Life Insurance Master Review 2022 – Forbes Advisor


Primary term life insurance

Principal offers two types of term life insurance to business owners: group term life insurance and voluntary term life insurance.

Principal offers guaranteed issue term life insurance that business owners can use for themselves and their key employees. Coverage up to $5 million per policy is available, with level premiums for 10 or 20 years.

Some of Principal’s group life insurance policies provide access to helpful benefits, including a Wills and Legal Documents Center, an Emotional Health Support Line and an Identity Theft Protection Kit.

Principal also offers group term life insurance that you can give to your employees. You can choose to pay all, part or none of your employees’ group life insurance premiums, depending on your company’s budget. Additionally, you can offer Principal’s Voluntary Life Insurance, which allows employees to increase their coverage at their own expense and/or add life insurance for their dependents.

Principal universal life insurance

Universal life insurance might be right for you if you’re looking for lifetime coverage. When you have a policy that creates cash value, you can withdraw or take out cash value loans for any reason.

Primary Universal Life Flex III offers flexible death benefits and premiums, as well as the ability to accumulate cash value. The death benefit is provided in three ways:

  • Amount insured alone
  • Face amount plus surrender value
  • Principal sum plus premiums paid, less borrowings and partial surrenders

You can withdraw or borrow against the cash value you accumulate.

Coverage amounts range from $100,000 and up for businesses to $25,000 and up for individual buyers. People between the ages of 0 and 85 can apply. Those who qualify can obtain a Universal Life Index III policy with no life insurance medical exam.

Primary Universal Life Flex III offers a guaranteed minimum annual rate of 1% for cash value accumulation.

Principal also offers Universal Life Provider Advantage II for people aged 20 to 85. It has a minimum death benefit of $100,000. Those who qualify can obtain a Provider Edge II no life insurance medical exam policy.

Principal also sells the Primary survivor universal life insurance provider Politics. It covers two people under one policy and pays the death benefit when both people are dead.

It is ideal for those with succession or estate planning needs, or for transitioning a business after the death of an owner. A big bonus: only one applicant for Universal Life Survivorship

The provider’s policy may be an uninsurable risk. This means that the survivorship policy can be a way to provide life insurance to someone who might not otherwise be able to purchase coverage due to health issues.

Other key features of Principal Survivor Life Insurance include:

  • The optional extended no-lapse guarantee means locked-in coverage until age 100 for the youngest person on the policy.
  • The survivor can tap into the death benefit if diagnosed with a chronic or terminal illness.
  • Available for term conversions.

Principal-indexed universal life insurance

Indexed universal life insurance may be worth considering if you are looking for the potential for cash value growth based on an index, such as the S&P 500 Index. These policies also often offer the option to vary premiums and death benefits. Be sure to review the participation caps and fees so that you fully understand how the policy works.

Flex II Index-Linked Universal Life is for people between the ages of 20 and 85 and offers a minimum death benefit of $100,000. It offers you a flexible premium with death protection in three options: fixed, increasing (based on cash value) and return of premium.

Indexed Universal Life Flex II allows you to increase cash value based on the S&P 500 Price Return Index or S&P 500 Total Return Index. Or choose a fixed rate account. The cash value of the policy has a growth floor of 0% and a growth cap never lower than 3%.

Principal also offers another indexed universal life insurance product: the Indexed capitalization II.

Principal variable universal life insurance

Variable life insurance is not a “set it and forget it” policy. Variable life insurance can be an attractive choice for those who have long-term insurance, investment and tax planning needs, and who are also comfortable taking an active role in choosing investment options.

You can make withdrawals or loans from the cash value accumulated by the policy, but the policy may expire if the cash value amount becomes too low to cover the fees charged each month by the insurance company.

The value of the cash value portion of a variable life insurance policy is based on premiums paid, fees and expenses charged by the insurance company, investment performance, and loans and withdrawals made.

Principal sells two variable universal life insurance products—Executive VUL III and VUL IV Income. Both are designed to accumulate cash value based on market performance. There is no limit to gains or losses, which means there is greater growth potential compared to other types of universal life insurance, but there is also higher risk.

Executive VUL III is designed specifically for business owners and has a minimum death benefit of $100,000.

VUL Income IV has a minimum death benefit of $100,000 and qualified applicants can get coverage within 24 hours without a medical exam.


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