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Principal Financial Life Insurance Review
by Jim Tobin, CFP
ELife Insurance Help Desk Rating
If you are thinking about purchasing term life insurance from the Principal Financial Group you have landed in a good place. This Principal Financial life insurance review will address the company's history and financial ratings, product offerings, underwriting niches, and pricing.
Fast Facts About Principal Financial Life Insurance
One of the nations older life insurance carriers, Principal Financial Group began as famed financier Edward Temple's Bankers Life Association in 1879.
While Principal Financial Group has evolved into a significant financial services company with over 600 billion in assets under management, life insurance remains a driving force in their business model.
Principal Life Insurance Company Rating
A+ (Superior) from A.M. Best
A+ (Strong) from S&P
AA- (Very Strong) from Fitch
94 COMDEX Score 90
Almost a hundred and forty tears later financial ratings for Principal remain strong. The carrier is rated as A+ by A.M. Best, the predominant ratings service for the life insurance industry. You can learn more about financial strength ratings here.
Principal Financial Life Insurance Products
Term Life Insurance
Principal offers fixed term life insurance in 10, 15, 20 and 30 year terms. Principal is best known for underwriting policies up to 1 million dollars with no medical exam. These policies are not a fit for everyone, as you need to be scored as "preferred" or "preferred plus" to qualify. Nonetheless, being that they are priced as fully underwritten, it is a huge leap forward in the world of insurance underwriting.
Universal Life Insurance
Principal Financial offers several "flavors" of universal life insurance, including a a traditional UL, an indexed UL and a variable UL. The traditional model is tied to interest rates, the variable UL is tied directly to the equities markets and the popular indexed is a hybrid that credits interest based on stock index performance but is not actually a security instrument like the VUL. While much safer now, universal life has a tumultuous history, you can read about here.
Although the Life Insurance Help Desk is dedicated to discussing life insurance options, we'd be remiss if we didn't mention the Principal is a significant player in the annuity marketplace. Principal offers annuities in fixed, variable , immediate and deferred options. In fact a visit to the home page prompts questions about rolling over an old 401k.
Principal Financial Life Insurance Underwriting Niches
Unlike some of the other carriers we have reviewed, Principal is not really know for specific health condition niches. Principal uses a healthy lifestyle crediting system that allows for better ratings for people with a medical history that have taken proactive steps to become healthier. For this reason, Principal is worthy of a look in many situations.
The accelerated underwriting program discussed earlier, that allows for up to 1MM with no blood or urine is a niche of sorts , but the rest of the industry is working hard to catch up with similar products. However, until they get there Principal is a leader in no exam policies up to a million dollars.
Principal Financial Life Insurance Review of Pricing
Principal is super competitive in some cases and appears expensive in others. However, it is important to note that even in cases where they appear expensive they may be the best deal.
You may be asking: "How can the be?"
It all comes down to the underwriting class you are given. If Principal is the most expensive of the major carriers at standard rates but the more competitive carriers would grade you as table 2/B or 4/D, then the "more expensive" standard rate would be the best deal. This is a situation where Principal's "healthy lifestyle credits" would come into play.
If you would like to see accurate rates based on underwriting class for Principal term life insurance, simply input your information into the quote tool and press "Display Quotes". Just bear in mind that, as I have discussed, the best rate is not always the best deal for your particular health situation.
Alternatives to Principal Financial Life Insurance Co.
In cases where Principal is not among the most competitive rate2 (for example tobacco users), there are over 50 carriers available at the Life Insurance Help Desk. Whether it's a condition that Principal chooses not to see more favorably than others or an accelerated underwriting option you are looking for, the Life Insurance Help Desk will be happy to help you get the best deal possible.