What Makes IDI Great

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For Producer Information Only – Not for Client Presentation

What Makes IDI Great

Principal Life Insurance Company

What’s New with Individual DI

• Supplemental Health Benefit Rider*

• Select Professional Program

• Business Owner Market Enhancements

* Available 9/22; May not be approved in all states, visit

www.principal.com/distateapprovalsto view approvals. Not available in California.

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The impacts are universal

Chronic diseases, such as heart disease and cancer

are leading causes of disability in the United States.

These diseases cause major limitations in daily living for

more than one in every ten Americans.

Each year, about 700,000 Americans have a stroke. On

average a stroke occurs every 45 seconds.

Source: Centers for Disease Control and Prevention, Department of Health and Human Services, The Burden of Chronic Diseases and Their Risk Factors, 2004

Supplemental Health Benefit (SHB) rider

Helps a client pay any expenses they may incur due to

their medical condition (stated below)

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How it Works: SHB rider

• No cost rider; will be ‘automatically’ added to policy*

• Provides a one-time, lump-sum benefit equal to six times a

policy’s Maximum Disability Benefit

(if an insured is disabled under the terms of the policy)

• Benefit paid after 90 days, assuming insured is Continuously

Disabled and has survived the diagnosis/condition

(regardless of the policy’s elimination period)

• Benefit is paid in addition to other benefits provided by the

policy

• Insured must be under regular care by a doctor for the

condition or operative procedure

* Up to underwriter discretion; will not be added to the

policy if DI Retirement Security is utilized.

Duration statistics

Average disability duration

1

• Cancer: 19 months

• Circulatory System Diseases

(e.g. heart, vascular & circulatory)

: 47 months

Stroke is the leading cause of serious long-term disability;

more than 1.1 million stroke survivors reported difficulty with

functional limitations and daily activities.

2

1

–

JHA, 2004 Disability Rate Study & Risk Management Survey

2

–

Centers for Disease Control and Prevention. Prevalence of disabilities and associated health conditions among adults - United States, 1999. MMWR 2001;50(7):120–125.

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Claim examples for SHB rider

•5/1/2008 – insured suffers a stroke1

and survives the stroke for 90 days

•7/30/2008 – rider benefit is payable after 90 days of surviving the condition and remaining Continuously Disabled

•1/1/2008 – insured is disabled due to multiple herniated discs and does not return to work

•6/29/2008 – benefits begin to accrue after satisfying the policy’s 180 day elimination period

Supplemental Health Benefit rider

Individual DI insurance policy

1 - Assumes meets the rider’s definition of condition/diagnosis

.

•8/30/2008 – rider benefit is payable after 90 days of surviving the condition and remaining Continuously Disabled

•6/1/2008 – insured is disabled due to cancer1

•8/29/2008 – benefits begin to accrue after satisfying the policy’s 90 day Elimination Period

Supplemental Health Benefit

rider

Individual DI insurance policy

1 - Assumes meets the rider’s definition of condition/diagnosis

.

•5/1/2008 – insured suffers a stroke1_No

rider benefit is payable, since the insured was not Continuously Disabled at the end of 90 days

•1/1/2008 – insured is disabled due to multiple herniated discs

•6/15/2008 – insured returns to work and no monthly Individual DI benefits are paid since the policy’s 180 day Elimination Period is not satisfied

Supplemental Health Benefit rider

Individual DI insurance policy

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For Producer Information Only – Not for Client Presentation For Producer Information Only – Not for Client Presentation

This program now offers:

• Increased issue limits for Individual DI insurance for many

occupations (Up to $6,000/monthly benefit for medical

professionals now available)

• Up to $1,000/monthly benefit for DI Retirement Security

1

• Expanded coverage for pharmacists and veterinarians

1 – Not available in California.

What’s new with the

Select Professional Program

The Select Professional Program is aimed at helping meet

the changing needs of professionals who are expected to

quickly attain higher earnings.

For Producer Information Only – Not for Client Presentation For Producer Information Only – Not for Client Presentation

• Physicians and dentists can now participate in the Business

Owner Allowance program

• Up to an additional $1,000/month of Individual DI insurance

benefit is available by adding back up to 20 percent of

Section 179 depreciation as earned income

1

1 – Two years of business tax returns are required

.

What’s new with

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Target success

Life and Disability TeleApp

Cross-Sell to Your Life Insurance Clients

• Step one: Identify the Ideal client

– Under age 50

– White/grey collar occupation – Earns under $150,000/year – Purchasing life insurance from you

• Step two: Request Life and DI TeleApp (six additional questions)

• Step three: Once TeleApp interview is completed, request that your DI underwriter reviews the results

• Step four: Review offer and prepare proposal for your client

• Step five: Upon life insurance policy delivery; bring DI application and proposal – ask for a signature

– Remind clients of importance of income protection

– Ask how much is needed to cover daily living expenses and mortgage payments – Explain offer (standard/modified, etc) and ask for the sale

– If interested in more than $3,000/month; indicate additional medical and financial underwriting may be required

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Marketing support

E-mailers · Customized Flyers · Educational Materials ·

Testimonials · Client Seminars · Bylines ·

Approach Letters and Brochures

Find these tools on Principal eFinancialProfessional

SM

_!

What’s the secret to selling

Individual Disability insurance?

You need to ask.

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Questions?

Contact your regional Disability Specialist or contact

the National Sales Desk at 800-654-4278.

Principal Life Insurance Company

Des Moines, IA 50392

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.

Insurance issued by Principal Life Insurance Company. Principal Life is a member company of the Principal Financial Group, Des Moines, IA 50392. Disability Insurance has limitations and exclusions. For costs and complete details of coverage, contact your local representative.

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®.