ACCELERATED UNDERWRITING Delivering Policies Faster

Michelle Tish, CLU, ChFCPrincipal Financial Group

• Clients need it– Protect family, business– Wealth transfer – equalization– Debt coverage– Tax treatment

• Many are not covered– 44% of U.S. households have life

insurance*– 25% of all households plan to buy life

insurance next year*

Life Insurance: The Facts

* Trends in Life Insurance Ownership study – LIMRA August 2010

• Clients don’t like the hassle– Labs– Timing– Inconvenience

• You want a quicker, easier way

Life Insurance: The Facts

We can help.

Accelerated Underwriting•Preferred or super preferred risks

•Policies delivered in about a week

•No paramed or labs

•Up to $1 million for ages 18-60

•Approved for all products

Qualifications

Accelerated Underwriting•Ages 18-60

•Total face amt $50,000 to $1,000,000

•New business only

•Preferred and Super Preferred risks

• Major Medical conditions• Driving under the influence or reckless driving in the last 5 years• Criminal history• Foreign nationals or travel to hazardous countries• For applicants over age 50, no routine physicals or primary care

physician• Prior informal request to The Principal within the last 24 months• Labs completed for insurance purposes within the last 24 months• Prior coverage approved other than Preferred or Super Preferred

Disqualifications

Major Medical Conditions*

• Alcohol abuse and/or treatment

• Atrial Fibrillation

• Barrett’s Esophagus

• Cancer (Exceptions: Basal Cell and Squamous Cell Carcinomas)

• Chronic Obstructive Pulmonary Disease (COPD)/Emphysema

• Crohn’s Disease

• Diabetes/Gestational Diabetes

• Drug abuse and/or treatment

• Epilepsy/Seizure

• Gastric Bypass/Lap Band

• Heart Disease/Heart Surgery – All forms

• Hepatitis

• Hypertension (diagnosed within six months)

• Kidney Disease

• Lupus

• Melanoma

• Multiple Sclerosis (MS)

• Parkinson’s Disease

• Peripheral Artery Disease (PAD)Peripheral Vascular Disease (PVD)

• Rheumatoid Arthritis (RA)

• Sleep Apnea

• Stroke/Transient lschemic Attach (TIA)

• Ulcerative Colitis (UC)

* Advanced diagnostic testing, biopsies and cardiac testing may require an attending physician’s statement and traditional underwriting. Other medical history may also require traditional underwriting.

Accelerated Underwriting Process

Approved Pref / Super Pref – Sent

to Issue

Sent to Regular Underwriting –Requirements

Ordered

• 57% of applicants – approved through Accelerated Underwriting

• 87% approved Super Preferred

• Average turn-around time 7-10 days

• Age 40

• $315,000 average face amount

RESULTS

Scenario 1

Joe Client• 43 Years Old• Teleapp submitted Tues AM• Interview done immediately• Approved at Super Preferred on

Wednesday• Policy issued Thursday

Scenario 2

Tom Client• Age 48• Teleapp submitted Tues AM• Interview scheduled for Thursday• Reviewed on Friday,

More information Needed• Labs Ordered –

Approval at Standard Following Friday• Alternate solution –

Approval at Preferred Following Friday

Get Started Today

• It’s Easy

• It’s Fast

• Give it a Test Run!

• - All Products• - Ages 18-60• - Up to $1M Face

Amount

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is

provided with the understanding that The Principal is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should

consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

Insurance products from the Principal Financial Group® are issued by Principal National Life Insurance Company (except in New York)

Principal Life Insurance Company and the companies available through the Preferred Product Network, Inc. Securities and advisory products

offered through Princor Financial Services Corporation, 800/247-1737, member SIPC. Principal National, Principal Life, the Preferred Product Network, and Princor® are members of the Principal Financial Group®,

Des Moines, IA 50392.

No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or

recording, or by any information storage and retrieval system, without prior written permission from the Principal Financial Group®.

Copyright ©2011 Principal Financial Services, Inc. #t110118024x

Questions and Answers

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