Principal Disability Insurance is designed to provide reliable income protection if an illness or injury prevents you from working. Known for its strong financial foundation and client-centered approach, Principal offers disability insurance policies that are customizable to meet the unique needs of professionals, including physicians, business owners, and self-employed individuals.
As a professional, your ability to earn income is one of your most valuable assets. Principal’s disability insurance policies are structured to protect this asset, offering coverage that aligns with your income, career goals, and lifestyle.
Why Choose Principal Disability Insurance?
Principal Financial Group has built a strong reputation as a trusted provider of income protection. Their disability insurance policies offer the security and flexibility needed to ensure you’re financially prepared in the event of a disability.
Key Benefits of Principal Disability Insurance
- True Own-Occupation Coverage: Principal’s policies include a true own-occupation definition of disability. This coverage ensures that if you can’t work in your specific occupation, even if you can work in another capacity, you’ll still eligible to receive benefits.
- Flexible Benefit Periods: Choose from benefit periods that range from a few years up to coverage until age 65 or 67, providing flexibility that suits your financial goals and career stage.
- Customizable Elimination Periods: Principal offers a range of elimination periods (waiting periods before benefits begin) from 30 to 180 days, allowing you to tailor your coverage to your financial strategy and available resources.
- Residual and Partial Disability Benefits: Principal’s policies offer residual benefits that provide partial income replacement if you return to work in a reduced capacity due to disability. This is ideal for professionals who want support while transitioning back to full-time work.
- Guaranteed Renewable and Non-Cancellable Policies: Principal’s policies guarantee that as long as premiums are paid, your policy terms will not change, ensuring stability over the life of your policy.
Principal Disability Insurance Policy Options
Principal offers disability insurance policies with several tailored options to address various needs, whether you’re looking for basic income protection or a comprehensive policy with additional riders.
Principal Income Protector
The Principal Income Protector policy is designed for high-earning professionals, with options to add riders and customize coverage. This policy is particularly beneficial for individuals in specialized fields, like medicine or dentistry, who want to ensure financial stability.
- Base Policy Coverage: The Income Protector policy offers a monthly benefit if you’re unable to perform the essential duties of your occupation due to illness or injury.
- Enhanced True Own-Occupation Definition: Principal’s true own-occupation coverage ensures that you’ll receive benefits if you’re unable to work in your specific profession, even if you take on another role.
Optional Riders to Maximize Your Coverage
- Cost of Living Adjustment (COLA) Rider: This rider ensures that your benefit amount keeps up with inflation, increasing annually based on a pre-selected percentage.
- Future Insurability Option (FIO): The FIO rider allows you to increase your coverage amount as your income grows without requiring additional medical underwriting. This option is especially valuable for younger professionals expecting income growth.
- Catastrophic Disability Rider: This rider provides additional benefits in case of a severe disability that significantly impacts daily living, offering additional financial support when it’s needed most.
- Student Loan Protection Rider: For professionals carrying educational debt, this rider helps cover monthly student loan payments if you’re unable to work due to a disability.
Who Can Benefit from Principal Disability Insurance?
Principal disability insurance is a good fit for:
- Physicians and Surgeons: Medical professionals who rely on their skills should consider true own-occupation coverage that supports them even if they can work in another capacity.
- Business Owners: As an entrepreneur or business owner, securing income protection is crucial since your ability to generate revenue is closely tied to your personal involvement.
- Self-Employed Professionals: Those without employer-based disability benefits can benefit significantly from Principal’s customizable options, providing a safety net against income loss.
- Young Professionals: Starting coverage early can lock in lower premiums, and the future increase option ensures coverage grows alongside your income.
Principal Disability Insurance Policy Features and Riders
Principal offers a variety of features and riders that enhance the standard coverage, allowing you to build a policy that aligns with your needs.
1. True Own-Occupation Definition
Principal’s disability insurance policies define total disability as the inability to perform the main duties of your specific occupation. This is especially valuable for specialized professionals who need coverage specific to their field of expertise.
2. Residual Disability and Recovery Benefit Rider
Provides partial income replacement if you’re able to work part-time after a period of disability, covering the income gap as you return to full capacity.
3. Cost of Living Adjustment (COLA)
COLA adjusts your benefits to align with inflation, ensuring that your disability income remains sufficient to cover living expenses over time.
4. Future Insurability Option (FIO)
With FIO, you can increase your coverage amount in the future as your income grows without needing additional medical underwriting.
5. Catastrophic Disability Rider
This rider provides additional financial support if you become severely disabled and unable to perform basic daily activities independently.
Frequently Asked Questions (FAQs) About Principal Disability Insurance
Q: How much does Principal disability insurance cost?
A: The cost of disability insurance through Principal varies depending on factors such as age, health, occupation, and selected policy features. On average, professionals can expect premiums to range from 1-3% of their annual income. Riders like COLA and FIO may increase the premium but add valuable protection.
Q: Can I adjust my coverage if my income changes?
A: Yes, with the Future Insurability Option (FIO), you can increase your benefit amount as your income grows without additional underwriting. This feature is ideal for professionals early in their careers who expect income growth.
Q: How does true own-occupation coverage work?
A: True own-occupation coverage allows you to receive benefits if you cannot perform the main duties of your specific job, even if you’re able to work in a different capacity. This is particularly beneficial for professionals whose skillset is unique to their current role.
Steps to Get Started with Principal Disability Insurance
Securing Principal disability insurance is a straightforward process that begins with assessing your needs and understanding your financial goals. Here’s a step-by-step guide:
- Evaluate Your Coverage Needs: Consider your monthly expenses, outstanding debt, and future financial obligations to determine an appropriate coverage amount.
- Request a Quote: Contact a licensed insurance professional or visit Principal’s website to request a personalized quote.
- Review Policy Options and Riders: Principal offers various riders and options like COLA, FIO, and residual benefits. Review these options to build a policy that suits your career and financial goals.
- Complete the Application: Submit your application and undergo any necessary underwriting, which may require medical history and other personal information.
- Activate Your Policy: Once approved, finalize your policy by paying the initial premium, ensuring your income is protected against unexpected life events.
Why Principal Disability Insurance is a Smart Investment
Choosing Principal disability insurance means trusting a company with a history of financial stability and customer service excellence. Principal’s commitment to flexibility, financial strength, and true own-occupation coverage makes it an ideal choice for professionals who want long-term income protection.
Ready to protect your future?
Get a personalized side-by-side policy comparison of the leading disability insurance companies from an independent insurance broker.
