Term Life InsuranceTerm Life Insurance
PrincipalPrincipal
Earn better rates through healthy habits — built for professionals and business owners.
Principal
Earn better rates through healthy habits — built for professionals and business owners.
About Principal
Principal Financial Group has served clients since 1879 with headquarters in Des Moines, Iowa, and over $700 billion in assets under management. Rated A+ (Superior) by AM Best, Principal is the leading carrier for business owners and executives — offering two riders unavailable elsewhere: the Business Value Increase Rider (face amount grows with company valuation on 3-year cycles without new underwriting) and the Salary Increase Rider (coverage tracks income growth automatically). Principal's Healthy Lifestyle Credits system is also unique: checkups, cancer screenings, and well-controlled biometrics earn credits that offset health debits, potentially qualifying applicants for a better rate class than standard underwriting alone would yield. The terminal illness rider pays up to 75% of the face amount, capped at $1,000,000.
FindInsureWise's Take
Principal is the standout carrier for business owners funding key person insurance or buy-sell agreements, and for income-growth professionals who expect their coverage need to increase over time without re-underwriting. Healthy Lifestyle Credits are a real differentiator — applicants with slightly elevated BMI or controlled biometrics who have active healthcare engagement may qualify for a better rate class than they expect. Living benefits are limited to terminal illness only, so this is not the right carrier for families who prioritize critical illness or chronic illness coverage.
Strengths
- Business Value Increase Rider and Salary Increase Rider — coverage grows with income and business value, no new medical underwriting required
- Healthy Lifestyle Credits: active healthcare engagement offsets health debits and can improve underwriting class
- A+ (Superior) rated — one of the strongest ratings in the industry
- Terminal illness benefit up to $1M (75% of face) — higher cap than many competitors
- Convertible or nonconvertible option: savings on premium for clients who don't need conversion rights
Considerations
- Living benefits limited to terminal illness only — no critical illness or chronic illness riders
- Minimum face amount of $200,000 — not suitable for smaller coverage needs
- No published no-exam underwriting limit in standard materials — confirm AU eligibility with advisor
Principal Term
Earn better rates through healthy habits — built for professionals and business owners.
Product Details
Key Features
Healthy Lifestyle Credits (HLCs)
Regular checkups, cancer screenings, and well-controlled cholesterol all earn credits that can offset health debits — even if your weight is slightly elevated. HLCs can move you into a more favorable underwriting class and lower your premium.
Business Value and Salary Increase Riders
Unique to Principal: face amount can increase automatically on three-year cycles tied to salary growth or business valuation — without additional medical underwriting. Ideal for key person insurance and funded buy-sell agreements.
Convertible or Nonconvertible Option
Clients who don't need conversion rights can choose a lower-cost nonconvertible policy. Those who want flexibility can add a Conversion Extension Rider at issue to extend conversion rights to age 70 or end of level period.
Best For
Health-conscious professionals who want good rates, and business owners looking to protect key employees or fund business continuity agreements.