Principal Financial Group
Points to Consider
Thank you for allowing our office the opportunity to quote on the above client. Here are some
points to consider in regards to the products quoted:
DENTAL
1)
This plan does not include waiting periods on Basic, Major or Ortho services, if included.
There are no new hire waiting periods for any services.
2)
True “Open Enrollment” at the time of sale and at the anniversary. Only those who
disenroll are subject to late entrant limitations.
3)
The Best of Both Worlds for transfer cases. We will provide deductible credit for those
employees who present an EOB at point of service that shows they have satisfied their deductible
for the year with the prior carrier. However, a new annual maximum will be given to every
member at the effective date regardless of their deductible and plan use earlier in the plan year.
4)
We have included our Maximum Accumulation Plan on this dental proposal. This is a
feature that rewards employees who seek routine, preventative dental care by allowing a portion
of the unused maximum benefit to rollover or increase the maximum benefit in the following year.
The rollover only applies to the Units 1-3 calendar year maximum and is determined at the
claimant level. We are also able to grandfather rollover amounts from prior carriers who
have this feature inforce.
5)
Reasonable and customary charges are updated every 6 months with a compilation of
Ingenix and in house data to keep charges current.
6)
Dependent eligibility is PPACA compliant both for new cases and all existing business.
7)
Free vision discount card.
LIFE
1)
Will Preparation Services provided through ARAG ® – at no additional cost to them
or their employer.
Through Will Preparation Services, employees and their spouses can prepare the following
documents through online document assembly software:
■ Will
■ Living will
■ Healthcare power of attorney ■ Financial power of attorney
2)
Coverage During Disability – if an employee becomes totally disabled before age 60,
coverage will continue and premium will be waived. Coverage continues without premium
payment until the employee recovers or turns age 70.
3)
Accelerated Death Benefit – terminally ill employee’s can receive up to 75% of their life
benefit up to $250,000 if their life expectancy is 12-months or less.
4)
Travel Assistance Services provided through AXA Assistance – at no additional
cost to them or their employer.
5)
Financial Services Hotline for Beneficiaries – amounts of $5,000 or more are placed in an
Interest Draft Account (IDA) with an interest rate determined at time of deposit. Through the
hotline he/she can speak directly to an experienced banker about a checking account offered
through Principal Bank
6)
Grief Support Services provided by Magellan Health services – offers confidential
assistance with concerns resulting from the death of a loved one.
STD
1)
Definition of Own Occupation. Included in our STD contract is an “Own Job” Definition.
Most carriers include a broad definition of disability covering an employee’s Own Occupation.
Principal takes into consideration the following: *What is “essential & required” for the employee’s
JOB for the employer.
2)
Owners Compensation – For Members with a direct ownership interest in the business
entity of the Policyholder, Monthly Earnings on any date are based on an average of the following
earnings for the last 2 calendar year(s):
a. Member’s share of the gross revenue; minus
b. Member’s share of expenses; plus
c. Member’s salary
***If a + b equal a loss, then owners salary will just be used so that a benefit will still be payable –
The majority of carriers just use an Owner’s salary which in many cases provide a minimum
monthly benefit.
3)
A single claim form can prompt a review for STD, LTD, Individual Disability Income
Insurance, and Life Waiver of Premium claims.
4)
100% Return to Work incentive – No offset with return to work income unless benefit and
earnings exceed 100% of pre-disability earnings.
5)
STD claims are paid on a weekly basis. Many competitors pay claims on a bi-weekly
basis delaying payments to the claimant.
6)
Our definition of disability allows the claimant to qualify for either the duties test or the
earnings test during the elimination period. Most carriers require both of the disability tests to
qualify.
7)
We can remove offsets for sick pay and/or salary continuance.
8)
Maternity payments are “fronted” – Once a female qualifies for maternity benefits the
weekly payments for the duration are sent all in one lump sum to the claimant.
9)
We have included in the proposal a CORE TELEPHONIC EAP with Magellan. Included
with the CORE EAP are:
a. Confidential telephonic consultation 24 hours a day, 7 days a week.
b. (CISD) Critical Incident Stress Debriefing providing on-site counselors at the
workplace when critical incidents occur.
c.
10)
Online Services with articles, resources and self-screening assessments.
We offer 4 different ways to file STD claims.
a. Fax
b. Paper
c. Electronic
d. Telephonic (must be included in cost)
11)
Our STD pre-ex for voluntary plans allows for a claimant to receive benefit for up
to 6 weeks during a pre-ex review period. If the claim is considered invalid we DO NOT
ask for a refund. Keeps employees out of hardship situations during the pre-ex
investigation.
LTD
1)
Our definition of disability allows the claimant to qualify for either the duties test or the
earnings test during the elimination period. Most carriers require both of the disability tests to
qualify.
2)
Owners Compensation – For Members with a direct ownership interest in the business
entity of the Policyholder, Monthly Earnings on any date are based on an average of the following
earnings for the last 2 calendar year(s):
a. Member’s share of the gross revenue; minus
b. Member’s share of expenses; plus
c. Member’s salary
***If a + b equal a loss, then owners salary will just be used so that a benefit will still be payable –
The majority of carriers just use an Owner’s salary which in many cases provide a minimum
monthly benefit.
3)
During the qualifying period for disability we allow the claimant to return to work twice the
number of days as the qualifying period. Known as Trial Work Days.
4)
We have included in the proposal a CORE TELEPHONIC EAP with Magellan. Included
with the CORE EAP are:
a. Confidential telephonic consultation 24 hours a day, 7 days a week.
b. (CISD) Critical Incident Stress Debriefing providing on-site counselors at the
workplace when critical incidents occur.
c.
Online Services with articles, resources and self-screening assessments.
5)
The treatment of income that is earned but not yet received. In many S-Corps and
Partnerships, there are monthly draws or advances as well as quarterly distributions for the
partners. The majority of carriers offset for these incomes if they are paid during the benefit
payment period. It can also create issues in satisfying the “earnings test” for being considered
disabled. Principal does NOT offset for these distributions or consider them income during total
disability situations.
6)
We do NOT offset for Individual Disability policies. Many carriers claim not to offset for
Individual policies but include payments from these policies in their “Monthly Payment Limit.”
Often referred to as indirect offsetting.
Vision
1)
This is a true indemnity plan that allows employees to go to any provider with no co-pays
& no deductibles
2)
If employees choose to go to a VSP provider, additional discounts apply.
3)
We issue I.D. cards to each employee
4)
Principal Life’s Eye Care Health Program helps members with diabetes keep an eye on
their vision. Eligible members can receive $50 for an extra eye exam each year by submitting the
Eye Care Health Program voucher to Principal Life after visiting their provider, who must sign off
on the condition.
Enrollment/Administration
1. List census enrollment for takeover groups for Dental, Life, STD, LTD & Vision. (Including
Voluntary where participation is acceptable). By using list census enrollment we take out the leg
work of collecting & mailing employee apps. More importantly, no more trying to read employees
messy handwriting, or going back time, after time, for missing information.
2. Customized Enrollment Options with One Employer Application for all lines of coverage.
From a detailed checklist to keep you on track in front of your client, to a customized census
enrollment template for the case, (specific to the coverage(s) being enrolled), all the way to
explaining your client’s options for W-2 & FICA services. Our Non-Medical team will help you with
exactly what you need to transition/enroll a case.
3. Multi Line Sales – Dental, Vision, Life, STD, & LTD. One carrier, one bill, one administration
system and contract. Save yourself, and your client, the time and the hassle of dealing with
multiple carriers.