Products February 10, 2009

Principal Protects Businesses against Key Person Disability

February 10, 2009 (PLANSPONSOR.com) - The Principal Financial Group has introduced two new ways to insure businesses against the threat of a disability with a Key Person Replacement insurance policy and the Business Loan Protection rider.
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According to a press release, Key Person Replacement disability insurance helps protect businesses by insuring those employees who make a significant contribution to the business.  In the event the key employee becomes totally disabled, the business receives the policy’s benefits, which can be used for recruitment and training costs, temporary staffing needs, and short-term revenue replacement.

The Business Loan Protection rider for the Overhead Expense insurance policy reimburses the covered business-related loan obligation in the event of the insured owner’s total disability. The announcement said examples of loans covered include purchase of a practice, expansion of a business, facility renovations, and building of inventory. 

“We’re bolstering our disability offering to help ensure businesses can not only stay open, but continue to thrive if a disability strikes a key employee or owner,” said Kevin Farley, vice president of individual disability insurance for the Principal Financial Group, in the announcement. 

More information is at www.principal.com/insurance/ind/disability .

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