The principal life insurance company operates in 17 different countries worldwide and provides universal and term insurance coverage to all states of the United States. However, principal currently doesn’t offer a whole life insurance policy, but its perks of customized coverage and pricing make it an attractive company in the insurance industry.
It offers multiple permanent coverages, numerous term conversion options and provides various riders that make principal one of the leading insurance companies in the world.
Policies and Plans Available
Principal life insurance company offers multiple policy options and plans. For example, you can choose between universal life insurance, term life insurance or indexed universal life insurance.
Principal life insurance offers a term life plan for a specific year, 10, 20 or 30, whatever arrangement is preferable and suitable to you. The term coverage begins from as low as $200,000 amount. Available riders for term life insurance include child term insurance, premium waivers, conversion extensions and mandatory death benefits. Another available plan is of One-year-term OYT. It gives a face value amount between $200,000 to $5million for individuals ranging from 20 to 99 years of age. OYT policy also offers 12 months of temporary life insurance protection, but it is a nonrenewable policy without any option for additional riders.
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The principal also offers Universal life flex III or (UL Flex III) policy plans. It is essentially a flexible long-term protection plan available for individuals from 0 to 121 years old. Its special coverage protection starts from $25,000 with flexible premiums. Additionally, the principal also offers Indexed Universal Life Accumulation II (IU Accumulation II), which offers permanent coverage from age 20 till 85, and its face value starts from $50,000. This particular policy allows investment in stock market indices as well. Other policy plans like Indexed Universal life flex II and Variable Universal life-income IV comes with their own customize or additional benefits, age ranges and starting cash value.
Principal life insurance company offers accelerated benefits, premium waivers, children term insurance rider, conversion extension rider, death benefits and additional rider in case of any emergency or medical condition like a terminal illness.
- Accelerated benefits are offered if you are diagnosed with a terminal illness to cover medical or other necessary expenses. Accelerated benefits that the principal offers are essentially limited to a lesser of 75% of the total policy’s face value.
- Premium waiver rider allows you to waive your monthly premiums if you are disabled for six months or more. If you’re already utilizing its benefits, this rider typically expires at age 65.
- For children aged 14 years or above, this rider is available. It promises death benefits up to $25,000, and this temporary coverage can be arranged into a permanent policy plan at their 25th birthday.
- The chronic illness rider allows an insurer to access 75% or up to $2 million in case of a medical emergency. Although this policy isn’t offered in all states, no additional riders are provided in states when operational.
Advantages and Disadvantages of purchasing Principal Life Insurance Company
Principal life insurance offers multiple options for permanent coverage. You can choose from among them, whatever is preferable and suitable for you. Another advantage of purchasing an insurance policy from the principal is that it also allows multiple term conversion options and offer various riders – whichever you prefer that. However, the only disadvantage is that in all the diverse opportunities it provides, it doesn’t offer whole life insurance, so you will have to explore other companies in the industry.
According to NAIC, principal life insurance has a superior A+ rating from AM Best. It enjoys a credible and reliable reputation in the market as a company with a stable outlook. According to another Insurance study conducted by J.D. Power 2020, the principal life insurance company was ranked 9th among 23 companies on the list.
Why choose that company?
Given its customer satisfaction rating and the variety of riders that Principal life insurance offers regularly. It doubtlessly outperforms many of its competitors and has a reputable standing in the market. It provides life insurance coverage to many countries worldwide, and with the kind of customer reviews, it has catered to so far, choosing principal line insurance will be the right decision for you. Although not all its services, such as selective riders, are available in all states, you will have to contact the company’s agent directly for getting to know about that information. Promising position in the market, its rating and service make principal life and health insurance some of the most trustworthy insurance companies.