Principal Life Insurance is a well-known insurance company that offers a variety of life insurance products to its customers. Founded in 1879, Principal Financial Group, the parent company of Principal Life Insurance, is a Fortune 500 company that has been providing insurance solutions for over 140 years.
Principal Life Insurance offers a range of life insurance policies, including term life insurance, universal life insurance, indexed universal life insurance, and variable universal life insurance. These policies provide coverage for individuals and families, and can be tailored to meet specific needs and budgets. Additionally, riders and benefits such as waiver of premium, accelerated benefits, and conversion extensions are available to enhance the coverage.
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Key Takeaways
- Principal Life Insurance offers a range of life insurance policies, including term life insurance, universal life insurance, indexed universal life insurance, and variable universal life insurance.
- Riders and benefits such as waiver of premium, accelerated benefits, and conversion extensions are available to enhance the coverage.
- Principal Financial Group, the parent company of Principal Life Insurance, is a Fortune 500 company that has been providing insurance solutions for over 140 years.
What is Principal Life Insurance?
Principal Life Insurance is a subsidiary of Principal Financial Group, a Fortune 500 company founded in 1879 and headquartered in Des Moines, Iowa. Principal Life Insurance provides life insurance coverage to individuals and businesses in the United States. The company offers a range of life insurance products, including term life insurance, universal life insurance, and survivorship life insurance.
Term life insurance is the most popular type of life insurance offered by Principal Life Insurance. It provides coverage for a specific period of time, usually between 10 and 30 years. The death benefit is paid out to the beneficiary if the insured dies during the term of the policy. Principal Life Insurance offers competitive rates for term life insurance, and some policies may not require a medical exam.
Universal life insurance is a type of permanent life insurance that offers both a death benefit and a savings component. The policyholder can use the savings component to accumulate cash value over time, which can be used to pay premiums or taken out as a loan. Survivorship life insurance is a type of joint life insurance that covers two people and pays out the death benefit after both individuals have passed away.
Principal Life Insurance is rated A+ by A.M. Best, indicating that the company has a strong financial position and is capable of meeting its obligations to policyholders. The company has a nationwide coverage and is licensed to provide life insurance in all 50 states. Principal Life Insurance is one of the largest life insurance companies in the United States, with over $3.8 billion in direct premiums written in 2021.
Overall, Principal Life Insurance is a reputable insurance company that offers a range of life insurance products to meet the needs of individuals and businesses. With competitive rates and strong financial ratings, Principal Life Insurance is a reliable choice for those seeking life insurance coverage.
Types of Principal Life Insurance
Principal Life Insurance offers a range of insurance products to meet the needs of different customers. Here are the different types of life insurance products offered by Principal Life Insurance:
Universal Life Insurance
Universal life insurance is a type of permanent life insurance that provides a death benefit and a cash value component. The cash value component earns interest at a rate determined by the insurance company. Policyholders can use the cash value to pay premiums, borrow against, or withdraw from the policy.
Indexed Universal Life Insurance
Indexed universal life insurance is a type of permanent life insurance that provides a death benefit and a cash value component. The cash value component is tied to a stock market index, such as the S&P 500. Policyholders can earn interest based on the performance of the index, subject to a cap and a floor.
Variable Universal Life Insurance
Variable universal life insurance is a type of permanent life insurance that provides a death benefit and a cash value component. The cash value component is invested in sub-accounts, which are similar to mutual funds. Policyholders can choose how to allocate their cash value among different sub-accounts.
Term Life Insurance
Term life insurance is a type of life insurance that provides coverage for a specific period of time, such as 10, 20, or 30 years. If the policyholder dies during the term of the policy, the death benefit is paid to the beneficiary. Term life insurance does not have a cash value component.
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Permanent Life Insurance
Permanent life insurance is a type of life insurance that provides coverage for the lifetime of the policyholder. It has a death benefit and a cash value component. The cash value component can be used to pay premiums, borrow against, or withdraw from the policy.
Survivorship Life Insurance
Survivorship life insurance is a type of life insurance that covers two people, typically spouses, under one policy. The death benefit is paid when both insureds have died. Survivorship life insurance can be either term or permanent.
Group Life Insurance
Group life insurance is a type of life insurance that is offered to employees as a benefit by their employer. The employer pays the premiums, and the coverage is typically term life insurance. Group life insurance is usually less expensive than individual life insurance policies.
In summary, Principal Life Insurance offers a range of insurance products, including universal life insurance, indexed universal life insurance, variable universal life insurance, term life insurance, permanent life insurance, survivorship life insurance, and group life insurance. Each type of insurance has its own features and benefits, and customers should carefully consider their needs and goals before choosing a policy.
Riders and Benefits
Principal Life Insurance offers a range of riders and benefits that can be added to a policy to enhance its coverage. Here are some of the most common ones:
Accelerated Benefits
Principal’s Accelerated Benefits rider allows policyholders to access a portion of their death benefit if they are diagnosed with a terminal illness or a chronic illness that meets certain criteria. The rider can provide a lump sum payment or monthly payments, depending on the policy.
Conversion Extension
Principal’s Conversion Extension rider allows policyholders to convert their term life insurance policy to a permanent policy without undergoing additional underwriting. This can be a valuable option for those who want to ensure they have coverage for the rest of their life.
Waiver of Premium
Principal’s Waiver of Premium rider waives the policyholder’s premiums if they become totally disabled and unable to work. This can help ensure that the policy remains in force during a difficult time.
Cost of Living Increase Rider
Principal’s Cost of Living Increase rider allows policyholders to increase their coverage over time to keep up with inflation. This can be a valuable option for those who want to ensure that their coverage keeps pace with the rising cost of living.
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Child Protection Rider
Principal’s Child Protection rider provides coverage for a child in the event of their death. This can help cover the costs associated with a funeral or other expenses.
Death Benefit Advance
Principal’s Death Benefit Advance rider allows the policyholder’s beneficiaries to receive a portion of the death benefit in advance to help cover immediate expenses.
Chronic Illness
Principal’s Chronic Illness rider provides coverage for long-term care expenses if the policyholder is unable to perform two or more activities of daily living or is diagnosed with a severe cognitive impairment.
Partial Surrenders
Principal’s Partial Surrenders rider allows policyholders to withdraw a portion of their policy’s cash value without surrendering the entire policy. This can be a valuable option for those who need access to cash but want to maintain some coverage.
Overall, Principal offers a variety of riders and benefits that can be added to a policy to enhance its coverage. Policyholders should carefully consider their needs and options before selecting any riders or benefits.
Principal Life Insurance Rates and Pricing
Principal Life Insurance offers competitive rates and pricing for their policies. The cost of the policy depends on various factors such as the age, health, gender, and lifestyle habits of the policyholder. Here are some key points to consider when looking at Principal Life Insurance rates and pricing:
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Term Life Insurance: Principal Life Insurance offers term life insurance policies with coverage ranging from $200,000 to $5 million. The premium rates for a term life insurance policy are generally lower than permanent life insurance policies. The cost of the policy increases with the term length and the coverage amount. For example, a 35-year-old non-smoking man or woman with average health who undergoes a medical exam as part of the application process can expect to pay around $55 per month for a 20-year, $1 million policy.
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Permanent Life Insurance: Principal Life Insurance offers permanent life insurance policies such as universal life and indexed universal life insurance. Due to the cash value component, the premium rates for permanent life insurance policies are generally higher than term life insurance policies. The policy’s cost depends on the policyholder’s coverage amount, age, health, and lifestyle habits.
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No-Lapse Guarantee: Principal Life Insurance offers a no-lapse guarantee on some permanent life insurance policies. This guarantee ensures that the policy will not lapse as long as the policyholder pays the required premium amount. This feature provides peace of mind to the policyholder and their beneficiaries.
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Discounts: Principal Life Insurance offers discounts on their policies for various reasons. For example, policyholders in good health, non-smokers, or with a good driving record may qualify for discounts on their premiums.
Overall, Principal Life Insurance offers competitive rates and pricing for their policies. The cost of the policy depends on various factors, and it is advisable to get a personalized quote to get an accurate estimate of the premium amount.
Principal Life Insurance Coverage
Principal Life Insurance offers both term life insurance and universal life insurance coverage. Term life insurance provides coverage for a specific period of time, while universal life insurance provides lifelong coverage.
Conversion
Principal Life Insurance allows policyholders to convert their term life insurance policy to a permanent policy without a medical exam. This can be useful for individuals who want to extend their coverage beyond the term period or for those who want to take advantage of the benefits of permanent life insurance.
Cash Value
Universal life insurance policies from Principal Life Insurance have a cash value component. This means that a portion of the premiums paid accumulates in a cash value account, which can be used to pay future premiums or borrowed against. The cash value can also be surrendered for its cash value.
Medical Exam
Principal Life Insurance may require a medical exam for certain policies, depending on the age and health of the applicant. The medical exam helps the insurance company determine the risk of insuring the individual and set the premiums accordingly.
Estate Planning
Life insurance coverage from Principal Life Insurance can be useful in estate planning. The death benefit from the policy can be used to pay off debts, provide for dependents, or leave a legacy to loved ones. Additionally, the death benefit is generally tax-free, making it a valuable part of an estate plan.
Retirement Planning
Universal life insurance policies from Principal Life Insurance can also be used in retirement planning. The policy’s cash value component can be used to supplement retirement income or provide a source of tax-free income in retirement. Additionally, the death benefit can be used to provide for loved ones in the event of the policyholder’s death.
In conclusion, Principal Life Insurance offers a range of life insurance coverage options with various benefits and features. Whether you are looking for term or permanent life insurance, Principal Life Insurance has options to meet your needs.
Principal Life Insurance Customer Service
Principal Life Insurance provides a variety of customer service options for their policyholders. They offer phone support, email support, and live chat support on their website. Their customer service representatives are available Monday to Friday, 7:00 a.m. to 7:00 p.m. CT.
According to their website, Principal Life Insurance aims to provide excellent customer service to its policyholders. They state that their customer service representatives are knowledgeable and friendly, and trained to handle various customer inquiries and issues.
In terms of customer satisfaction, Principal Life Insurance has received mixed reviews. Some customers have praised their customer service representatives for their helpfulness and professionalism, while others have complained about long wait times on the phone and difficulty getting issues resolved.
Overall, Principal Life Insurance appears to prioritize customer service and aims to provide a positive experience for their policyholders. However, as with any insurance company, there may be instances where customers have negative experiences with their customer service. It is important for policyholders to reach out to Principal Life Insurance with any questions or concerns they may have and to give feedback on their customer service experience.
Principal Life Insurance Financial Strength and Ratings
Principal Life Insurance has consistently received high financial strength ratings from major rating agencies. The company’s financial stability is a crucial factor for policyholders to consider when choosing an insurance provider. Here are some key ratings and information to consider:
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A+ (Superior) rating from AM Best: Principal Life Insurance has maintained an A+ (Superior) rating from AM Best for several years. This rating reflects the company’s strong financial position and ability to meet its financial obligations.
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A1 rating from Moody’s: Moody’s Investors Service has assigned an A1 rating to Principal Life Insurance. This rating indicates that the company has a low credit risk and a stable outlook.
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A+ rating from Standard & Poor’s: Standard & Poor’s has assigned an A+ rating to Principal Life Insurance. This rating reflects the company’s strong financial position and ability to meet its financial obligations.
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A+ rating from Fitch Ratings: Fitch Ratings has assigned an A+ rating to Principal Life Insurance. This rating indicates that the company has a strong financial position and a stable outlook.
Principal Life Insurance’s financial strength ratings reflect the company’s commitment to financial stability and its ability to meet its financial obligations. These ratings are important for policyholders to consider when choosing an insurance provider, as they provide an indication of the company’s ability to pay claims and meet its financial obligations.
Overall, Principal Life Insurance’s financial strength ratings are a testament to the company’s financial stability and its commitment to providing reliable insurance coverage to its policyholders.
Principal Life Insurance Review
Principal Life Insurance provides a range of life insurance policies, including term life insurance, universal life insurance, and variable universal life insurance. The company has been in business since 1879 and is headquartered in Des Moines, Iowa.
According to Forbes Advisor, Principal Life Insurance has an A+ rating from the Better Business Bureau (BBB) and is accredited by the BBB. However, the company has received some consumer complaints on the BBB website, with customers citing issues with customer service and claims processing.
In terms of customer satisfaction, Principal Life Insurance received a score of 770 out of 1,000 in the 2022 J.D. Power U.S. Life Insurance Study, which is below the industry average. The study measures customer satisfaction with life insurance providers based on factors such as price, policy offerings, and customer service.
Principal Life Insurance is available nationwide, and the company offers a range of marketing materials to help agents sell its policies. According to Investopedia, the company’s marketing guide includes customizable flyers, brochures, and social media posts that agents can use to promote Principal Life Insurance policies.
Overall, Principal Life Insurance is a well-established life insurance provider with a range of policy options and nationwide availability. However, customers should be aware of the company’s mixed customer satisfaction ratings and some consumer complaints.
Frequently Asked Questions
How long does it take for Principal Life Insurance to pay out a death claim?
According to Principal Life Insurance, the processing time for a death claim can vary depending on the circumstances. It can take anywhere from a few days to several weeks to receive a payout. However, Principal Life Insurance strives to process claims as quickly as possible to help beneficiaries receive the funds they need during a difficult time.
Does Principal Life Insurance offer term life insurance?
Yes, Principal Life Insurance offers term life insurance policies. Term life insurance is a popular option for those who want affordable coverage for a specific period of time, such as 10, 20, or 30 years. Principal Life Insurance’s term life insurance policies offer competitive rates, and depending on your age and health, you may be able to obtain coverage without a medical exam.
What types of life insurance does Principal Life Insurance offer?
In addition to term life insurance, Principal Life Insurance offers several other types of life insurance policies, including universal life insurance, variable universal life insurance, and survivorship life insurance. These policies offer different benefits and features, and the right type of policy for you will depend on your individual needs and goals.
Is Principal Life Insurance a reputable company?
Principal Life Insurance is a reputable company with a strong financial rating. The company has been in business for over 140 years and has earned high ratings from independent rating agencies such as A.M. Best and Standard & Poor’s. These ratings indicate that Principal Life Insurance is financially stable and can meet its obligations to policyholders.
Who owns Principal Life Insurance?
Principal Life Insurance is a subsidiary of Principal Financial Group, a global financial services company based in Des Moines, Iowa. Principal Financial Group offers a range of financial products and services, including retirement planning, investment management, and insurance.
Does Principal Life Insurance offer dental insurance?
No, Principal Life Insurance does not offer dental insurance. However, the company does offer a range of other insurance products, including life insurance, disability insurance, and long-term care insurance. If you’re looking for dental insurance, you may want to consider other providers specializing in dental coverage.