Business Underwriters Associates, LLC

Principal: Updated Term Product Available 12/4

12-04-2023

Effective December 4, 2023, Principal is pleased to introduce a new level term product (10-, 15-, 20-, and 30-Year). In addition to updated rates, it features:

  • A new nonconvertible policy option that offers a lower-cost alternative to the convertible policy option.
  • Two optional riders that allow clients to get face amount increases, without additional underwriting – the Business Value Increase Rider and the Salary Increase Rider.
    • Business Value Increase Rider: provides face amount increases based on growth in the value of a business, without requiring evidence of insurability. Works on three-year increase cycles. 
    • Salary Increase Rider: provides face amount increases based on salary adjustments, without requiring evidence of insurability. Policies are eligible for increases on or after policy year 1.

Principal Term can be ideal for needs such as key person protection, buy-sell funding, and key employee benefits, as well as personal protection for business owners, key employees, and their families. Learn more about this exciting new product.

The new term product replaces the prior version in all states except New York and is available for quoting now.  Note: Term 2023 does not include Principal One-Year Term or Principal Guaranteed Issue Term II.
 
Principal will accept applications for the old product through Jan. 4, 2024.

Transition Guidelines

Dec. 4, 2023

  • Term 2023 is available to quote and sell
  • Principal will accept applications for Term 2020 through Jan. 4, 2024
  • Term 2020 applications in underwriting will be issued as that product unless Term 2023 is requested
    • Note the request on a cover letter/transmittal - a new application is not required,

Jan. 5, 2024

  • All applications received in the home office on or after this date will be issused as Term 2023.

Policies within the examination period (COD, Offer, or Shortage)

If Term 2023 is desired:

  • If the policy was delivered via eDelivery, the Field Office Contact will reject the Term 2020 policy and indicate in the "Rejection Comments" box that Term 2023 is desired.  The policy will be reissued and sent via eDelivery.
  • If the policy was mailed from Principal, indicate "Term 2023" with the delivery requirement and submit the correct premium amount.  A new policy packet will be mailed to the customer.

Backdating

  • Backdating is allowed in order to save age. The backdated date cannot be earlier than the date of product approval for the applicable state.

 

Please give our life sales team a call at 800.792.6795 if you have any questions.