1. Selling Individual DI Insurance

2. Income protection is important
1 in 4 of today’s 20-year olds will become disabled before retiring.1
The average long-term disability lasts 2.5 years2
50% of Americans would be in financial trouble in one month or less following a disability3
1Social Security Administration Fact Sheet, March Gen Re Disability Fact Book 3The Life and Health Foundation for Education (LIFE) survey, conducted by Kelton, April 2012 2 2

3. What is your most valuable asset?
Your home may be your biggest asset, but your ability to work and earn an income is your most valuable asset.
You insure your home, your cars, but what about your income? The ability to work and earn an income may be your most valuable asset.
1 Motor Trend, January 2005
2 May 2006
3 Projected cumulative income, 35-year-old earning $6,250/month assuming 4% annual increase to age 65

4. What is your earnings potential?
Potential Earnings to Age 65 (with 5% annual salary increases)
What would you if you became too sick or hurt to work? If you’re like most people, you would probably find it hard to maintain your current lifestyles.

5. The Need Approximately 30% of all people aged 35 to 65 will
suffer a disability for at least 90 days, and about one
in seven can expect to become disabled for five years
or more.*
*Health Insurance of America, 2000
If asked, most of us would consider our home or our savings our most valuable asset. Actually, our most valuable asset could be considered our ability to earn the income that provides the resources and security so important to our families.
Did you know that 30% of those aged 30 to 65 will, during their work career, experience a disability that will last at least three months. One in seven of us will be disabled for five years or more.
This statistic may strike you as high but there are reasons for the high incidence of disability.

6. Real claims, it can happen ….
Source: Principal Life Disability Insurance claims
incurred as of March The above is for
illustration purposes only and is not intended
as an inclusive representation of all claims.

7. Target Market
Almost everyone in the working population, but specifically those who:
Are ages 30 to 50 (typically available to ages 18 to 60)
Earning a minimum income of at least $40,000/year
Are interested in protecting their income, their business or their ability to continue saving for retirement
Have other risk and/or protection products with you
The good news is that the target market for Individual DI insurance, is essentially almost everyone in the working population, but specifically those who: [read slide]

8. You Don’t Need to Be an Expert
Just get comfortable answering the 5 common questions clients will ask and asking for the sale!

9. The Five Questions When Do I Receive My Benefits? Elimination Period
How Long Do I Receive Benefits? Benefit Period
How Much Coverage Can I Purchase? Benefit Amount
How Do I Qualify For Benefits? Disability Definitions
How Much Will the Coverage Cost Me? Policy Cost
Typically clients will ask you 5 questions that are directly related to the five main elements of an Individual DI policy which are.
Elimination period
Benefit period
Benefit amount
Definition of disability and
Policy cost

10. Transitional Occupation2
How Do I Qualify for Benefits?
Total Disability Defintion1
Your Occupation
Unable to perform the substantial and materials duties of your occupation.
Transitional Occupation2
Unable to perform the substantial and materials duties of your occupation, but are working in another occupation. Benefits received from the policy are based on replacement of pre-disability earnings up to 100 percent.
Regular Occupation2
Become totally disabled from your occupation and choose to work in another occupation; benefits are provided regardless of the income earned from the other occupation.
First we will discuss Total Disability which is the foundation of any individual DI insurance policy. Depending on an individual’s unique needs and occupation, there are three different total disability definitions that can be selected for a Principal Life DI policy:
First, the “Your Occupation” definition is provided on the “base policy.” It is the most commonly selected option and is available to all occupation classes. It pays when a insured is unable to perform the substantial and materials duties of their occupation and are not working in any occupation. This is the lowest cost alternative.
Second, there is the “Transitional Occupation” definition which is available for most occupation classes. This is a popular option for occupations that are specialized and it pays when the insured is unable to perform the substantial and material duties of their regular occupation, and are working in another occupation. Current income earned in a new occupation plus policy benefits cannot exceed 100% of the pre-disability income. This is usually the moderately priced option.
Third is the “Regular Occupation” definition which is available for our higher occupation classes; it’s popular among those occupations with specialties. This is the richest definition of disability available and is the most expensive. It pays when the insured becomes totally disabled from their regular occupation and chooses to work in another occupation. Benefits are provided regardless of income earned from another occupation. Many find that while this level of protection is desirable for some, it is typically not necessary.
1 – Not all definitions can be on the same policy and may not be available in all states.
2 – Available through cost riders and state wording/variations apply.

11. Policy Basics from Principal Life
Individual Disability Income – HH 750
Policy Basics from Principal Life
Issue Ages
18 to 60 (Single Life); 18 to 65 (Multi Life)
Occupation Classes
5A, 5A-M, 4A, 4A-M, 3A, 3A-M, 2A and A
Elimination Periods
30*, 60, 90, 180 and 365 Days *Not available in California
Benefit Periods
2 years, 5 years, To Age 65, To Age 67 and To Age 70
Your Occupation Periods
Available to all occupation classes: 2 years (built-in), 5 years
Available to 3A/3A-M and above: To Age 65, To Age 67 and To Age 70
Principal Life’s Individual Disability Income (DI) insurance policy (HH 750) is non-cancelable and guaranteed renewable. The policy features an unbundled policy design that allows you to structure the policy to meet a variety of different client’s needs. With the policy, you can build from a total disability benefit only policy (a lower cost option) to a more comprehensive policy that boasts a variety of features and benefits.

12. Complete IDI solutions
You can count on us. For over 130 years, producers like you have been helping business leaders across America secure their financial futures with products and solutions from the Principal Financial Group to help them secure their financial futures.
As a member of the FORTUNE 500, we have a depth of resources and understanding of the small to medium sized business market and the threat a disability poses for business owners in regards to their personal, business and employee benefit needs.
Personal needs
Individual DI insurance can help protect personal income if they become disabled.
DI Retirement Security can help continue saving for retirement in the event of a disability.
Business Needs
Business Protection
OE insurance can help address their need to pay business expenses if they become too sick or hurt to work. Plus, Principal Life offers the Business Loan Protection rider (in approved states) to help reimburse business loan obligations in the event of a disability.
Key Person Replacement insurance provides benefits to the employer to help offset the cost of losing a key employee
Exit Planning
Disability Buy-Out insurance – will help ensure business succession in the event of a permanent disability.
Employee Benefit Needs
Individual DI insurance – supplement to existing group ltd insurance plans, or stand-alone product (perk, incentive!)

13. You need to ask. What’s the secret to selling Individual DI insurance?
A LIMRA report recently reveled that the reason non-sellers of DI didn’t sell DI was
Not because they didn’t understand the importance of income protection and the valuable benefit an Individual DI insurance policy can provide … but because clients didn’t ask about the product.
Don’t leave a “sale” on the table because a client didn’t ask for income protection.

14. Questions? Reid Tattersall BackNine Vice President Reid@back9ins.com
(805)

15. While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. 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 policies and riders for full details. Policies and riders are subject to state availability. Some riders are subject to an additional premium. Disability Insurance has limitations and exclusions. For costs and details of coverage, contact your Principal Life financial representative. Insurance issued by Principal Life Insurance company a member of the Principal Financial Group®, Des Moines, IA 50392, 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 the Principal Financial Group®. Copyright ©2011Principal Financial Services, Inc.
DI 2294