We’re excited to announce new, lower premium rates—making coverage even more attractive. Effective March 28, 2022, new rates are available for Principal® 10-, 15-, 20-, and 30-Year Term.
Key things to know about the reprice
- Level term rates are lower at many ages and risk classes. (Principal® GI Term and Principal® One-Year Term rates are unchanged.)
- New rates are approved in all states and available to quote now.
- The transition guidelines provide details regarding the repriced rates.
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Transition Guidelines
For purposes of these guidelines, Term rates in effect prior to the reprice are referred to as “original rates” and the new, repriced Term rates are referred to as “03/22 rates.”
Key dates for Term rates
March 28, 2022
- New Term 03/22 rates are available to quote and sell.
- We’ll accept applications for original rates through April 28, 2022.
- Term applications in underwriting will be issued at rates applied for unless 03/22 rates are requested. -Note the request on a cover letter/transmittal. A new application isn’t required.
April 29, 2022
- All applications received in the home office on or after this date will be issued with 03/22 rates.
Policies within the examination period (COD, Offer, or Shortage)
If original rates are desired:
- If the policy was delivered via eDelivery, the Field Office contact will reject the policy with original rates and indicate in the “rejection Comments” box that “Term rates – 03/22” are desired. the policy will then be reissued and delivered via eDelivery.
- If the physical policy was mailed from Principal, simply indicate “Term rates – 03/22” with the delivery requirement and submit the correct premium amount. New data pages will then be mailed to the customer.
Backdating
- Backdating is allowed in order to save age. Normal backdating rules apply.
State approvals
- Approved in all stated.