Principal Life Insurance Company
An In-depth Review of Principal Life Insurance Company
Acquiring life insurance can be challenging for some people because there are so many different factors involved. This makes it confusing for most people because additional coverage and qualification requirements get a bit too much for someone who is buying life insurance for the first time. That is where reviews about life insurance companies can be so helpful. It is imperative that you get complete and easy to understand information about the major insurance companies so that you can make an informed decision.
The most important thing that anyone, who is looking to buy life insurance must do is get a detailed review of the coverage options on offer. It is also important that the company is financially strong and stable, and have a strong reputation in the market. They must also have a good track record for paying claims to its policyholders. One such company that ticks all the right boxes, and is regarded as one of the best in the industry is Principal Life Insurance Company.
We will be looking at quite a few things in this Principal Life Insurance Company review so that you have complete information about the company before you decide to do business with them. We will look at their financial strength, their history, and what products they are offering to customers. So, let’s look at Principal Life Insurance Company and what they bring to the table.
The Principal Life Insurance Company is a part of the Principal Financial Group, which is a multinational organization that manages assets of over $500 billion and operates in over 18 countries. The company is listed by Fortune magazine, among the 300 largest corporations in the United States. Established in 1879, under the name of Bankers Life Association, the company solely offered life insurance to healthy adult men. It was only decades later that it decided to expand its range of products, and in 1985 the name of the company was changed to Principal Financial Group.
Principal Life Insurance Company is headquartered in Des Moines, Iowa, and offers life insurance and disability insurance to businesses and individuals. The company also offers retirement planning and investor services as well. After it started its operations, the first decade of the company was phenomenal, as they managed an astounding $29 million in force coverage. This was enough to ensure that the company moved into a bigger office space.
After the passing of the founder of the company, Principal Life decided to change its business model, by getting rid of the old membership style and introducing a mutual life insurance model. This worked out extremely well for the company, as they managed to grow rapidly over the next few decades. The company was offering health insurance in the 40’s, and within 5 years it was a third of its revenue stream was coming from that product only.
After the company became the Principal Financial Group, the company went global, and established an active arm in over 18 countries, spanning 3 continents.
Principal Life Insurance Company is a worldwide brand, and a name recognized by everyone in the insurance industry. The company has always focused on providing customers with complete financial information, resources, and tools, to enhance their lives. Principal Life offers investment products, retirement plans, and insurance at competitive rates to everyone.
The company is one of the largest insurers operating in the United States, with over 19 million clients all over the world in more than 18 countries. It manages over $500 million in assets, and it distributes all services and products through a global network of advisors and companies. Principal Life Insurance has won numerous accolades and awards over the years and has been recognized among the World’s Most Principled Companies.
It is also recognized as the Third Greenest CRE Company and as One of America’s Best Companies to Work at. Additional accolades and awards given to the company include:
- #1 Record Keeper of Employee Stock Ownership Plans
- #1 Provider of Nonqualified Deferred Compensation plans
- #1 Provider of Defined Benefit Retirement Plans
Principal Life Insurance offers complete information on its website related to products and services, and all customers can reach out to a service representative at any time. The company is renowned for providing outstanding customer service, and have a toll-free number as well.
Financial Stability and Customer Service Ratings
Two of the most important things that anyone looking to buy insurance must look at is the financial credit ratings and customer complaints of the insurance company. When it comes to Principal Life Insurance Company, it has acquired some of the best ratings in the industry. The company has been rated as ‘A’ by all four major rating agencies in the United States. This makes it one of the best-rated life insurance company in the United States based on its solvency, security, and financial strength.
Standard & Poor’s, Moody’s, Fitch, and A.M. Best have all rated Principal Life with a high rating score, which means that the company is exceptionally strong financially, and continues to deliver exceptional services to customers. Those ratings given are as follows
- A+ (A.M. Best)
- A+ (Standard & Poor’s)
- A1 (Moody’s)
- AA- (Fitch)
Principal Life Insurance Company has over 15,000 employees all over the world, in four different divisions of its business. The company has ranked at the top of Forbes list of ‘100 Best Companies to Work for in America’, and has also been named as a ‘Top 50 Company for Women’. Principal Life also has a strong presence in volunteering and has donated millions to charities.
Principal Life Insurance Coverage
Principal Life Insurance Company offers an extensive range of life insurance coverage, which includes permanent and term life insurance policies. Their range of coverage options are comprehensive and are perfect for people, who want policies that offer them with specific coverage. This allows them to plan for protection, irrespective of what stage they are in their lives. Here are the life insurance products offered to all customers by Principal Life Insurance:
Ø Term Life
You can acquire the convertible term life insurance product from Pacific Life, which is valid for people ranging from ages 20 to 80. There are different term lengths offered, which you can choose from, and they include 10, 15, 20, and 30-year terms.
Healthy applicants are offered Principal Accelerated Underwriting, which goes till $1,000,000 in death benefit coverage. However, they need to quality for super preferred and preferred health rate classes. This program doesn’t require any medical exams or lab testing, and the normal turnaround time for these policies, when they are issued is usually 10 days.
Ø Permanent Life
You get a lot of options when it comes to permanent life insurance coverage from Principal Life, which includes cash value life insurance. It offers Indexed Universal Life, Universal Life, and Variable Universal Life insurance products to everyone.
Ø Universal Life
The Universal Life policy offered by Principal Life comes with flexible premium payments, cash value growth, and adjustable death benefits. The Universal Life insurance policy offered by Principal Life includes the following coverages:
- UL Provider Edge
- UL Protector IV
- UL Flex II
- UL Accumulation II
Ø Indexed Universal Life
The Indexed Universal Life (IUL) policy provides a death benefit and flexible premiums under Universal Life. There are also fixed account options, which guarantee minimum interests, and these policies also have the option of helping you earn interest crediting with indexed accounts. If you choose the indexed account, the money will be credited on a unique formula, which will track performances of underlying major indices, like the S&P 500. It won’t be invested directly into the market like in other coverages. The Indexed Universal Life Insurance policies will offer the following coverage options:
- Index Advantage UL
- Indexed UL Accumulation
- Indexed UL Flex II
- Survivorship UL Protector II
Ø Indexed UL Accumulation
The Indexed UL Accumulation of Principal Life is offered to people from the ages of 18 to 85 and offers policyholders with an optional rider for early cash surrender values. There are three death benefit options offered to policyholders, which include a return of premium death benefit, increasing death benefit, and a level death benefit. There is also a 10-year no-lapse guarantee if you complete all minimum premium payments.
Ø Variable Universal Life
The Variable Life Insurance (VUL) product offered by Principal Life offers all the flexibility you get with Universal Life, but it also offers cash value growth, if you transfer your cash into separate sub-accounts that are linked to the underlying asset. This is just like it happens in mutual funds, but you will not get any guarantees for protecting your policy from any losses.
All Variable Universal Life policies need active management, because of the inherent risk of investing the money in a market, which may also cause you to lose out all your money. The following coverage options are offered with the Variable Universal Life insurance policies of Principal Life:
- VUL Business
- VUL Income I
- VUL Income II
Principal Life Insurance Company’s Policy Riders
There are different policy riders offered by Principal Life for their life insurance policies. These policy riders are as follows:
Ø Terminal Illness Death Benefit Advance Rider:
This accelerates a part of your death benefit in case you are diagnosed with a terminal illness.
Ø Chronic Illness Death Benefit Advance Rider:
This offers accelerated death benefit payment if you have a qualified for a chronic illness.
Ø Waiver of Monthly Policy Charge Rider:
This will waive off policy charges if you are disabled permanently.
Ø Children Term Insurance Rider:
This will insure the life of the children of policyholders from ages 14 to 18 and will go up to 25 years. It offers coverage option starting from $5,000 to $25,000 and has a set premium, irrespective of the number of children policyholders have.
Other Products Offered
Apart from the life insurance coverages that are offered by Principal Life Insurance Company, there are a host of other services and products offered by the company to all customers. These include:
- Wealth Transfer Planning
- Supplemental Retirement Income Plans
- Retirement Plans (offered by an employer with company matching and automatic deductions)
- Private split dollar arrangements
- Personal Trusts
- Mutual Funds
- Irrevocable Life Insurance Trusts (ILITs)
- IRAs (Individual Retirement Accounts)
- Group Insurance Benefits (including group accident insurance, group critical insurance, group dental, group disability, and group life insurance)
- Employee Retirement Plans (like ESOPs, 401ks, and 403bs – ESOPs Personal Risk Transfer, Pension Plans, Non-qualified Deferred, and Employee Stock Ownership plans)
- Charitable trusts
- Business Succession Planning
The Bottom Line
Principal Life Insurance Company is one of the best life insurance companies in the United States right now. They offer outstanding policies, which are affordable and come with great coverage options and policy riders. The company isn’t solely reliant on its life insurance product and offers an extensive range of investment and retirement planning products.
The company is driven to help businesses, individuals, and families all over the United States and the world, which has turned it into one of the most successful corporations in the world. If you are looking for great life insurance products, then Principal Life Insurance Company is a good choice.