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Loan Split Dollar 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.

Guidelines

  1. Complete life insurance applications and accompanying life insurance illustrations, per NAIC regulations.
    • The insured is typically the policyowner, and names their personal beneficiary. (Alternatively, the policyowner and beneficiary could be a trust established by the insured.)
    • Unisex rates should apply. (If not used, then complete Norris Letter of Understanding (BB4402)).
    • To obtain life insurance applications, visit the Create an App page on the advisor site, or Principal Advisor Network offices may use Life E-App (for Term and Universal Life products only).
  1. Have client complete a loan split dollar agreement with accompanying promissory note.
  2. Have the appropriate collateral assignment form completed, as described below:
  3. If trust-owned,
    • Under Age 70 – Submit:
    • Ages 70+ – Submit entire Trust document.
       
  4. Complete Business Case Submission Checklist (DD849R). To identify the plan type, mark “Other” box and write: Loan Split Dollar. (Again, unisex pricing should apply.)
     
  5. For Guaranteed Issue or Simplified Issue Underwriting, include a copy of the Principal home office email or letter which granted approval for this underwriting program.
     
  6. Prepare a cover letter/memo if there are any special instructions or requests.
     
  7. Submit above items via fax or mail using the information in the Contact Us section below.

Important Information

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.

633834-102018

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