Principal Announces Term Product Updates
From Principal:
We’re pleased to introduce our new level term (10-, 15-, 20-, and 30-Year). In addition to updated rates, it features:
A new nonconvertible policy option that offers a lower-cost alternative to the convertible policy option.
Two optional riders that allow clients to get face amount increases, without additional underwriting – the Business Value Increase Rider and the Salary Increase Rider.
Principal Term can be ideal for needs such as key person protection, buy-sell funding, and key employee benefits, as well as personal protection for business owners, key employees, and their families. Learn more about this exciting new product.
The new term product replaces the prior version in all states except New York and is available for quoting now.
We’ll accept applications for the old product through Jan. 4, 2024.
Transition Rules
Dec. 4, 2023
Term 2023 is available to quote and sell.
We will accept applications for Term 2020 through Jan 4., 2024.
Term 2020 applications in underwriting will be issued as that product unless Term 2023 is requested.
Note the request on a cover letter/transmittal - a new application is not required.
Jan. 5, 2024
All applications received in the home office on or after this date will be issued as Term 2023.
Policies within the examination period (COD, Offer, or Shortage)
If Term 2023 is desired:
If the policy was delivered via eDelivery, the Field Office Contact will reject the Term 2020 policy and indicate in the "Rejection Comments" box that Term 2023 is desired. The policy will be reissued and sent via eDelivery.
If the policy was mailed from Principal, indicate "Term 2023" with the delivery requirement and submit the correct premium amount. A new policy packet will be mailed to the customer.
Backdating
Backdating is allowed in order to save age. The backdated date cannot be earlier than the date of product approval for the application state.