The Principal Financial Group, also referred to as just The Principal, is a global Fortune 500 company, and it is known throughout the financial services industry as a premier global investment leader. There are many reasons for this, starting with the fact that this company has achieved many accolades, including the following:
- #1 provider of Employee Stock Ownership Plans (ESOPs)
- #1 provider of Defined Benefit retirement plans
- One of America’s best employers
- Best Place to Work in Money Management
- Best Place to Work in Information Technology
- One of the World’s Most Ethical Companies
- #3 “Greenest” CRE Company
- #2 Provider of Nonqualified Deferred Compensation plans
- #4 provider of non-medical insurance coverages
- #4 manager of target-date lifecycle mutual funds in the United States
- SavingFreak.com top 10 life insurnace companies in the United States (OK maybe this one isn’t as impressive as the others)
The company currently services nearly 21 million customers and policyholders throughout the globe via a large network of financial professionals, as well as a very diverse family of companies. The Principal has offices in 18 different countries. Today, the company has over $516 billion in assets under management.
The History of Principal Life Insurance Company
The Principal was initially founded in 1879 as an insurance company by Edward Temple and five other individuals in Chariton, Iowa. The original company was Bankers Life Association, and it offered life insurance in the form of memberships to its policyholders. The initial clients of the firm were men between the ages of 22 and 55 who were in good health and who did not work in a “risky” occupation.
By 1889, the company had approximately 429 million of life insurance “memberships” in place. That same year, it moved its operations to Des Moines, Iowa. Later, in 1909, following founder Edward Tempe’s death, the company became a mutual life insurer. That same year, George Kurns became the new president, and he initiated the use of direct mail advertising in order to reach more potential customers. This proceeded to bring in roughly $3 million in additional life insurance sales within just the first year alone.
Even during the country’s Great Depression, Bankers Life Association continued to grow. In 1930, the firm closed in on the $1 billion mark. And, by the early 1940s, Bankers issued its first group health insurance plan. Throughout the following five years, this area of Bankers Life business grew so rapidly that by 1946, group life made up for roughly one-third of the insurer’s overall business.
In 1985, Bankers Life Association changed its name and became The Principal Financial Group. Five years later, it expanded its product and services offerings to market to customers outside of the U.S. into areas such as China, Mexico, Brazil, Chile, India, and Hong Kong.
In 2001, The Principal Financial Group became a publicly traded company and filed its initial public offering (IPO). The company continues to trade its shares on the New York Stock Exchange (NYSE) under the symbol PFG.
The Principal is considered to be a very strong company from a financial standpoint, and it has a very good reputation from a claims paying ability to its policyholders. This is reflected in the ratings that the company has been given by the insurance company ratings agencies. These include the following:
Moody’s Investors Services
5th highest out of 21 possible rating levels.
Standard & Poor’s
5th highest out of 24 possible rating levels.
A.M. Best Company
2nd highest out of 16 possible rating levels.
AA-, Very Strong
4th highest out of 19 possible rating levels.
The Principal has also been an accredited member of the Better Business Bureau (BBB) since December 1, 1948, and it has been given the rating of A+ (on a rating scale of A+ to F) by the BBB. Throughout the past three years, the company has only received 45 total complaints, of which 12 have been closed over the past 12 months. Of those 45 total complaints, 35 of them have focused on issues with the company’s products / services. The remainder of the other ten have had to do with advertising / sales issues (2), billing / collection issues (6), and delivery issues (2).
Insurance Products Offered by the Principal
The Principal offers a wide variety of different products and services to its customers. Certainly, one of its key offerings is life insurance protection. The Principal provides coverage for both individuals and businesses. Life insurance that is offered for individual consumers includes the following:
Term Life Insurance
Term life insurance is considered to be the most basic type of life insurance coverage. This is because it provides death benefit protection only. Term coverage will last for a specified period such as 5, 10, 15, 20, or even 30 years. There is also a 1-year renewable term life option. There are many of the term life insurance products offered through The Principal that are convertible into permanent life insurance coverage.
The Principal’s primary term life insurance offerings include the following:
- 1-Year Term Life Insurance – The Principal offers a one-year term life insurance policy. This annual renewable term product provides protection to those who need coverage for shorter term protection needs.
- 10-Year Term Life Insurance – The 10-Year term life insurance option offered by The Principal offers protection for ten years, and in the 11th year, the premiums will increase each year thereafter.
- 15-Year Term Life Insurance – The 15-Year term life insurance option that is offered through The Principal provides a guaranteed policy, along with a guaranteed level premium for fifteen years. Starting in the 16th year, the amount of the premium will go up each year thereafter.
- 20-Year Term Life Insurance – The 20-Year Term Insurance product provides the insured with insurance for 20 full years at a guaranteed premium amount. Then, in the 21st year, the amount of the premium will then increase annually.
- 30-Year Term Life Insurance – The 30-Year Term Insurance policy offers the insured 30 full years of guaranteed life insurance coverage, along with a premium amount that is also locked in for 30 years. Starting with year 31, the amount of the premium will increase each year going forward.
Universal Life Insurance
The Principal also offers several different options for universal life insurance protection. This type of permanent life insurance coverage provides both a death benefit, along with a cash value / savings component where the policyholder can enjoy tax-deferred build-up of funds without having to be taxed on the gain each year. This can allow for a nice amount of compounding and growth over time.
As long as the funds that are inside of the cash component of the policy are enough to cover the cost of the insurance, a universal life (UL) insurance policy can be an extremely flexible way to obtain life insurance coverage. This is because, provided the insured follows certain guidelines, he or she is able to allocate when, as well as how much of the premium will go towards the insurance portion of the policy, and how much goes into the cash component.
There are additional advantages to owning a universal life insurance policy, too, such as “secondary” guarantees like the no-lapse protection that allows the insured to “dial in” the coverage period from ten years to age 100.
The Principal offers many different UL plans to choose from, including the:
- Universal Life Flex II – The Universal Life Flex II policy offers the ability for the insured to secure a permanent death benefit and a cash value, as well as all of the flexibility of having universal life such as being able to allocate where the premium goes. This particular policy was designed specifically for individuals who are seeking a more affordable death benefit, along with the opportunity to have cash value growth.
- Universal Life Accumulation II – The Universal Life Accumulation II policy provides both a permanent death benefit, as well as cash value build up. This policy also comes with the flexibility that other UL plans can provide such as being able to allocate premium dollars into and out of the cash and death benefit components of the policy.
- Universal Life Protector IV – The Universal Life Protector IV policy offers flexibility for selecting the length of the plan’s guaranteed death benefit – up to the insured’s entire lifetime. This policy also offers flexibility for selecting the level of premium that gets paid into the plan, as well as for increasing and / or decreasing the death benefit on the policy (subject to the policy’s guidelines). There is also a lapse protection feature on the policy to help ensure that the policy will not lapse for a certain number of years – up to the insured’s lifetime.
- Indexed Universal Life Flex – This UL plan offers a permanent death benefit, as well as cash value. It also offers an enhancement in the way that interest is credited to the cash component of the plan.
Variable Universal Life Insurance
Variable universal life insurance combines the flexibility of universal life insurance along with the growth opportunity that can come with market-related investment accounts. Therefore, with variable UL, the funds that are in the cash component of the policy are able to grow, based on market performance.
The Principal offers several variable universal life products to choose from, including the:
- Variable Universal Life – Business
- Variable Universal Life Income III
- Variable Universal Life Income II
- Benefit Variable Universal Life II
Survivorship Life Insurance
Survivorship life insurance policies cover two individuals with one life insurance policy. With these plans, the death benefit will pay upon the death of the second covered individual. These plans are often used in estate planning. This is because they can oftentimes work with tax planning techniques such as the unlimited marital deduction.
The Principal’s Survivorship Universal Life Protector II policy will insure the lives of two individuals. It will pay out at the death of the second individual. The minimum amount of death benefit on this policy is $250,000. The Survivorship UL policy has affordable premiums, and it also provides a lapse protection provision.
How and Where to Find the Best Premium Quotes on Life Insurance Protection
When seeking premium quotes on life insurance protection from The Principal – or for quotes on any type of life insurance coverage – it is typically best to work with an agency or a company that has access to more than just one single life insurance carrier. This is because you will be able to more directly compare the policies, the benefits, and the premium prices of the coverage that is available to you – and from there, to determine which will work the best for you and for your specific needs.
If you are in the market for insurance coverage, we can help you to find the plan you need at the very best premium price. We work with many of the top insurance companies that are in the marketplace today – and we can assist you in obtaining all of the pertinent information that you need in order to make a well-informed purchase decision. When you are ready to move forward, all you need to do is use the form on this page to get your first set of quotes.
Should you find that you still have any questions regarding The Principal Life Insurance Company – or even if you just have a question about life insurance in general – please feel free to contact us directly. We have experts on staff who would be happy to take your call. We can be reached via phone, toll-free, by dialing 888-229-7522.
We understand that finding the very best insurance coverage for your exact needs can sometimes seem quite overwhelming. There are many factors to contend with – and you want to ensure that you’re making the right choice. But that’s why we’re here. So, contact us today – we’re here to help.