Underwriting update from Nate Berns, Chief Underwriter – Life Insurance
09/29/2023
I want to provide some updates that can help you as you focus on a strong finish to the year.
New, higher multiples for key person coverage. Death benefits of up to 10 times key employees’ total compensation is the standard amount available. But higher amounts can be warranted in some situations. Effective immediately, we’ll consider 15-20 times compensation for well-established businesses and/or unique circumstances. A few examples include, employees who have:
- Unique skill or talent that’s more difficult to replace.
- Significant experience and that left a higher paying job for one with a lower salary but with an ownership stake and potential for future growth.
- Partial ownership, which allows us to consider a percentage of the company’s net income toward the employee’s total compensation.
Don’t forget about enhancements to Guaranteed Issue (GI). Recently we announced exciting new changes for GI cases, including:
- Consideration of 5-9 lives for Principal® Guaranteed Issue Term II in certain situations.1
- Increased multiples and alignment of face amount maximums between employer-owned and employee-owned cases. These changes apply to GI cases using either term or permanent products.
Get more details
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Offer your high-earning clients an easier way to get coverage. Principal® Business Solutions Enhanced Underwriting is ideal for business owners and other high-income earners who have high coverage needs but don’t want the inconvenience of traditional full underwriting. We leverage digital health data and other available information to offer coverage without insurance exams – even at multi-million dollar face amounts.
We’re here to help. The members of our team of experienced underwriting professionals can provide consultation when you need it. And they’ll work tirelessly to provide underwriting decisions that are timely, consistent, and competitive.
Please reach out if you have questions. We look forward to a successful close to 2023.
Nate Berns, AVP and Chief Underwriter – Life Insurance
1We’ll consider 5-9 lives when the client organization offers Principal Group Term Life, Voluntary Term Life, or Guaranteed Standard Issue Individual Disability Insurance.