The Principal Financial Life Insurance Company provides excellent value and is a niche company in the life insurance marketplace. Are they one of the best life insurance companies to buy from? They are often the company that provides the lowest rates for non medical exam life insurance. If you’re thinking about a no exam life insurance policy, give us a call now and we’ll see if the Principal Life Insurance company will provide you the best value.
Principal Life Insurance Company
Review Summary
The Principal Life Insurance Company offers excellent life insurance products at competitive rates. They're an A+ rated company and one of the top insurers for anyone shopping for $5 - $10 million in coverage.
Principal Life Insurance Company Review
Principal started in 1879 as Bankers Life Association which is the name it stayed under for over a 100 years. Principal’s long history and reputation can be traced back to its founder, Edward Temple. Originally a banker, Temple founded the company in Iowa with a focus on providing life insurance options in the form of memberships.
Fast forward to 1985, and Bankers Life became what is now known as the Principal Financial Group. The company has now expanded into international markets including China, Brazil, India, Chile, and Mexico. In 2001, Principal became a publicly traded corporation when they filed their initial public offering.
Today, Principal is a member of the FORTUNE 500 and is a global investment management leader in addition to an excellent life insurance company.
Principal Life Insurance Products
Principal offers a variety of term and permanent life insurance products to the consumer. Principal has come up with short term and long term solutions for almost every customer.
Term Life Insurance
Term life insurance is temporary coverage. It provides shoppers the highest death benefit for the lowest price.
TERM LENGTH – Principal offers the following term lengths:
DEATH BENEFIT – Principal offers a maximum death benefit of:
- $1,000,000 for Non Medical Exam life insurance
- $1 to $10 million life insurance policy with a Medical Exam
- The minimum benefit amount is $200,000
Permanent Products
Permanent life insurance provides you the opportunity to secure lifetime coverage. Principal offers the following permanent products:P.
- Variable Universal Life
- Universal Life
- Survivorship Universal Life
Principal No Medical Exam Life Insurance
Principal offers the highest death benefit for any Non Medical Exam products on the market. You can secure a $1,000,000 policy without an exam just as long as you can qualify. Principal only provides their non medical policy for healthy individuals. If you can’t qualify for their preferred plus or preferred ratings, then another life insurance company would be a better fit.
Will Principal Life give you the best rate?
Will Principal or some other company like Pacific Life, Prudential, or CMFG Life get you the best deal? If you want to make sure you’re getting the best life insurance policy available, here’s what you need to do…
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Principal Underwriting
Principal uses a unique life insurance underwriting approach. They determine if you’re eligible or not by using data with a 3 prong approach.
Principal will get the needed underwriting data from these 3 sources:
- DMV (Department of Motor Vehicles)
- Medical Information Bureau
- Medication/Prescription database
As long as you are a healthy applicant without any major driving infractions, you should qualify.
What exactly is healthy? If your medical history is clean and free from heart disease, cancer, diabetes, stroke, etc. and your prescription history isn’t significant – you should have a great chance of qualifying. How about your driving record? You can only have a maximum of two tickets in the past three years.
What if you’re not in excellent health or have a preexisting health condition? You more than likely won’t qualify for Principal’s Non Medical option and would have to take a medical exam to qualify for their term life products.
*If you have a risky health condition or hobby, there are other life insurance companies that might be a better fit.
Principal Ratings and Financials
Principal Life is one of the best life insurance companies when it comes to ratings and financials. They have received and “A” rating from all of the major independent reviewers.
A.M. Best, Standard & Poor’s, Moody’s and Fitch have all provided Principal with ratings that show current and past financial stability. They are a great resource for anyone concerned about a company going bankrupt.
Principal should only continue to receive positive ratings in the future due to their track record. Principal Life’s superior ratings and financial performance makes Principal – well, a principal life insurance company!
Additional Information
We receive a lot of life insurance questions about Principal Life Insurance. Here is where you’ll find additional information that may help in your decision if Principal Life is the right fit for you.
Issue Age Limits: 18-60
Risk Classes Available:
- Super Preferred Non Tobacco
- Preferred Non Tobacco
- Super Standard Non Tobacco
- Standard Non Tobacco
- Preferred Tobacco
- Standard Tobacco
Conversion Information: Earlier of the level premium period or age 70. Conversion to guaranteed UL products available only after 2nd anniversary of term policy.
Pros
Here are Principal’s advantages and strengths:
- Highest Non Medical Exam benefit amount of $1,000,000
- No Exam Index Universal Life
- Healthy Lifestyle Credits – You can get a bump of rating class or 2 with credit scores
Cons
Every company has some weaknesses. Here are a few things we didn’t like about Principal:
- Must qualify for preferred rates to qualify for Non Med
- $200,000 minimum death benefit
Riders
Principal Life offers an excellent variety of life insurance riders to their policies. Riders are a way to customize your policy.
- Waiver of Premium
- Accelerated Benefits
- Hazardous Sports Exclusion (available in most states)
- Aviation Exclusion
- Children Term Insurance Rider (minimum rider face amount = $5000, maximum rider face amount = $25,000.)
Bottom Line
Principal Life is a great and financially strong company. They sell a variety of life insurance products that can meet most people’s coverage needs. Will they be the best company for you? We’ll be happy to find out for you.
Thank you for reading our article, Principal Life Insurance Company Review. Please leave a comment or question below.
Principal Company Details
Name(s):Principal Financial Group,Principal Financial Services, Inc., Principal National Life Insurance Company
Address:
711 High St.
Des Moines, IA 50392-1520
Phone: (800) 986-3343
Website: www.principal.com
Ratings: A.M. Best (A+), Standard &Poor’s (A+), Moody’s Investors Services (A1), Comdex (91), Fitch (AA-)
