The Principal Individual Disability Insurance product line is pleased to announce the addition of two new riders to their Series 700 Disability Solutions Product Portfolio.

The new Catastrophic Disability Benefit (CDB) and the Automatic Increase Option (AIO) riders) are available in most states.

The CDB rider is available on HH700 (DI) policies and the AIO rider is available on HH700 (DI) and HH702 (OE) policies.

New rider highlights

CDB rider
This rider provides benefits in addition to base monthly disability insurance benefits in the event of a catastrophic disability.

What is a catastrophic disability? A catastrophic disability:

• Prevents the insured from performing two or more daily living activities by him or herself such as bathing, eating, dressing, etc.
• Cognitively impairs the insured, such as Alzheimer's Disease
• Can be where the insured become presumptively disabled

These types of disabilities typically incur additional expenses, such as home health care costs, which could further strain the financial limits of an already strained household budget.

The Catastrophic Disability Benefit rider, coupled with existing disability income insurance policy(ies), could replace up to 100% of monthly income. This inexpensive rider is designed with your client's special needs in mind, should he/she suffer a severe disability and need the additional benefits.

AIO rider
The AIO rider replaces the Automatic Benefit Increase (ABI) rider and is available for no additional premium. ABI will no longer be available on new issue policies (in states that have approved the AIO rider) or added to any existing policies. The AIO rider is very similar to the ABI rider. The main differentiator is that AIO renews every six years vs. five years for the ABI.

In addition, the AIO rider can now work together with the Benefit Update (BU) rider. Having both AIO and BU on the policy at the same time is a huge competitive advantage. The combination allows policyholders, without proving medical insurability, to increase their benefits up to the maximum issue and participation limits during tri-anniversaries through the Benefit Update options, and also allows them to increase their benefits from 4% to 10% (based upon the CPI-U) during Automatic Increase options.

Note: You will not be able to back-date the new riders prior to May 19 in order to save age.

DIBroker -- Disability Insurance For Life
On the web: http://dibroker.com/
West Toll-Free: 877-636-2112 -- East Toll-Free: 800-790-2019