Guaranteed Standard Issue

Many employers offer group LTD insurance as part of their employee benefits. But limits of typical group insurance often prevent higher earning employees from having sufficient coverage. Offering Principal GSI DI Insurance to key employees to supplement their group insurance is a way for employers to provide an additional benefit to their top talent. Be sure to take a look at group LTD caps when working with clients who have higher paid executives.

DI target market

• Small and midsized businesses with groups of 5+ participating employees with annual employee incomes of $75,000 or more
• Industries such as:
  • Banking
  • Pharmaceuticals
  • IT
  • Engineering
  • Consulting
  • Telecommunications

Approach clients:

For financial professional use:

• Income replacement with and without DI (PDF)
• Supplemental DI with Guarantee Standard Issue (PDF)
• Employee benefits program questions for employers (PDF)
• Employer pitch presentation (PPT)
• Questions consumers should ask about their group LTD policy (PDF)
• Group/IDI illustration cover page (DOC)

You can help your clients offer a more comprehensive employee benefits package by offering Principal GSI DI insurance and Principal^® Guaranteed Issue Term II (GI Term II) life insurance to key employees to supplement their group coverage.

GI Term target market

• Small and midsized businesses with groups of 10+ participating employees¹ and annual employee incomes of $75,000 or more
• Industries such as:
  • Professional, scientific, and technical services
  • Construction
  • Manufacturing
  • Wholesale trade
  • Healthcare

Approach clients:

• Benefit Restoration whitepaper (PDF)
• Customizable benefit restoration flyer (PDF)
• Key employee benefits video

1.  Will consider groups of 5-9 for employers with Principal group term life, voluntary term life, or GSI IDI plan.

Oftentimes, the most valuable assets of a business are the key people who contribute most to its success. If their loss would create a financial burden that puts the business at risk, key person insurance is a simple and efficient solution. Funding key person insurance with disability and life insurance can help protect the business against the loss of a covered key employee or owner¹. If the unexpected happens, the business receives funds, generally, income tax free², to help overcome the financial challenge of the loss.

Using GSI for Principal Key Person Replacement disability insurance and Principal GI Term II life insurance makes the underwriting process quick and easy for the proposed insureds.

Target market

• Owners and employees who have specialties or experience not easily replaceable
• Industries such as:
  • Professional, scientific, and technical services
  • Construction
  • Healthcare and social assistance
  • Finance and insurance

Approach clients:

• Key person insurance employer flyer (PDF) | Customize (PDF)
• Key person insurance video | Share (OFT)

1.  Individual must own 50% or less of business to be eligible for Key Person Replacement disability insurance. If the insured is 50% or less owner, the business must be in operation for at least one year for fee-for-service businesses and three years for others.
2.  If the requirements of the Internal Revenue Code Section 101(j) are not met, death proceeds from employer-owned life insurance contracts may be taxable as ordinary income in excess of cost basis.