Principal Life Insurance: What You Need To Know

Principal Life Insurance is a service offered by Principal Financial Group, Inc., an American global financial investment management and insurance company. The company was founded in 1879 as Bankers Life Association and changed its name to Principal Financial Group in 1985. Principal Life Insurance offers a range of insurance products, including health insurance, disability insurance, dental insurance, and life insurance. The company caters to individuals, employers, and institutional investors, providing a one-stop shop for life insurance, retirement planning, personal trusts, and more. Principal's life insurance policies include term, universal life, and survivorship options, with coverage amounts starting at $25,000.

Principal Life Insurance Company offers health, disability, dental, life insurance, and annuities

Principal Life Insurance Company offers a range of insurance products and services to help individuals protect their finances and plan for the future. One of their key offerings is health insurance, which provides financial protection in the event of illness or injury. This includes disability income insurance, which acts as a financial safety net, replacing a portion of the insured person's income if they are unable to work due to a serious health condition. Principal Life Insurance's disability insurance is designed to supplement existing coverage provided by employers, which typically covers only 60% of one's income.

In addition to health and disability insurance, Principal Life Insurance Company offers dental insurance. They have a Preferred Provider Organization (PPO) network that includes dental providers across the nation. This network helps individuals find participating dentists, verify their network status, and access important information.

Principal Life Insurance Company also provides life insurance, enabling individuals to protect their loved ones financially after they pass away. This type of insurance ensures that the insured person's family can maintain their standard of living and achieve important goals, such as education, even in the absence of the insured person's income.

Furthermore, the company offers annuities as a tool for retirement planning. Annuities are long-term investments that help individuals build savings and create a guaranteed income stream for their retirement years. Principal offers different types of annuities, including variable annuities and registered index-linked annuities (RILA). Variable annuities, such as the Principal® Pivot Series Variable Annuity and Principal® Lifetime Income Solutions II, provide market growth potential and guaranteed income in retirement, respectively. On the other hand, RILAs, such as Principal® Strategic Outcomes, offer market-based growth with some protection against market losses, giving individuals control and flexibility over their investment strategies.

The company was founded in 1879 as Bankers Life Association

Principal Life Insurance is a part of the Principal Financial Group, a global financial investment management and insurance company. The company was founded in 1879 as Bankers Life Association by wealthy Des Moines bankers, including Edward Temple, Simon Casady, and Phineas M. Casady. Edward Temple, a banker in Chariton, Iowa, wanted to create a way to provide low-cost life insurance for fellow bankers and their employees. At the time, most life insurers were based in the East, and Temple was suspicious of these eastern companies, believing that even reputable local companies charged excessive premiums.

Temple was inspired by a life insurance plan set up by a group of ministers, where each member contributed to pay benefits when one of the members died. He developed a similar system for bankers and bank employees, where each participant would pay a deposit of $1 multiplied by their age upon joining, plus an initiation fee of half that amount, for an insurance certificate with a face value of $2,000. The number of certificates a person could buy depended on their age. The association screened out people in hazardous occupations or geographic areas, and those with intemperate lifestyles. Women were also excluded, as childbearing was deemed too risky.

The concept caught on quickly, and in June 1879, the bankers incorporated The Bankers Life Association. The following month, on July 1, the association's directors elected Temple as their president. They also voted to extend membership beyond bankers and bank employees to anyone recommended for membership by a bank that the association used as a depository and who could meet the association's strict standards. Bankers Life grew rapidly, and by 1900, it had $143 million worth of insurance in force, surpassing $200 million by 1904.

In 1911, Bankers Life Association converted to a mutual legal reserve company, becoming The Bankers Life Company. This conversion allowed the company to charge level premium rates and maintain a required surplus fund. However, the initial response to the conversion was lukewarm, with many policyholders choosing to let their assessment certificates lapse. Despite this, the company continued to grow and expand its offerings over the following decades, entering new markets and acquiring other businesses.

In 1985, The Bankers Life group revised its name to Principal Financial Group to reflect its expanded clientele beyond bankers and bank employees. Today, Principal Financial Group is a global leader, providing a comprehensive range of financial products and services to businesses, institutions, and individuals worldwide.

Principal Life Insurance is a one-stop shop for life insurance, retirement planning, and personal trusts

Principal Life Insurance provides both term and universal life insurance options. Their term life insurance policy is offered in one-, 10-, 15-, 20-, and 30-year terms, with coverage starting at $200,000 and available for customers up to 80 years old. The universal life insurance policy offers lifetime coverage, flexible premiums, and coverage starting at $25,000. This policy also provides tax-deferred cash value that can be accessed during the insured's lifetime.

In addition to life insurance, Principal Life Insurance also offers retirement planning services. They help customers budget and protect their income, with options for both individuals and employers. Their retirement solutions include 401(k) plans and other investment opportunities. Principal Life Insurance also provides personal trust services, helping customers to protect their wealth and well-being.

Principal Life Insurance is dedicated to improving the financial security of its customers and the communities it serves. The company has been recognized for its commitment to diversity and ethical business practices. With a range of financial products and services, Principal Life Insurance is a trusted partner for individuals and businesses planning for the future.

Overall, Principal Life Insurance offers a comprehensive suite of services, making it a one-stop shop for individuals and businesses seeking life insurance, retirement planning, and personal trust solutions. Their global presence and commitment to financial security make them a reliable choice for those looking to protect their future.

The company discontinued selling life insurance to individuals in 2021 but continues to support existing policies

Principal Financial Group is a global leader in providing financial products and services to businesses, institutions, and individuals. The company was founded in 1879 as Bankers Life Association and has since expanded its offerings to include health insurance, disability insurance, dental insurance, life insurance, and annuities.

In June 2021, Principal Financial Group announced that it would be discontinuing the sale of life insurance to individuals in the United States. This decision came after a strategic review intended to "drive growth" and sharpen the company's overall focus. According to Principal spokeswoman Teresa Thoensen, the decision will affect "less than 5%" of all roles at Principal's U.S. offices and will not necessarily result in layoffs.

The company will no longer sell deferred annuities, payout annuities, or indexed annuities to individual customers. However, it will continue to manage existing plans and provide life insurance products to businesses that want to offer life insurance to their employees.

Current customers will not be affected by this decision, and their policies will continue to be serviced. The company remains committed to supporting its existing policies and ensuring that individuals and businesses can continue to rely on the financial protection provided by their Principal life insurance plans.

While Principal Financial Group is exiting the individual life insurance market, it will continue to focus on other segments of its business, including retirement benefits for businesses, asset management, and specialty benefits such as vision, dental, and disability insurance. This shift in strategy aims to "reduce complexity and risk, improve the return profile, and increase cash flow conversion" to better execute its strategy and support its financial strength.

Principal Life Insurance offers term, universal, and survivorship life insurance

Principal Life Insurance is offered by Principal Financial Group, a global leader in providing financial products and services to businesses, institutions, and individuals. The company was founded in 1879 and is based in Des Moines, Iowa, with operations around the world.

• Term Life Insurance: Principal offered term life insurance policies with terms ranging from one to 30 years. These policies guaranteed level monthly premiums and provided coverage starting at $200,000. They were available to customers up to 80 years old and could be converted to permanent life insurance without fees or a medical exam.
• Universal Life Insurance: Universal life insurance offered by Principal provides permanent protection with flexible payments and adjustable coverage. It often includes cash value growth, flexible death benefits, and flexible premiums. The company offers several universal life insurance products, including indexed and variable options, to meet different needs.
• Survivorship Life Insurance: This type of policy covers two lives and features a death benefit payable upon the second person's death. It offers flexible premiums, coverage starting at $250,000, and is available to customers up to 85 years old. Survivorship life insurance can be used in estate planning to leverage certain tax deductions.

Principal Life Insurance also provides additional services such as health insurance, disability insurance, dental insurance, and annuities. The company is committed to helping its customers plan, protect, invest, and retire, with a focus on improving their wealth and well-being.

Frequently asked questions