Individual Disability Insurance
Principal Increases BOE Monthly Issue Limit to $42,500!
The following underwriting enhancements help make Principal Life Insurance Company more competitive in the multi-life and business owner marketplaces and will help you place more business.
Overhead Expense (OE) Insurance
Maximum Issue and Participation Limits Increase for All Policy Series
For occupation classes of 3A/3A-M and above, Principal Life has increased its maximum issue and participation limits for Overhead Expense insurance:
- Maximum issue limit of $42,500/month (from $30,000/month).
- Maximum participation limit of $50,000/month (from $30,000/month).
To receive the higher issue and participation limits, the OE insurance policy needs to have a Benefit Factor of 12 and either a 60 or 90 day Elimination Period.
If a policy meets the above conditions and there is a desire to have the Automatic Increase Option rider (Automatic Benefit Increase rider in California), the Maximum Issue and Participation Limit is increasing to $40,000/month from $28,000/month.
If your client needs coverage beyond a Benefit Factor of 12 (e.g. 18 or 24), two policies may be sold to the client. For example, one policy can provide a benefit of $30,000/month with Benefit Factor of 24; the second policy can provide a benefit of $12,500/month with a Benefit Factor of 12. The benefit amount with the longer benefit factor cannot exceed $30,000/month and the total benefit amount of the two policies can not result in benefits greater than $42,500/month for the shorter benefit factor.
