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Principal Life Insurance Review

principal life insurance review

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

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With thousands of life insurers out there, it can be overwhelming when you’re trying to decide which ones work best for you.

Each company has different advantages and disadvantages, you’ll want to find a quality company that you can trust, and we are here to make this search easier for you.

Today, we’re going to take a look at Principal Life Insurance, a carrier who we often get asked many questions.

Also referred to as the Principal Financial Group, Principal Life Insurance is, in our opinion, one of the best life insurance companies in America.

The group is known nationwide for its financial services that also include investing and retirement planning.

The company was not only founded in Des Moines, Iowa in 1879, it is still headquartered there.

Today, however, it has offices around the world in locations like London, Amsterdam, Hong Kong, Mumbai, Sydney, Beijing, Munich, Dubai,  Sao Paulo, and various U.S. locations like New York City, San Diego, Chicago, Tampa, Dallas, Pittsburgh, Atlanta, Phoenix, and many more.

As a business that has been operating for over 100 years, they have a lot of experience in the insurance field.

Principal Life Insurance History Overview

Principal enjoys an excellent reputation today among both its clients and employees.

The reputation, of course, is built on a history that stretches back to the nineteenth century. The company was founded by Edward Temple and it was initially referred to as Bankers Life Association.

According to Principal’s official history, the company’s decades of success was built on solid governance and even a touch of old-fashioned frugality as evidenced by some singular early practices; for instance, employees could not obtain a new pencil until they turned in their old one which had to be less than two inches in length.

This careful management of even the smallest details allowed the company to grow and expand so that by the Great Depression, it had reached the billion dollar mark for life insurance memberships in force.

In fact, when the Great Depression hit the nation, the president of the company was able to award each attendee of the company’s fiftieth-anniversary event with a ten-dollar gold piece as a token of faith in their enterprise and faith in the economy of the nation.

The antiquated values that dictated the expansion of the early company have come to fruition in the Principal Life Insurance Company of today. Moreover, the old practices of sound fiscal management are now viewed as the tried and true methods that allow companies to remain in good standing.

Now, they allow Principal to weather today’s financial challenges including the recent economic downturn felt the world over. Rated with an A+ for superior performance by A.M. Best ratings, Principal remains a principal life insurance provider in the U.S. and around the world.

Principal Offerings

Principal has designed a myriad of stand-out products that are popular with customers.

Short Term and Long Term Plans

Their life insurance solutions include both short and long-term plans. Some clients choose to convert their term policies to permanent cash-value policies.

Most common term policies from Principal include ten, fifteen, twenty, and thirty-year term policies.

They have a wide customer base that includes growing families as well as growing businesses. In addition, Principal is well known for its supplements that truly allow policyholders to customize their coverage to meet all of their needs.

Foreign Nationals

Principal also offers other coverage options that appeal to various customer demographics.

For instance, Principal offers foreign nationals life insurance even though they live abroad for reasons that may include work or study; some insurers will not offer coverage to Americans living in other countries.

Principal’s international coverage includes an expansive list of foreign locations, so U.S. nationals can still obtain coverage from a trusted company like Principal though they may live long-term in another nation.

This is a huge advantage for anyone that is going to be outside of the United States for an extended period but still wants to give their family insurance protection.

Healthy Lifestyle Credits Program

One of the most attractive features of Principal’s offerings is the Healthy Lifestyle Credits Program.

Many people who have had health problems in their past and have been turned down by other providers (or offered more exorbitant rates) find that their application meets with approval because of this program’s criteria.

One of the most celebrated aspects of this program is its willingness to help applicants achieve the best risk assessment score possible. Principal’s balanced approach has allowed many individuals to obtain the comprehensive life insurance coverage they need for themselves and their families.

This is just one way that Principal shows that they care about their customers and want them to have the best coverage available.

In our history, we have found that Principal offers excellent insurance solutions that are ideal for a wide range of applicants. Moreover, their more liberal acceptance practices ensure that applicants are reviewed with a human eye and a more flexible assessment than is typical among other insurers.

If you have questions about Principal Life Insurance, contact us and we would be delighted to answer all your questions and to help you secure optimum coverage for all your needs.

Deciding How Much Life Insurance You Need

Regardless if you choose Principal Financial Group or any other insurance company, it’s fairly important to spend a little time figuring out exactly what you need; there’s no reason to get much, but you want enough to cover your obligations.

You have to find a balance between having enough coverage for your family, and not paying for more coverage than you need. Here are several different factors that you have to consider.

The first thing that you need to look at is your debt and all final expenses.

If you were to pass away, your loved ones would be responsible for paying for your mortgage, credit card bills, funeral expenses, medical bills, and much more.

This is where life insurance can be a lifesaver. If you have too little coverage, your family could be stuck under piles of debt that they wouldn’t have the money for.

Another factor that you need to keep in consideration for is your salary, especially if you’re the main income earner for your family.

If you were to pass away suddenly and unexpectedly, your family would experience a financial loss that could harm their standard of living. With adequate life insurance, the policy payout would give them time to find a way to permanently replace your income without adding any financial stress.

Life insurance is one way to ensure your loved ones will be taken care of if anything tragic happens to you. You can’t predict what the future holds, but you can prepare for the worst.  Don’t delay in getting your family the protection you want, and they deserve.

No Exam Life Insurance

In its underwriting research, Principal Life found that roughly 50 percent of eligible life insurance applicants have a high number of favorable health factors.

Because of this, blood work and medical examinations really are not necessary in order to qualify them for coverage. In omitting this step, a great deal of both time and money can be saved for both the insurer and the insured.

In moving your life insurance application through the process quickly, Principal’s accelerated underwriting program uses data that can be easily obtained – typically within 48 hours of you submitting your application for coverage – in order to eliminate the need for lab testing and exams. In the cases that qualify, Principal can oftentimes approve applicants simply based on age and face amount requirements.

In analyzing your application for coverage, Principal Life uses the traditional sources of underwriting information, along with a check of information from the MIB (Medical Information Bureau), and motor vehicle reports. In addition, Principal will also check prescription records.

In gathering more information on personal history, Principal uses TeleApp electronic application – essentially this is a phone interview with you. In doing so, the application approval process can be sped up considerably – in many cases to approximately 48 hours. This is a substantial difference from the several weeks – or longer – that it can sometimes take to underwrite large life insurance cases.

Are You Eligible?

In order to be eligible for the accelerated underwriting process, there are several qualification criteria that you must meet.

These include being between the age of 18 and 60. In addition, the policy you are applying for must be a new policy versus an addition to an existing Principal policy you already have.

There are a number of different types of policies in which the accelerated underwriting can be used. These include:

  • Term Life: 10 -, 15 -, 20 -, and 30 – year policies
  • Universal Life
  • Indexed Universal Life
  • Survivorship Universal Life
  • Variable Universal Life
  • Benefit Variable Universal Life

The face amount of your policy can range anywhere between $50,000 and $1 million.

There are also some instances where your application may not qualify for the accelerated underwriting process. These include:

  • If you’ve had prior life insurance coverage that’s been approved at a rating other than Preferred or Super Preferred
  • You have had labs completed for insurance purposes within the past 12 months
  • If you’re applying for Non-Tobacco Preferred, you’ve had no tobacco use within the past 24 months
  • If you are over the age of 50, you have no primary care physician and you have no evidence of a recent routine physical
  • You are a foreign national and/or you travel to hazardous countries
  • You have a criminal history
  • You have a history of driving under the influence or reckless driving in the past five years

You have certain major medical conditions, some of which include the following:

If you have any questions about Principal Financial Group or any of the different life insurance policy types, don’t hesitate to contact us immediately.

Our agents are dedicated to getting you the coverage that you need and helping you make educated decisions regarding your insurance needs.

Whether you are needing a $100,000 policy or a one million dollar life insurance policy, we can help guide you through this process.

We always recommend that you compare life insurance quotes – you can do that using our quote tool, or call us at 1-800-712-8519 and we can help you compare rates, and figure out if Principal Life is the best company for you, or if there is a better company to apply with, as we represent over 30 life insurance companies.

Picture of Doug Mitchell, CLU

Doug Mitchell, CLU

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent close to 30 years in the life insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health. Some other notable items about Doug: Top of the Table Million Dollar Round Table member (MDRT). (MDRT is a global, independent association of the world’s leading life insurance advisors) | Premier Partner with Lincoln Financial and Cabinet Member | Served two years as President of the Auburn/Opelika Association of Financial Advisors | Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award | New York Life, Executive Council Member | Currently serves as President of Ogletree Financial, a life insurance General Agency. | Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

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