Principal Disability Insurance Review

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An independent review of Principal Disability Insurance.

Summary – Principal Disability Insurance Review

Principal is an A+ rated carrier that has a long history of selling Disability Insurance. It’s a strong policy for white-collar workers.

Principal Disability Insurance has all the essential features needed. But lacks some of the more comprehensive benefits found with other carriers. Such as:

Hospice Care Benefit
Home & Work Modifications
Waiver of Elimination for Recurrent Disability
Suspension for Unemployment
No Specialty Occupations Provisions

There are also some benefits that are must be added by Rider instead of being included automatically. Overall, it’s very solid Disability Insurance for Professionals.

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Company Profile – Principal Disability Insurance Review

Principal has an A+ (Strong) rating by S&P, with over $629 Billion in assets Their history dates back to the late 1800s.

Principal is a very well known Insurer. They offer Life Insurance, Disability Insurance, Employee Benefits, Retirement Plans, & Wealth Management.

Product Features – Principal Disability Insurance Review

Principal Disability Insurance has all essential features a white-collar professional needs. Most important being “Own-Occupation” definition of Disability.

Definition of Disability:
True Own-Occupation and Modified Own-Occupation available. No provisions for Occupational Specialties.

Premiums and Contract Provisions:
Non-Cancelable (premiums are locked-in)

Benefits Period choices:
2 years – 5 years – To age 65 – To age 67 – To age 70

Elimination Period choices:
30 days – 60 days – 90 days – 180 days – 360 days

Partial Disability and Recurrent Disability:
Included. Partial Disability requires a minimum of 20% loss of income.

Waiver of Premium when Disabled:
Included. Not extended for any period after being Disabled.

Waiver of Elimination Period for Recurrent Disability:
Not Available

Catastrophic Disability Coverage:
Included. COLA is included if included on the Base Benefit

COLA (Cost of Living Adjustment):
CPI Tied, capped at 3% or 6%

Future Increase of Coverage:
Automatic Benefit Enhancement included. Future Increase Rider optional.

Mental Health Benefit:
Capped at 24 months

Occupational Rehab Benefit:
Included

Home & Work Access Modifications:
Not Available

Lump Sum Benefit Option:
Not Available

Retirement Savings Protection:
Not Available as Rider. But available as Separate Policy

Serious Illness Benefit:
Included

Studen Loan Protection:
Not Available

Target Market for Principal Disability Insurance

This product was developed for the average white-collar professional. A mid level employee making $50k – $120k is the best profile for this product. It’s not the most expensive option on the market, but it is certainly not the cheapest either. They also cater to certain “gray-collar” Occupations. The product is a solid and well-rounded option.

Alternative Options to Principal Disability Insurance

Principal Disability Insurance was designed for white collar professionals in the $50k – $120k range. If you are a high earner, you might want to look at options that are a bit more comprehensive.

If you are a specialist in your occupation or a high-income earner, I recommend you look at alternatives such as Guardian Life or The Standard.

If you are a blue-collar or gray-collar worker, take a look at this article.

Final Thoughts about Principal Disability Insurance

Principal has a very solid Disability Insurance Policy. It is a good choice for white-collar professionals and even some gray-collar professionals. Principal is well-rated and has excellent customer service in my experience. Overall, it is a good option for someone who needs comprehensive income protection.

If you would like a Quote for Principal Disability Insurance, feel free to contact me or schedule a consult.