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The SBC is a Safe, Reliable Choice
How does the SBC protect you?
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The SBC is fully insured, NOT self-insured or self-funded. This means that the Principal Financial Group, rated A+ by Standard & Poors, assumes the risk and liability for paying claims. You can rest assured your claims will be paid.
- The SBC uses a unique and beneficial funding arrangement that allows it to retain surpluses when claims fall below expected levels. You get the best of both worlds: retained surpluses when claims are lower than expected and the full backing of an insurance company when claims are higher than expected.
- The SBC has built-up a reserve of assets through retained surpluses and proceeds from the demutualization of Principal. These assets are invested strictly in low risk government securities, bonds or bank deposits and actually saw a positive return on investment over the past year. You can be confident that SBC assets are well managed.
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