Entity Purchase Buy-Sell Submission Guidelines
Take advantage of free, top-notch administrative services from Principal by making sure your business is submitted to our Business Market Administration (BMA) department.
- Complete life insurance applications and accompanying life insurance illustrations, per NAIC regulations.
- The employer (or a trust on behalf of employer) should be the policy owner and beneficiary.
- Sex distinct rates should apply.
- To speed underwriting, submit the following:
- A brief cover note to identify three things: (1) Fair market value (FMV) of business and how this was determined, (2) the percentage of business ownership per proposed insured, and (3) whether a Principal National or Principal Life application is being submitted for ALL individuals under the buy sell plan, and if NOT, an explanation why.
- Copy of business valuation or buy sell agreement (if available).
- To obtain life insurance applications, visit the Create Application Packet page in Virtual Supply, or Principal Advisor Network offices may use Life E-App (for Term and Universal Life products only).
- If corporate-owned policy, have authorized officer other than proposed insured sign as policy owner1.
- For variable life insurance, submit documents identified in required Customer Identity Verification Form (MM2580)
If trust-owned policy,
- Complete Business Case Submission Checklist (DD849R).
- Have the client complete a buy-sell agreement. You may refer to these sample agreements:
- Prepare a cover letter/memo if there are any special instructions or requests.
- Refer to the information below to submit above items.
- Write policy number and proposed insured's name in upper right of both fax cover sheet and first page of application.
- Fax all documents in proper page order. If you have a payment, make photocopy of check and fax with application. Mail original check immediately to home office at one of the addresses below.
- Mail ONLY the following ORIGINAL documents to home office at one of the addresses below (always include cover sheet with policy number and proposed insured name):
- Initial premium payments;
- All 1035 exchange requirements, including Absolute Assignment (DD747), Lost Policy Statements, Internal Exchange Request (DD689), etc.
Principal Financial Group
P.O. Box 10431
Des Moines, IA 50306-0431
Principal Financial Group
ATTN: IPDC A-001-N20
711 High Street
Des Moines, IA 50392
Call your BMA Administrator at 800-654-4278, options 4, 2, 3 with any questions
Insurance issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Principal National and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392.