Principal Life Insurance Company Review

Principal Breaking News 6-28-2021

Principal announced that they are abandoning the retail consumer life insurance business in 2021. We recommend staying away from Principal unless they are the only option available.

Principal National Life Insurance Company operates in most states, Principal Life in NY.

Table of Contents

Is Principal a Good Life Insurance Company?

Here are some reasons to consider Principal.

You’ll see that Principal is competitive with product pricing, business life insurance, and high-risk cases.

If you need life insurance, make sure you consider Principal.

Principal Financial Strength

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

Ratings as of – AM Best 02/2021, Fitch 05/2020, Moody’s 11/2020, S&P 04/2020 and subject to change

When comparing life insurance companies, you’ll see that the Principal rates favorably.

How Easy is it to Get a Policy with Principal?

It’s pretty easy to get a policy with Principal.

Accelerated Underwriting – For some healthy non-smokers between the age of 18-60.

Coverage amounts from $50,000 – $1,000,000.

If you’re approved for their accelerated underwriting program,

The paramedical exam is eliminated and approvals may occur in as little as 48 hours!

Underwriting rate classes available:

  • Super Preferred Non-Tobacco
  • Preferred Non-Tobacco
  • Super Standard Non-Tobacco
  • Standard Non Tobacco
  • Preferred Tobacco
  • Standard Tobacco

Principal is most competitive for the following health issues:

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

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

Principal offers ratings up to table 6 for term life, and table 16 on universal life insurance.

A flat extra charge may be added for cancer histories, private pilots, and scuba divers.

Underwriting programs include:

Health Lifestyle Credits – Principal reviews your overall health history and assigns a score to you,

Based on the positive and negative underwriting factors.

With positive factors, up to 2 table ratings may be offset.

For others, the Healthy Lifestyle Credits program may help you move up from a preferred to Super Preferred rate class!

Are Principal Policies Competitive?

Principal offers the following types of life insurance.

Principal Term Life Insurance

  • Minimum Policy Size = $200,000
  • Issue Ages – 20 – 80 years old
  • Choice of 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
  • Accelerated Benefit Rider
  • Children Term Rider
  • Conversion Extension Rider
  • Waiver of Premium

Pros and Cons of Principal Term Life

Pros – Principal term policies are competitive in underwriting and price.

Cons – Principal makes you pay extra for the better conversion privilege, vs Banner and Lincoln that include it in their price.

Other companies that make you pay more for the better conversion privilege include Guardian and Minnesota Life.

Principal Universal Life Insurance

Principal offers the Provider Edge II and Flex III universal life insurance products.

The ideal consumer for these policies is between the age of 45-75 looking for $1 million or greater.

The policies offer the potential for cash value accumulation and extended death benefit guarantees.

Riders available:

  • 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)

Principal Indexed Universal Life Insurance

Does Principal Provide Good Customer Service?

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

Principal offers online access to your policy information – here

Corporate headquarters is located at:

711 High Street – Des Moines, Iowa 50392

Conclusion

Principal is an insurance company that we consider for most cases.

When Principal is competitive for your situation, we’ll let you know that.

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

Other Companies We Reviewed

Michael Horbal - Author

Michael J. Horbal

Owner of RiskQuoter

Too many people overpay for life insurance because they have the wrong life insurance company, agent, or both. That’s why I started RiskQuoter – To help you get the best life insurance rates available.

As an independent insurance agent, I’m licensed in all 50 states and the District of Columbia and offer 40+ life insurance companies to ensure you get your best rate!

By Michael Horbal – Updated on 01/28/2023

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