Principal life insurance, reviewed.
Maybe you first saw the Principal name on a benefits form at work. The bottom line: it’s a Fortune 500 insurer based in Des Moines, in business since 1879, with an A+ (Superior) rating from AM Best — strong on term and universal life, and a standout for business owners thanks to its workplace-benefits roots.
By Braxton Mondell, licensed in all 50 states · Updated June 2026
✓ Independent & consumer-first✓ 26 years in business✓ Every major carrier reviewed✓ Licensed in all 50 states
What it does well
Strength, ratings, and a benefits backbone.
Principal’s reputation rests on long-term financial strength and a workplace-benefits line few carriers match. Here’s where it earns that reputation.
A Fortune 500 insurer since 1879
Principal Financial Group, based in Des Moines, Iowa, has been in business since 1879 — the kind of track record that matters when a claim is filed decades from now.
Rooted in workplace benefits
Principal grew up serving employers — group life, retirement, and benefits plans. If you first met it through a job, that heritage is why.
Strong financial-strength ratings
Principal Life carries an A+ (Superior) rating from AM Best, the agency that grades insurers on their ability to pay claims (per AM Best, June 2026).
Term that converts
Its level term lets you switch to a permanent policy later without new medical questions — flexibility built in from the day you sign.
Universal life for lifelong needs
Principal writes universal and indexed universal life — permanent coverage that builds cash value, a slow-growing account inside the policy you can borrow against.
Business-owner specialty
Key-person coverage, buy-sell funding, and executive benefits are a Principal strong suit — useful if a company depends on you or a partner.
Want Principal’s number for your age? A licensed professional will run it and compare it to the market. No obligation.
Call (888) 959-0710What they offer
Term, permanent, and a deep business line.
Principal’s shelf covers temporary and lifelong personal needs, plus the business-owner coverage that grew out of its benefits heritage (per Principal):
Term life
Convertible level term
Coverage for a set number of years at a level premium — the lowest-cost way in — with the option to convert to permanent coverage later without a new medical exam.
Permanent life
Universal & indexed UL
Lifelong coverage that builds cash value. Indexed universal life ties part of that growth to a market index with a floor, so a down year doesn’t subtract from your credited value.
Business & group
Coverage for companies
Group life through an employer, plus key-person and buy-sell coverage that keeps a business steady if an owner or essential employee dies.
Quick plain-English note on universal life: it’s permanent coverage with a flexible premium and a cash-value account inside it. Fund it well and it does its job for life. Fund it thin and the costs can outpace it later — which is exactly the kind of thing a review is for. If you want the deeper version, our guide to cash-value life insurance walks through how that account behaves.
Through your employer
Group coverage is a great start — not the whole plan.
If your Principal policy came through work, it’s probably group life: coverage your employer arranges, often one or two times your salary, usually low-cost or free. That’s a genuinely good benefit. Here’s the part that’s easy to miss.
It usually ends with the job
Group life is tied to employment. Change jobs or retire and the coverage typically stops — right when an individual policy you own would keep going.
The amount is often modest
One or two times salary sounds like a lot until you set it against a mortgage, college, and years of income. Many families need more than a group plan alone provides.
Conversion isn’t always the best buy
You can often convert group coverage to an individual policy when you leave. If you’re healthy, a freshly shopped term policy is frequently the better value — worth comparing first.
The rule of thumb: keep the group coverage, and decide separately whether an individual policy should sit alongside it. The two aren’t rivals. One is a workplace perk that may not follow you; the other is yours to keep. A free policy review tells you whether you already have enough or want a layer that travels with you.
Compare the market
Where Principal lands on price.
For one common profile, here’s roughly where a large national term writer like Principal tends to sit beside other A-rated carriers. Big, well-rated insurers usually price term within a few dollars of each other — so the real win is confirming who’s lowest for your age, health, and state:
| Carrier | Product | Monthly · $500k |
|---|---|---|
| A national term writer | 20-yr level term | $29 |
| Principal (illustrative)This carrier | Term life · 20-yr | $31 |
| A second large insurer | 20-yr level term | $33 |
| A third large insurer | 20-yr level term | $36 |
Illustrative figures, not a quote — male, age 40, 20-year level term, $500,000, best (non-tobacco) class, shown to picture how large national term writers cluster. Comparison carriers are unnamed on purpose. Your real figure depends on your age, sex, health, and state. For context on typical pricing, see the Insurance Information Institute.
Is it a good fit?
A strong default — and a standout for business owners.
Principal is rarely a wrong answer. You get a Fortune 500 insurer in business since 1879, an A+ (Superior) AM Best rating, and a shelf that runs from low-cost convertible term through universal life that builds cash value.
Where it really stands out is business coverage — key-person, buy-sell, and group benefits. If a company leans on you or a partner, Principal belongs on the list. The only way to know it’s your best value is to set it beside two or three others. That comparison is free.
When a carrier this established is also deep on business coverage, it earns a place on the list. We still compare it, because the right carrier is the one that fits your profile best.
Not sure if your Principal coverage is enough?
Tell a licensed professional what you have — a work policy, a term plan, a universal life policy you’re unsure about — and they’ll read it with you and run a real number for your age. No obligation, and if you’re already in good shape, they’ll say so.
When not to change a thing
Sometimes the right move is to keep your Principal policy.
A review that ends in “keep what you have” is a successful review. With a carrier this strong, that’s often the honest answer. Hold onto your Principal coverage as-is when:
- Your health has changed since you bought it. A locked-in rate from when you were healthier can be worth more than any new quote — replacing it could cost you more, or coverage could be harder to get.
- Your term policy is convertible and you may want permanent coverage later. That conversion option has real value; don’t give it up without a reason.
- You’re inside the early years of a universal life policy that’s funded properly. Surrendering permanent coverage early often forfeits value and resets the clock. Have someone check the funding first.
- Your group coverage from work is genuinely free or heavily subsidized. Keep it. Just don’t count on it following you, and decide separately about an individual layer.
Before you cancel or replace any policy, know your free-look period and how a replacement is handled. Cash value and any surrender charges are worth a careful look — this is educational only, not tax or legal advice, so loop in your tax professional on anything with tax consequences.
Already have a policy?
Confirm you’re getting their best rate.
If you already hold a Principal policy, a licensed professional will read it with you and check whether the same premium could buy more elsewhere. With a carrier this strong, often you’re in good shape — and we’ll say so plainly.
Free · no obligation · Mon-Sat · 10am-9pm
- Whether term, universal, or a work group plan fits your goals
- If converting a term policy makes sense before the window closes
- Whether a universal life policy is funded to last
- That your beneficiary is current and correct
Straight answers
Principal questions, answered.
By Braxton Mondell, licensed in all 50 states · Updated June 2026
01Is Principal life insurance good and legit?
Yes. Principal Life Insurance Company is part of Principal Financial Group, a Fortune 500 company based in Des Moines, Iowa, in business since 1879. It carries an A+ (Superior) financial-strength rating from AM Best, the agency that grades insurers on their ability to pay claims.
02What does Principal life insurance offer?
Principal writes convertible level term for temporary needs, plus universal and indexed universal life for permanent coverage that builds cash value. It also has a deep business-insurance line — group life, key-person, and buy-sell coverage — a legacy of its workplace-benefits roots.
03Why do I have Principal life insurance through my employer?
Principal is one of the larger providers of workplace benefits in the country, so many people first get a group life policy through a job. Group coverage is convenient and often low-cost, but it usually ends when the job does. A licensed professional can show you whether an individual policy should sit alongside it.
04Can I keep my Principal policy if I leave my job?
Sometimes. Many group life plans let you convert to an individual policy when you leave, though the premium is usually higher than a freshly shopped term policy if you’re healthy. It’s worth comparing the conversion offer against the open market before the window closes — a review settles which is the better value.
05How much does Principal life insurance cost?
It depends on your age, sex, health, the type of policy, and the coverage amount. Term is the lowest-cost way in; universal life costs more because it lasts for life and builds cash value. As an illustration, a healthy 40-year-old man might see a 20-year, $500,000 term policy priced in the low-$30s a month — that’s an estimate, not a quote.
06How do I reach Principal customer service?
Existing policyholders can reach Principal through the number on their policy or at principal.com. If you’d like someone to read your policy with you first, a licensed professional on our team can do that and help you contact the carrier.
07Is Principal a good fit for me?
For many people, yes — especially business owners, anyone who values a long-tenured carrier with strong ratings, or those weighing a group policy from work. Whether it’s your best value depends on your profile versus other A-rated carriers, which a free review confirms in minutes.
This is an independent review. Policy Review Center is not affiliated with or endorsed by Principal Financial Group; product names are used for identification only. Plan details come from the carrier and can change — confirm current terms with Principal, and verify the financial-strength rating at AM Best. Educational only, not tax, legal, or financial advice; any coverage changes are completed through licensed insurance professionals. For more carriers, see our life insurance carrier reviews or start at the Policy Review Center home page.
See every option. Then choose.
Call and a licensed professional will compare Principal against the broader market for your age and health — and tell you straight which gives you the most.