Principal Life Insurance Company targets business owners with its range of products designed for key employees and their families. The company offers several types of policies, including term, universal, indexed universal, and variable universal life insurance. However, Principal does not provide whole life insurance options.
Affordable term life insurance rates are a notable feature of Principal’s offerings. Their term life rates are reportedly lower than the average for customers aged 30, 40, and 50, with especially favorable rates for those aged 60.
Permanent life policies from Principal also showcase strengths. Many of these policies receive high ratings for reliable policy illustrations from Veralytic, a firm specializing in life insurance analytics. Approximately 75% of Principal’s permanent life policies have been identified as competitively priced regarding internal charges, according to Veralytic data.
However, cash-value growth for these permanent policies tends to be slower than desired, which may not meet the expectations of buyers looking for rapid growth in cash value. Alternative companies may offer faster cash accumulation options.
Unique riders specifically for business owners enhance Principal’s policies. These riders include a salary-increase rider, which adjusts a policy’s face amount in line with salary increases, and a business-value increase rider, which raises the face amount as the business’s value grows.
Principal also features a chronic-illness rider within its universal life policies. This allows policyholders to access their death benefit if they develop a chronic illness and meet specified criteria for 90 consecutive days. Payment for this rider is only required upon use.
Another option for policyholders under the universal life plan is a cost-of-living-increase rider, which permits increases in coverage every three years until the policyholder reaches age 55, provided the option has not been declined previously.
Customer satisfaction is reflected in the remarkably low complaint levels associated with Principal’s life insurance, which are among the lowest reported in recent years.
