Provider: Principal Life Insurance Company
A.M. Best Rating: A+ (Superior)
A.M. Best Rating Explained: A forward-looking, independent, and objective opinion regarding an insurer’s, issuer’s, or financial obligation’s relative creditworthiness. The opinion represents a comprehensive analysis consisting of a quantitative and qualitative evaluation of balance sheet strength, operating performance, and business profile or, where appropriate, the specific nature and details of a security.
COMDEX Score: 90
COMDEX Score Explained: COMDEX is a ranking composite of all of the ratings that an insurance company has received from A.M. Best, Standard & Poor’s, Moody’s and Fitch. It gives the company’s standing, on a scale of 1-100, in relation to all other companies that have been rated by the rating services. A company needs to be rated by at least two rating services to receive a COMDEX.
Invested Assets: $71 Billion
Company Profile
Founded in 1879, Principal Financial Group has evolved into a global financial services provider. Principal Life Insurance, a division of Principal Financial Group, offers a wide array of insurance products, including disability insurance. With over 140 years of experience, Principal has built a reputation for reliability and financial strength. Its solid ratings from financial institutions like A.M. Best and Moody’s are a testament to its commitment to delivering long-term financial protection.
Common Elements to a Policy
Elimination Period: The number of days you must be disabled prior to receiving benefits. The most common option is 90 days, though longer options are available (30, 60, 90, 180, and 365 days).
Benefit Period: Available up to age 65. Shorter options are available, but we do not recommend them for doctors.
Common Enhancements to a Policy
Partial/Residual Benefit: Partial benefits that are paid in the event of a partial loss of income due to a disability. This amount of partial benefit is typically equal to the percentage of lost income.
Cost of Living Adjustment (COLA): Increases the monthly benefit while disabled and receiving benefits to keep pace with inflation.
Future Increase Option: This option allows you to increase benefits every year until age 55, without medical underwriting. You must apply for additional coverage every three years and purchase at least 50% of any additional coverage offered to keep the rider in effect. Financial underwriting is required. If you do not apply or do not accept a minimum of 50%, this rider is removed from the policy.
