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Lower-cost Benefit Solutions

Have clients who think offering quality employee benefits is too expensive? The good news is it doesn’t have to be. Principal offers a range of options to fit tighter employer budgets.

Disability

When your clients are ready to offer group disability coverage, they can select how employees purchase benefits: by choosing either a percentage of salary or set benefit amounts.

Incremental benefits – an employee-paid, voluntary solution – give employees the power to purchase the amount of coverage they need and can afford in increments, up to 60% of their pre-disability income.

  • Short-term disability (STD) amounts can range from as little as $100/week to as much as $1,500/week, in increments of $50.
     
  • Long-term disability (LTD) amounts can range from $500/month to $6,000/month, in increments of $100 or $250.

Increments offer employees flexibility, affordability and control. And since they’re voluntary, they don’t impact your clients’ bottom line. They’re a good first-time disability offering for clients, particularly lower-salary groups. Increments can also be a good mix with traditional benefits. For example, some employers combine incremental short-term disability coverage with employer-paid long-term disability.

Here’s how incremental benefits stack up next to our traditional voluntary or employer-paid disability offering. What you recommend depends on your clients’ needs.

Voluntary short-term disability Incremental Traditional
Max. benefit amount $1,500/week $1,500/week up to $2,500
Max. benefit percentage Up to 60% salary 40% up to 66⅔% of salary
Voluntary long-term disability Incremental Traditional
Max. benefit amount $6,000/month $6,000/month up to $10,000
Max. benefit percentage Up to 60% salary 40% up to 66⅔% of salary

Dental

Your clients could save 15-60% over traditional PPO benefit designs.1 And employees can choose or change dentists any time, and even see a specialist without a referral.

Some of these affordable options include:

  • Preventive-only – Covers preventive care at any dentist.
     
  • Preventive and limited basic – Covers preventive care only, plus select basic procedures, at any dentist.
     
  • In-network only benefits2 – Covers preventive, basic and major services from dentists in the Principal Plan Dental Network. Services from a non-network dentist aren’t covered.
     
  • High-deductible – Covers preventive, basic and major services at any dentist. Includes a higher deductible such as $250 on basic and major services.
     

1 Compared to a traditional benefit design with preventive covered at 100%. After a $50 deductible, basic covered at 80% and major at 50% to a maximum of 1,000. Services from any dentist.2 In-network only plans aren’t available in all states.

Important Information

For producer use only. This summary is not a complete statement of the rights, benefits and limitations of the coverage described here. For cost and coverage details, contact your Principal® representative. 

EC4792-1 | 05/2018

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