The search for the right life insurance company may seem daunting; however, getting the answers to a few key questions you might have about different companies is the best way to make the decision easier on yourself.
Deciding upon a company and selecting a life insurance policy to a vital step to ensuring financial security for your loved ones in the event that you were to pass away.
Here’s our very own Principal Life Insurance Review.
If ensuring that your loved ones are taken care of when you’re gone is important to you, then it is imperative that you find a policy that provides the right amount of coverage at a price you can afford.
Principal Life Insurance Company Overview
One company that provides life insurance services is Principal Life Insurance. After its founding in 1879, this company has had almost 150 years of servicing the best life insurance polices they can provide to everyone that they cover.
Next, we will take a further look into the company’s values, how they treat their members, and their trustworthiness and credibility.
If you have decided to seriously investigate your options for life insurance, then it is important that you receive accurate information about the companies you are taking into consideration.
Principal Life Insurance Company Info
Principal Financial Group
711 High Street
Des Moines, IA 50392
Principal has offices all over the United States, including North Dakota, Florida, California, and Arizona. They also operate in seven different countries around the world. These locations include Brazil, China, Chile, Hong Kong, India, and Mexico, and the company employs over 14,000 people globally.
The company has been in business for 138 years, making it one of the oldest insurance providers in the United States. When it opened back in the late 1800’s, it was called Bankers Life Association.
Principal Life Insurance Company Financial Ratings
Because you want to provide sufficient funds for your loved ones after you’re gone, it’s essential for you to find what best suits your interest. It’s a must that your insurer can pay out in the manner and in the cash amount that you were promised.
One aspect of a potential policy or company that you should closely examine before purchasing is the financial ratings. It is best to read reviews that have been given to that organization.
Here are some ratings given to Principal Life Insurance Company ratings
- Moody’s: A1 – Good
- AM Best: A+ – Superior
- Fitch: A1 – Good
- Standard & Poor: A+ – Strong
Current Total Assets: $655.5 Billion
Operating Earnings: $1.1 Billion
As shown above, Principal is a stable company. It’s financial success is due to its banking roots and fast growth during the post-war period. The brand is ranked 236 on Fortune’s 500 list,. Now, it serves over 22 million people worldwide.
Principal Life Insurance Company History
As we’ve mentioned, Principal is one of the oldest and most respected insurance companies in the United States.
When the company began however, the founder Edward Temple, wanted to enforce strict requirements for all policyholders. He had a background in banking, and he believed that insurance was a viable option for the future of his company.
Below, there is a list of some of the original requirements Principal had for its applicants.
- Policies were granted in the form of memberships
- They were only issued to men between 22 and 55
- No “high-risk” occupations would be allowed
- Death due to alcohol or drugs was not covered
While Edward remained the head of the business, it was run as frugally as possible. His salary was modest in comparison to other high ranking businessmen of the time. All the costs of the company were minimized.
It wasn’t until his death in 1909, that the company was restructured into a standard mutual life insurance business.
Memberships were traded in for regular policies, and restrictions began to loosen.
The company’s headquarters in Des Moine was built in 1939. This was the first building in the area to feature air conditioning.
In 1985, the business officially became Principal Financial Group, and the company went public in 2001.
Principal Life Insurance Products Offered
So what can you expect if you buy a policy from Principal? Here is a breakdown of the options they offer to their policyholders.
Principal Term Life Insurance
As the name suggests, this policy is established for a particular time frame. Principal offers insurance for 10, 15, 20, and 30-year terms, and this ensures that you are able to find a policy that best suites your needs.
Also, a term life policy can be converted into a permanent policy. This can happen at any time for the convenience of the policyholder.
The benefit of starting out with Principal term life insurance is to minimize costs in comparison to Permanent policies. This is ideal for young policyholders who want to take advantage of lower rates due to their age, or anyone who doesn’t have strong finances at the time the policy is originally purchased.
High amounts of debt or a mortgage might make this option the most financially responsible.
A unique aspect to Principal that sets them apart from the majority of competing companies is their $1 million no medical term insurance.
With this policy, you can be covered for up to a million dollars without a physical exam. Instead, Principal uses sophisticated technology and algorithms to assess your risk.
This kind of policy is still brand new in the industry. In fact, it was only introduced in 2016.
Most other companies require a physical, so Principal provides a perfect way to get the insurance you need without having to undergo an invasive medical exam.
Conveniently, even if you don’t qualify, you can still take a test and see what kind of coverage you are eligible for.
Permanent Life Insurance
Unlike a term policy, this kind of insurance will not run out. As long as you make payments, you and your loved ones are covered.
As previously mentioned, Principal allows many of their term policies to convert to permanent policies In most cases, you can do so without having to do another exam when you switch.
Principal’s philosophies and practices help ensure the best rates and opportunities for their policyholders.
Principal offers three kinds of permanent life insurance to fit your needs. Overall, policyholders appreciate that Principal provides multiple options, because they realize that everyone is different.
Here is an overview of the various policies offered by Principal.
Principal Universal Life Insurance
This option is ideal for anyone who wants increased flexibility with their policy.
You can adjust how much and when you pay (within certain parameters), and if you can’t afford a higher premium, you can lower it.
Consequently, your death benefit will lower, but you will still be able to provide something for your family.
A positive aspect of permanent life insurance is that it can accrue cash value, which you can access throughout your life.
With a Universal policy, your policy value has a floating interest rate which will adjust based on the market.
However, there is a minimum rate value which ensures some financial protection. In many instances, you can also apply for secondary guarantees to further protect your money.
Principal Variable Universal Life Insurance
If you find the idea of earning money with your life insurance appealing, then you want to investigate the option of variable coverage.
Similar to most plans, this plan has a death benefit, but it also allows you to be more aggressive with your cash valuation in the meantime.
You can pick from a few different methods of growing your benefits; these methods may be riskier, but they also allow you to earn more, therefore the earning potential may outweigh the increased risk factors.
Best of all, you can access this money without paying penalties on it. With most life insurance policies, taking money out before you die is a grueling process. It can be very heavy in fees and fines. This makes it a far less lucrative option if you are not insured by Principal.
To make your cash work even harder, you can convert your earnings to one of several annuity options offered by Principal.
Principal has four kinds of annuities: fixed, indexed, variable, and immediate.
You can select the right one for your needs, and access your cash sooner. If you’re worried about not having enough saved for retirement, they’ve got your back. This is a perfect option to keep you and your family financially secure.
A variable policy is ideal for anyone who wants their life insurance to have the greatest earning potential. This is also great for anyone who is interested in possibly using their insurance to help solidify a strong financial future.
Principal Survivorship Life Insurance
These types of policies are commonly referred to as “second-to-die”. It’s because they cover two individuals instead of one. These pay out after the death of the second person.
The ideology behind this kind of policy is to save money on premiums (rather than paying for two policies), or if you want to be able to use the benefits for estate planning.
There are a few primary tax reasons to choose this policy, so if you’re somewhat familiar with the process, this kind of insurance is an excellent choice for you.
Principal Life Insurance Customer Service Review
Another important feature to remain aware of when picking out an insurance company, is how they treats their customers. Are people satisfied with their policies? Do they have regrets about money spent or policies selected?
Below, are our finding on Principal life insurance reviews.
BBB Rating: A+
Unfortunately, there are no positive reviews on the BBB website.
Instead, there are eleven reviews from customers who were not satisfied with their experience in one way of another. There are also seventy-one formal complaints lodged against the company. Most of the issues are related to the financial products that Principal offers such as 401(k) protection and annuities.
Additionally, customers report feeling as if the company doesn’t provide accurate cash valuations for their life insurance policies. This could be a big red flag to potential customers of the company, and it is definitely something to seriously take into consideration.
It is also reported that Principal can take up to two weeks to process each request. In comparison to most of their competitors, is around twelve days slower.
Principal Life Insurance Summary Review
Overall, Principal does have some great and unique policy options. However, the plethora of negative customers reviews can be a negative impact. This is further highlighted by the lack of positive reviews made from its members.
Regardless, the brand seems to have a strong skeleton and an active presence worldwide. This means it can’t be entirely discredited by some bad online reviews.
Customers appreciate the new no-test policy option, as well as the flexibility offered with both term and permanent life insurance. Additionally, Principal provides a variety of services to their policyholders who are looking for a financial partner and those who have financial goals they would like to meet.