Principal Financial Group, a leader in the disability income insurance industry, has announced a
10% premium discount on their premiere individual disability policy for all FPA members.
Key policy features include:
Why highly compensated advisors should consider adding private disability protection to their employer-provided group LTD policy. Hypothetical Claims Scenario.
The Example:
Group policy provides only $14,000/month of tax-free monthly benefit.
The Problem:
Only $14,000 of the advisor’s total $30,000 take home pay is protected.
The Solution:
Add $10,000 monthly individual coverage with the FPA discounted premium Principal Financial Group policy to increase protection. This additional benefit is tax-free because it is paid for by the advisor and can insure the bonus and other forms of deferred compensation like stock options and commissions that many group policies do not cover.
New Results: 24,000 monthly total tax-free monthly benefit to better meet the needs of the advisor and their family. Even if the employer plan benefits are tax-free, the advisor could still purchase an additional $7350 in monthly benefit for better security. If the bonus or commission is covered by the employer plan, the advisor would still qualify for an additional $5000 in monthly benefit.
- Non-Cancelable policy with fixed premiums
- True own occupation protection full benefit period
- Guaranteed options to increase benefits non-medically
- Three separate cost of living adjustment riders.
Why highly compensated advisors should consider adding private disability protection to their employer-provided group LTD policy. Hypothetical Claims Scenario.
The Example:
- Highly compensated financial advisor
- $500,000 annual compensation ($400,000 in salary, $100,000 in bonus)
- Employer-provided group LTD plan with a monthly maximum benefit of $20,000
- Bonus and commissions not insured by the group LTD plan
- Employer paid premiums
Group policy provides only $14,000/month of tax-free monthly benefit.
The Problem:
Only $14,000 of the advisor’s total $30,000 take home pay is protected.
The Solution:
Add $10,000 monthly individual coverage with the FPA discounted premium Principal Financial Group policy to increase protection. This additional benefit is tax-free because it is paid for by the advisor and can insure the bonus and other forms of deferred compensation like stock options and commissions that many group policies do not cover.
New Results: 24,000 monthly total tax-free monthly benefit to better meet the needs of the advisor and their family. Even if the employer plan benefits are tax-free, the advisor could still purchase an additional $7350 in monthly benefit for better security. If the bonus or commission is covered by the employer plan, the advisor would still qualify for an additional $5000 in monthly benefit.
Range of Sample Individual Disability Income Policy Annual Premium
Age |
Male |
Female |
Male/Female - If Multi-Life discount is available |
30 |
$275-$330 |
$500 - $610 |
$250-$300 |
35 |
$340 - $405 |
$570 - $680 |
$300-$365 |
40 |
$400 - $480 |
$640 - $775 |
$370-$430 |
45 |
$490 - $590 |
$680 - $810 |
$440-$570 |
50 |
$580 - $700 |
$715 - $860 |
$520-$630 |
55 |
$590 - $720 |
$720 - $860 |
$530-$650 |
60 |
$660 - $790 |
$680 - $820 |
$695-910 |
These rates are based on the following: non-Cancellable policy, $1000 monthly benefit, 90-day elimination period, payable to age 65, residual, 3% Cost of Living riders, and future increase options. These are Colorado rates with a white-collar risk factor. Please note, the Cost-of-Living rider is not included in the age 55 and 60 premiums.
Multi-Life Premium Discounts: Females can qualify for up to 30% premium discount if 3 or more employees apply for some level coverage at the same time. Males would receive up to a 10% discount. True Group LTD: Low-cost group DI also available to business owner clients and their employees
Multi-Life Premium Discounts: Females can qualify for up to 30% premium discount if 3 or more employees apply for some level coverage at the same time. Males would receive up to a 10% discount. True Group LTD: Low-cost group DI also available to business owner clients and their employees
For more information and custom-made quotes, complete our Request for Proposal Form and upload it to this secured link
or contact
John Ryan, CFP® Ryan Insurance Strategy Consultants
[email protected]
O: 800-796-0909, opt.3 D: 303-683-1939
or contact
John Ryan, CFP® Ryan Insurance Strategy Consultants
[email protected]
O: 800-796-0909, opt.3 D: 303-683-1939
