The
Principal Financial Group Announces New Insurance Resources for Consumers |
To address the issue faced by
millions of Americans of being uninsured or underinsured with life and/or
disability income insurance - two vital components to a family's financial
protection portfolio - the Principal Financial Group(R) announces From Here to
Security.(SM) This unique program is designed to educate consumers about
individual life and disability income insurance and help them identify what
coverage they may need to help them be financially secure. |
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At the heart of the From Here
to Security program are life and disability consumer education booklets and CD
ROMs. The booklets are easy-to-read guides to understanding life and disability
insurance, complete with definitions, examples, statistics and a personal
needs-analysis worksheet. The CD ROMs are electronic versions of the booklets,
with built-in links to the Web-based, self-completing life and disability
insurance need calculators located on www.principal.com. The calculators allow
customers to run "what if" scenarios to determine the level of coverage
appropriate for their individual situation. The life insurance calculator goes
one step further to recommend an appropriate type of insurance and offer three
optional levels of coverage to meet customer needs - "A Good Start,"
"Your Calculation" and "Financial Security." |
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"Consumers generally
aren't aware of what they should look for when purchasing life and disability
income insurance coverage, and many don't know what questions they should ask
to learn more. By providing From Here to Security, we are giving consumers an
opportunity to do research at their own pace without pressure, to identify what
coverage they need to protect their financial security," commented Jerry
Patterson, vice president of Marketing for the Life & Health Division of The
Principal.(R) |
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In recent research conducted by
The Principal, employees of small to mid-sized companies were asked what would
be most beneficial in helping understand life or disability insurance. Those
surveyed said "explanation of what the benefit covers" (47% life; 57%
disability); "financial plan outlining all steps in the process" (27%
life; 30% disability); and "definitions of key insurance terminology"
(28% life; 29% disability). |
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"The From Here to Security
program addresses all of these requests, and then some. It's designed to be a
common sense approach to reaching consumers, and helping them discover and
analyze what need they may have, if any," said Patterson. |
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Defining the Need |
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"Recent years have hurt
more than helped the financial security of most Americans and their families.
Few people have adequately protected themselves or their heirs against loss of
income, current savings and future savings from an unexpected death or
disability," said Patterson. |
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In fact, according to a recent
survey conducted by The Principal, just 13 percent of employees of small to
mid-sized companies own an individual disability insurance policy. Of this 13
percent, 33 percent said their replacement monthly income was less than 50
percent. Forty-six of those surveyed own individual life insurance. Of those
individuals, 29 percent said their face amount was less than $50,000. These
numbers are staggering when you consider that 45 percent of those surveyed said
that covering monthly expenses was their main concern regarding their current
financial situation. |
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"People understand the
tremendous impact a disability or unexpected death can have on a family. In
fact, 77 percent of those surveyed said they believe suffering a loss from an
accident or illness would result in greater financial loss than a house fire.
However, few are taking action to protect all that they have worked so hard to
achieve," continued Patterson. |
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According to the research, if
faced with a disability and were unable to work in their current job, those
surveyed said they would: |
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-- change their living
arrangements (41%) |
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-- rely financially on their
spouse or significant other (38%) |
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-- withdraw from personal
savings (31%) |
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-- take out a hardship
withdrawal from retirement savings (21%) |
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"All of this demonstrates
that what people need is information and assistance in understanding life and
disability income insurance and to debunk the common myths that these coverage’s
are expensive and complicated. Through From Here to Security, we are trying to
accomplish both," said Patterson. |
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About the Principal Financial
Group |
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The Principal Financial
Group(R) (The Principal (R))(1) is a leader in offering businesses, individuals
and institutional clients a wide range of financial products and services,
including retirement and investment services, life and health insurance and
banking through its diverse family of financial services companies. More
employers choose the Principal Financial Group for their 401(k) plans than any
other bank, mutual fund, or insurance company in the United States(2). A member
of the Fortune 500, the Principal Financial Group has $149.8 billion in assets
under management(3) and serves some 14.7 million customers worldwide from
offices in Asia, Australia, Europe, Latin America and the United States.
Principal Financial Group, Inc. is traded on the New York Stock Exchange under
the ticker symbol PFG. For more information, visit www.principal.com. |
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Insurance issued by Principal
Life Insurance Company. Principal Life is a member of the Principal Financial
Group, Des Moines, IA 50392. |
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(1) "The Principal
Financial Group(R)" and "The Principal(R)" are registered
service marks of Principal Financial Services, Inc., a member of the Principal
Financial Group. |
(2) CFO Magazine, April/May
2003, based on total plans served in 2002 by insurance companies, banks and
investment firms.
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