1. Get Started with Income Protection
Individual Disability Insurance
Get Started with Income Protection
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2. Disability insurance has exclusions and limitations
Disability insurance has exclusions and limitations.  For costs and complete details of the coverage, contact your Principal Life financial representative.
The testimonials may not be representative of other clients’ experiences. It does not imply or guarantee benefits. Sherron and James Williams and Kevin Hope have not been paid for their testimonials.
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
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® .
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.
Disability insurance from Principal® is issued by Principal Life Insurance Company, Des Moines, IA
For financial professional use only. Not for use with consumers or the public.

3. Don’t take it from us, listen to real claimants:
“If James had no coverage, we probably wouldn’t be in our house and would be closing the law firm. My kids would need financial aid to stay in school.”
Sherron Williams, Wife of Principal Claimant James Williams, Attorney
“I used my disability benefit payments for everyday living expenses. After all, savings only go so far when you have hospital bills coming in and the other expenses of raising a family.”
Kevin Hope, Principal Claimant, Pharmacist
For financial professional use only. Not for use with consumers or the public.

4. Educate your customers on the true cause of disabilities
Typically the reason people can’t work is because of illness, like cancer and strokes, rather than injuries.1
1 Calculated with data from the “Annual Statistical Report on the Social Security Disability Insurance Program, 2016.” U.S. Social Security Administration, Office of Retirement and Disability Policy, Office of Research, Evaluation, and Statistics, May
For financial professional use only. Not for use with consumers or the public.

5. Help your customers understand the value of their income and all it provides:
For financial professional use only. Not for use with consumers or the public.

6. Financial security starts with protecting their income.
For financial professional use only. Not for use with consumers or the public.

7. Individual Disability Income (DI) Insurance
For financial professional use only. Not for use with consumers or the public.

8. Individual DI Insurance
Objective | Replace income lost when a disability prevents an individual from working and earning an income.
BENEFITS | Helps people:
Maintain current lifestyle without draining savings or business profits
Continue saving for retirement and future dreams
Provide for his/her family
For financial professional use only. Not for use with consumers or the public.

9. They need your help getting started
Lets review some tips for offering coverage.
For financial professional use only. Not for use with consumers or the public.

10. Make it relatable Mental Checklist “Mental checklist”
Ask the client to imagine if they woke up in the hospital tomorrow. Tell them to consider the mental checklist that would run through their mind:
They probably have health insurance to pays the doctors and hospital
And they probably have life insurance in they die
But what if they survive, and are too sick or hurt to work?
If their checklist doesn’t include disability insurance then you need to talk.
The best case scenario is to have everything on the checklist covered so that you can focus on getting better.
For financial professional use only. Not for use with consumers or the public.

11. Get them thinking
How will they cover their expenses if they no longer have an income?
Savings? Retirement accounts? Emergency funds?
Spouse’s income?
Social Security Disability?
Loans from a bank or credit cards?
For financial professional use only. Not for use with consumers or the public.

12. Show the value of their income
*100,000 less $1,400 in hypothetical annual disability income insurance premiums. Premiums and $5,000 monthly benefit amount depend on various factors. Your local representative can illustrate the exact amount you’re eligible for based on current underwriting guidelines. This a hypothetical example only.
For financial professional use only. Not for use with consumers or the public.

13. Structuring Coverage Fit your clients’ needs and budget Lower Premium
Richer Benefits
Elimination Period
Increase the length
Decrease the length
Benefit Period
Your Occupation Period
Monthly Benefit Amount
Lower the amount
Increase the amount
Vary the length of time or the amount of benefits provided to achieve the right balance of coverage and premium for your clients. This chart shows modifications you can make to policy components to either lower premiums or provide richer benefits. TIP: Provide 3 different coverage level options and give your clients the power to choose.
For financial professional use only. Not for use with consumers or the public.

14. Comprehensive Coverage1,2
Sample Premiums
Comprehensive Coverage1,2
Moderate Coverage1,3
Basic Coverage4
Monthly Benefit
$2,450
$1,850
$1,500
Total Monthly Premium
Male: $89
Female: $153
Male: $69
Female: $120
Male: $33
Female: $49
Finally, the last consideration for an individual DI insurance policy is the cost. In general, the average annual cost of a policy should be about one to three percent of an individual’s annual salary. To show how a Principal Life policy can be designed to meet budget needs, here are three different benefit designs. Each showcases a different level of income protection at a different cost. Any benefits received are typically provided income-tax free when premiums are paid with after-tax dollar.
It’s also important to note that individual DI insurance policies from Principal Life can be adjusted in the future as needs and budgets change based on underwriting approval or in some case benefit amounts can be increased automatically with future benefit increase riders (Benefit Update and/or Future Benefit increase).
Assumptions: Michigan resident, HH 750 policy, $40,000/annual income, 4A occupation class, non-tobacco, age 35.
190 day Elimination Period, To Age 65 Benefit and Your Occupation Period, Total Disability Covered
2Residual Disability Covered, Cost of Living Adjustment Rider; both are cost riders
3Short-Term Disability Benefit rider (12-month duration)
4180-day Elimination Period, 5 year Benefit and Your Occupation Period, Total Disability Covered
For financial professional use only. Not for use with consumers or the public.

15. How does it work? Benefit period ends and claimant returns to work
Client receives approval and starts paying for coverage
Waiting period is over and the benefit period begins
Application process begins
Disability occurs and the waiting period begins
Benefit period ends and claimant returns to work
For financial professional use only. Not for use with consumers or the public.

16. How does it work? A disability policy from Principal®:
Can be customized
Stays with your client even if they change jobs
Can’t be cancelled or changed without customer approval*
Works well on its own or with other solutions
Tip: When talking to clients try to minimize jargon and position it like a conversation.
*Except for non-payment of premium
For financial professional use only. Not for use with consumers or the public.

17. It doesn’t need to be expensive
The cost of coverage can be customized to meet the client’s needs and budget.
Discounts are often available
Typically costs less than other common expenses, such as:
Finally, let’s talk bottom line – the cost. Here are some points to remind clients of:
DI premiums typically cost 1-3% of their gross income for a benefit that could pay out millions if a client becomes too sick or hurt to work. Plus, there may be discounts available. Ask your clients these questions to see if they are comfortable in committing:
Do you feel like this is something you can commit to?
Do you want to move forward with the application?
Is the premium jumping off the page at you?
A daily cup
of premium coffee
A monthly date night
High-speed Internet
Smartphone service
For financial professional use only. Not for use with consumers or the public.

18. DI8631-04 | 06/2018 | © 2018 Principal Financial Services, Inc.
Thank you
DI | 06/2018 | © 2018 Principal Financial Services, Inc.
For financial professional use only. Not for use with consumers or the public.