Compass

Important Principal Financial Term Insurance Changes (4/28/17)

 Principal Financial is a leading carrier in the increasingly competitive term insurance marketplace and they have announced rate improvements to maintain their competitive position. With respect to this latest announcement, please keep the following features in mind:

  • Principal is also one of the few carriers that continue to permit conversion to any of their permanent products

• Please be aware that with the recent term rate improvement, they have reduced the available conversion period but currently       continue to allow conversion to any of their permanent products.

o With the new lower rates, the 10 year term is now convertible for 7 years; 15 year term for 12 years, 20 year term for 15 years and 30 year term for 20 years or attained age 70

• They have also introduced an extension rider that allows a client to “buy back” the full conversion time period if desired.

• The intent is to be able to show the new low rates with and without the extension rider as separate products on our website term spreadsheet (www.ubsnet.com).

• Principal continues to also feature their industry leading Accelerated Underwriting program which may allow qualifying clients to obtain up to $1,000,000 of coverage quickly without the need for exams, blood, medical records etc.

o Accelerated Underwriting is available for all products, not just term insurance.

 At a time when the majority of term insurance carriers have significantly reduced or even eliminated the ability to convert to competitive permanent products, we are pleased that Principal has found a way to avoid this trend while still offering industry leading term insurance pricing.

Read the full Transition Guidlines here.

 If you have a competitive term or permanent life insurance need, consider Principal and contact our sales team for any questions or quotes at life@ubsnet.com