{"id":324161,"date":"2025-11-07T21:38:48","date_gmt":"2025-11-08T02:38:48","guid":{"rendered":"https:\/\/www.reviews.com\/?page_id=274606"},"modified":"2025-11-07T21:38:48","modified_gmt":"2025-11-08T02:38:48","slug":"principal-financial","status":"publish","type":"page","link":"https:\/\/www.reviews.com\/insurance\/life\/principal-financial\/","title":{"rendered":"Principal Financial Life Insurance Review"},"content":{"rendered":"\n\n <\/span>\n \n\n\n

Principal Financial Life Insurance Review<\/h2>\n\n\n\n

Principal primarily focuses on employer-sponsored (group) life insurance and voluntary\/worksite benefits, with most U.S. individual retail life activity curtailed following a 2021 strategic review. Existing individual policies remain in force, but new offerings are now centered on workplace distribution. Historically, Principal offered standard term and permanent options; today, its standout strength is in group coverage and flexible enrollment designed for small and mid-sized employers.<\/p>\n\n\n\n

If you hold an in\u0014force permanent policy, you can generally borrow against the policy\u0019s value or initiate a partial surrender, and these advances are typically tax-free. Principal deducts outstanding loans from the death benefit when you die or if you surrender the policy. If you choose a full surrender, you will pay income tax on any portion of the proceeds that exceeds your total premiums paid. <\/p>\n\n\n\n

Your beneficiaries also have choices for receiving their death benefits. They can elect a lump-sum distribution, choose income options that provide payments over their remaining life, or keep the death benefit in an interest-bearing account they can access on demand.<\/p>\n\n\n\n

Rider availability varies by policy type and state. Across the market, accidental death benefit and waiver of premium remain common options, and living benefit features have expanded since 2020 (for example, accelerated death benefits for terminal, chronic, or critical illness, and optional long\u0014term care riders). In the workplace, Principal commonly pairs group life with AD&D and other value\u0014added services, allowing many customers to assemble robust coverage through employer plans.<\/p>\n\n\n\n\n <\/span>\n \n\n\n

The Life Insurance Factors We Analyzed<\/h2>\n\n\n\n

Customer experience<\/h3>\n\n\n\n

Principal\u0019s customer experience is best viewed in the context of current industry benchmarks. J.D. Power\u0019s latest U.S. Individual Life Insurance Study<\/a> highlights rising digital shopping and service expectations. Nationally, the American Customer Satisfaction Index reports life insurance customer satisfaction in the high 70s on a 0\u001400 scale, indicating generally solid consumer sentiment. The National Association of Insurance Commissioners (NAIC) publishes a line\u0014specific Complaint Index in which 1.00 equals the market average; values below 1.00 indicate proportionally fewer verified complaints.<\/p>\n\n\n\n

Online quoting is now common across the industry. Principal offers consumer\u0014facing digital estimate tools in some lines and streamlined, adviser\u0014assisted paths to apply; most life insurance purchases still involve an adviser or employer enrollment, but the ability to compare options digitally makes shopping easier.<\/p>\n\n\n\n

Financial strength<\/h3>\n\n\n\n

Principal Financial has long been regarded as financially strong by the major rating agencies. For the most current insurer financial strength ratings and outlooks, check Moody\u0019s<\/a>, AM Best<\/a>, and S&P Global<\/a> for the specific operating entities that underwrite policies.<\/p>\n\n\n\n

Strong financial strength is an important indicator that your life insurer can meet long\u0014term obligations to policyholders.<\/p>\n\n\n\n

Coverage and rider information<\/h3>\n\n\n\n

Principal sells the two major types of life insurance: term and permanent<\/a>. Today the company\u0019s emphasis is on group life (employer\u0014paid or voluntary). Historically, its individual portfolio included universal life insurance, indexed universal life insurance, variable universal life insurance, and survivorship insurance; following the 2021 strategy shift, availability of new retail individual life coverage is limited.<\/p>\n\n\n\n

If you\u0019re looking for short\u0014term coverage, note that Principal\u0019s legacy term life options were among the more flexible, with terms of one, 10, 15, 20, and 30 years and a conversion privilege to permanent coverage without a new medical exam. For new coverage needs, consult an adviser about current availability; workplace plans commonly provide simplified or guaranteed\u0014issue options during open enrollment.<\/p>\n\n\n\n

Principal\u0019s other standout option historically was survivorship insurance. This type of policy covers two lives and pays the death benefit upon the death of the second individual. It remains useful in estate planning, and interest has been rising ahead of the scheduled 2026 sunset of the temporarily expanded federal estate tax exemption, which could bring more estates into scope.<\/p>\n\n\n\n

Principal\u0019s strength is more pronounced under group and corporate policies, where plans often package life insurance with accidental death and dismemberment and other benefits. In the broader individual market, accidental death and waiver\u0014of\u0014premium riders remain widely available, while living benefits (terminal, chronic, or critical illness accelerations and optional long\u0014term care riders) have become more prominent since 2020.<\/p>\n\n\n\n

Life insurance coverage features<\/h3>\n\n\n\n\n <\/span>\n \n\n\n

Principal Financial Life Insurance Overview: Financial Strength, Availability, and History<\/h2>\n\n\n\n

Over its many years in business, Principal Financial has built an excellent reputation in the industry. It has a strong balance sheet, with significant assets<\/a> to fund operations and protect policyholders.<\/p>\n\n\n\n

The company has an A+ rating with the Better Business Bureau<\/a> and performs competitively in independent satisfaction studies, with relatively low complaint levels indicated when a carrier\u0019s NAIC Complaint Index falls below 1.00. Customers generally report positive experiences with Principal\u0019s products and service.<\/p>\n\n\n