Principal Physician Disability Insurance Review (Updated 2026)
Physicians face a unique income risk because their earnings are closely tied to their ability to practice a specific medical specialty. Disability insurance matters most when an illness or injury prevents you from performing those specialty-specific duties, even if you can still work in another role. Principal’s physician disability policy is structured to address that risk through specialty-aware definitions, long benefit periods, and built-in options for income growth.
For broader context on how physician disability coverage works across carriers, see this overview of physician disability insurance options.
What Is Principal Financial Group And Why Does It Matter For Physicians?
Principal Financial Group is a long-established insurer with dedicated individual disability income products designed for high-income professionals. Founded in 1879 and headquartered in Des Moines, Iowa, Principal operates through Principal Life Insurance Company, which issues the HH750 individual disability policy commonly used by physicians.
From a physician’s perspective, the relevance of Principal is less about corporate size and more about claims-paying ability and policy consistency over decades-long careers. Principal holds an A+ (Superior) financial strength rating from A.M. Best, an independent rating agency that evaluates insurers’ ability to meet long-term obligations.
Principal Physician Disability Insurance Highlights
Principal’s disability insurance policy, HH750, is underwritten and issued by Principal Life Insurance Company. Principal’s Individual Disability Income Insurance is a comprehensive policy designed to provide financial protection in the event of injury, illness, or disability. With this policy, physicians can rest assured that their income will be protected, even if they are unable to work. The monthly benefits can be used to cover essential living expenses, such as mortgage payments, car payments, utilities, and student loan debt.
Own-Occupation
When buying disability insurance, you need to know how the insurance company defines “disabled.” At Principal, their occupation rider defines total disability as being unable to perform the material and substantial duties of your occupation, even if you can work in another field. Principal also offers a modified own occupation, which defines total disability as being unable to do your job and being able to work in another field but unwilling to do so.
It’s essential to note that Principal’s definition of true own-occupation varies slightly from other providers. Their policy states that there must be no reasonable job or worksite modifications that would enable you to perform your own occupation. While this may introduce some additional considerations, it still aligns with the true own-occupation standard that physicians seek.
Non-Cancellable or Guaranteed Renewable
A non-cancellable disability insurance policy means the insurance company can’t cancel, increase your premiums or reduce your benefits as long as you pay the premiums. The disability insurance policy at Principal is non-cancellable and guaranteed renewable to age 65.
Benefit Period
The benefit period is an option that comes with every policy. It is asking you up until what age do you want to receive payments should you fall ill or have an accident? The duration of the benefit period affects the price of the premium because the longer the benefit period, the greater the insurer’s risk. At Principal, you have a benefit period until the age of 70. You can also choose benefit periods to age 67 or 65, as well as benefit periods of two years or five years.
Elimination Period
The elimination period is the length of time between the start of an injury or illness and the time the insurance company pays you your benefits. You can purchase coverage with 30-day, 60-day, 90-day, 180-day, and 365-day elimination periods.
Mental Disorders
Principal has a 24-month limit for mental and nervous disorders using their own-occupation definition of disability.
Principal Physician Disability Insurance Riders
Anyone who buys physician disability insurance has the option to add riders which are provisions to give you extra benefits depending on your situation. Most riders come with an added cost, but it depends on the insurer.
Cost-of-living Adjustment (COLA) Rider
A COLA rider ensures that your benefits keep up with inflation. Principal’s COLA benefit is increased on a compound basis instead of simple. They offer a 3% or 6% COLA maximum. Upon returning to work full time, you keep any increased disability benefit without having to provide evidence of good health.
Residual Disability Rider
Principal offers a partial disability benefit called “residual disability.” If you become partially disabled, meaning you can perform some functions and not others, you will still receive full benefits. At Principal, in order to qualify as residually disabled:
- A loss of earnings of at least 20%; AND
- The inability to work full time and perform the duties of your occupation
- If you qualify, you will be paid 100% of your policy’s benefit for total disability if your loss of earnings exceeds 75%
- For earnings losses of less than 75%, you will receive a benefit proportional to your loss of pre-disability income
Principal’s residual disability rider will give you a minimum of 50% of your policy’s monthly benefit for total disability for the first 6 months of residual disability. You will receive 50% of the policy’s monthly benefit for total disability if you are retired or are unemployed.
Catastrophic Disability Rider
This rider provides additional benefits in the event you are unable to perform at least two of the six activities for daily living, or you require “substantial supervision due to severe cognitive impairment.”
How Does Principal Compare To Other Physician Disability Insurance Carriers?
Principal is often evaluated alongside carriers such as Guardian, MassMutual, and Ameritas because all offer individual disability policies designed for physicians. The primary differences typically relate to how strictly own-occupation is defined, how residual disability is calculated, and how benefit increases are handled over time.
Physicians should compare how each policy aligns with their specialty, state of practice, and income trajectory. Differences in definitions can matter more than brand names when a claim occurs.
Is Principal Disability Insurance A Good Fit For Your Career Stage?
Principal can be appropriate for physicians who value fast underwriting, strong resident and fellow discounts, and broad benefit period options. The policy includes built-in benefit update and future increase features that allow coverage to grow with income without new medical underwriting, subject to policy limits and conditions.
If you want to understand whether Principal’s structure aligns with your specialty and existing coverage, you can start by requesting your quotes and reviewing options with an unbiased expert.
Key Takeaways
Principal’s physician disability insurance policy is structured around specialty-specific income risk and long-term career protection. Its own-occupation framework, when paired with the Regular Occupation Rider, is designed to address situations where physicians cannot perform their specialty duties. Flexible benefit periods and elimination periods allow physicians to align coverage with career length and existing safety nets. Built-in riders and optional enhancements focus on income growth, partial disability, and catastrophic events rather than short-term pricing considerations.To see your options with Principal, request your quotes today.
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