Financial Professionals Individual disability insurance Disability Buy-Out insurance

Disability Buy-Out insurance
Disability Buy-Out insurance

Help owners protect their business with a transfer plan if they become disabled.

Disability Buy-Out (DBO) insurance helps fund the purchase of a totally disabled business owner’s interest under a buy-sell agreement. It allows remaining owners to continue the business without:

  • Using business cash flow
  • Obtaining loans from financial institutions
  • Selling shares of the business to get working capital

Target market

  • Smaller businesses with 1 to 10 owners
  • Family businesses with parent/child or sibling ownership arrangements
  • Up to $20 million business value considered ($10 million and above, contact underwriting)
  • Majority of policies sold are 3A/3A-M and above

Business customer profiles (PDF)

Our DBO products

The HH703 policy is conditionally renewable to age 65 with guaranteed premiums. 

The HH794 policy is conditionally renewable to age 65 or 67 with guaranteed premiums and offers a one-way buy-out solution for sole proprietors. It’s not approved in all states. For more information, refer to DI state approvals.

The HH673 policy (California only) is conditionally renewable to age 65 with guaranteed premiums. Rates are based on unisex/gender-neutral rates.

Get an application

 

Working with Principal®

We’re more than just products. It’s about the service you’ll receive from Principal and the experience, education, and ease of doing business to help you succeed with IDI.

  • Get direct access to your internal sales team:  800-654-4278.
  • Access underwriting and submitting business resources:  800-654-4278, options 3,3.
  • Get claims information:  800-654-4278, options 4,3,4.

Footnotes

Two to eight owners for 2A and 3A/3A-M occupation classes.

Important information

Guarantees are based upon the claims-paying ability of Principal Life Insurance Company®.

This content is designed for use by financial professionals. Consumers may learn more about products and services on www.principal.com.

This is a summary of the benefits disability insurance provides, but there are limitations and exclusions. For cost and coverage details, contact your Principal® representative.