Principal vs MassMutual: Comparing Disability Insurance for High-Income Professionals

Disability insurance is a cornerstone for protecting your future income, especially for high-income professionals in specialized fields. However, the bombardment of options (particularly for new physicians) and nuanced fine print often makes finding the right policy overwhelming. To break down some of these pain points, we’re comparing “Big 5” carriers, such as Principal vs. MassMutual disability insurance coverage.

Both providers offer competitive pricing for own-occupation coverage. But key policy differences, including optional riders and unique benefits, could impact your level of coverage in the event of a long-term disability. So, let’s compare the two to see which one might best fit your needs.

Principal vs. MassMutual disability insurance: Quick overview

Here’s a quick reference guide comparing some of the major aspects of Principal versus MassMutual disability insurance.

	Principal	MassMutual
Definition of disability	True own-occupation	True own-occupation
Maximum monthly benefit	Up to $35,000(depending on occupation)	Up to $30,000(depending on occupation)
Benefit period	2 years, 5 years, to age 65, to age 67 or to age 70	2 years, 5 years, 10 years, to age 65, to age 67, to age 70
Elimination period	60, 90, 180 or 365 days	60, 90, 180, 365 and 730 days*

*Available elimination periods may be dependent on chosen benefit period or state residence.

If you prefer someone else to handle the comparison legwork, fill out the form below to receive a free own-occupation quote from the “Big 5” disability insurance providers. Or keep reading for a more in-depth look at what Principal versus MassMutual disability insurance policies have to offer.

Principal vs. MassMutual: What does own-occupation coverage include?

Your disability insurance policy’s definition of disability can make or break your claim. For high-income earners in a specialized field — such as doctors and dentists — a true own-occupation definition of disability will provide the strongest level of income protection.

Here’s what to expect with Principal vs. MassMutual disability insurance policies:

• Principal® Income Protector. Principal offers two definitions of own-occupation coverage. The standard definition of total disability includes being unable to perform the duties of your specialty while also not working anywhere else (e.g., consulting, instructing or administrative roles). However, its enhanced option provides true own-occupation coverage, allowing you to collect disability benefits even if you choose to work in a different field.
• MassMutual’s Radius Choice®. MassMutual’s base policy has a similar definition of disability, providing benefits only if you’re unable to perform your occupation’s duties and aren’t working another gig. However, it provides an optional true own-occupation rider for those who wish to continue working in a different profession while still collecting disability benefits.

Both policies specifically protect your ability to earn income in your medical or dental specialty. But if you want the flexibility to earn income outside of your specialty while disabled, MassMutual and Principal offer enhanced coverage for an additional cost.

Related: Principal Disability Insurance Review, MassMutual Disability Insurance Review

MassMutual vs. Principal disability insurance: Beyond the basics

For most, the cost of disability insurance is a major factor in choosing a policy. But understanding the various features and benefits that each carrier offers is equally important.

Monthly benefits: Maximum coverage limits

Both Principal and MassMutual offer substantial monthly benefits to replace your specialty income if you become disabled. The exact amount will depend on your monthly income and occupation class.

Disability insurance carriers use a risk classification system to assess the likelihood of filing a claim for each type of occupation. For example, physicians are usually classified based on a scale that ranges from 5P (lowest risk) to 2P (highest risk). This risk designation plays a part in determining how much disability insurance you qualify for and how much you’ll pay for it.

The maximum monthly benefit for Principal and MassMutual is generally $20,000. But some occupations can access monthly benefits up to $30,000 with MassMutual and $35,000 with Principal. 

Note that each provider treats occupation risk differently, so shopping around for own-occupation coverage could yield better rates or higher limits.

Dividends: It pays to be a policyholder

MassMutual offers an attractive benefit that no other “Big 5” carrier (including Principal) offers: dividend payments to eligible policyholders. Basically, if you can make it six years without making a disability claim, MassMutual will refund 10% of your premiums each year.

While these dividends aren’t guaranteed, MassMutual has a strong history of paying them — 157 consecutive years to be exact. In fact, it will set a new company record in 2025 by paying more than $2.5 billion in dividends. This can be a valuable benefit that pays off with time.

Benefit increase riders: Ways to increase coverage

Principal and MassMutual offer policy riders that help adjust your coverage as your income or needs change. However, there are some key differences to be aware of:

• Principal’s Maximize Your Benefit (MYB) rider. This free rider allows you to increase coverage any time during the first three years of your policy. After that, you can still increase coverage following a major life event, a significant income increase of at least 20% or the loss of group disability coverage.
• MassMutual’s Benefit Increase Rider (BIR). This no-cost rider allows you to purchase additional coverage once every three years. But to keep it in force, you must do so every three years — whether that’s your preference or not.

Overall, Principal’s MYB rider is better than the BIR with MassMutual. But MassMutual also offers a Future Increase Option (FIO) for an additional cost. It allows you to purchase more coverage as your income increases, so it’s more flexible than the MYB rider.

Additional policy riders and benefits that stand out

MassMutual and Principal offer a unique suite of additional policy options to customize your disability insurance, including:

• Retirement protection. If you become disabled, you won’t be able to contribute to your employer-sponsored retirement plan without earned income. Therefore, MassMutual offers the RetireGuard® rider. It helps to replace both your employee and employer contributions if you become disabled. 
• Student loan protection. Principal is the only “Big 5” provider that doesn’t offer a student loan protection rider. However, this type of policy rider is only “necessary” for private student loan borrowers with a significant amount of student debt. Otherwise, you can sign up for federal income-driven repayment (IDR) plans that adjust your payment based on your income.
• Lump sum benefits. Principal offers a capital sum benefit rider, which provides a one-time payment if you lose the use of a hand, foot or sight of an eye. Principal also provides optional death benefits equal to three times your disability benefit, something that MassMutual doesn’t currently offer.

This is just a small sample of what’s available in terms of customizable options. Keep in mind that most attractive policy riders come with an added cost, but not always. So, it’s essential to speak with a knowledgeable insurance broker to discuss which options could be beneficial versus which ones simply add unnecessary costs to your policy.

Get own-occupation disability insurance

If you’re in the market for disability coverage, don’t just settle for the first quote you receive. While our Principal versus MassMutual disability insurance comparison is a solid starting point, there are numerous ways to tailor your policy for maximum protection.

Working with an experienced independent insurance broker can make a huge difference in understanding coverage options and bringing down premiums. For example, some carriers offer special disability insurance discounts, such as a multi-life discount with Principal or MassMutual if you’re able to get at least two other coworkers to sign up at the same time. And some brokers, like SLP Insurance, have access to exclusive discounts that can save you money.

Whether you’re a medical resident or an established professional, it’s best to shop around and ask questions about the policy you’re interested in. SLP Insurance can help compare quotes from the “Big 5” and find the top discounts that apply to your situation. Fill out the form below to get started!