We have compiled this Principal Financial review to provide you with comprehensive information that can help you make an informed decision. As you may have already seen, Principal Life Insurance Company is one of our top ten no medical exam life insurance companies. In this review, we will provide both the positives and negatives of their services

Review of Principal Life Insurance Company

Principal Life Insurance Company has adopted a modern approach to underwriting that utilizes “big data” to assess policy applications. They source this data from three primary databases:

• the Medical Information Bureau,
• the Department of Motor Vehicles,
• and the Prescription Database.

What is the Medical Imformation Bureau:

The Medical Information Bureau (MIB) is a data-sharing organization that maintains records of medical and non-medical information about individuals in the United States and Canada. It was established in 1902 as a non-profit association to provide insurers with a centralized source of information on people who apply for health, life, disability, and long-term care insurance policies.

When someone applies for an insurance policy, the insurer may request their medical history from the MIB to help determine their risk level and whether to approve the application. The MIB collects and stores information about previous insurance applications, medical conditions, and other factors that could impact an individual’s insurability. The MIB does not make decisions on insurance applications, but provides information to help insurers make informed decisions about an applicant’s coverage.

What does this mean for life insurance seekers?

Essentially, Principal Life Insurance Company will consult the Medical Information Bureau, the Department of Motor Vehicles, and the Prescription Database to evaluate potential red flags, such as a history of major medications, a poor driving record, or a cancer diagnosis. If an applicant does not have any of these red flags, they may have a high likelihood of qualifying for the company’s accelerated underwriting process.

Principal Life Insurance Accelerated Underwriting

• Available on both term life and permanent life insurance
• Eligibility: 18-60 years of age
• Death Benefit: $50,000 up to $1 million
• Medical Exam: Not Required
• Blood Work: Not Required
• Decisions within 48 hours
• 50-60% of applicants qualify for accelerated underwriting program

It is important to note that Principal Life Insurance is one of the rare companies that offer a one million dollar policy without requiring blood work or a medical exam for clients that qualify for the best health rate class.

Principal Financial Life Insurance Policies

Survivorship Life Insurance

Survivorship Life Insurance is when two people want to get on the same policy. Both persons are covered and the death benefit winds up going to the survivor once one of the two people dies. Principal Life Insurance offers up to $2,000,000 no exam survivorship life insurance policy.

Term Life Insurance

Principal Life Insurance offers level term life insurance for 10, 15, 20 and 30 year lengths. If you want you can also convert this policy into a permanent, cash-value policy. This death benefit is tax free!

Permanent Life Insurance

Principal Life offers permanent life insurance policies that stay active so long as you are paying your premiums.

Universal Life: flexible death benefit & premiums; cash value accumulation

Variable Universal Life: more aggressive cash value accumulation strategy; higher risk; can convert cash values to annuities for extra income

These are some of the policies you can get from Principal Life Insurance.

Principal Life Insurance Ratings

Principal Financial is among the top rated insurance companies in the U.S.

Principal Life insurance has been rated by one of the most prestigious ratings organizations: A.M. Best. They granted Principal Life a rating of “A+”.

Just like in your school days, A+ means superior and is an amazing rating! This should be a comfort to all potential life insurance customers considering a policy from Principal Life Insurance.

Principal Financial ratings as of April 2020:

• A.M. Best rating: A+
• S&P rating: A+
• Moody’s rating: A1
• Fitch rating: AA-
• Comdex ranking: 91 (out of 100)

Principal Life: Drawbacks

As you can see from this review of Principal Life Insurance, we think this is a great life insurance company, and we recommend it to a lot of people. There is really only one drawback: when you buy a life insurance policy from Principal Life, you are turning down dozens of top life insurance companies.

What if another insurer offers a better deal

Although Principal Life Insurance Company has earned an A+ rating (which is significant), they may not always be the best option for everyone. Life insurance is a highly personalized purchase, and your individual needs may differ from those of your friend or family member. For example, you may have a unique budget or specific health concerns to consider. Therefore, there is no single “best” life insurance company. Rather, it’s a matter of finding the best company for your specific circumstances.

Final thoughts…

If you are considering purchasing life insurance, Principal Life Insurance Company may be an excellent choice for you. They offer a modern approach to underwriting that utilizes big data to assess policy applications, which can lead to a faster and more efficient underwriting process. Additionally, Principal Life Insurance Company has an A+ rating from A.M. Best, indicating a strong financial foundation and a commitment to customer service.

However, it’s important to keep in mind that there are many life insurance companies available, each with their own unique strengths and weaknesses. Without shopping around and comparing your options, you may never know if Principal Life Insurance Company truly offers the best policy for you.

By shopping around, you can compare prices, policy features, and customer reviews from different insurance providers. This allows you to make a more informed decision and find the policy that fits your specific needs and budget. Keep in mind that the cheapest policy may not always be the best option, as it may not offer the level of coverage you need.

In summary, while Principal Life Insurance Company may be a great choice for some, it’s important to shop around and compare your options to ensure that you are getting the best policy for your unique circumstances. Taking the time to research and compare different insurers can lead to significant cost savings and peace of mind knowing that you have chosen the right policy for your needs.