at a glance
- Offers term, universal, indexed universal, variable universal and survivorship life insurance.
- Customer satisfaction ratings are high.
Shopping for life insurance during the pandemic? Be aware that insurers may have changed their products and policy applications. For the latest information on how to cope with financial stress during this emergency, see NerdWallet’s financial guide to COVID-19.
Founded in 1879, Principal Financial offers a variety of products including term, indexed universal and variable universal life insurance. Customers can receive a life insurance quote for both permanent and term life insurance online.
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Principal Financial life insurance
Principal Financial earned 4 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account complaint data from the National Association of Insurance Commissioners and financial strength ratings from A.M. Best.
Based on these ratings, Principal Financial is among NerdWallet’s Best Life Insurance Companies for 2020.
Term life: Principal offers term options of one, 10, 15, 20 and 30 years. The coverage can be converted to permanent life insurance.
Permanent: Principal offers four types of permanent life insurance — universal, indexed universal, variable universal and survivorship life insurance. All the universal life policies give the flexibility to adjust premiums and the death benefit. The cash value growth for indexed universal life insurance is linked to a stock market index. Variable universal life provides greater opportunity for cash-value growth, but comes with risk for losses if the underlying investments perform poorly. Survivorship life insurance covers two lives, typically a married couple. The death benefit is paid after the second person dies.
Principal Financial complaints and customer satisfaction
Principal’s life insurance companies drew significantly fewer than the expected number of complaints to state regulators for companies of their size, according to three years’ worth of data from the National Association of Insurance Commissioners.
Principal Financial scores better than most for customer satisfaction overall, according to research firm J.D. Power’s 2019 U.S. Life Insurance Study. In a survey of customer service by J.D. Power published in 2019, Principal scored “better than most” in five categories. Principal ranked No. 4 overall out of 24 insurers included in the survey.
|Customer satisfaction category||Principal's score|
|Overall satisfaction||Better than most|
|Policy offerings||Better than most|
|Price||Better than most|
|Billing and payment||About average|
|Interaction||Better than most|
|Communication||Better than most|
More about Principal Financial
Principal Financial Group also offers individual disability insurance as well as annuities, mutual funds and retirement plans. Principal provides group insurance plans through employers, including critical illness, dental, disability, life and vision insurance.
Methodology: Life insurance ratingsNerdWallet’s life insurance ratings are based on weighted averages of complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and financial strength ratings from A.M. Best, which indicate a company’s ability to pay future claims. To calculate each insurer’s rating, we adjusted the NAIC and A.M. Best scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews.