First and foremost, the primary reason for this is because the proceeds from a tax-free life insurance policy can be used for anything – including the payoff of debts as well as helping to pay monthly ongoing living expenses of the survivors. Life insurance is also often utilized to pay final (funeral) expenses as well as the payment of estate taxes if any. Not too many of us have $12,000 in cash on hand to pay for a funeral in a matter of days after the passing of a loved one.
Keys to Purchasing Life Insurance
There are three keys to purchasing life insurance:
There is almost no other product on earth that goes up in price every year you age. It is highly recommended for you to purchase as much life insurance as you can afford for as long a length as your budget allows. The difference in rates for a male age 35 and a 55-year-old are startling.
Here is an example to consider. A 35-year-old male in good health will pay about $42.00 per month for a $500,000 life insurance policy with a 30-year term length. For a male age 55 the same $500,000 in coverage, the rate shoots up to roughly $300.00 per month. It is smart and financially prudent to purchase life insurance while young and healthy. The premiums are exceptionally affordable.
While some people are in excellent health and are not considered a significant risk to a life insurance company, many others may have a more difficult time getting approved for a life insurance policy due to health issues, and/or by having a “risky” occupation. For these individuals, opting for a no exam life insurance policy could be more beneficial in being approved.
It is important for you to understand this next point. Applying for a no exam life insurance policy does not mean there a no medical questions asked on the application. A no exam life insurance application specifically means there is no (free) medical required.
No blood testing needed. No urine sample required. No medical professional will come to your home. The life insurance company will review your medical history looking for any high risks that may affect your ultimate premium (rate classification).
Before you buy a no exam plan, keep in mind that these types of policies have different variations and underwriting processes with each life insurance company. Also, we certainly recommend that the insurance company you plan to purchase your life insurance policy through is financially strong with a long history of paying their claims in a timely fashion.
The good news is you can easily and quickly research any life insurance company on the internet in a matter of minutes for their financial strength and rating. One company that has a long-standing and excellent reputation for its claims paying ability – as well as its financial stability is – The Principal Life Insurance Company.
The History of Principal Life Insurance Company
Principal is a large and well-known insurance and retirement plan company that caters to both individuals and businesses. Initially founded in 1879, today the Principal is a proud member of the Fortune 500 and is a global investment management leader.
The company helps people and companies around the globe to build, protect, and advance their financial well-being with its retirement, insurance, and asset management expertise. Also, the Principal makes financial progress possible for clients of all income and portfolio sizes.
Throughout the years, according to Principal, they have earned numerous awards and accolades, including:
- Ranked #3 for best overall service to micro plans, value added advisor services, and plan participant support
- Received the Adviser’s Choice Award for advisor support, post-sale
- Received more than 90 Best in Class designations over the past ten years from PLANSPONSOR magazine’s Defined Contribution Services Survey
- Named as one of the World’s Most Ethical Companies, as well as one of America’s Best Employers
In 2016, the Principal had more than 14,000 employees worldwide, of which 10,000 are in the United States.
Principal Life Insurance Company Review
Today, Principal Insurance Company is firm from a financial perspective. At the end of 2016, Principal held more than $655 billion in total assets under management, with $10.9 billion in total GAAP revenues. During the 2016 year, the company took in $1.5 billion in net income, with more than $1 billion in operating earnings.
Due to its size and financial strength, the Principal is ranked as number 380 on the Forbes Global 2000 list, which recognizes the world’s biggest and most influential companies as measured by a composite ranking for sales, profits, and assets and market value. The Principal is also a member of the S&P 500 and has been since mid-2002.
In addition to the company’s business and financial endeavors, the Principal also excels in community leadership. For example, it is the 19th company to receive the United Way of America’s Spirit of America Award for its corporate community involvement. It was also named a CDP Climate Performance leader, and a CDP Climate Disclosure leader for its commitment to improving its impact on the environment. Likewise, the Principal has also been ranked as number 59 (in 2016) on the InformationWeek Elite 100, recognizing the top business technology innovators for the 19th year. The Principal is headquartered in Des Moines, Iowa.
What’s Their Grade?
Now comes the part that is important to you, the life insurance consumer. Principal has been given high ratings:
- A+ (Superior) from A.M. Best Company. This is the second highest rating out of a possible 13 total.
- AA- (Very Strong) from Fitch. This is the fourth highest out of a possible 19 total.
- A1 (Good) from S&P Global. This is the fifth highest out of a possible 20 total rating levels.
In addition, Principal is an accredited member of the Better Business Bureau (BBB) ever since 1948. The BBB has given the Principal a grade of A+.
These very high grades reflect the ability to pay claims promptly and to provide you peace of mind that Principal will be around in decades to come to pay yours, or your loved ones, ultimate life insurance claim.
No Exam Life Insurance Coverage Offered by Principal Life
Not all life insurance applicants will be able to qualify by going through the more traditional channels. These usually include completing an application for coverage and undergoing a medical examination where a blood and urine sample is required.
We recommend applying for a no exam plan BEFORE you try and get a traditional policy. The reason? Your medical exam may detect a health issue that you are currently unaware of having. Once this information is discovered the information is now in the public domain and will be available to all insurance companies.
The discovery of a health issue may cause your premiums to escalate, or you may be declined coverage. Neither scenario is desirable. We recommend you initially apply for a no exam policy, although the premiums may be a bit higher, you will not have to complete medical testing and risk undesired results that may prove costly with your premium rate class.
To help those who may not qualify for a medically underwritten life insurance policy, as well as to speed up the process of getting certain life insurance policies approved, the Principal came up with a solution.
Want some good news? In 2014, the Principal introduced a way to cut the approval process for life insurance dramatically. Through the company’s Accelerated Underwriting program, applicants for certain types of coverage may be approved for a policy within 48 hours or less. This innovative program expedited the industry average for approving a life insurance application from approximately 30 days by eliminating the need for a paramedical exam and/or lab testing for qualifying applicants.
Through this Accelerated Underwriting program, information is gathered via the traditional underwriting sources, such as an application and a check of MIB (Medical Information Bureau), motor vehicle reports, and the individual’s prescription medication records. With the ever-increasing usage of the internet, this data can be gathered in hours compared to days in the not so distant past.
The Principal “TeleApp” is easily completed with a brief telephone interview between the applicant and an interviewer. The purpose of this interview is to collect the applicant’s personal history, to include medical history, family history and a complete list of prescriptions currently taken if any.
After you complete the telephone interview, you may be approved within 48 hours (or less) with a Preferred, or even a Super Preferred policy rating, of course depending on your overall health and lifestyle history. The “TeleApp” process is available to all applicants who are between 18 and 60 and are purchasing a life insurance benefit of up to $1 million.
As do most insurance carriers, the Principal offers very competitive term and permanent life insurance coverage options. With term life insurance, a death benefit will be paid out (free of income taxation) if the insured should pass away while the policy is still in force. Term life policies provide coverage for generally 10, 15, 20 or 30 years in length. Usually, during this time frame, both the tax-free life insurance amount and the premium due will remain the same, guaranteed. There is generally no cash values accumulated in the policy which is why the premiums on term life insurance are very affordable in comparison to a permanent life insurance policy.
Principal offers a wide array of permanent life insurance as well. Permanent life insurance offers both death benefit protection and cash value accumulation. There is no set time limit on a permanent life insurance policy.
These policies have no terms. They are operational until you stop paying the fees or reach the maximum age.
The cash that is in the cash value component of a permanent life insurance plan grows and compounds on a tax-deferred basis. Meaning, there is no tax due on the growth of the cash account unless or until the funds are withdrawn. Should funds be needed, it is recommended to take out a loan on your cash account instead of a withdrawal.
There are several types of permanent life insurance. The Principal offers three key types of permanent coverage, including universal life, variable universal life, and survivorship life insurance.
Universal life insurance provides flexible death benefits, as well as flexibility in the premium payment and due date. These types of life insurance plans allow cash value to accumulate at a floating interest rate, which a minimum interest rate guarantee. Some universal life insurance plans may also include secondary guarantees for added security. Universal life is a popular choice for those desiring an affordable permanent life insurance program.
A variable universal life insurance policy will provide flexibility, with a more aggressive cash value accumulation strategy. This is because the policyholder can opt to invest some or all of their cash into equities such as mutual funds – which can provide the opportunity for higher growth, based on market performance.
These policies may also provide options for the policyholder to access tax-deferred cash value without penalty via loans – and you may also be able to convert cash values to annuities to provide an income stream that you cannot outlive.
For couples who are seeking to cover both partners’ lives, a survivorship life insurance policy may be an excellent viable alternative. These plans cover two lives, with a death benefit that is payable upon the second person’s passing. These policies are often used in estate planning to help pay costly estate taxes.
Other Products and Services Available
The Principal also provides a lengthy list of other innovative products and services for its customers.
For individuals, these include the following:
- IRAs (Individual Retirement Accounts)
- Retirement Plans (employer-sponsored, with automatic deductions and company matching, if available)
- Mutual Funds
- Personal Trusts
- Irrevocable Life Insurance Trusts (ILITs)
- Private split dollar arrangements
- Charitable trusts
- Group Insurance Benefits (including group life insurance, group disability, group dental, group vision, group critical illness, and group accident insurance)
- Employee Retirement Plans (such as 401ks, 403bs, ESOPs – Employee Stock Ownership Plans, Non-qualified Deferred Compensation Plans, Pension Plans, and Personal Risk Transfer)
- Business Succession Planning
- Wealth Transfer Planning
- Supplemental Retirement Income Plans
How to Get the Best Rates on No Exam Life Insurance from Principal Life Insurance Co.
Do you want no exam life insurance from Principal Life Insurance Company – or from any top life insurer? If so, you should team up with an independent brokerage. In doing so you will be better able to review your options regarding policies and premium quotes – and from there you can choose what works best for you (as well as what works best for your budget).
Step one is to complete the easy and fast quote form on this page. You will receive multiple quotes from financially strong and safe life insurance carriers. By using the convenient quoting form, you can review various quotes to see how much coverage you can purchase within your budget.
Your independent agent will get all the info they need to find you a policy tailored to your needs.