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BREAKING NEWS: Principal Discontinuing Most Consumer Sales

Published on July 02, 2021

 

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Principal Discontinuing Most Consumer Sales

Principal Financial has just announced major changes to its business operations and sales platform, including exiting the individual consumer life insurance and annuity business by the end of the 3rd quarter 2021, and concentrating on business sales of life and disability products. We suggest moving quickly on any cases that may be written with Principal. Contact your GBS brokerage manager to discuss how these changes might impact your current in-house business.

The complex business reasons for these changes can be found in the following outline of their Strategic Review Results Announcement.

Important changes:

  • The deadline to apply for expiring consumer life and annuities is 10/1/2021. There is no time expiration on underwriting and placement for applications submitted and received prior to that time.
  • Sale of all fixed and immediate annuities will terminate 10/1/2021.

Going forward GBS will continue to promote and market Principal’s excellent Business Sales platform which includes these following items:

Individual Disability products – whether for personal use or business purposes.

Individual Life Sales for business purposes that are supported and administered by their BMA (Business Market Administration) team. Some but not all buy-sell and key-person life sales will qualify for that program. 

The BOES platform – Business Owners and Executive Solutions program includes valuable services like business evaluations, buy-sell document review and other tools for uncovering any business sale needs. This includes specialty products like COLI, EVUL (Executive VUL) and Guaranteed Issue Multi-Life Term.

Frequently asked questions regarding service, compensation, business and trust-owned polices and other topics can be found HERE:

GBS continues to offer 20+ other quality insurance carriers many with online, no-exam processes for your term business and excellent underwriting and other resources you might need to place your insurance business going forward.

These details are based on best information available at this time and the situation is very fluid. Please check with your GBS Brokerage Manager for any updated information.

 

THANK YOU

 

We at GBS Insurance thank you again for your business. For more information or insurance quote requests, please contact your brokerage manager or give us a call at (800) 473-5966

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21820 Burbank Blvd., Suite 301

Woodland Hills, CA 91367

Phone: (800) 473-5966

GBS Insurance and Financial Services, Inc. do not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

© 2021 Arthur J. Gallagher & Co. 

 

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