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Principal Financial Group

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Overall Score

LAST UPDATED: January 10th, 2024

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

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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.


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

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 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.


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.

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40 Reviews

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Jennifer North Hollywood, CA

Principal Financial is a transphobic institution which makes you jump through multiple hurdles to change your name to your legal name. They have extremely poor customer service who intentionally deadname you. Their wait times are on average 40 minutes to speak to someone and then if you get disconnected (their system likes to drop you) they don’t call you back and you have to go through the wait process all over again. I personally submitted my name change request four separate times, they received the request, changed the name on my profile, but claim they didn’t receive any request to change the name on my accounts. Principal Financial does not need my business and I absolutely would not recommend them to anyone else.

1 month ago

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Pamela Cottrell

Horrible company.. this compsny took over 401k at my job..I called and spoke with the representative named Jeffrey about a loan.. at first he told me I had 4000 available then that quickly changed to 1000 available then changed to I wouldn't be getting anything out of my account unless I quit my job.. I asked for a number to someone over him and he told me he would not give me that number I would have to call the same number back and I would get him again..horrible horrible company representation of your company if I could pull all my money out I would right now .. I will looking for ways to take my money out of your business

2 months ago Edited December 15, 2023

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Kaylin M. Orem, UT

If I could give them negative stars I would. The WORST Customer Service. I cashed out my 401K they sent a check. I called 3 times to check the status because I didn't receive the check in a timely manner. Turns out the check was returned claiming "undeliverable" ... No one from Principal contacted me to inform me. Then I spoke with a representative who said they would see about making an exception to have the money directly deposited into my bank account. I was told I would hear back from someone within 3 business days. Well, it's been more than five business days and I haven't heard anything. No the representative I'm speaking with is telling me the check will be re-issued. I have waiting on the phone for a supervisor for more than 15 minutes at a time. It has been over a month since I cashed out my 401K. Hands down, do not recommend this company. Would be really great to see them improving their customer service, especially effective communication. Don't get me wrong, everyone I've spoken with has been "nice" but NO ONE has actually solved the issue for me. Apologies haven't gotten my money to me.

2 months ago

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Glen R

I tried leaving a half of a star. Alas, 1 star is the lowest we can submit. My wife passed away in March. It’s now October and Principal still hasn’t transferred her 401 over to me. I have had to stay on this company since May with every stage…and there are a LOT of stages! In May Jodi told me I wasn’t supposed to call them. She would tell me that again in June. Will is insulting and insufferable. Paul is much nicer but won’t give anything specific. All 3 blame 3rd parties but I keep catching them in lies and lies. The latest being what date they sent requests to the latest 3rd party for even more information. Supposedly, they now have all documentations but can’t even tell me how much longer this process will proceed. It’s like this is all new to them. I don’t understand the stall tactics used by this company but there is zero doubt customer service is not a priority.

4 months ago

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Ben Khaeld Charlotte, NC

We are a small firm , I am the office manager, our 401(K) was established in 2020, with an annual fee of $825 for the plan that is hosted by Principal. On October 31, 2022, I received an email to notify me with an increase in fees. No mention of the price structure. In 2023, the fees went up to $2800 yearly. It is the same plan, same mutual funds(target date) same number of employees, nothing has changed, but the fees went up by 335%. I have reach out to Principal on many occasions, no explanation, but a PDF email with fees. There is no valid explanation. Is this is away to get rid of small accounts, is it discrimination? This is not the right place for any investment vehicle, Principle has history of selling insurance, I would not be surprise if their mutual funds are strongly insurance base product. Also with funds of funds, it is hard to manage and understand the hidden fees that comes along, specifically, if it contains variable insurance. Sadly there is no rating below zero. My question is, where is the AG and SEC??

4 months ago

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Tim Koenig Franklin, WI

You would be safer burying your money in your backyard in a coffee can than trusting this company with your money. Can't get a hardship loan can't get a personal loan they keep telling me that it's a problem with my employer even though my employer has never been contacted by these people. You can't close down your account and try to transfer it to a new one. This company is terrible

4 months ago

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Michael Meads

I have 13 bulging discs, spinal stenosis, sciatica, degenerative discs and arthritis all shown on MRI and 2 years of pain and suffering I’ve went through. The moment I start using Rife Frequencies and Binaural Beats alternative healing Principal said I no longer have a problem and stop my benefits for trying to heal myself in ways that do not benefit the financial interests of the medical industry. They called me and told me they were going to call a supervisor from the government and tell them they had an emergency after I said I was doing sound therapy and they did because I’ve been poisoned twice now. This company is corrupt and has truly evil and vile people working there and does not care to actually help people that need it. All they care about is their money and profits. No consideration for anyone going through a difficult time. Principal Financial Group ruined my life and now I can barely survive since wrongfully cancelling my benefits. Principal, you should be ashamed of yourselves.

6 months ago Edited October 5, 2023

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Kevin Falconer Palm Coast, FL

My company switched from Well Fargo to principal, I was checking on my contributions and noticed a $70.00 withdrawal for nothing on my part, I called principal about this and was told that this withdrawal was from fees owed to them from my employer.What that has to do with me,don’t know.They also said once they receive their fees are paid I will be reimbursed the $70.00 dollars, sounds like the rich robbing the poor, so if you can avoid this crooked company you will be better off

8 months ago

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Jerusalem Hebrew Boy 777 Berwick, PA

Scammers!!! Scammers!!! Liars!!! Tried to pull my money out for a hardship to pay my rent and they’re giving me the runaround. I’ve sent every document they requested and they still want process my money. DO NOT DO BUSINESS WITH THIS COMPANY.

6 months ago

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Rebecca Portland, OR

I am outraged at the lack of response/broken promises I have had with Principal as acting as executor of my sister's estate!!! My nephew was POA of the IRA portion of the 2,000,000 estate. My sister left ~100k to 2 charities. They have been trying to access their award for over 1 year!!! My nephew has called multiple times ---only to have NO response, or a broken promise to send necessary paperwork!!!!!

11 months ago

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Joseph Mada Las Vegas, NV

Horrible. Automatically rolled over my retirement after changing job, which is fine, but when I tried to withdraw my funds they gave me the run around. Transferred back and forth for an hour finally got a hold of someone and they instructed me to follow the instructions on the app, but kept running into the same error that said my account was closed, pending, etc. I have not moved any funds. They moved my funds in October, it’s December now. I just want my money. They are doing everything in their power to not give it to me. I have been actively trying to get it for a week and a half now. Still no solid answers. Just keep circling me back to following the app, but there’s the same error. No one fixes it. There’s no lock, closure, or pending anything on my account. Very frustrating. Wells Fargo, my bank I choose for my personal everyday funds, has never given me any issues like this. Principal is unprofessional, incompetent, and unwilling to do acceptable business.

1 year ago

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Rob Daniels Douglasville, GA

I submitted a 401k Loan request for new home purchase. I am a veteran attempting to use my VA loan and indicated as such in my request. I submitted all requested documentation, but had my request updated with "need additional documentation". Four times! Through my own effort, I spent several hours with them trying to understand what additional documentation was needed. There wasn't any. My requests for additional communication were denied and I was never given a call back until the day they discovered they made a mistake. All of my documentation was submitted in the initial request. Once their error was made apparent, the request was processed and approved. Their delay caused me to miss a deposit deadline, however, and forfeit several thousand dollars I had already paid. When I requested they make things right, they could only apologize. They wouldn't even overnight the check. As a veteran, I am used to fighting for things but not fighting for my own money to purchase my home. This company, like most, DOES NOT CARE about their customers nor do they care about veterans. I would recommend you take your business LITERALLY ANYWHERE ELSE!

1 year ago

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Brian Bennett Grand Rapids, MI

I logged onto my account and my retirement account was blocked for some reason..I called them and they said to give it a few days..After a few days and still not able to access my account I called back..The customer service rep said she couldn't access my account and it would be 5 to 7 weeks to get my retirement monthly payout to me by snail mail...5 to 7 weeks?? What is this 1950 and why can't the company handling the account access the information..?? I'm afraid I may have to get some help from the state or a Lawyer..All I am getting is a run around and I believe there is more going on with my account than they want to tell me..

1 year ago

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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.

1 year ago


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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.

1 year ago

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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.

1 year ago

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Amber Klingenmeier Erie, CO

Horrible company. Not helpful. No one really knows what they are doing. Their fees have tripled in price. Do not use them

3 months ago

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Juan Hernandez Baltimore, MD

The worst company to put your 401k. After 15yrs of saving money to this company when I need to get money out to buy my first house out right and 3 weeks of working on getting info to them multiple times today they decided not to give money so I lost the home.. DO NOT INVEST IN THIS COMPANY

10 months ago

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Tracie Jones Detroit, MI

The communication is awful, when i took out a wirhdrawal they emailed me everything was confirmed. I didnt receive my money, they didnt email me why. The online services tells you nothing. I got in touch with via phone only for hem to tell me it was canceled due to a divorce im not going thru. They say the info came from my former employer, my former employer says not so. They are Shady in my opinion!

1 year ago

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nadine tischmacher Miami, FL

My husband died in august , I’ve tried calling administration for info on my survivor benefits. They will not give me any info I’ve given them every piece of information n feed plus death certificate, this is the worse pension business I’ve ever heard of. I called everyday and they refuse to give me anything. Do not do business with these crooks I have a bad feeling I won’t get my benefits. He worked 40 years and didn’t spend a penny of his retirement. I’m getting a lawyer today to get to the bottom of it .

1 year ago

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Mark Levy Alameda, CA

I like nothing about Principal, just doing a simple rollover cost me a ridiculous sum of money. I got no notifications before my previous employer's 401k was changed to an IRA, and had to pay a ridiculous sum to rollover my money to new 401k. It feels like this is something that they like to do because before I left my previous job, scoured their website for instructions on rolling over the account. I couldn't find any until my account was automatically rolled over into a Principal IRA. 0/10 Wouldn't even recommend to my worst enemies.

1 year ago

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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.

2 years ago

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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.

4 years ago

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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 year ago

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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.

5 years ago

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Fxmous_Peps 101 CA

THE WORST COMPANY EVER! Will NOT HELP DURING HARDSHIPS. Because they claim being HOMELESS is not a hardship. SMFH

5 months ago

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Meghan Anderson

Very bad experience. Ended up paying out of my own pocket because of their mistake. Don't recommend what so ever!

5 months ago

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Jose Villanueva Prosper, TX

I wouldn't refer anyone to this company it's the worse place to have your 401k it has bad customer service when you need the money the y give you a hard time getting it out .

11 months ago

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Benji Milan, MI

Loose loose loose, then get charged the highest fees in the business to roll over. If I have any future companies using them I will negotiate additional salary conditions and avoid them completely!

1 year ago

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Seth Wade Minneapolis, MN

Lost 16% of my annuity this year so far! 304 billion in assets and they're losing people's money.. step it up Principal, make people money, that's what you're supposed to do

1 year ago

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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.

2 years ago

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Hugh Phan Lincoln, NE

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

1 year ago