Principal Life Insurance is a reputable insurance company that’s been around since 1879. Before the company changed its name, it was known as Bankers Life Association.
Over the many years they’ve operated, Principal Life Insurance has seen steady success. Principal is a publicly-traded company that offers different types of insurance as well as financial products.
Our Principal Life Insurance review will help you make an informed decision as you consider your life insurance needs.
Table of Contents:
What is Principal Life Insurance Company?
Principal Life Insurance is a company that offers insurance and financial products. The company has seen consistent, healthy growth since its inception in 1879.
What Does Principal Offer?
Principal Life offers different types of insurance products and financial products, such as retirement plans and mutual funds.
When you choose a policy from Principal Life Insurance, you will have the choice between term life, universal life, variable universal life, and survivorship insurance.
Term Life
Term life insurance means that the policy lasts for a set time (a term). You can choose from ten, fifteen, twenty, and thirty years for a term life policy.
Term life is a popular choice because it’s affordable and accessible. When you purchase it from Principal, you can convert it to a different policy later, so it’s durable.
Universal Life
Universal life insurance policies last your entire lifetime as long as you pay your premiums. They’re fully customizable with Principal, so you can choose how much and how often you will be paying into the policy.
Principal Life Insurance has two main universal life policies to choose from: universal life and indexed universal life. The most significant difference between the two is that the universal life policy uses a floating interest rate with a minimum rate guarantee.
The stock market index determines the indexed universal life policy interest rate.
Variable Universal Life
Variable Universal life is similar to universal life, but your money is invested more aggressively for the chance of higher returns and cash accumulation.
Survivorship
Survivorship insurance is just what it sounds like—for the survivors of a policy. It usually covers a husband and a wife, paying the beneficiaries after both people have died. Some people choose this policy because it costs less than purchasing two individual policies.
Principal Life Insurance offers a substantial selection of life insurance products. You’ll be able to decide which type is right for you and then customize it to fit your needs.
Their customer service has an excellent reputation, which means someone will be glad to walk you through the policies and help you make an informed decision.
Is Principal Life Insurance Expensive?
Principal Life Insurance is not expensive. It’s competitive across products, and you can’t go wrong with the price when you purchase anything from Principal.
The price of your policy is determined by Principal’s underwriting, which uses the Prescription Database, the Medical Information Bureau, and the Department of Motor Vehicles.
These sources provide Principal with information that determines your rates. The main factors that change your life insurance rate are lifestyle, age, occupation, and health. A clean driving record, a safe job, and no bankruptcies in the last five years are also considered.
To Get a Better Rate:
- be tobacco-free for at least two years
- show a clean driving record for the past five years with no more than two tickets in the last three years
- have no felony convictions in the previous ten years
- be reasonably healthy with a solid history of family health
- have a safe job
The younger you are, the better your chances are for a lower rate.
Principal offers an annual payment discount to help you save money and healthy lifestyle credits that may improve your policy.
Is Principal a Reputable Company?
Principal Life Insurance is one of the most reputable life insurance companies in the industry, receiving an A rating from all four independent agencies. The company has around 15,000 employees all over the world and is identified by Forbes as one of the 100 Best Companies To Work For.
All this information tells you that Principal is a robust and reputable company that has been around for a while. It is not going anywhere in the near future.
They have a solid foundation, so you won’t have to worry about buying a policy only to find out they are going out of business a few years down the road.
Pros & Cons of Principal Life Insurance
Principal Life Insurance will be an excellent choice for many people, and the pros generally outweigh the cons.
The list below should help you decide if Principal Life Insurance is right for you.
Pros
- You can easily apply online.
- The company has been around for over 100 years—they understand insurance and are rated highly.
- Principal offers many different types of life insurance policies.
- You can convert term life policies at a later stage.
- There is a fast-tracked underwriting for healthy individuals.
Cons
- The policy comes in the mail, which may be annoying to some customers.
- Medical exams are required.
- You can only file an insurance claim online.
The cons may not be a deal-breaker for you, depending on your lifestyle and preferences. You may also discover some cons not listed here that make you cross Principal Life Insurance off your list. Either way, it is important to consider the benefits and drawbacks of any policy.
Is Principal for You?
As with any major decision, take the time to gather information and ask questions. This guide was written with you in mind to make the research process a lot easier. When you make an informed decision, you’re more likely to feel good about it in the future.
Principal Life Insurance company is a reliable choice because they’ve been in the business for a while and still boast a solid reputation and steady growth. They have a myriad of policies on offer to fit your unique needs.
Principal’s customer service is highly rated, too, just like the company. You should have all the assistance you need when you apply for your policy.
*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.
Leave a Comment