February Guest Post: Principal Financial Group

Do you have a student loan?
What would happen to it if you became too sick or hurt to work?
By: Jay Randall, Financial Advisor, Principal Financial Group

Many people assume their loan would be forgiven if they became disabled, but that may not be the case. According to Department of Education guidelines, you would need to be totally and permanently disabled in order for the loan amount to be discharged. And even if your disability qualifies, the loan may not be discharged until 3 years after you become disabled!1 These are very stringent requirements and could leave you vulnerable to having to make loan payments – even when you’re not earning an income.

Another more proactive solution is to buy Individual Disability Income (DI) Insurance. This coverage helps protect your income in a variety of situations – even if your illness or injury is short term or a partial disability.

To make this protection more affordable, Principal Life Insurance Company offers Ohio Psychological Association members a 10% association discount on Individual DI policies. Watch this presentation to learn more.

Disabilities Do Happen
“One in four of today’s 20-year-olds will become disabled before they retire.”
— Social Security Administration, Fact Sheet, March 2011.

1 Disabled World News (2011-10-27) – Information on cancellation consolidation deferment and discharge of student loans including repayment calculator and income based repayment chart:

Disability insurance issued through Principal Life Insurance Company, Des Moines, Iowa 50392. Disability insurance has certain limitations and exclusions. For specific costs and complete details of coverage, contact a Principal Life representative.


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