Have an IDI underwriting question?
Check out the updated Product & Underwriting GuideFind it here
Business Loan Protection Rider
The Business Loan Protection (BLP) rider covers loans taken out for business-related expenses, such as:
- Purchase or expansion of a practice or business
- Purchase of expensive equipment
- Facility renovations
- An increase in working capital or build-up of inventory
It's available as a cost rider on Overhead Expense insurance policies (HH789 and HH702) - in approved states (DI2307). In the event of a total disability, benefits can be assigned to the financial institution holding the loan.
This rider offers guaranteed premium rates until the client reaches the Termination Date. It cannot be conditionally renewed beyond the age 65 policy anniversary.
Note: This rider is not available in California and is not approved in all states (DI2307).
- Types of loans considered for coverage: Term, variable rate, commercial mortgage and lease financing
- Issue ages: 18 to 60
- Occupation classes: 3A/3A-M and above
- Elimination Periods: 30, 60, 90, 180 or 365 days
- Benefit amount: Based on loan obligation, up to $20,000 per month
- Benefit maximum: Up to $2 million
- Benefit period: End of the financial obligation or earlier (three-year minimum)
- Discounts (not all stackable): 10% Select Occupation, 20% Multi-Life1, 10% Association (not approved in all states)
1 Available when three or more employees with a common employer purchase Individual Disability Insurance from the same producer.
Key materials listed below.
Business Loan Protection rider highlights (JJ1368)
Explains the need for business loan coverage, as well as how Principal Life's Business Loan Protection rider for OE insurance works and how benefits are paid.
OE with BLP business owner approach letter (JJ1923)
This letter is directed to business owners and discusses Overhead Expense and Business Loan Protection - can be customized to different occupations.
Key materials listed below.
BLP appointment phone script (DI2410)
Use this phone script to help arrange a time to meet with lender personnel to discuss business loan protection opportunities.
Advisor insurance checklist (JJ2007)
This checklist can be used by CPAs and attorneys when referring clients to a Principal Life rep.
Bank prospecting letter (DI2409)
Explains how the bank's loan customers could benefit from our Business Loan Protection rider.
Approach/training seminar for lender staff (DI8869)
Presentation that explains the benefits the Business Loan Protection rider offers for financial institutions and their clients.
Business Loan Protection lender kit (KIT3884)
Includes the lender process brochure (JJ1911), approach seminar hand-out (DI8869), lender job aid (JJ1983) and consumer flier (JJ1972).