Principal Life Insurance Review

Principal offers term life insurance coverage to applicants from age 20 to 80. These policies are available in 10, 15, 20, and 30-year increments. Coverage ranges from $200,000 to $1 million.

• No Medical Exam Option

  Healthier applicants can skip the medical exam, though eligibility requirements are fairly narrow.

• Conversion option

  You can convert the term life insurance policy into a permanent policy.

• Accelerated Death Benefit Rider Included

This policy includes the accelerated death benefit rider at no additional cost. This rider will advance up to 75% of the death benefit (up to a max of $1 million) if you are diagnosed with a terminal illness. This benefit can be used for unpaid medical bills, but also things like groceries, over-the-counter drugs, and any other end-of-life expenses.

Universal Life

Universal life insurance policies are permanent life insurance policies that offer flexible premiums and death benefits. A universal policy will also accrue cash value, which can be used to pay for premiums as well as medical expenses.

Policies are available to applicants up to age 85. Coverage ranges from $25,000 to $15 million.

Universal Life Flex III (UL Flex III)

This policy provides flexible coverage to applicants up to age 85, with a policy that lasts through age 121. Coverage ranges from $25,000 to $1 million, with some applicants being eligible for more.

This universal life insurance product accumulates cash value at a guaranteed interest rate, and offers three different death benefit options:

• Option 1: Death benefit amount.
• Option 2: Death benefit plus any accrued cash value
• Option 3: Death benefit plus premiums paid

Additionally, policyholders can increase their death benefit during the first year, and decrease it during from year five onward.

Indexed Universal Life Accumulation II (IUL Accumulation II)

An indexed universal life insurance plan operates the same way as a traditional universal product, though this plan allows you to invest your cash value in an indexed market such as the S&P 500 or Nasdaq. This means that you can earn interest based on that index, but it can also come with the usual risks of investing in the market.

Principal’s indexed policies start with a death benefit of $50,000, and, like the traditional universal life plan, is available to applicants age 20 to 85.

Like the other universal life plans, this policy also provides three ways of paying the death benefit.

Indexed Universal Life Flex II (IUL Flex II)

Principal offers this plan to those between 20 and 85, with coverage starting at $100,000. Like other indexed policies, policyholders can invest their cash value in the market. But this plan offers the security of a “floor,” meaning your interest-based returns never drop below 0%, even when the market performs poorly.

Like the other options, this policy offers three options for receiving the death benefit.

This policy also provides a 10-year no-lapse guarantee.

Variable Universal Life Income (VUL Income IV)

Variable universal life insurance offers policyholders the option of investing their cash value through target-risk or target-date investments.

Principal’s policy starts at $100,000, and is available to applicants between the ages of 20 and 85.

One-Year Term

This unusual offering provides a one-year term to applicants between the ages of 20 and 99. Coverage ranges from $200,000 and $5 million. The policy is non-renewable and offers no additional rider options.

Survivorship Universal Life (SUL)

This type of policy is relatively rare in the industry, but can be a great way to protect both your house and estate. A survivorship policy is issued to an applicant between the ages of 20 and 85, and can cover a second person up to age 90. The policy matures at age 121, ensuring lifelong protection.

This policy has two death benefit options:

• Option 1: Death Benefit
• Option 2: Death Benefit plus accrued cash value

Policyholders will need to pay a monthly surcharge of $20-30, and if you cancel prior to year 20 there is a surrender charge.