Purchasing life insurance can certainly be perplexing. Fortunately, there are several types of insurance, numerous companies and amazing features to choose from when selecting the coverage most suitable for you and your loved ones.
To find the right policy for you, it’s essential to research the different policies offered, compare the prices of different insurers and read the available reviews of those companies.
In this article, we will be discussing Principal Life Insurance Company. Perhaps Principal will be right for you.
About Principal Life Insurance Company
Founded over 130 years, the Principal Financial Group, also known as Principal Life Insurance Company, provides “inexpensive and dependable life insurance to bankers and their employees.”
In 1879, Principal Life Insurance made its home in Chariton, Iowa. Currently, the insurer employs over 15,000 individuals and has become one of the largest employers in Iowa.
Principal Life services over 17 million clients today, and the company’s product line extends beyond life insurance, providing products from disability insurance to retirement, as well as investment products. In fact, Principal Life offers numerous innovative products and is in strong standing in the market when compared to other providers.
Principal Life’s Financial Ratings
An important thing to consider when selecting your life insurance provider is the company’s financial ratings. Excellent ratings mean that the company is solvent and has the ability to pay out any future claims.
Here are the ratings for Principal Life.
|Ratings Service||Current Rating|
|Standard & Poor’s||A+|
|Moody’s Investors Service||A1|
|COMDEX Score||90 out of 100|
Life Insurance Products from Principal Life
With fantastic customer service and a broad array of life insurance policies, we are confident in our positive analysis of Principal LIfe Insurance Company.
Principal Life provides the following policies:
- Term life insurance
- Universal life insurance
- Variable universal life insurance
- Indexed universal life insurance
- Survivorship insurance
Term Life Insurance
Term life insurance, a preferred policy for most consumers, is available in 10, 15, 20, and 30-year terms. Principal Life also offers a super short-term life insurance policy with a term of one year, which affords policyholders the flexibility to adjust the plan to fit their individual needs.
Advantageous, to say the least, Principal Life has a rather quick turnaround time with both their disability and life insurance applications. In fact, it’s one of the quickest in the insurance industry, which is great for those applicants wanting to get coverage as soon as possible.
Another exceptional feature with Principal’s term policies is that they can be converted into a permanent form of life insurance without proof of insurability or medical exams.
Universal Life Insurance
There are four tiers of permanent life insurance currently available with Principal Life Insurance Company, all being a form of universal life insurance coverage:
- Variable Universal
- Indexed Universal
- Survivorship Universal
With Principal’s universal and variable universal life insurance options, you receive a permanent death benefit and flexible premiums. However, the cash value component is invested differently.
There’s a potential to gain more growth by way of stock bonds or mutual funds with the variable policy, but this also means greater risk.
With a variable product, you have the potential to gain additional growth by utilizing stock, bonds, or mutual funds, which also means significant risk.
Principal’s indexed and variable policies allow the policyholder to access their tax-deferred cash value feature without penalty.
Principal’s other financial Products
As mentioned before, Principal Life Insurance Company also offers a wide range of financial products, such as annuities, which can be used in addition to life insurance.
The following are the annuities offered:
- Immediate (Income)
In the event that you are looking for somewhere to transfer your 403(b) or existing 401(k), as well as IRA-related retirement or investment accounts, Principal handles that too.
In case you find yourself unable to work, Principal offers disability insurance to assist you in keeping your income secure.
What sets Principal apart from other Life Insurance Companies?
As you can see, Principal Life provides impressive life insurance policies for many situations, but there are areas that the company transcends other top life insurance companies.
With any of Principal’s products (term and permanent), you’re able to purchase up to $1 million of coverage with no medical exam.
Presently, other carriers only offer up to $500,000 of life insurance coverage without a medical exam. For insureds with a family, a mortgage, student loans, medical bills, and other expenses, that amount just might not be enough.
Live a Healthy Lifestyle and Save Money with Principal
For those that are currently healthy but have had medical issues in the past, Principal Life Insurance Company offers its “Healthy Lifestyle Credits” program. These healthy lifestyle credits allow an applicant with a past medical history to qualify for a better health class.
In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs. Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client.
I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so. I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure.