What to do when a Principal account holder dies

Completed by each beneficiary. Available to download.¹

Completed by each beneficiary; the group planholder completes Part I. Available to download.²

Completed by the beneficiary. Completed online.³

Completed by the employer. Completed online.⁴

Completed by all currently serving trustees. Available to download. Must be notarized.⁵

Available to download. Must be notarized.⁶

Completed by the attorney-in-fact. Available to download. Must be notarized.⁷

Completed by a corporate officer. Available to download. Must be notarized.⁸

Completed by the assignee. Available to download.⁹

All Principal annuities have a built-in death benefit.¹⁰

For a defined benefit (pension) plan, payout options, including a survivor payout, vary by plan; the summary plan description has the details.¹⁰

Every pension plan requires some paperwork and may require a copy of the death certificate. The plan may also ask the surviving spouse to choose a benefit payout option.¹⁰

Insurance products it issues (except in New York); the policy names its issuer, which is responsible for the policy¹

Principal annuities¹⁰

A complimentary bereavement care benefit for Principal beneficiaries, with practical and emotional support after a loss. Principal shares the beneficiary's name, phone number and email address with Empathy unless the beneficiary opts out on the GP1150.²

Who qualifies: Group life beneficiaries; not available with group policies issued in New York

Will and legal resources for group life beneficiaries at no additional cost. For spouses, Principal offers will preparation services up to three months after the death.³

Who qualifies: Group life beneficiaries

1-800-546-3718

A group life claim has no filing time limit, though Principal says the sooner it is submitted, the easier it usually is to obtain the information to process it.³

Individual life insurance benefits are paid by lump-sum check or electronic funds transfer. Group life benefits are paid by lump-sum check.³

For direct deposit of individual life proceeds, the beneficiary attaches a pre-printed voided check in their name, or a bank letter on letterhead with the routing number, account number and account name; otherwise a check is mailed.¹

An individual beneficiary can instead choose life income, 10-year fixed income, or an interest option where the policy states it, on an Election of Current Yield Benefit Option application (BB4342A).¹

Group life proceeds for a minor are paid, whenever possible, to the guardian or conservator of the minor's estate, once a copy of the court order and the claim form are received. In some instances they are paid to a custodian under the Uniform Transfers to Minors Act.³

If neither option is viable, Principal says it has internal solutions to hold a minor's group life proceeds until the minor reaches the age of majority.³

If the employee had group coverage for 3 months or less at the time of death, Principal requests additional documentation showing the employee was actively working when eligible for coverage.⁴

On the trustee certification (DD9152), the trustees agree to indemnify Principal for its good-faith reliance on the certification and to release it from claims that result from paying the trust.⁵

Form DD750 says a beneficiary who is not a U.S. person submits Form W-8BEN or W-8BEN-E instead of the W-9 certification, and that "failure to submit a valid Form W-8BEN or W-8BEN-E or to provide a required tax identifying number will result in mandatory withholding of 30% of the taxable portion of the payment."¹