Principal Life, now known as Principal National Life in all States except New York and owned by The Principal Financial group, is a very unique life insurance company.
They offer some of the best term and permanent life insurance rates in the country and they underwrite just a little bit differently than most other insurance companies.
Because of their unique underwriting methodology, making exceptions on many issues when other companies won't...they can sometimes beat all of the competition on some cases.
10/1/2021 Principal only available for business life insurance cases
So what constitutes a business life insurance case according to Principal?
Here is what Principal states:
- Any sales whereby owner/beneficiary is a Qualified Plan subject to our insurance in qualified plan guidelines.
- If insured is a business owner and insurance premiums are billed to the business. In this case, insured can still pay the policy personally and the owner/beneficiary of the policy does not have to be the business, i.e. can be an individual, Trust, etc.
- Client is retired and sold or is in the process of selling their business.
- Client plans to set up a buy sell agreement but has not yet started the process. Cover letter submitted with case would mention that the buy sell agreement is going to be worked on in future.
- If a client is working on a transaction with a “business nexus” and they also want to do some other personal insurance (example: for income replacement) as well. Will be viewed as “executive bonus”.
- LIRPS-Supplemental retirement income for owners and key employees
- Can do executive bonus for key employees if individual insurance is needed
- ILIT for a key employee if they have an estate tax issue
No business connection...forget Principal Life
With over 1,000 companies offering life insurance in United States, it's an overcrowded market!
More carriers will probably start to "niche down" to whom they offer and what products they'll offer...as we're already hearing rumors.
Principal has always done underwriting well, and this should continue...
So as long as you own a business, you can still buy Principal term life insurance or permanent life insurance products.
If you already have Principal life products, noting will change and your policy will continue as normal.
Principal National Term Life Insurance
Principal Life offers some of the best term life insurance rates in most States, and they do offer 2 different sets of rates with different conversion options.
The lowest Principal Life/Principal National Life rates now available are only convertible as follows:
10 Year Term: convertible for 7 years or to age 70, if earlier
15 Year Term: convertible for 12 years or to age 70, if earlier
20 Year Term: convertible for 15 years or to age 70, if earlier
30 Year Term: convertible for 20 years or to age 70, if earlier
The slightly higher Principal term rates are convertible for the full 10, 15, 20 or 30 year guaranteed level term period up to a maximum of age 70.
No Exam Life Insurance Up To $1,000,000
Principal Life offers an Accelerated Underwriting Program for which healthy people ages 18 to 60 with no underwriting issues can qualify for up to $1,000,000 of term or permanent life insurance without having to have an insurance exam.
To qualify, you must be a “Super Preferred” (preferred plus), Preferred, Standard Plus or Standard risk.
So if you have diabetes, heart disease are overweight or have other underwriting issues, you will not likely be able to qualify for a policy without having an insurance exam, but the Principal Life underwriters do their best to make the underwriting process as easy as possible.
Worst case scenario could be that you apply for the “no exam” process and the underwriter may end up requesting an insurance exam if something turns up on the MIB, the pharmacy records or other database search, motor vehicle report or based on health questionnaire.
No Exam- NOT Guaranteed With Principal Life
If this were to happen, you could decide to just have the free exam or possibly just try another true no exam company.
Click on the accurate Principal Life Quote link or simply run a quote using this instant quoting tool to see rates available to you from Principal and hundreds of different insurance companies.
If you use the accurate quote button above, we will email you quotes for Principal and other insurance companies that may be better for you...from companies like Lincoln National, Pacific Life, Protective Life, Banner Life, Penn Mutual, North American Company for Life & Health or any of the others could offer you lower rate or better value!!
Whether Principal or other carrier, we will find you the best rate and value that fits your needs.
Niche’s for which Principal Life can dominate
- Height/Weight- for otherwise healthy people who may be overweight, Principal Life can be very aggressive. They’ll give good credits if cholesterol, blood pressure, blood sugar and all other lab values check out as good.
- Older Age Onset Type 2 Diabetics- Principal can be very aggressive if diagnosed at age 60 or older and have optimal blood sugar control with A1C preferably in low 6’s and overall good health otherwise. Even Preferred rates are a possibility on really good cases for those age 70 or older...overall they can be great when trying to get life insurance with diabetes.
- Elevated Liver Functions- Preferred rates are possible on some cases with elevated LFT’s.
- Cancer- Most cancer’s will result in Standard (Regular) rates at best, but Regular Plus and possibly even Preferred rates are possible for some low stage cancer’s preferably after 10 years since treatment ended with no recurrence and excellent health otherwise. .
- Sleep Apnea- Super Preferred and Preferred possible
- Autoimmune Disorders- Preferred to Standard possible
- Depression History- Super Preferred and Preferred Possible
Automatic Standard Approval Program
On their permanent life insurance products including their guaranteed universal life plan, Principal will automatically offer you a standard or regular rate if you are rated up to a table 3 rating.
They will also offer a Standard rate if you are charged a flat extra premium up to $7.50 per thousand, again only on their permanent products. This does not apply to their term life insurance products.
The Automatic Standard Approval Program (ASAP) can give Principal and edge over their competition if you are interested in permanent life insurance or coverage up to age 85, 90 and beyond.
Just let us know if you're most interested in term life or permanent life insurance and we will also look at best rates for you from Pacific Life, Columbus Life, Penn Mutual, Symetra Life, North American Company for Life Health, Protective Life, Lincoln National, American General, Mass Mutual and all the others.