One of the older life insurance companies still in operation today, Principal began its journey in the middle of 1879 under the name it would hold for over a century, Bankers Life Association. Edward Temple who had a history in banking founded the company in Iowa and focused on issuing life insurance by membership only and with strict guidelines on who would be covered, and how the issuer would pay.
Of course, we all know a storied past doesn’t mean a spotless future. If this Principal National Life Insurance Company review, we help you understand the full scope of business they engage in, clarify their financial strength compared to other carriers, and bring to light what products they have available.
As always, make sure you do your own research before applying, regardless of which carrier you choose. Let’s talk Principal.
Our Principal National Life Insurance Company Review for 2017
After its first decade of business, it grew to a staggering $29 million in force coverage, which was big enough to require the company to move to bigger spaces in Des Moines, where it still resides. After thirty years of business, and the passing of its founder, Principal changed the way it did business by swapping out the old membership style and opting for a mutual life insurance company status.
Constant growth throughout the next few decades allowed Principal to begin offering health insurance in the ’40s, and within just five short years, this division of its business represented more than a third of its revenue stream.
Principal officially became Principal Financial Group in 1985, under which it still continues to transact business. The next step for Principal was going global, and it continues to have an active arm in seven countries on three separate continents.
2001 was also a landmark year as they filed to go public, where they are listed as PFG.
Principal’s Financial Strength & Ratings
Principal has the capacity to say it’s “A” rated from four of the major rating agencies, making it one of the best rated life insurance companies in America when based on financial strength, security, and solvency.
A.M. Best, Fitch, Moody’s, as well as Standard & Poor’s have all awarded Principal with a rating meaning the company is financially sound and likely to continue in such a stride. Here are those ratings, respectively:
The company is big enough to host employment for nearly 15,000 people worldwide, and across four different segments of its business. Its among the top 100 Best Companies to Work For according to Forbes who does the ranking annually, as well as being named a top 50 Company for Women. There is also a strong presence in working with the United Way and other volunteering avenues.
Life Insurance Products
The life insurance products The Principal offers range from basic term life insurance products, to much more complex products like their variable universal life insurance choice.
One of the more affordable carriers for term life insurance, Principal offers a few great privileges other companies don’t.
One of the lesser known products, which has just came to market from Principal National Life Insurance Company last year, is its $1 million no medical term policy. It is the first of its kind on the market, and uses state-of-the-art technology to determine a persons eligibility for up to a million in coverage with no physical exam.
Select from a 10-year, 15-year, 20-year, or a 30-year duration, a death benefit up to $1,000,000, and get approved without any kind of blood work or physical. If, for any reason, you don’t get approved for the accelerated product, you can still take the exam and get covered.
The term can be converted to permanent, with no further tests or proof of insurability.
Principal National Life Insurance Company offers three tiers of permanent insurance:
- Variable Universal
- Survivorship Universal
The universal and variable universal options both allow you to get a permanent death benefit, with flexible premiums, but the cash accumulation portion is invested differently. With a variable product, you have the potential to gain additional growth by utilizing stock, bonds or mutual funds, yet you take on greater risk, too.
The survivorship life, also known as a second-to-die policy, is a great choice for more advanced planning, like magnifying earmarked cash when both parties within an estate pass away.
Principal also offers many, many other products, not just life insurance. While we focus mainly on what life options a carrier has, it’s also important to know what the full scope of business they cover truly is.
As a quick example, they offers a range annuities, which often go hand-in-hand with life insurance. Choose from:
- Immediate (Income)
Looking for a place to house your old 401(k) or 403(b)? Principal can help there, or with any other IRA-related investment or retirement accounts.
Principal also has disability insurance, to cover those times when you’re unable to work but need to secure your income.
Our Final Thoughts
Principal was founded on frugal ways of doing business so it could be done for the benefit of its members, and this strategy is still being employed today. Principal is competitive across several industries, too, not just life insurance.
Its core focus and marketing strategy aims to help individuals, families, and small businesses all across the nation and around the world. And in the life insurance market, they are succeeding. Innovation, very competitive rates, and a nice selection of products helps everyone meet their goals of insurance.
We find Principal to be a strong choice for you to cover yourself, your family, or your business.
|Company Name (and Subsidiaries)||Principal Financial Group
Principal National Life Insurance Company
Principal Financial Services, Inc.
Principal Securities, Inc.
|Company Ratings||A.M. Best (A+)
Moody’s Investors Services (A1)
Standard & Poor’s (A+)
|Headquarters (Address, Phone, Web)||711 High St.
Des Moines, IA 50392-1520
|Policy Types Available||Term