1. The income protection conversation
Power Training Call
Gianni Comito, DIA - Internal Wholesaler
March 7th, 2017

2. No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without prior written permission from Principal®.
Please remember to abide by the company's policy on disclosure of compensation. You can obtain more information, as well as a sample disclosure form, at
Final determination of the bonus amount and/or payment rests solely with Principal®. The bonus formula may change or terminate at any time without prior notice.
This publication is intended to provide accurate and authoritative information in regard to the subject matter covered. The accuracy of the information is not guaranteed and is provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.
Policy and rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to policy and riders for full details. Some features, provisions and riders may not be available in all states or with all occupation classes. Some riders are subject to additional premium.
DI Retirement Security is issued as a non-cancelable, guaranteed renewable, individual disability income insurance policy. It is not a pension or retirement program or a substitute for such a program. DI Retirement Security is not available for anyone who is over insured based on Principal Life’s current Issue and Participation guidelines. It may not be available or the benefit amount may be reduced for certain occupations if there is existing DI coverage with lifetime benefits. Additional underwriting guidelines may apply.
This information is provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.
Insurance from Principal® is issued by Principal National (except in NY) and Principal Life Insurance Company, 711 High Street, Des Moines, IA
Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
For financial professional information only. Not for use with consumers or the public.

3. 2016 had some exciting enhancements

4. Clients can pay online Two ways for clients to pay premiums online:
One-time payment at (no login required!)
Set up a recurring EFT for all modes of payment (monthly, semi-annual, quarterly or annually) – coming soon on
For financial professional information only. Not for use with consumers or the public.

5. Benefit Update support
We’ve recently enhanced the experience:
Automatic communication regarding activity status
Benefit Update Activity report with additional details
Online option for the customer to complete the application
To include and postcard communication methods
For financial professional information only. Not for use with consumers or the public.

6. A new brand for Principal®
Earlier this year we launched a new disability buy-out insurance policy (HH794) to help you open more doors in the business marketplace.
This policy is more affordable, more flexible and an industry game-changer. Our One-Way Buy-Out feature for sole proprietors helps fund buy-sell agreements.
Affordability:
Lower new issue rates (in almost all cases)
Double-digit rate decrease from HH703 in most cases
Larger decreases with older issue ages and when selecting a lump sum benefit option
6A occupation class
5% Preferred Business Owner Discount
Discount offered if another IDI product is purchased or in-force with Principal Life
Stackable with the 10% Association and 20% Multi-Life discounts1,2
That means business owners could receive up to 25% in discounts with this new policy!1,2
Flexibility
Benefit Update Valuation Rider – Provides an informal valuation of the business every 3 years to identify benefit increase and exit planning opportunities
Full Benefit Continuation feature (cost)
Offer coverage to Age 67
Guidelines:
Issue Age: 18-50
Maximum issue limit: $1 million
Required documentation*:
Financials
Prior 2 years of Federal Corporate Tax Returns
Current YTD Profit and Loss and Balance Sheets
Informal business valuation
BOES team review of
Buy-sell agreement (cross purchase only) or
Purchase or sale agreement
Each DBO case will have thorough review of ownership structure, agreement documentation, and buy-out objectives by Principal Life’s Advanced Solutions team.
Target Markets:
Many businesses in the United States have only one owner and span a range of industries -- from construction to retail to professional services. We recommend targeting:
Professional service-related companies, such as architecture, healthcare systems, law, dentistry, engineering, accounting and technology firms
Profitable, growing businesses with gross revenues of $500,000 or more
Note: The underwriting guidelines for HH794 are consistent with HH703.
1State approval information is available at principal.com/distateapprovals
2 Not all discounts available in all states.
For financial professional information only. Not for use with consumers or the public.

7. Looking forward to 2017

8. Upcoming changes – effective Feb. 6th
Increased Simplified single-life DI1 monthly benefit limit to $6,000
Increased limits for DI Retirement Security2
Up to $4,550 for individual pay and $5,850 for employer pay
Changes to the medical and dental industry:
Several occupations are re-classified
New DI maximum issue and participation limits
Sex-distinct and 10% discount for Residency Programs (from gender-neutral and 20% discount)3
Select professionals
Anesthesiologists and emergency medicine occupations now have a limit of $6,500/month
Coverage will be issued without taking group coverage into account during the first 180 days in practice for doctors and dentists.
Simplified Single-life DI is not available in California; APS and financials are required for all DI applications (except Simplified Multi-Life DI cases).
Includes the $50 trust administration fee.
If the Affiliation Discount is not approved in state written, the Association Discount is used. This applies to new programs and any existing programs when new residents and students are being added. For state approval information, visit:
For financial professional information only. Not for use with consumers or the public.

9. New occupation classification Effective February 6th, 2017
5A: Pharmacists
4A-M: Nurse Practitioners
3A-M: 
Dentists and dental specialties
OB/GYNs
Surgeons (general, plastic and orthopedic)
Pain management physicians
CRNAs
All 3A-M qualify for the Regular Occupation rider*
*Regular Occupation rider is not available in VT for 5A-M, 4A-M & 3A-M, not available in CA for 3A-M, 4A-M, and 4A.
For financial professional information only. Not for use with consumers or the public.

10. DI maximum issue & participation limits1 Effective February 6, 2017
Occupation class
Ages
Issue limit
Participation with other individual DI
Participation with group disability
6A2, 5A, 4A, 3A
18-61+
$20,000
$35,000
5A-M, 4A-M3, 3A-M3
18-55
$17,000
$25,000
$30,000
56-60
61+
$10,000 2A
$8,000 A
$6,000
1 When automatic increase riders are on a policy, the maximum I&P limits are lower.  2 The 6A occupation class is for Individual DI, including DI Retirement Security, and Disability Buy-Out insurance in approved states; not available in California. For a complete list of state approvals, visit 3 For adjustments on 4A-M and 3A-M policies prior to the 700 Policy Series, the issue limit remains at $10,000/month and the participation limit with other coverage is $20,000/month.
For financial professional information only. Not for use with consumers or the public.

11. Share the story

12. Target market for income protection
Who to look for
Ages 30 to 55
Earn at least $40,000 per year
Have other risk and/or protection products with you
Work in occupations with little manual duties
Need additional resources?
Check out principal.com/IDITargetMarkets
For financial professional information only. Not for use with consumers or the public.

13. What do you sell? Disability insurance Life insurance IRAs
Mutual funds
401(k)
Group benefits
Your opportunity Help clients protect their most valuable asset.
Chances are you offer many different products and solutions to your clients. And, as a financial professional, you may have found a niche and prefer to sell a specific product or line of products. You may enjoy helping clients plan for retirement or handling estate questions.
Whether you’re a seasoned professional or have sold little to no individual disability income insurance, you should consider making it the foundation of your clients’ financial strategies. This pyramid shows how income protection is the base for everything else. Without an income your clients might not be able to afford other items you’ve helped them establish – such as paying insurance premiums, saving for retirement, or have the funds to pass on to loved ones.
Take a moment know to ask yourself: “Have I done everything I could to help my clients protect their financial foundations? Who should I contact to discuss the importance of income protection?”
If you haven’t discussed the threat of a disability with clients, then you’re missing out on a crucial opportunity – to help them protect their most valuable asset – their ability to work and earn an income.
If a client becomes too sick or hurt to work, an Individual Disability Income insurance policy helps pay everyday living expenses, such as mortgage payments, food and utility bills and premiums for other risk/investment products, medical bills not covered by health insurance, etc.
If you haven’t reached out to clients about Individual DI insurance, are you prepared to admit they may have gaps in their financial strategies you helped develop?
Suppose you helped a client with other financial needs, but not income protection. If that client becomes disabled, what do you say to the client and his or her family when there is an illness or injury and there is no longer a paycheck coming in? Did you do everything you could to help protect that client?
Discussing the need for income protection should be part of your due diligence.
For financial professional information only. Not for use with consumers or the public.

14. Ready to get started with income protection?

15. The consumer journey Consideration Awareness Decision Title Title
When purchasing disability insurance, consumers go through several steps in their journey:
Becoming aware of the need
Learning what it protects and why it’s a necessary “foundational” solution
Understanding the details of the offering
Principal® created a series of materials to help guide the sales conversation.
Consideration
Awareness
Title
Decision
Title
JJ1239
JJ1907POD
JJ1507
JJ1508
JJ2153
Don’t forget: You’re selling a promise that we’ll be there when clients need us most; ongoing support is an important part of the conversation. You’ll see we highlight our claims satisfaction throughout tools with stats and quotes.
Order KIT4343 to access all of these pieces.

16. Questions
DI9690 | 1/2017 | © 2017 Principal Financial Services, Inc