Due to the stabilization of the financial services industry over the past year, Principal Life Insurance Company is returning to normal Individual Disability Income (DI) insurance issue and participation (I&P) limits for the following occupations in all states (effective immediately1):
· Bond trader (not on trading floor)
· Investment banker
· Investment analyst
· Hedge fund managers
· Mutual fund managers
· Private equity firms
· Stockbroker (not on trading floor)
· Venture capitalists
Principal Life will continue to monitor the economic environment and the:
· Reduced Individual DI insurance I&P limits of $10,000/month; $15,000/month with group insurance for the following occupations in the real estate industry – real estate attorneys, mortgage brokers/originators, real estate agents/brokers and residential construction.2
· Uninsurability of real estate developers for all individual disability insurance products.
Underwriting Guidelines
Certain underwriting guidelines need to be met for financial services and real estate-related occupations when applying for coverage, such as:
· Complete income verification, including:
– The most recent income tax returns with all schedules and supporting statements for the past two years
– Year-to-date income verification (i.e. pay stubs or profit/loss statements)
· Minimum three years in the industry
Note: Special underwriting considerations remain unavailable, such as the Enhancer Program, the Business Owner Allowance Program or the Section 179 Allowance Add-Back.