Website Header
September 30, 2021
Principal Financial Focusing on the
Business Market
Principal made a strategic decision to exit the “retail” U.S. life insurance market, but remains committed to insuring the “business market”. This includes:

  • Insurance for business owners and their key employees for business planning purposes.
  • Insurance for business owners, their key employees, and their relatives for personal planning purposes.
  • Trust owned insurance for business owners, their key employees, and their relatives for personal planning purposes.
  • New Accelerated Underwriting program for high income earners without an exam up to $50 million for clients affiliated in the business market as noted above.
New Business
  • In 2020, they launched a guaranteed issue term platform which is a core focus.
  • They will be releasing a Private Placement VUL, pending broker dealer approval.
  • They are also releasing a new Survivorship product in January 2022.
  • The current product portfolio including term and CAUL will continue to be available with no changes to pricing or compensation.
  • Enhanced Capacity for Jumbo cases will still be available. 
In Force Block of Business
  • Principal’s desire is to not sell their in-force block of business but rather cede it to a reinsurer and maintain control of policy administration.
  • They expect this process to take anywhere from 6-18 months.
  • No intention to change any term conversion options or provisions.
  • No internal conversations about selling off the term, index UL or VUL block – primary goal is to sell GUL block.
  • Clients can continue to increase face amounts on in-force policies (with full underwriting at current age), leveraging more favorable/older pricing. 
Summary
Principal's strategic focus going forward will be on “business insurance” while still allowing for personal policies on business owners, key employees, and their relatives.  

Contact our Case Design Team to discuss how to work with Principal in the future. 
Advisor Resources
Contact our Case Design Team to discuss
Ideas and Opportunities
412-281-0600