Product, New Business, and Underwriting News – Life Insurance
10/21/2024
Updated Principal® GI Term II can lead to more sales opportunities
We’re excited to announce Principal Guaranteed Issue Term II (GI Term II) has new premium rates, effective Oct. 21, 2024. The new rates are 12% lower, on average, with even greater decreases at many ages and slight increases at some younger ages. The updated product is available in all states except New York.
View the transition guidelines for GI Term II.
In addition to improved rates, the premium modal factor charge has been removed – meaning payments are equivalent at all frequencies (i.e., one annual payment is equal to 12 monthly, four quarterly, or two semi-annual payments).
Why GI Term II?
This innovative product can be ideal for funding business solutions including key person, business succession, and key employee benefits plans. Key features include:
- Policies are issued on a GI-basis – eliminating the hassle and uncertainty of medical underwriting.
- Preferred and Standard risk classes are available for groups.
- Face amounts can be increased over time, without evidence of insurability, via the Salary Increase Rider or contractually through a job level change.
- Policies can be converted to permanent insurance, without evidence of insurability, within the first five policy years or insured’s age 70, whichever occurs earlier.
Get all the GI Term II details
Important year-end details for individual life and disability insurance
The end of the year is fast approaching! To help guarantee your life and individual disability business is processed and paid in 2024, we need all final underwriting and administrative requirements for policy approval and issuance (including premium) by Dec. 6, and all delivery requirements for new business, adjustments, and reinstatements by Dec. 20.
Review additional year-end details and requirements.
Special authorization for medical information
As of Oct. 1, 2024, APS vendors J&H Copy Services and Parameds.com will contact the Field Office Contact listed for a case directly to obtain requested special authorization. The Principal Case Coordinator will no longer facilitate having the special authorization completed when Attending Physician Statements (APS) are needed by the Underwriter. Removing the Case Coordinator from the process reduces the turnaround time by 6 business days, on average.
Drop Ticket reminders
Drop tickets are valid for 6 months from the submission date. Links remain active for at least 30 days and can be renewed for up to 6 months. If you believe a link is expired, contact teleappsupport@principal.com.
For any updates to the proposed insured’s email address or phone number, send a message to teleappsupport@principal.com and they’ll update the information and resend the link.
Multi-Life Adjustment application
The Multi-Life Adjustment application has been updated for Florida (FL) and California (CA). Ensure you’re using the following applications:
- FL: AA 3407 N FL-1
- CA: AA 3407 N CA-1
Additional life products added to eApp
Using eApp, on iPipeline®, helps ensure all necessary application forms are completed and submitted in good order, which can speed up the issue process. Currently, Principal Universal Life Flex lll℠ and Principal Indexed Universal Life Flex II℠ are available on eApp. Effective October 5, our offering has expanded by adding Principal Indexed Universal Life Accumulation II℠ and Principal Universal Life Provider Edge II℠.
Communication to Entity Purchase Plan customers
The recent Connelly v. U.S. decision by the United States (U.S.) Supreme Court could impact business owners with entity purchase buy-sell agreements funded with life insurance. As part of our comprehensive Business Market Administration service, we’re reaching out to Principal® customers with these plans to inform them of the decision, how it could potentially affect them, and to provide considerations for next steps. We’re also notifying financial professionals with one or more clients with this plan so they can offer informed support.
You can view the letter and the attachment.
Reminder: Offer a better onboarding experience for GI Term clients
We’re excited to let you know we’ve made enhancements to the onboarding process for Principal® Guaranteed Issue Term II employee-owned plans.
What's new?
The onboarding process is fully-digital – eliminating paper forms and the back and forth with clients that often occur with them. The online onboarding center allows organizations’ Key Decision Makers (KDM) to directly enter information about themselves, their organization, their plan, and census, as well as eSign required documents. And their employee/participants complete and sign their applications online. The process is faster and easier, creating a better experience for your clients – and you.
Online onboarding is available to you, too
You can access the onboarding center at principal.com, using your login credentials for the site. This enables you to complete or assist your clients through the process, access Plan Summaries and eSign them, and monitor implementation status.
If you don’t have login credentials, contact our financial professional website help desk at 800-654-4278 to get set up or submit an online request – select the topic “Login information or issue.”
View additional information about the onboarding process in the Onboarding Overview.
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