Principal Life Insurance Review 2026: Ratings, Products & Costs
Principal Financial Group has been a cornerstone of the American insurance landscape for over 140 years. While the company made headlines in 2021 when it exited the retail consumer life insurance market, Principal remains one of the most influential players in the group and business life insurance space. In fact, the Wall Street Journal ranked Principal among the top 3 life insurance companies of 2026, alongside Pacific Life and Symetra — a testament to the company’s enduring financial strength and product quality.
This comprehensive Principal Life Insurance review for 2026 covers everything you need to know: financial strength ratings from all four major agencies, a detailed breakdown of available products, sample rates, pros and cons, competitor comparisons, and answers to the most frequently asked questions. Whether you’re a business owner evaluating group coverage, an individual exploring permanent life insurance, or a broker comparing carriers, this guide has you covered.
About Principal Financial Group
Principal Financial Group (NYSE: PFG) is a Fortune 500 company headquartered in Des Moines, Iowa. Founded in 1879 as Bankers Life Association, the company has grown into a global financial services organization with over $700 billion in assets under management and approximately 18,000 employees worldwide. Principal serves more than 50 million customers across the United States, Asia, Latin America, and Europe.
Principal is a member of the Principal Financial Group family of companies, which includes Principal Life Insurance Company, Principal National Life Insurance Company, and Principal Securities, Inc. The organization offers a broad portfolio of financial products including retirement plans, mutual funds, annuities, and — most relevant to this review — life insurance.
In 2021, Principal made the strategic decision to exit the retail consumer life insurance market, discontinuing direct-to-consumer sales of individual term and permanent life policies. However, the company remains highly active in the business and institutional market, offering group life insurance through employers, key person coverage, buy-sell agreement funding, and executive benefit plans. Individual permanent life insurance policies — including indexed universal life (IUL) and survivorship life — are still available through licensed financial professionals and brokers.
According to MarketWatch, which gave Principal a 4.5 out of 5 star rating in May 2026, the company excels in financial stability, claims-paying ability, and customer satisfaction. NerdWallet notes that Principal provides group life insurance plans through employers, along with complementary products such as critical illness insurance, dental coverage, disability insurance, and vision plans — making it a one-stop shop for workplace benefits.
Principal Life Insurance Products
Principal offers a focused but powerful lineup of life insurance products. While the retail direct-to-consumer channel is no longer active, the following products remain available through employer-sponsored plans, financial advisors, and licensed insurance brokers:
Term Life Insurance
Principal’s term life insurance provides affordable, straightforward protection for a specified period. Term lengths include 10, 15, 20, and 30 years, with coverage amounts starting at $100,000 and going up to $2 million or more for qualified applicants. Term life is the most cost-effective way to secure a death benefit for your beneficiaries during your working years or while you have outstanding financial obligations like a mortgage or children’s education expenses.
Key features of Principal term life insurance include:
- Level premiums — Your rate stays the same for the entire term length you select
- Convertibility — Most term policies can be converted to a permanent policy without a new medical exam
- Accelerated death benefit rider — Access a portion of the death benefit if diagnosed with a terminal illness
- Waiver of premium rider — Premiums are waived if you become totally disabled
- Coverage up to $2M+ — Suitable for high-income earners and business owners
For current term life insurance rates across multiple carriers, visit our term life insurance rates comparison page.
Indexed Universal Life (IUL)
Principal’s Indexed Universal Life (IUL) insurance is a permanent life insurance product that combines a death benefit with a cash value component tied to the performance of a stock market index — typically the S&P 500. Unlike variable universal life, IUL policies offer downside protection with a guaranteed minimum interest rate (floor), meaning your cash value won’t lose money even if the market index declines. At the same time, there is an upside cap (participation rate) that limits the maximum credited interest.
Principal’s IUL is particularly popular for:
- Business owners seeking tax-advantaged cash accumulation alongside life insurance protection
- Key person insurance — protecting a business against the financial loss of a critical employee or owner
- Executive bonus plans (Section 162 bonus plans) where an employer pays the premiums as a tax-deductible bonus
- Supplemental retirement income — policyholders can take tax-free loans or withdrawals from accumulated cash value
- Estate planning — providing liquidity for estate taxes and wealth transfer
Group Life Insurance
This is Principal’s flagship product line and the area where the company truly shines. Principal is one of the largest providers of employer-sponsored group life insurance in the United States. Group life insurance through Principal typically includes:
- Basic group term life — Employer-paid coverage, often 1x to 2x annual salary
- Supplemental group term life — Employee-paid additional coverage beyond the basic amount
- Dependent life insurance — Coverage for spouses and children
- Portability options — Ability to take coverage with you if you leave the employer
- Guaranteed issue — No medical exam required for base coverage amounts during initial enrollment
Principal also bundles group life with complementary products including critical illness insurance, disability insurance, dental, and vision coverage. For a deeper dive into disability coverage options, see our comprehensive disability insurance guide.
Survivorship Life Insurance
Also known as second-to-die life insurance, Principal’s survivorship policies insure two lives (typically spouses) and pay the death benefit only after both insured individuals have passed away. This product is primarily used for estate planning and wealth transfer strategies, as the death benefit can provide liquidity to pay estate taxes, equalize inheritances among heirs, or fund a trust. Because the policy insures two lives, premiums are generally lower than purchasing two separate permanent policies.
Financial Strength & Ratings
Financial strength is arguably the most important factor when choosing a life insurance carrier — you need confidence that the company will be there to pay claims decades from now. Principal Financial Group consistently earns top-tier ratings from all four major independent rating agencies:
| Rating Agency | Principal’s Rating | Meaning | Outlook |
|---|---|---|---|
| AM Best | A+ (Superior) | Superior ability to meet ongoing insurance obligations | Stable |
| S&P Global | A+ | Strong capacity to meet financial commitments | Stable |
| Fitch Ratings | AA- (Very Strong) | Very high credit quality; very strong capacity for payment | Stable |
| Moody’s | A1 | Upper-medium grade; low credit risk | Stable |
On April 30, 2026, Fitch Ratings affirmed Principal’s AA- rating with a stable outlook, citing the company’s “very strong business profile, favorable operating performance, and strong capitalization.” This affirmation reinforces Principal’s position as one of the most financially secure life insurance carriers in the industry. You can verify current ratings directly on the AM Best rating search portal.
Ogletree Financial Services, an independent insurance review platform, highlights Principal’s “strong financial ratings and excellent claims-paying ability” as key reasons to consider the carrier. The company’s low customer complaint index — well below the national median according to NAIC consumer data — further demonstrates Principal’s commitment to customer satisfaction and fair claims handling.
Principal Life Insurance Rates
Life insurance rates vary significantly based on age, health, coverage amount, term length, and product type. The table below provides sample monthly rates for Principal term life insurance for a healthy non-smoker at various ages and coverage levels. These are illustrative estimates for a 20-year level term policy — actual quotes will depend on underwriting results.
| Age | Gender | $250,000 Coverage | $500,000 Coverage | $1,000,000 Coverage | $2,000,000 Coverage |
|---|---|---|---|---|---|
| 25 | Male | $16/mo | $26/mo | $44/mo | $82/mo |
| 25 | Female | $13/mo | $21/mo | $36/mo | $67/mo |
| 35 | Male | $18/mo | $30/mo | $52/mo | $98/mo |
| 35 | Female | $15/mo | $25/mo | $43/mo | $80/mo |
| 45 | Male | $35/mo | $62/mo | $115/mo | $224/mo |
| 45 | Female | $28/mo | $49/mo | $90/mo | $174/mo |
| 55 | Male | $82/mo | $155/mo | $300/mo | $594/mo |
| 55 | Female | $62/mo | $116/mo | $224/mo | $442/mo |
Note: Rates shown are estimated monthly premiums for a 20-year level term policy, Preferred Plus (best) health class, non-smoker. Actual rates subject to underwriting. Rates as of June 2026. Always get a personalized quote for accurate pricing.
For group life insurance, rates are typically significantly lower than individual policies because the risk is spread across a large pool of employees. Many employers cover the cost of basic group life entirely, with supplemental coverage available at competitive group rates. Principal’s group underwriting is known for being flexible and accommodating to businesses of all sizes — from small startups to Fortune 500 corporations.
Pros and Cons of Principal Life Insurance
No insurance carrier is perfect for everyone. Here’s an honest assessment of Principal’s strengths and weaknesses based on our research and industry analysis:
| Pros | Cons |
|---|---|
| Exceptional financial strength — A+ or better from all four major rating agencies with stable outlooks | No direct-to-consumer retail sales — Individual policies must be purchased through a broker or financial advisor |
| Industry-leading group life insurance — One of the largest and most experienced group carriers in the U.S. | Limited individual product lineup — Fewer options compared to carriers like Prudential or Lincoln Financial |
| Low customer complaint index — Well below the national median per NAIC data | IUL caps may be lower than some competitors, limiting upside potential on indexed universal life |
| Complementary benefits ecosystem — Bundles life with disability, dental, vision, and critical illness coverage | Not ideal for consumers seeking simple online purchase — No direct online application for individual policies |
| 140+ year track record — Founded in 1879, survived the Great Depression, multiple recessions, and the 2008 financial crisis | Limited term length options — No 25-year or 35-year term options; only 10, 15, 20, and 30 years |
| Strong IUL product with downside protection and multiple index strategies | Medical underwriting can be strict for individual policies — not the best choice for those with significant health issues |
Principal vs Top Competitors
How does Principal stack up against other major life insurance carriers in 2026? The comparison table below evaluates Principal alongside four top competitors across key dimensions that matter most to policyholders:
| Feature | Principal | Pacific Life | Symetra | Lincoln Financial | Prudential |
|---|---|---|---|---|---|
| AM Best Rating | A+ (Superior) | A+ (Superior) | A (Excellent) | A+ (Superior) | A+ (Superior) |
| Founded | 1879 | 1868 | 1957 | 1905 | 1875 |
| Group Life Insurance | ★★★★★ | ★★★☆☆ | ★★★★☆ | ★★★★☆ | ★★★★★ |
| Individual Term Life | ★★★☆☆ (via broker) | ★★★★★ | ★★★★☆ | ★★★★★ | ★★★★★ |
| Indexed Universal Life | ★★★★☆ | ★★★★★ | ★★★☆☆ | ★★★★★ | ★★★★☆ |
| Customer Complaint Index | Low (below median) | Low | Very Low | Low | Low |
| Direct-to-Consumer | No (exited 2021) | Yes | Yes | Yes | Yes |
| Best For | Group/business coverage, IUL | IUL, estate planning | Term life, small business | Term, IUL, VUL variety | Full product suite, all channels |
As the table shows, Principal’s competitive advantage lies squarely in the group and business insurance market. For individual consumers who want to buy term life insurance directly online, carriers like Pacific Life, Symetra, or Prudential may offer a more streamlined experience. However, for business owners, HR professionals, and those seeking indexed universal life with a financially unshakeable carrier, Principal remains a top-tier choice — which is exactly why the Wall Street Journal included it in their top 3 life insurance companies of 2026.
How to Apply for Principal Life Insurance
The application process for Principal life insurance depends on which product you’re pursuing:
For Group Life Insurance (Employer-Sponsored)
If your employer offers Principal group life insurance, enrollment is typically straightforward:
- Check your benefits package — Review your employer’s benefits guide or speak with HR to confirm Principal is the group life carrier
- Enroll during open enrollment or as a new hire — Basic coverage is usually guaranteed issue (no medical questions) during initial eligibility
- Elect supplemental coverage — You can typically purchase additional coverage in multiples of your salary (1x–10x), subject to guaranteed issue limits
- Designate beneficiaries — Ensure your beneficiary designations are up to date
- Consider portability — Ask about conversion or portability options if you plan to leave the employer
For Individual Policies (Term, IUL, Survivorship)
Since Principal no longer sells directly to consumers, individual policies must be purchased through a licensed insurance broker or financial advisor:
- Find a licensed broker — Work with an independent insurance broker who has access to Principal products
- Complete an application — Provide personal, health, and financial information
- Undergo medical underwriting — This typically includes a paramedical exam (blood work, urine sample, blood pressure check) scheduled at your convenience
- Review your offer — Once underwriting is complete, you’ll receive a final rate offer based on your health classification
- Accept and pay — Sign the policy delivery documents and submit your first premium payment
For business owners considering key person life insurance, the process also involves a financial justification component — demonstrating the economic value the key person brings to the business and the financial loss the company would suffer in their absence.
Frequently Asked Questions
1. Is Principal Life Insurance a good company?
Yes. Principal Financial Group is one of the most financially stable life insurance companies in the United States, with A+ or better ratings from all four major rating agencies (AM Best, S&P, Fitch, and Moody’s). The company has a 140+ year track record, low customer complaints, and was ranked among the top 3 life insurance companies of 2026 by the Wall Street Journal. MarketWatch gave Principal a 4.5 out of 5 star rating in May 2026.
2. Can I buy Principal life insurance directly as an individual?
Not directly. Principal exited the retail consumer life insurance market in 2021 and no longer sells individual term or permanent life policies directly to consumers through their website. However, individual policies — including term life, indexed universal life (IUL), and survivorship life — are still available through licensed insurance brokers and financial advisors who have access to Principal products. Group life insurance is available through employer-sponsored plans.
3. What types of life insurance does Principal offer in 2026?
Principal currently offers four main types of life insurance: (1) Term Life Insurance with 10, 15, 20, and 30-year level term options and coverage up to $2M+; (2) Indexed Universal Life (IUL) — a permanent policy with cash value growth tied to market indexes with downside protection; (3) Group Life Insurance — employer-sponsored basic and supplemental coverage, which is Principal’s flagship product; and (4) Survivorship Life Insurance — a second-to-die policy primarily used for estate planning and wealth transfer.
4. How much does Principal life insurance cost?
Principal’s rates are competitive with other A+ rated carriers. For a healthy 35-year-old non-smoker, a 20-year $500,000 term policy may cost approximately $25–$30 per month. Rates increase with age, coverage amount, and any health conditions. Group life insurance through an employer is typically much more affordable — basic coverage is often employer-paid, and supplemental coverage is offered at competitive group rates. For the most accurate pricing, request a personalized quote through a licensed broker.
5. What are Principal’s financial strength ratings?
Principal holds top-tier ratings from all four major agencies: AM Best: A+ (Superior), S&P Global: A+, Fitch: AA- (Very Strong), and Moody’s: A1. All four agencies maintain a stable outlook on Principal. Fitch most recently affirmed these ratings on April 30, 2026. These ratings indicate that Principal has a superior to very strong capacity to meet its ongoing insurance policy and contract obligations.
6. Does Principal offer living benefits or riders?
Yes. Principal offers several valuable riders and living benefits, including: accelerated death benefit rider (access a portion of the death benefit if diagnosed with a terminal illness), waiver of premium rider (premiums waived during total disability), child term rider (coverage for dependent children), and accidental death benefit rider. Availability varies by product and state. For IUL policies, additional riders may include long-term care acceleration and guaranteed insurability options.
7. How does Principal compare to other top life insurance companies?
Principal excels in the group and business life insurance market, where it is one of the largest and most experienced carriers in the U.S. For individual term life, carriers like Pacific Life, Prudential, and Lincoln Financial offer more product variety and direct-to-consumer purchasing options. However, Principal’s financial strength is on par with the best in the industry, and its IUL product is highly competitive. The Wall Street Journal ranked Principal among the top 3 life insurance companies of 2026 (alongside Pacific Life and Symetra), reflecting its overall excellence.
Final Verdict: Is Principal Life Insurance Right for You in 2026?
Principal Financial Group is a top-tier life insurance carrier with exceptional financial strength, a stellar reputation, and a focused product lineup that serves specific markets exceptionally well. Here’s our bottom-line guidance:
- Choose Principal if: You’re a business owner seeking group life coverage for your employees, you need key person insurance or buy-sell funding, you want an indexed universal life policy from a financially unshakeable carrier, or your employer already offers Principal group life and you’re evaluating supplemental coverage.
- Look elsewhere if: You’re an individual consumer who wants to buy term life insurance directly online without going through a broker, you need a wider variety of permanent life products (whole life, variable universal life), or you have significant health issues and need a carrier known for more lenient underwriting.
Principal’s exit from the retail consumer market in 2021 was a strategic pivot, not a sign of weakness. The company doubled down on what it does best — serving businesses, institutions, and high-net-worth individuals through professional distribution channels. With $700+ billion in assets under management, A+ ratings across the board, and a 140+ year track record of paying claims, Principal remains one of the safest places to entrust your life insurance needs.
Ready to explore your options? Compare term life insurance rates from multiple top-rated carriers on our term life insurance rates page, or learn more about protecting your business with our key person life insurance guide. For disability coverage that complements your life insurance, visit our disability insurance guide.
Disclaimer: This article is for informational purposes only and does not constitute financial or insurance advice. Rates and product availability are subject to change. Always consult with a licensed insurance professional for personalized guidance. LifeQuotesWeb may receive compensation from insurance carriers or partners. For the most current information, refer to official sources including NAIC and Social Security Administration resources.
