Principal Life Insurance Review: Great for Business Owners

When it comes to life insurance for business owners, Principal stands out. But, if you need personal coverage you’ll need to look elsewhere.

In this guide, we review Principal, compare its insurance policies to those of other companies, and highlight its strengths in high-risk life insurance.

In 2021, Principal exited the individual consumer life insurance market to focus almost entirely on business life insurance. Principal products are only available for:

• Business Solutions
  • Buy-Sell Coverage
  • Key-Person Life Insurance
  • Collateral for SBA Loans
  • Executive Benefits and Bonus Plans
• Personal Solutions
  • For Business Owners
  • Family Members
  • Key Employees

Bottom Line – Principal is an excellent company if you need life insurance related to your business.

Ratings as of 04/2025 and subject to change:

• AM Best rating = A+
• Fitch rating = AA-
• Moody’s rating = A1
• S&P rating = A+

Principal has held an “A” or better rating from AM Best for 75 consecutive years.

Products are available to meet all types of business life insurance needs.

Principal offers competitive pricing, especially for large policies over $1 million.

• Minimum Face Amount: $200,000
• Issue Ages: 20 – 80 years old
• Term Lengths:
  • 10-Year – Age 20-80 (75 tobacco)
  • 15-Year – Age 20-75 (70 tobacco)
  • 20-Year – Age 20-65
  • 30-Year – Age 20-55 (50 tobacco)
• Conversion available
• Riders Include:
  • Accelerated Benefit Rider
  • Children Term Rider
  • Conversion Extension Rider
  • Waiver of Premium

Banner Life and Protective offer 40-year terms if you need longer term lengths.

Every company has its pros and cons, and Principal is no different.

• Pros
  • Competitive rates for large policies
  • Strong underwriting for high-risk cases
  • Quick decisions with accelerated underwriting
• Cons
  • Not available for personal life insurance (except limited situations)
  • They charge extra for a conversion privilege (so do Guardian and Minnesota Life).

Provider Edge II and Flex III are Principal’s main universal life insurance policies.

Description	Provider Edge II	Flex III
Overview	No lapse coverage to age 100+	Higher cash value accumulation in years 15-30.
Ages	20-85	0-85
Minimum Face	$100,000	Age 0-19 – $25,000 Age 20-85 – $50,000
Target Market	Business Protection Key Person Coverage Income Replacement Buy-Sell Agreements	Business Continuation Key-Person Income Replacement Buy-Sell Agreements

• Available Riders (varies by state/product):
  • Children’s Term
  • Chronic Illness
  • Life Paid-Up
  • Extended No-Lapse
  • Salary Increase (business cases)
  • Terminal Illness
  • Waiver of Monthly Policy Charge
  • Cost of Living Increase (Provider Edge II)

Other companies that offer universal life include:

• John Hancock
• Nationwide
• Prudential

When we provide illustrations for Principal, we will also provide you with comparisons from other companies.

The following policies are built for long-term growth and supplemental retirement income.

Description	Flex II IUL	Accumulation II IUL
Overview	Flexible with higher cash values in years 15-30	Long-term growth and income
Ages	20-85	20-85
Minimum Face	$100,000	$50,000
Target Market	Key Person Coverage Exit Planning Key Employee Benefits	Business Continuation Key-Person

Great fit for business continuation, executive bonus, and high-income planning.

Companies to compare index universal life include:

• Corebridge Financial
• Lincoln Financial Group
• North American
• United of Omaha

Many options exist in the IUL marketplace.

Principal’s program covers most products and offers fast decisions with no labs for qualifying applicants:

• Accelerated Underwriting:
  • Ages 18-40: Up to $3,000,000
  • Ages 41-60: Up to $2,500,000
• Underwriting uses the MIB, prescription checks, motor vehicle reports, and digital health records.
• Decisions are possible within 24 hours.

For business or trust-owned policies:

• Up to $50 million with no exam if qualified
• Will accept executive physicals with labs within the past 12 months.
• Target those with an income of $150,000 or greater.

Principal is most competitive for the following issues:

• Build
• Heart Problems
• Prostate Cancer
• Epilepsy
• Financial Underwriting
• Foreign Nationals
• Aviation

Life insurance table ratings apply to some high-risk health conditions.

Principal rewards healthy behavior, even if an applicant has some medical conditions:

• Can reduce table ratings or improve rate classes.
• Positive factors that may help include controlled blood pressure and cholesterol, good family history, and preventative screenings.

This program often boosts applicants with a Table 2 rating up to Standard.

Helpful for conditions like:

• Anxiety
• Atrial Fibrillation
• Barrett’s Esophagus
• Rheumatoid Arthritis
• Sleep Apnea

Many other health conditions may also benefit from this program.

You may reach customer service by calling 800-986-3343

Principal offers online access to your policy information – here

The corporate headquarters is located at:

711 High Street – Des Moines, Iowa 50392

Principal isn’t for everyone.

But if you’re running a business or need advanced planning for executives, partners, or family members, it’s one of the best carriers in the market.

If you’re looking for basic personal life insurance? There are better, cheaper options out there.

Please take a few minutes to submit your quote request today.