What is Principal's own-occupation definition?

Principal offers true own-occupation language in its DI products, meaning benefits continue if the insured cannot perform the duties of their specific occupation, regardless of whether they work in another field. This is a significant advantage for specialists with high-income earning potential.

How competitive are Principal's rates for physicians?

Principal is known for competitive rates across medical specialties, particularly for surgeons, dentists, and other high-risk professions. Rates vary by specialty, age, and benefit period selected.

What riders does Principal offer?

Principal offers a range of riders including cost-of-living adjustments (COLA), residual disability, future increase options, catastrophic disability, and others. Rider availability varies by policy type and issue age.

What is Principal's underwriting process like?

Principal conducts thorough underwriting reviews, including financial underwriting for high-benefit-amount cases. They examine income documentation, tax returns, and medical history. The process is typically straightforward for applicants in good health with documented income.

Who is Principal the best fit for?

Principal works well for high-earning professionals with complex income scenarios, established practices, and those seeking strong own-occ language. They're particularly competitive for surgical specialties and dentists.

Principal Disability Insurance | Disability Insurance Agency

Overview

Detailed review of Principal's disability income insurance products for high-earning professionals, including own-occupation definitions, underwriting, and occupation classes.

Product Strengths

Own-Occupation Language

Principal's DI products feature true own-occupation definitions that align with professional standards. This means if a surgeon cannot perform surgery due to disability, benefits continue even if they could work as a consultant or in another medical capacity. This clarity is essential for high-income earners whose earning potential is closely tied to their specific occupation. Learn more about how own-occupation disability insurance works and why it matters.

Competitive Rates for Medical Professionals

Principal's pricing is competitive across medical specialties. They conduct careful underwriting but are known for issuing preferred rates to applicants with clean medical histories and documented income. Rates are structured by specialty, with consideration for experience level and the complexity of the insured's practice.

Rider Flexibility

Principal offers a comprehensive suite of riders to customize coverage. Cost-of-living adjustments allow benefits to grow with inflation, while residual disability protects against partial income loss. Future increase options enable policyholders to increase coverage without additional medical underwriting, a valuable feature as income and career stage evolve.

Occupation Classes and Underwriting

Principal uses detailed occupation classifications to rate policies appropriately. They distinguish between similar professions, a general practitioner, specialist, and surgeon may have different rates despite all being physicians. This granularity ensures accurate pricing and fair risk assessment.

Underwriting is thorough and data-driven. Financial underwriting becomes more detailed for larger benefit amounts, requiring tax returns, income documentation, and sometimes practice financials. Medical underwriting focuses on existing conditions, medical history, and lifestyle factors. The process is professional and typically efficient for straightforward cases.

Financial Strength and Claims Experience

Principal maintains strong financial ratings from major rating agencies, ensuring they have resources to pay claims when needed. Their claims administration is professional and focused on returning claimants to work when possible, which aligns with the intent of disability insurance.

Who Principal Works Best For

Principal is an excellent fit for high-earning professionals with established practices or employment, particularly surgeons, specialists, and dentists. They're also suitable for professional partnerships where multiple owners need coverage. Principal works well when comparing own-occupation language and features across multiple carriers, as their policy language is clear and standard-setting in the industry.

If you represent multiple carriers, Principal typically offers competitive options alongside Guardian, MassMutual, Ameritas, and The Standard. A side-by-side comparison helps ensure you're selecting the contract that best aligns with your specific occupation, income level, and career stage. Request a detailed comparison from your insurance advisor to see how Principal's offerings stack up for your situation.