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Budget-Friendly 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.


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


Your clients could save 15-60% over traditional PPO1 benefit designs.2 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 benefits3 – 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 Contracted provider network in Texas. Colorado residents: A network access plan is available upon request. West Virginia residents: You may view the Access Plan required by Health Benefit Plan Network Access and Adequacy Act online at principal.com/wvdentalaccessplan. You may also contact us at 800-247-4695 to request a copy. 2 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.3 In-network only plans aren’t available in all states.

Important Information

For financial professional 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. 


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