changes.
    • Any insureds added to existing multi-life cases will be added at gender-specific rates.
    • Guaranteed Standard Issue (GSI) cases will continue to be based on gender-neutral (unisex) rates, except for Resident GSI/fallback cases, which will be issued on a gender-specific basis.
    • Applies to new policies issued after Jan. 1, 2021. See transition guidelines for details.
  • The Mental/Nervous & Substance Abuse Disorders Limitation Rider will be required for any new case where New York is the written or resident state—or where the insured’s occupation is “pharmacist.”
    • The Mental/Nervous & Substance Abuse Disorder Limitation Rider requirements for other states and occupations remain unchanged.
  • Select professional limits will be increased for graduating residents in 2021.
    • Limit for all M.D. and D.O. physicians and doctor specialists, except psychiatrists and podiatrists, increases from $6,500 to $7,500.
    • Limit for general dentists increases from $5,000 to $6,000.
  • Routine APS guidelines in New York will be expanded to include all applications, except those written under the Simplified Underwriting sales program.
  • New Select Occupation discount* of 10% will be available for the following:
        

Non-medical occupations:

 
 
  • Actuary
  • Attorney
  • Certified Public Accountant (CPA)
  • Corporate executive with income of $100,000+
  • Data scientist with PhD
  • Economist with PhD
  • Engineer
  • Scientist with PhD
 

Medical occupations:

 
 
  • Pediatrician
  • OB-GYN
 

Making these product updates will help us more sharply focus on our target markets and better align our product with others in the market—while continuing to provide you with an attractive solution to help your clients protect their income. This Disability Income (DI) insurance product premium discounts summary (login required) provides an overview of discounts that will be in effect on Jan. 1, 2021.

Transition guidelines

We appreciate your business and recognize these changes could impact cases you’re currently working on. To provide you with ample opportunity to get your business closed under the sales assumptions used when presented, the following guidelines will be in effect:

  • To get a policy issued with 2020 pricing and guidelines (pre-Jan. 1, 2021 changes), an application must be signed by Dec. 31, 2020 and received in the home office by Jan. 31, 2021.
    • Applications in underwriting—or issued but not in-force as of Jan. 1, 2021—can be considered to get the pre-Jan. 1 pricing and guidelines.
    • Policies in-force as of Jan. 1, will not be considered for re-issue.
  • The Principal DI illustration system will reflect new pricing effective Jan. 1, 2021.

Questions?

Contact your IDI wholesaling team or the DI Sales Desk at 800-654-4278, option 2,2.

 

* Not available in New York. In CA, ID, MA, RI, and VA where 6A occupations aren’t available, apply Association discount to the applicable 5-A Select non-medical profession, if applicant is a member of a professional organization. In Ohio, use Association discount in lieu of Select Occupation if applicant is a member of a professional organization.

 

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Disability insurance from Principal® is issued by Principal Life Insurance Company, 711 High Street, Des Moines, Iowa 50392, www.principal.com.

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DI10213 | 11/2020