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Helping clients take advantage of IDI Benefit Update opportunities

The Benefit Update (BU) rider allows clients to have their Principal individual disability insurance (IDI) reviewed every three years to ensure it keeps up with changes in their income. We’re making changes to improve the experience.

Easier for you

When you’re involved in the BU process, client engagement is higher.  Here are a few ways we’re helping:

  • Automatic e-mail notifications now include client details and BU status. Additional details are found on the BU Activity Report1.
  • Enhanced BU Activity Report – The hub for BU opportunities, it now includes tools to help start the process, with links to:
    • The electronic BU application through e-App 
    • A customizable e-mail you can send to clients
  • Early notification for Quality Producers (QP) (PDF) – A QP perk includes receiving proactive quarterly BU opportunity reports. It’s a great way to plan ahead.

Easier for clients

Clients respond differently to different types of communication. Disability Income clients will now receive a postcard and email reminders.  As of June 17th, here’s the process2:

  1. Postcard reminder
  2. E-mail reminder
  3. Last-chance letter with paper application

Plus, all client correspondence promotes access to a self-serve online application.

Don’t forget – First-year commissions are paid on BU adjustments! An average adjustment of $1,142 provides $571 in first-year commissions.3

Questions? Contact client administration at 800-654-4278, ext 49918 or your local disability wholesaling team.

1. Producer e-mail notification sent when Principal has the e-mail on file.  E-mail directs the producer to log in to Advisor Digital for more information.

2 For Disability Income insurance policies only. The postcard is the client’s initial client notification sent 60 days prior to target date. If clients have an “active” email on file with Principal and have not responded with a BU application, they receive an email communication 45 days prior to target date. Clients receive a letter and paper form as their final communication 30 days from target date.

3 Average premium increase for BU offers accepted in 2014-2015 was $1,143. Commissions may vary; example assumes 50% first-year commissions. This figure includes Disability Income, Disability Buy-Out and Overhead Expense products.

 Disability insurance from Principal® is issued by Principal Life Insurance Company, Des Moines, IA 50392.

 For producer information only. Not for use with consumers or the public. Please remember to abide by the company’s policy on disclosure of compensation. You can obtain more information, as well as a sample disclosure form, at www.principal.com.


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