Principal Disability Insurance: Benefit Update Rider
Feb 4, 2013
Jamie Fleischner

Jamie Fleischner

4 Feb, 2013

Disability Insurance Benefit Update Rider: Principal Financial Group

The benefit update rider from Principal Financial Group allows you to increase your disability policy without any medical underwriting. When the policy is increased, it is adjusted so it will remain on one policy. If you have a discounted policy, the increased benefit amount will also be at the discounted rate even if you are no longer at the same employer.

There are a few ways that you may increase your policy with the Benefit Update rider:

1)      If you have had more than a 50% increase in income (such as graduating from medical residency or dental school), you may increase your policy at that time to reflect your new income. This is referred to as an “advanced benefit update.”

2)      If you purchased your policy as a supplemental policy because you had a group policy and either no longer have the group policy or now work at a place that does not have a group policy, you may adjust your policy using the advanced benefit update option.

3)      Every three years, Principal will contact you requesting financial information. It is imperative that your submit your financial information back to them so you do not lose the benefit update rider on the policy. Set for Life will also send you a reminder email. The letter states something similar to the following:

What you need to do:

  • If your income has either decreased or increased by less than 10% over the last 3 years, complete and return the attached form. No financial documents are necessary.
  • If your income has increased by more than 10% over the last 3 years or any other inforce disability coverage has changed, complete and return the attached form and include financial documentation (pay stub, W-2 or tax return).

What happens next:

  • The information will be reviewed.
  • If you are eligible for an increase, you will be notified of the benefit amount available and the cost to accept the increase.
  • You will have the option to accept all or a portion of the benefit increase. If you decline the increase or accept less than 50% of the benefit amount, the rider will be removed from your policy.

 For more information about the benefit update rider on your disability insurance policy with Principal, contact Set for Life Insurance today!



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Getting the right disability insurance can be downright confusing. At Set For Life, we’ll help you understand the options and work with you to select just the right product for you and your family. These articles will help you understand some of the complexities involved, but we’re happy to walk you through it! If you’re ready to get set, reach out for a quote today!