Life insurance is a key component of many financial plans. One reason for this is because the proceeds from a life insurance policy can be used for numerous needs – including the payoff of debts and ongoing living expenses of survivors, as well as the payment of estate taxes and/or final expenses.
While some people are in excellent health and are not considered a significant risk to a life insurance company, there are others who may have a more difficult time getting approved 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.
Before you purchase a no exam life insurance policy, it is important to keep in mind that these types of policies are not the same. In addition, making sure that the insurance company you plan to purchase the coverage through is strong and stable financially can be advantageous. That way, you will have a better idea of how timely the company is with paying out claims. One company that has a good reputation for its claims paying ability – as well as its financial stability is – The Principal.
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. And, the Principal makes financial progress possible for clients of all income and portfolio sizes.
Throughout the years, the Principal has 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
As of year-end 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 very strong 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 powerful 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.
Insurer Ratings and Better Business Bureau Grade
Due in large part to its strong financial footing, the Principal has been given high ratings from the insurer rating agencies. These include the following:
- 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 has been an accredited member of the Better Business Bureau (BBB) ever since 1948. The BBB has given the Principal a grade of A+ (which is on an overall grade scale of A+ to F).
Throughout the past three years, the Principal has closed out a total of 68 customer complaints, of which 28 have been closed within the past 12 months. Of these 68 total complaints, 47 of them had to do with problems with the company’s product and/or service, 12 had to do with advertising and/or sales issues, 7 were related to billing and/or collection issues, one was related to delivery issues, and the other one had to do with the company’s guarantee / warranty issues.
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 are required.
In order 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.
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 program expedited the industry average of 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.
The Principal “TeleApp” is the 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.
For those applicants who are qualified, the application process can be approved within 48 hours (or less) with a Preferred, or even a Super Preferred policy rating. Those applicants who are qualified include individuals who are between the ages of 18 and 60 who are purchasing a face amount of coverage of up to $1 million.
The Principal offers both 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 die while the policy is still in force. Term life policies provide coverage for a set number of years – and usually, during this time period, both the proceeds and the premium due will remain the same. With no cash value, the premiums on term life insurance are oftentimes very affordable in comparison to a comparable permanent life insurance policy.
Although term life is sometimes referred to as “temporary” life insurance coverage, these policies can be a good option for those who want to ensure that the balance of a home mortgage is paid off, and / or for those who want to provide the funds that are needed for a child or a grandchild’s future college education – even if the unexpected occurs.
The Principal offers a wide array of permanent life insurance, too. Permanent life insurance offers both death benefit protection and cash value. There is no set time limit on a permanent life insurance policy – and, the plan will typically remain in force, provided that the premium is paid.
The cash that is in the cash value component of a permanent life insurance plan is allowed to grow and compound on a tax-deferred basis. This means that there is no tax due on the growth unless or until the funds are withdrawn.
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 rate guarantee. Some universal life insurance plans may also include secondary guarantees for added security.
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 added growth, based on market performance.
These policies may also provide options for the policyholder to access tax-deferred cash value without penalty – 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 could be a 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 in order to leverage certain tax deductions.
Other Products and Services Available
In addition to life insurance coverage, the Principal also provides a lengthy list of other products and services to 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.
If you have been seeking the best premium rates for no exam life insurance from Principal Life Insurance Company – or for that matter, from any top life insurer – it is usually a good idea to work in conjunction with an independent life insurance agency or 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).
When you are ready to move forward, we can help. We are an independent brokerage, and we work with many of the top no exam life insurance carriers in the industry today. We can help you with getting all of the key details that you require for making a well-informed buying decision – and we can do this for you quickly, easily, and conveniently, all from your computer. If you want to begin the process, all you have to do is just simply fill in the quote form on this page.
Should you find that you still have any additional questions or concerns about life insurance and/or no exam life insurance coverage, please feel free to contact us directly via phone. Our experts can be reached, toll-free, by dialing 800-277-3098.
We understand that the purchase of a life insurance policy can sometimes feel overwhelming – this is particularly true if you have been turned down for coverage in the past. But the good news is that you still may have many coverage options that are open to you, and working with an expert on your side can help you to find them. So, contact us today – we’re here to help.