According to the Principal, more than 19.5 million employees work part-time, and many employers still want advisers to help provide benefits to these employees, regardless of hours worked. However, the goal of providing flexible arrangements to employees with fewer hours worked often limits the types of benefits for which employees can qualify.
Individual disability income insurance from the Principal allows part-time employees to purchase this benefit, which the firm says is a stark divergence from historic industry standards that require full-time employment for disability income coverage. Coverage is available for employees working 20 to 29 hours per week and earning over $40,000 annually.
The lack of quality benefit options for part-time employees has frustrated advisers for years, according to Paul Fromm, vice president of individual disability insurance for The Principal. “We wanted to close that gap for income protection and provide a solution to help advisers meet the needs of this growing market,” he says.
Part-time employees can use the coverage to protect their income as well as their ability to continue saving for retirement through Principal Life’s DI Retirement Security program. “Life happens, no matter how many hours you clock on your timecard,” Fromm says. “Employees must be financially prepared to replace their paycheck when the unexpected happens.”
Additional information on income protection can be found at www.principal.com.