Principal Life Insurance: Company Overview
| Detail | Information |
|---|---|
| Founded | 1879 |
| Headquarters | Des Moines, Iowa |
| AM Best Rating | A+ (Superior) |
| Fortune Ranking | Fortune 500 |
| Publicly Traded | Yes (NYSE: PFG) |
| Available in NY | No |
| NAIC Complaint Index | 0.68 (below average — good) |
Principal Life Insurance Products
- Term Life (10/15/20/30yr): Highly competitive pricing. Convertible. Accelerated underwriting available.
- Universal Life: Flexible premiums with adjustable death benefit. Good for high-income earners maximizing tax-advantaged accumulation.
- Survivorship Universal Life: Covers two lives; pays on second death. Popular for estate planning.
- Variable Universal Life (VUL): Market-linked cash value in sub-accounts.
Term Life Rate Table: Principal
Sample monthly premiums for 20-year term, non-tobacco, preferred health:
| Age | $250K Male | $250K Female | $500K Male | $500K Female | $1M Male | $1M Female |
|---|---|---|---|---|---|---|
| 25 | $12/mo | $10/mo | $19/mo | $15/mo | $32/mo | $26/mo |
| 30 | $14/mo | $11/mo | $22/mo | $17/mo | $38/mo | $29/mo |
| 35 | $16/mo | $13/mo | $25/mo | $20/mo | $44/mo | $34/mo |
| 40 | $23/mo | $18/mo | $38/mo | $30/mo | $70/mo | $54/mo |
| 45 | $38/mo | $29/mo | $64/mo | $49/mo | $122/mo | $92/mo |
Principal's Advantage: Impaired Risk Underwriting
This is where Principal truly distinguishes itself. "Impaired risk" refers to applicants with health conditions that complicate underwriting. Principal takes a notably favorable view of:
- Type 2 Diabetes: Well-controlled with A1C under 7.5 — Principal often offers preferred rates where others offer standard or table ratings.
- Past Cancer: Many cancers in full remission for 5+ years are viewed favorably. Skin cancer with clear margins may qualify for preferred.
- Depression/Anxiety: Treated and managed mental health is viewed positively. Principal uses a "build credit" approach — healthy habits and managed conditions result in better ratings.
- High BMI: Principal's height/weight tables are among the most lenient in the industry.
Principal's "build credit" underwriting: Principal awards credits for positive health factors — regular exercise, non-tobacco status, optimal cholesterol, and stable managed conditions — that can offset other risk factors. This can result in preferred rates even for applicants with imperfect histories.
Pros
- Very competitive term pricing
- Best-in-class impaired risk underwriting
- A+ AM Best rating
- Strong UL products for high earners
- Good for diabetics and past health issues
Cons
- No guaranteed issue product
- Limited final expense options
- Not available in New York
- Online tools relatively limited
- Application process can be lengthy
Verdict: Who Should Choose Principal?
Principal is an excellent choice for two groups: (1) healthy buyers who want the most competitive term pricing available, and (2) buyers with health conditions — especially well-controlled diabetes, past cancer, or mental health history — who have been rated unfavorably elsewhere. High-income earners using life insurance as part of a broader tax strategy will also find Principal's UL products compelling. It's not the right fit for seniors needing final expense coverage or anyone wanting guaranteed issue.
Frequently Asked Questions
Yes. Principal holds an A+ AM Best rating and is a Fortune 500 company. It's particularly well-regarded for its competitive term pricing and lenient underwriting for impaired risk applicants — people with diabetes, past cancer, depression, or other health conditions often find better rates at Principal than at competitors.
Principal is one of the best carriers for impaired risk underwriting. It takes a favorable view of well-controlled Type 2 diabetes, past mental health treatment (depression, anxiety), and certain cancers in remission. If you've been rated or declined elsewhere, Principal is worth a quote.
Principal offers accelerated underwriting that can bypass a paramedical exam for qualified applicants under age 60. However, they don't offer a true no-exam guaranteed issue product. For applicants with serious health conditions, other carriers like Mutual of Omaha or AIG are better suited.
No. Principal Financial Group's life insurance products are not available to New York residents. New York applicants should consider Guardian, New York Life, or MetLife instead.
Principal is one of the most competitively priced term carriers — often among the top 3 for healthy applicants. A 35-year-old male can get $500,000 in 20-year term coverage for approximately $25/month, which is well below the industry average of $27–$30/month.