Reminder: New Life Insurance Application Coming Soon

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Our new life insurance application will offer a better purchase experience for you and your clients. Here are some highlights of what to expect—and stay tuned for more updates.

A thoughtful approach for greater application ease of use

  • For cases where digital submission through Drop Ticket is an option, the design enhances the experience and makes it shorter and easier to complete, with generally more accurate information than other options.
  • The application output is dynamic – meaning only questions answered during application submission are included in the output. Note: If using iPipeline’s iGO, dynamic output doesn’t apply.

Many supplemental forms are embedded within the application packet. This will increase the likelihood of “in good order” applications and reduce additional client follow ups. 

What’s different with the application?

  • When Drop Ticket is used and the insured and owner are different, there are two sets of questions. The insured gets those specific to them and their medical history, and the owner receives applicable questions regarding the plan and business information.
  • Parts A/C and B are individual forms, so if new information is required, only the affected form will need completed – not the entire application.
  • Part B:
    • Life insurance and individual disability insurance (IDI) applications use a common Part B.
    • Employability questions have been added and tobacco use information is more detailed.
    • An insured signature is required.
    • Added insured signature requirement so medical information will be confirmed prior to underwriting instead of at delivery.
  • Part D has been eliminated, but delivery receipts will still be applicable.
  • The Conditional Receipt has been replaced by the Temporary Insurance Agreement (TIA), which is common in the industry.
  • When the owner and insured are different, and no medical information needs amended, only the owner will be involved in the delivery process. 

Tips for submitting conversion applications

Use the following tips to ensure your term conversion applications are received in good order and new policies are issued as quickly as possible:

  • Meet term conversion application deadlines. Fully completed term conversion paperwork, signed illustration, completed and signed Producer Report, and full modal premium must be received in our Home Office by the final conversion date. Conversions received after that date will not be accepted.
  • Submit all necessary forms for partial or full term conversions. From the Create an App feature on the financial professional website, select “Term Conversion to New Policy” in the drop-down box for Coverage Type. Note: If a fully underwritten rider or rate reconsideration is being requested, an Adjustment Application will be required. The Adjustment Application can be selected from the Additional Forms section after you click “Create.”
  • Additional Forms. Include any additional forms pertinent to the policy. For example, the Trust Certification and Indemnification form (RF971) is needed for Trust Owned cases.
  • Backdating. Term conversions can’t be backdated to save age, per the terms of the policy contract.
  • Partial conversions. Partial conversions are held and issued to the nearest anniversary “day” of the existing term policy.
  • End-of-month issue holds. Term conversions aren’t issued after the 28th of the month. These will be held and issued on the first of the following month.
  • Confirm new approval rating. If the clients’ existing policy has a rating of “A”, “B”, or “C”, call the National Sales Desk at 800-654-4278 to confirm the new rating that would apply.
  • Chronic Illness Death Benefit Advance Rider. This rider may require full underwriting depending on the issue date of the term policy. Contact the National Sales Desk to verify if the rider is eligible to be added automatically without full underwriting. If the rider is not desired on the new policy, run the illustration as “Term Conversion.”
  • Meet all premium requirements. Since term conversions are issued inforce, all premiums due on a conversion policy must be received by the Home Office before it can be issued. Premiums for the existing term coverage must be paid current at the time of conversion, and initial modal premium must be received for the new policy prior to policy issue.

Issue reminders:

  • eDelivery. Issued conversion policies are sent by mail to the Field Office Contact — eDelivery of an issued conversion policy isn’t available.
  • Delivery requirements. Delivery requirements can’t be sent to a financial professional in advance of receiving a mailed copy of the policy. 

Using the BSEU program with business clients

The Principal® Business Solutions Enhanced Underwriting (BSEU) program helps your clients get more coverage with less hassle. It enables qualifying cases up to $50 million to be underwritten without an insurance exam and is available with any of our life insurance products.

Here’s a real-life example of how the program can streamline the process.

  • Case met age and face amount guidelines.
  • Insurance exam, labs, and EKG were all 13 months old and expired.
  • Insured had routine checkups with a physical exam three months prior to the application.

We were able to use the labs and physical measurements from the recent physical. And because the BSEU program was being used, we could use the expired EKG from the insurance exam (only needed within the past three years for BSEU).

Get full details about the program or ask your underwriter about it.