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Principal Financial Life Insurance Review

Principal Financial stopped selling individual life insurance in 2021. However, the company still sells group life insurance through employers and claims that it will continue to support customers with existing Principal life insurance plans.  

The following review details Principal group life insurance and the company as a whole.

For reviews of some of the leading providers of individual life insurance, visit our comprehensive life insurance review page.

Please note: does not sell life insurance policies from Principal Financial. To learn about life insurance policies available where you live and to compare options from other life insurance companies that offer coverage in your area, call to chat with a licensed insurance agent or request a free online plan quote today.

Principal Financial Company Overview

Principal is a Fortune 500 company that was founded in 1879. Principal is headquartered in Des Moines, IA, with various partnerships and subsidiaries located all around the world.

In addition to group life insurance, the company also provides retirement plans and other investment products. 

What kind of life insurance does Principal sell?

Principal sells term life insurance through employers on a group basis. Companies can choose to offer an employer-paid plan (group term life) or an employee-paid plan (voluntary term life).

Principal group term life insurance

This policy is offered as an employee benefit paid for by the employer and offers up to $1 million worth of coverage for the employee, their spouse and dependent children up to age 26. If the employee leaves the company, they may keep the coverage and convert it to an individual term life policy. 

Principal voluntary term life insurance

This policy is available as an optional employee benefit with premiums paid by the employee. Coverage is good for up to $500,000 with up to $250,000 of coverage available to spouses and dependent children up to age 26. This policy may also be converted to individual coverage if employment ends and can even be transferred to another group life policy.

How else can Principal protect your income?

Term life insurance provides protection of one’s income if they were to pass away during their working years. But death isn’t the only thing that can threaten one’s income and the quality of life of those who depend on it. 

Principal offers some additional types of policies to address some of these scenarios.  

Principal disability income insurance provides monthly payments if you are unable to work because of a disabling injury or illness. These plans offer supplemental coverage to any employer-sponsored disability insurance you may have and can go with you if you change jobs or help fill coverage gaps between jobs.   

Principal also offers critical illness insurance that provides income assistance if you are diagnosed with a serious illness. The policy covers a range of illnesses and conditions such as cancer, heart attacks and strokes and pays out a lump sum that may be used any way that you choose.  

Principal also has accidental death and dismemberment coverage that may be added to a group or voluntary term life policy that pays out benefits after an accident that results in death or the loss of limbs or vision. And Principal’s group accident insurance provides a lump sum cash benefit following an accidental injury such as fractures, dislocations, burns, concussions and more. 

Are any other features or benefits available?

Some of Principal’s term life insurance policies can also include:

  • Domestic and international travel assistance  
  • A legal document center where plan members can easily produce wills and other legal documents online
  • An identity theft kit
  • Beneficiary support for those dealing with the loss of a loved one
  • Emotional health support line with access to licensed behavioral health clinicians

Is Principal Financial a good life insurance company?

Principal Financial has strong financial ratings, with the leading credit rating agencies all handing out solid marks including an A+ from S&P Global and A.M. Best, AA- from Fitch Ratings and A1 from Moody’s. 

From a customer satisfaction perspective, Principal has long been accredited with the Better Business Bureau and maintains an A+ rating. And the National Association of Insurance Commissioners finds that the Principal Financial rate of customer complaints is far lower than the industry average (which means they receive fewer customer complaints than the average company).

But while Principal performs well financially and keeps customers satisfied, the company’s life insurance options are limited. You can only obtain coverage through an employer and only term life insurance is available. 

Unless your employer is contracted with Principal, you’ll have to look elsewhere for coverage.

Contact a licensed insurance agent today to learn about additional types of life insurance such as whole, universal, variable and more along with comparing plans and carriers selling policies in your area. 


Based on your answers, you should consider

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