Principal is a leading provider of disability insurance, and many physicians opt for coverage from this insurer. Before committing to coverage, it’s helpful to understand what the coverage entails and how it can be customized to fit your needs. DrDisabilityQuotes.com is here to provide an in-depth review of this coverage to guide your decision-making process.
About Principal Financial Group
Principal Financial Group is a family of companies that includes Principal Life Insurance Company and Principal National Life Insurance Company. Principal is a FORTUNE 500® company that’s been in business since 1879. The company employs over 20,000 employees globally and is recognized as one of the Big Five insurance companies for disability coverage, alongside Guardian, The Standard, Ameritas and MassMutual.
Principal Insurance Standings
Principal Financial Group’s ratings are consistently strong and have an overall stable outlook. These ratings are based on four leading agencies — A.M. Best Company, Fitch Ratings, Moody’s Investor Service and S&P Global.
Disability Insurance Products
Principal Income Protector was launched on May 1st, 2023, replacing Principal’s existing HH750 series product. As of October 1st, 2024, the Income Protector is available in all states except California and New York, where HH750 is still offered.
This page will discuss Principal’s Income Protector disability insurance product. If you reside in CA or NY, please feel free to contact one of our agents for quotes and an explanation of product benefits.
In addition to Principal Financial Group’s disability insurance, Principal offers retirement and income solutions, asset management, and group benefits for employers.
Principal Income Protector Disability Insurance
Principal’s disability insurance replaces your income should you be deemed unable to work. You have the option of customizing your coverage with Principal riders. However, there are also built-in benefits that Principal’s policy provides:
- Non-Cancelable and Guaranteed Renewable: Principal cannot change or cancel your policy as long as you continue paying your premiums or increase the premiums regardless of changes in income, occupation or health. Your Principal disability insurance premium will increase if you increase your monthly benefit amount.
- Rehabilitation benefit: If you are disabled while holding Principal coverage and wish to pursue a rehabilitation program, you may receive an additional benefit to help cover the costs. This agreement is established in writing upon agreement between you and Principal.
- Waiver of premium benefit: If you are disabled for 90 days, you will no longer be responsible for covering the cost of your premium as you collect your claims. Principal will refund the premiums paid after disability began and will continue to waive premiums throughout the course of disability.
- Presumptive disability benefit: You will be presumed totally disabled, regardless of your ability to work or earn an income, if you permanently lose the power of speech, hearing in both ears, sight in both eyes, or use of both hands, both feet or one hand and one foot.
Principal offers a selection of benefit periods, the length of time you could collect claims, and elimination periods, the length of time you must be disabled before receiving claims.
Additional Benefit Features
Customize your Principal disability coverage with various riders, including:
- Death benefit: Receive a lump-sum benefit equal to three times your monthly benefit amount if you die while receiving disability benefits.
- Capital sum benefit: This rider entitles you to a one-time lump sum, equal to 12 times your monthly benefit if you lose sight in one eye or the use of a hand or foot. You qualify for this payment if you have a total loss of use without any potential for recovery, and is payable in addition to any other benefit you qualify to receive.
- Catastrophic disability benefit: In the event that you become catastrophically disabled from an injury or illness, this rider will add an additional monthly benefit to your existing monthly disability payment. To classify as catastrophically disabled, you must lose the ability to complete at least two activities of daily living, such as eating or bathing. Catastrophic disability also includes cognitive impairment and becoming presumptively disabled.
- Supplemental health benefit: Receive a one-time lump sum, equal to six times your monthly benefit, if you become disabled and are diagnosed with cancer, stroke or coronary artery bypass graft surgery.
- Maximize Your Benefit: Provides the opportunity to increase your benefit in the future, without medical underwriting. With this “MYB” rider, you’ll be able to request an increase at any time during the first three years of the policy. However, if requesting an increase after three years, you must have a qualifying event such as marriage, divorce, birth or adoption of a child, change of employment and loss of group coverage, or at least a 20% increase of income.
- Annual Increase: This rider will automatically increase your benefit every year to help keep up with inflation. You will receive a 3% compounded increase each year which you accept by paying the increased premium. The rider will remain until the twentieth year when you are age 50, or when you refuse two increases in a row, whichever is earliest.
- Cost of Living Adjustment (COLA): While you’re disabled and receiving monthly benefits, this rider increases your benefit annually to keep up with inflation. Your benefit increase will depend on the rider you have selected. The options include a 0-3% or 0-6%, both tied to the change in CPI-U but up to a maximum of 3% or 6%.
- Residual disability and recovery benefit: This allows you to collect partial disability claims if you experience some loss of income, but not all, due to an injury or illness. You will need to lose at least 15% of your income to qualify as partially disabled. After recovering from a disability, you could continue to qualify for recovery benefits until you no longer have a loss greater than 15% for two consecutive months.
Principal’s Definition of Disability
Principal Income Protector automatically includes a definition of disability considered to be ‘own occupation if not working’, but True Own Occupation can be added for an additional cost.
True Own Occupation
If you are unable to perform the substantial and material duties of your own occupation, you will be considered totally disabled even if you are working in another occupation. Own Occupation would be defined as your specialty if you were performing within a professionally recognized specialty in medicine or dentistry.
In this case, if a physician is no longer able to perform the duties within their specialty, they are able to collect benefits even if they begin working and gaining income through another job outside of their field. This definition is why Principal is one of the top companies for disability insurance and is considered a must for all medical and dental professionals.
Own Occupation If Not Working
Under the base policy definition of total disability, you must be unable to perform the substantial and material duties of your own occupation and you are not working. Own Occupation is defined as your specialty if you are limited to a professionally recognized specialty in medicine or dentistry and you are working within the scope of your degree and/or license.
If you have not selected the True Own Occupation rider within the Income Protector plan, your policy will contain this definition of disability. In this case, if a physician is no longer able to perform their duties within their specialty, they’ll collect total disability for as long as they are not gainfully employed in any occupation while disabled.
Find the Right Disability Coverage for You at DrDisabilityQuotes.com
At DrDisabilityQuotes.com, we offer a truly unbiased analysis of disability insurance to help you find the right coverage for your needs. If you’re interested in learning more about Principal disability insurance and if the coverage is right for you, request a free quote and compare it to other leading insurers today.
