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New Disability Buy-Out Insurance Product Available

Principal Life Insurance Company introduces a NEW Disability Buy-Out (DBO) insurance policy in approved states effective February 1, 2016. It’s more competitive and offers additional price competitiveness and flexibility, while providing the same features and benefits as the previous policy.

Cost-Effective
  • Lower new issue rates for select ages, occupation classes and benefit factors.
  • 6A occupation class – Offers the most attractive premium rates for our most preferred occupations.
  • 5% Business Owner Discount – Applied to the DBO coverage if the owner purchases another Principle Life Individual Disability Insurance product.
FlexibilityDisability Buy-Out Insurance
  • One-Way Buy-Out – A differentiator! Allows sole proprietors to fund a purchasing agreement for their business with a key employee if the owner becomes totally disabled.
  • Business Update Valuation rider – Provides an informal valuation of the business every three years to help identify opportunities to increase benefits without medical underwriting. Plus, an advance option may be available.
  • Full Benefit Continuation rider (cost) – No longer reduces available benefits if the insured becomes disabled within five years of the termination of coverage.
  • Coverage can now be continued to age 67 to better align with extended retirement plans.
  • Death benefit now provides 3 times the maximum monthly benefit in a lump sum payment.