Principal Financial Group Logo

Principal Financial Group

star star star_half star_border star_border
16 User Reviews

4.5

Overall Score

LAST UPDATED: June 19th, 2022

Principal Financial Group offers excellent term life insurance policies in addition to universal life, variable universal life, and survivorship insurance around the world.

View Principal Financial Group Reviews

Principal Financial Group began in 1879. Over the years, the company expanded beyond the United States into many countries around the world. Principal is headquartered in Des Moines, Iowa.

thumb_up

The Good

  • Term and Permanent Policy Options
  • High Financial Strength Ratings
  • Group Life Insurance Plans Available

Term and Permanent Policy Options

Principal offers term, universal, and survivorship life insurance. Its term policies offer term lengths of 1, 10, 15, 20, and 30 years. Policyholders can convert their term life policies into permanent ones without needing to undergo underwriting again.

Underwriting is how insurance companies assess the risk of insuring applicants to determine premium rates and whether or not the insurer will issue a policy. The process considers medical history, lifestyle, age, and more. Some insurers require a medical exam to complete underwriting.

Principal offers three kinds of universal life insurance: universal, indexed universal, and variable universal. These policies offer a lifetime of coverage as long as premium payments are met. They also grow cash value over time that can be used during your life.

Principal's universal life insurance policies offer flexibility with death benefit amounts and premium payments. The cash value grows based on investment performance with a minimum rate guaranteed.

The indexed universal life policies grow cash value from stock market index investments. 

The variable universal life insurance policy is a good fit for people looking for more aggressive cash growth. The cash value for this policy can be converted to an annuity to supplement retirement income.

Survivorship insurance protects two lives. The death benefit is paid out after both of the insured people have passed away. This policy can be good as for tax and estate planning.

High Financial Strength Ratings

Principal has earned high financial strength ratings. High ratings are important to look for when choosing a life insurance company. These ratings combined with Principal's longevity show that Principal is a financially stable company and able to meet claims obligations.

Group Life Insurance Plans Available

Principal also offers term life insurance policies that employers can include in their benefits packages. Employers can fully fund a life insurance policy or offer it as a voluntary benefit.

However an employer offers group life insurance, it can be converted into individual policies, which is a great feature since employer-sponsored life insurance coverage typically ends when your employment does.

An accidental death and dismemberment rider can also be added to these policies to provide additional coverage if the insured passes away in an accident.

Group life insurance from Principal also offers flat levels of coverage for your employees' spouses and children.

If the employer fully funds the life insurance policy, coverage can be as high as $1 million. Coverage amounts can be offered with flat levels, a percentage of employee salary, or a combination of the two.

If employers offer term life policies as a voluntary benefit, the coverage maximum is $500,000. The coverage limits for a spouse and children are $250,000 and $25,000 respectively.

However employers choose to offer life insurance, Principal includes the following additional services:

  • Travel assistance
  • Will and legal document assistance
  • Identity theft kit
  • Beneficiary support
thumb_down

The Bad

  • Insufficient Customer Insight
  • Limited Online Information
  • No Whole Life Insurance

Insufficient Customer Insight

There are not very many Principal Financial Group reviews on BestCompany.com. Because of this limitation, conclusions about customer satisfaction are not available.

However, it's promising that a majority of Principal Financial reviews are positive. Praise includes good customer service, regular communication, and satisfaction with policies.

Complaints in reviews include difficulty completing a rollover and difficulty resolving errors.

Limited Online Information

While it's easy to find an overview of what life insurance policies Principal offers, information on policy features, cost, and riders is limited. While Principal isn't the only life insurer with limited online information, it's still frustrating if you're gathering information and exploring your options.

For more details, you'll need to contact Principal.

No Whole Life Insurance

Principal does not offer whole life insurance. Whole life is a kind of permanent life insurance. It has a guaranteed death benefit and level premiums. Whole life policies tend to have higher premiums because the policyholder assumes less risk with cash value growth. If you prefer a whole life policy, you'll need to find another insurance company.

gavel

The Bottom Line

Principal is a trustworthy life insurer. It has stood the test of time and earned high financial strength ratings. You can be confident when purchasing a policy from Principal.

The only drawbacks to choosing Principal as a life insurer are that no whole life policy is available and there is limited information on policy details available online.

However, if you're looking for a survivorship, universal, or term life policy, it's worth reaching out to Principal for more information.

View Best Life Insurance Companies

Was this content helpful?
thumb_up Yes thumb_down No

Star Rating

2.7

star star star_half star_border star_border

16 Reviews

Review Breakdown

5 grade

31%

4 grade

13%

3 grade

0%

2 grade

0%

1 grade

56%

Sentiment Criteria

Value

star star star star_border star_border

Quality

star star star_half star_border star_border

Service

star star star_half star_border star_border

Trustworthiness

star star star_half star_border star_border
cancel

Filter by:

arrow_drop_down

Sort by:

arrow_drop_down
info
star star_border star_border star_border star_border

Unsatisfactory Newark, OH

Impossible to roll 401k into an IRA. Called multiple times and receive different answers of the process. Check out BBB of all the horror stories, impossible to receive money for roll overs, excuses and several lost checks. Company is fraudulent and uses deceptive practices. Rude customer services personnel and managers.

1 week ago

star star_border star_border star_border star_border

Andy Brothers Boulder City, NV

Principal is still living in the 19th century. There whole object is to produce fees from the customer to pad the companies books. I have my account with Schwab and it is managed, because of my companies 401k, through Principal. In my account is single stocks. They told me in order for them to release the account that I would have to sell every stock and put it to cash and then they would move the cash back over to Schwab. This is what happens when you deal with an insurance third rate company. Every broker account will allow you to move the account intact, over to another broker. But wait, doing this generates fees for Principal which is their whole goal, who cares about the customer.

2 months ago

check_circle

Review Source

star star_border star_border star_border star_border

Enrique Reyes Miami, FL

they steal your money, they charge you for having your money and you don't generate any profit, they had put the tax deducted from the 401k and when you try to get it out they want to charge you the tax again. You request information about your deposit account and they never have access, they pass you from one department to another and nobody faces you, then they come out and they tell you that they will send you the information in 10 days and months go by, you make calls and they continue. in 10 month i earn absolutely nothing on investments does not reach 10 dollars. They are wolves in sheep's clothing. don't deposit your money.

3 months ago

star star_border star_border star_border star_border

Emily Walls Tulsa, OK

I’ve been putting my money in thru my employer for the last year and I needed a emergency withdrawal. I submitted the request 3-4 weeks ago I was forced to submit new information due to the previous info I submitted had expired because the rep took so long to process it so I had to submit more info and even after I submitted what was needed I never received a email or notification stating my information was received and there was no notification stating it was received so I had to actually call to find out it was. The rep that I was working with wasn’t my choice and she gave me such a hard time it was ridiculous and I expressed my feelings when I called today. I hate that my employer uses principal and I don’t recommend them I have considered putting my money into my own ira account with fidelity because that’s who my husband has and they r timely and very nice ppl to work with. Don’t use principal if u have a choice.

3 months ago

check_circle

Review Source

star star star star star_border

Shawn American Fork, UT

We have used Principal for Life insurance and investing and it is a solid trustworthy company. The team that would help us when reviewing our accounts were very helpful and precise and made sure they answered all of my questions.

3 years ago

star star star star star

Irene Anders Folsom, CA

I had a term life insurance policy with them from the time I was 42 until 62. The rates were very reasonable. I did not renew the policy because of the cost associated with my current age.

3 years ago

star star_border star_border star_border star_border

Amy New York, NY

I am on day 20 of a process that was promised to take 7 days. I called 4 times, faxed and emailed various paperwork because no one told me what they needed even though I called several times to ask to avoid further delay. When you ask for a hardship withdrawal, it's because YOU ARE GOING THROUGH A HARDSHIP. This is causing so much stress and Principal doesn't make their customers a priority. I feel like my own money is being held hostage. I stopped contributing the the 401k plan and am going to find some other way.

1 year ago

star star_border star_border star_border star_border

MICHAEL HUBER

Horrible company. They took $4800 out of our company checking account electronically by mistake but could only refund it via printed check in 2-3 weeks. It was a bad time for this to happen and left our account over drawn. They were completely unwilling to help us even with our agents involvement. Stay away from this company but definitely DO NOT let them auto draft from your account.

2 years ago

star star_border star_border star_border star_border

Hugh Phan Lincoln, NE

Worst customer service experience, disconnected several times. Asked to hang up and call back.

2 months ago

check_circle

Review Source

star star star star star

Carolyn Hazleton, PA

Customer service was exceptional and no matter what question or issue I had they walked me through each step until completion.

10 months ago

check_circle

Review Source

star star star star star_border

Kristiane R Durfey Pleasant Grove, UT

We have multiple life insurance policies for ourselves and each of our children and we have been pleased with the process and the updates we get on the balances every quarter.

3 years ago

star star_border star_border star_border star_border

Stefanie G Atlanta, GA

The worst. It took them SIX MONTHS to process a simple rollover distribution request. They lost paperwork, didn't communicate, and made it extremely difficult for my current employer, past employer, and me to sort it out. So happy I no longer hold any accounts with them.

3 years ago

check_circle

Review Source

star star star star star

Cynthia Carman American Fork, UT

My insurance is through this company, and it has always been very helpful to me whenever the need has arose.

2 years ago

check_circle

Review Source

star star star star star

Grant American Fork, UT

We have had Principal Life Insurance through employers, and have been very pleased with the service and value.

3 years ago

star star_border star_border star_border star_border

Jon V Teaneck, NJ

Without question, the worst company I've ever dealt with in any capacity. Wild incompetence, atrocious customer service, incessant errors & easily 0 stars.

1 year ago

star star star star star

Chris V Northridge, CA

Great reputation and resonable prices for term

4 years ago