ProdMod: Principal Announces Term Price Decrease

FROM PRINCIPAL…

Term Insurance: A simple option to help meet a range of protection needs

Now, new premium rates make coverage even more attractive. Effective, Nov. 1, 2021, new rates are available for Principal® 10-, 15-, 20-, and 30-Year Term.

Key things to know about the reprice

  • Level term rates are lower at many ages and risk classes. (Principal® GI Term and Principal® One-Year Term rates are unchanged.)
  • New rates are approved in all states and available to quote now.

Transition Guidelines

  • November 1, 2021
    • New Term 11/21 rates are available to sell and quote
    • We’ll except applications for original rates until December 1, 2021
    • Term applications in underwriting will be issued at rates applied for unless 11/21 rates are requested.
  • December 2, 2021
    • All applications received in the home office on or after this date will be issued with 11/21 rates

Find out more about these changes from Principal…

ProdMod: Principal Releases Updated Executive VUL III

FROM PRINCIPAL…

Principal Executive Variable Universal Life IIISM (Executive VUL III) is designed specifically for the business market and can be ideal for financing deferred compensation plans, bonus plans, and more. It has now been repriced and meets current Internal Revenue Code 7702 guidelines.

The updated product offers the same great features but has improved long-term accumulated value growth potential over the prior version. The new rates are effective immediately.

What can make this product a good fit for your business clients?

Executive VUL III offers business-friendly features that can help your clients do more, including:

  • Design flexibility that allows them to choose between higher early cash surrender values or greater long-term growth potential
  • Over 120 quality investment options from many well-known fund managers
  • Underwriting options for the busy executive, including Guaranteed Issue/Simplified Issue, Principal Accelerated Underwriting℠, and the new Principal Business Solutions Enhanced Underwriting
  • Dedicated case design and sales specialists before and during the sale—and in-house plan and policy administration services afterward

Transition Guidelines

  • October 1st: New rates available in all states except California and New York
  • September 30th: Last day applications can be received in our homes office to receive original rates.
  • Cases Pending on October 1st: All applications received prior to October 1st will be issued with original rates. You may request new rates for these cases. A new application is not required to receive new rates

Find out more about these changes from Principal…

AdminUpdate: Principal Introduces Concierge Underwriting for Business Cases

FROM PRINCIPAL…

We’re excited to introduce our new Principal® Business Solutions Enhanced Underwriting program. At a high level, the program is an extension of Accelerated Underwriting, designed to underwrite more individuals without insurance exams at higher face amounts. It’s our way of acknowledging that fully underwritten cases have the opportunity for a better customer experience, even at multi-million face amounts when the right information to comfortably assess the risk is available. We’ll leverage both digital health data and the traditional Attending Physician Statement (APS) for this program.

Eligibility Guidelines

  • The policy must be employer-owned/sponsored, trust-owned, or an affiliated relationship (i.e., an individual policy owned by a business owner, key employee or their family member).
  • Face amounts are available up to $50 million.
  • All currently sold products are eligible.
  • Insured eligibility:
    • Ages 25-70.
    • Have total compensation of $150,000 or higher.
    • U.S. citizen or green card holder—foreign nationals/foreign residents are not eligible.
    • Professional athletes, entertainers, government officials, and other high-profile applicants are not eligible.
    • Contact your underwriter prior to case submission if you have questions about whether specific occupations qualify.
    • Standard or better risk class, including cases improved to Standard with Healthy Lifestyle Credits. Cases improved to Standard through the Principal Risk Upgrade Program are not eligible.
  • The Attending Physician Statement must include history for the past five years, including a physical with blood, urine, and physical measurements in the past 12 months.
  • Favorable EKG or cardiac testing within the past 3 years:
    • Ages 41-49 for face amounts over $10 million.
    • Ages 50+ for all face amounts above applicable Accelerated Underwriting limit.
  • An online Part B or TeleApp interview is required for application Part B completion.

Find out more about these changes from Principal…

ProdMod: Principal Releases Section 7702 Compliant IUL Accumulation II

FROM PRINCIPAL…

You likely already know that Principal Indexed Universal Life Accumulation II (IUL Accumulation II) is an attractive option to help your clients meet their protection and accumulation potential needs. Now, we’re pleased to let you know that it has new rates that generally improve long-term cash value growth and is updated to meet Internal Revenue Code Section 7702 guidelines.

IUL Accumulation II offers your clients a simple, transparent design they can have confidence in. It’s ideal for use in the business market, including key employee retention/retirement and business owner retirement solutions—and it has key features such as:

  • Choice of three index-linked accounts
  • Optional high early cash surrender value rider that can provide businesses a balance sheet boost
  • Innovative automated income platform that helps maximize distributions and helps protect against unplanned tax events
  • Key Features
  • Three account options:
    • S&P 500® Price Return index-linked account (one-year point-to-point)
    • S&P 500® Price Return High Cap index-linked account (one-year point-to-point)
    • S&P 500® Total Return index-linked account (one-year monthly average)
  • Fixed Account
  • Choice of standard or alternate loans
  • Accumulated value enhancement feature that provides a bonus to boost long-term values
  • High early cash surrender values available for businesses via optional rider
  • Three death benefit options
  • Automatic trigger of over-loan protection
  • Living benefits provided through accelerated benefit riders for chronic illness and terminal illness

Transition Rules

September 1, 2021

  • New rates for IUL Accumulation II are effective in all states except: CA, DE, FL, ND, NY and SD
  • The Principal illustration system and WinFlex are updated with new rates
  • IUL Accumulation II applications in underwriting will be issued at rates applied for unless new rates are requested

September 30, 2021

  • We’ll accept applications for the original rates until this date
  • All applications received in the Home Office after September 30, 2021 will be issued with the new rates. No exceptions will be granted.

Find out more about these changes from Principal…

AdminUpdate: Principal Shortens FA NIGO Resolution Window to 45 days

FROM PRINCIPAL…

Effective September 1, the normal 90-day resolution window for fixed deferred, indexed, and income annuity contracts that are not in good order (NIGO) will be shortened to 45 days. If issues with paperwork or missing information aren’t resolved within 45 days, the application will be canceled. This change does not impact variable annuities.

Once the paperwork is in good order, we’ll request transfer funds from the current carrier (if applicable). Transfers will still follow our standard timing of 90 days once the paperwork is in good order.

We’ll work diligently with you to quickly resolve any items that are not in good order within the 45-day window and to obtain funds from ceding carriers.

As a reminder, new applications for these products must be signed by September 30 and received in the Principal home office by October 15. These changes don’t apply to variable annuity applications.

Servicing existing fixed annuities

We recently announced our exit from retail fixed annuities and the evaluation of possible transactions for our in-force block. These types of transactions take time, and it’s too early to say what the administrative and servicing provisions will be as the result of any transaction. It’s possible that we could retain the customer service responsibility long-term. Until a decision has been made, there will be no changes to the administration of in-force fixed annuity business. You and your clients will continue to receive the same high level of service you’ve come to expect from Principal.

Find out more about these changes from Principal…

ProdMod: Principal’s Annuity Transition Rules are Now Available

FROM PRINCIPAL…

An update on Principal® fixed annuity new business

As you know, after a comprehensive strategic review, Principal® has made the decision to stop selling fixed annuity products. I wanted to provide an update now that we have a few more details to share on our closure of new fixed annuity sales.

Fixed annuity new business timing

We are discontinuing new sales of the following products on September 30, 2021:

  • Principal® Preferred Series Annuity
  • Principal® Select Series Annuity
  • Principal® Secure Choice Indexed Annuity
  • Principal® Income Annuity
  • Principal® Deferred Income Annuity

Any new applications for these products must be signed by September 30 and received in the Principal home office by October 15. Our goal is to have all contracts issued by December 31. We will work diligently with you and your financial professionals to quickly resolve any items that are not in good order and to obtain funds from ceding carriers (if applicable).

Existing fixed annuity business

There may be changes to the administration of our existing block of fixed annuity business in the future, but for now it’s business as usual. There are no changes to servicing for your financial professionals or your clients, and their annuity isn’t changing. Please know we’ll communicate any changes as more information becomes available.

Please see the Principal Fixed Annuity Strategic Review FAQ for additional details.

AdminUpdate: Principal Releases Life Strategic Review FAQ

HIGHLIGHTS FROM THE JULY FAQ…

This initial version of the FAQ addresses:

  • Product availability
  • The current definition of a “business case”
  • Term Conversions
  • Administration of the in-force block of business
There are a few additional items in the FAQ, making a review of the entire document well worth the investment of a few minutes of your time. AIN will distribute any and all future updates to the FAQ as soon as they are available.

Find out more about these changes from Principal…

AdminUpdate: Principal Announces New Risk Upgrade Program

FROM NEAL HALDER, AVP & CHIEF UNDERWRITER, PRINCIPAL…

When we announced the discontinuation of ASAP (Automatic Standard Approval Program) effective April 1, 2021, we expressed confidence in our ability to continue delivering on our commitment to competitive underwriting decisions. I’m pleased to announce the new Principal® Risk Upgrade Program is now available to support these efforts. This program is similar to ASAP, but it offers a couple key advantages, including its availability for use with term cases and eligibility with select non-medical impairments. Plus, you and your clients will automatically receive the benefit of the program for cases that qualify, without needing to request it.

Full details are available in our Principal Underwriting Guide, but here are a few eligibility highlights:

  • All products except One-Year Term
  • Issue ages 20-65
  • Face amounts up to $5,000,000 (with total coverage amount of up to $20,000,000 with all companies)
  • Table 2 or flat extra up to $2.50
  • Includes non-medical flat extras such as aviation, driving history, and some hazardous sports
  • Excludes known coronary artery disease and cancer risks

​We’re excited about this new program and believe it will provide an even broader reaching benefit than ASAP because of the inclusion of Term products.

Thanks again for your continued business.

Find out more about these changes from Principal…

AdminUpdate: Principal Discontinues Table Shave Program Effective April 1st

FROM PRINCIPAL…

ASAP to be Discontinued

We regularly review our underwriting offerings to determine their relevance in the market, as well as their financial impact to the company and long-term sustainability. Following a thorough evaluation, we’ve decided to discontinue ASAP, effective April 1, 2021. To be eligible for ASAP consideration, formal applications (both new business and adjustment) must be dated prior to April 1, 2021 and received in our home office by April 15, 2021.

We believe this change reflects the ongoing evolution of medical underwriting and that we remain well positioned to provide competitive and consistent underwriting offers. Our client-focused approach, and recent enhancements to Principal Accelerated Underwriting through increased use of digital health data and digital application capabilities, offer shorter underwriting times and improved experiences for you and your clients.

As always, it’s our privilege to have the opportunity to work with you we look forward to serving you and your clients in 2021 and beyond.

Find out more about these changes from Principal…

AdminUpdate: Major Enhancements to Principal’s Accelerated Underwriting Program

FROM PRINCIPAL…

Last March, we introduced temporary underwriting guidelines to use with our Accelerated Underwriting (AU) program. They enabled us to underwrite more of your clients on a non-examination basis by using digital health data from various sources, including the patient portal. This experience also provided tremendous insights into the potential future capabilities of AU. We’ve used those learnings to establish new AU guidelines that will allow more of your clients to benefit from this innovative program.

New AU program guidelines effective Feb. 15, 2021

  • For Clients Aged 18 – 40:
    • Maximum Face Amount: $3MM
    • Additional Requirements:
      • Drop Ticket must be used to submit all term applications up to $3 million face amount (except in New York).
      • For individuals who don’t qualify for AU due to model score or knock out criteria, we’ll review to see if digital health data (DHD) can be used to help underwrite them without an insurance exam. DHD records will need to include results from an exam/lab within the prior 24 months.
  • For Clients Aged 41 – 50:
    • Maximum Face Amount: $2.5MM
    • Additional Requirements:
      • For face amounts greater than $2 million, DHD records will need to include results from an exam/lab within the prior 24 months.
      • Drop Ticket must be used to submit all term applications up to $2.5 million face amount (except in New York).
      • For individuals who don’t qualify for AU due to model score or knock out criteria, we’ll review to see if DHD can be used to help underwrite them without an insurance exam. DHD records will need to include results from an exam/lab within the prior 24 months.
  • For Clients Aged 51 – 60:
    • Maximum Face Amount: $2.5MM
    • Additional Requirements:
      • For face amounts greater than $1 million, DHD records will need to include results from an exam/lab within the prior 12 months.
      • Drop Ticket must be used to submit all term applications up to $2.5 million face amount (except in New York).
      • For individuals who don’t qualify for AU due to model score or knock out criteria, we’ll review to see if DHD can be used to help underwrite them without an insurance exam. DHD records will need to include results from an exam/lab within the prior 12 months.
  • Eligible Products:
    • Principal® Term
    • Principal Universal Life Provider Edge IISM
    • Principal Universal Life Flex IIISM
    • Principal Indexed Universal Life Flex IISM
    • Principal Indexed Universal Life Accumulation IISM
    • Principal Variable Universal Life Income IVS

Special Program Guidelines for Principal Executive Variable Universal Life III

  • For Clients Aged 18 – 60:
    • Maximum Face Amount: $5MM
    • Additional Requirements:
      • For issue ages 18-40 and face amounts greater than $3 million; issue ages 41-50 and face amounts greater than $2 million; and issue ages 51-60 and face amounts greater than $1 million, DHD records will need to include results from an exam/lab within the prior 12 months.
      • All individuals, including those with a qualifying AU model score, will need to have exam results including labs within the prior 12 months.
      • DHD records will need to include results from an exam/lab within the prior 12 months.

Process Changes & Enhancements

  • You no longer need to request AU. All applicants who meet the age and face amount requirements will automatically start through AU and will only be removed if we determine they no longer meet eligibility. When this occurs, we’ll advise of the exam requirements needed to continue.
  • Drop Ticket must be used for all term submissions up to the stated maximum AU face amounts—except for applications written in New York. Term applications that don’t meet these guidelines will no longer be accepted beginning April 1, 2021. Further details will follow.
  • Client-completed Part B (online or phone) is required for permanent products.

Find out more about these changes from Principal…