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Principal National Life Insurance
Company Review
Principal National Life Insurance was founded in 1879 by a banker named Edward Temple. Starting as a small company in Iowa called Bankers Life Association began by selling life insurance policies on a members-only basis with strict guidelines on who would be covered and how the issuer would pay.
Principal National Life Insurance
- 711 High St.
Des Moines, IA 50392-1520
Principal National Life Insurance was founded in 1879 by a banker named Edward Temple. Starting as a small company in Iowa called Bankers Life Association began by selling life insurance policies on a members-only basis with strict guidelines on who would be covered and how the issuer would pay.
After its first decade of business, it grew to a staggering $29 million in force coverage, which was big enough to require the company to move to Des Moines, where it still resides. Thirty years after opening its doors, Principal National began issuing policies as a mutual life insurance provider rather than only catering to members. Over the following decades, Principal National experienced regular growth and began providing health insurance to its customers during the 1940s. By 1945, health insurance sales made up more than 30% of the company’s business.
In 1985, the company was officially renamed to Principal Financial Group Principal and continues to operate under this name to this day. Today, the Principal continues to have an active branch in seven countries on three separate continents.
Advantages of Principal National
Principal National Life Insurance was founded on frugal business practices, allowing it to pass profits and savings onto its policyholders. Principal National is also competitive across several industries, aside from life insurance. Its core focus and marketing strategy are to help individuals, families, and small businesses across the nation and around the world.
Principal has the capacity to say that it holds an “A” rated from four of the major rating agencies, making it one of the best-rated life insurance companies in America based on financial strength, security, and solvency. A.M. Best, Fitch, Moody’s, as well as Standard & Poor’s all consider Principal National to be financially sound.
Additionally, as a mutual life insurance company, Principal National is entirely owned by its policyholders. This means that the company’s profits are often shared with its customers through regular dividends. For a policy that pays you back, this is a rare advantage.
Disadvantages of Principal National
Principal National is one of the most highly rated insurance companies in the country, leaving little room for any flaws in how it conducts business or treats its customers. The only complaint that some people tend to have is that some of the processing is done by mail and through paper forms rather than online. Things like changing your beneficiaries and canceling your policy need to be done by mail, which can be inconvenient and time-consuming.
Available Products
The life insurance products Principal National offers range from basic term life insurance products to much more complex products like their variable universal life insurance. One of the lesser-known products is its $1 million no medical exam term policy. It is the first of its kind in the market and makes use of high-end technology to verify a customer’s eligibility for a plan that offers up to one million dollars in coverage without a medical exam.
Term Coverage: Principal National provides term policies with lengths of 1, 10, 15, 20, and 30 years that can be converted into permanent coverage. For higher coverage amounts, the cost is far more competitive.
Permanent Coverage: Principal National’s products cover four major areas of permanent life insurance including:
- Universal life - which has flexible premiums
- Indexed universal life - which allows you to allocate your cash value to an index fund for added growth
- Variable universal life - which gives you the freedom to choose how to invest your cash value.
- Survivorship Life - which allows for multiple policyholders and pays the death benefit to the survivor.
Principal National Ratings
When evaluating a company as a potential source for life insurance, it is important to make sure it is highly rated in terms of financial strength. You want to be confident that the company you choose stays in business as long as your policy is in force. Some policyholders find themselves in dire situations when a poorly managed company goes out of business and can no longer pay the death benefits. These ratings are important for ensuring that you do not find yourself in that position.
| Company | Rating | Description |
|---|---|---|
| A.M. Best | A+ | Superior |
| Fitch | AA- | Very strong |
| Moody’s Investors | A1 | Strong |
| Standard & Poor´s | A+ | Strong |
| Comdex | 91 | Relative number based on all rated companies. |
Conclusion
The final analysis for Principal National is that the pros heavily outweigh the cons. With some of the highest financial ratings and best customer service available, not to mention their wide array of products that serve a variety of demographics and competitive pricing, you can’t go wrong purchasing a policy with this company. You may have to deal with some physical forms and sending things via the mail, but the quality of the coverage provided is well worth it.
There are many factors that go into what makes a good life insurance company, but there are even more factors that go into what makes a policy a good fit for you. It pays to have someone on your side that understands the life insurance industry inside and out. Rather than try and become an expert yourself, it’s always best to have a qualified insurance professional handle your purchasing process.
Here at LifeQuote, our agents will assess your case and connect you with the company and policy that best meets your needs and the needs of your loved ones. Contact us today for a free quote and to get started on the road to better financial protection.
