In any life insurance policy, the insured is the person on whom the protection is purchased. Each of these are defined below with examples of the common designations. For example, a survivorship policy may be purchased by a couple wishing to leave enough behind to pay estate taxes, care for a special needs child, or leave a legacy to an organization (or people) they care about.All life insurance policies have three primary parties that are required as part of the application process: the insured, the policy owner and the beneficiary(s). Survivorship life insurance is not for everyone, but serves a specific purpose. And unlike traditional life insurance, it does not pay out until both policyholders have died. Survivorship life insuranceĪ survivorship life insurance policy is for two people. It could be the S&P 500, Dow Jones Industrial, or a less obvious choice like Hang Seng Index. With indexed universal life, a policyholder's cash value component is tied to how well a financial market of the company's choosing is performing. Indexed universalĪnother permanent life insurance option is Principal's indexed universal policy. However, this policy includes cash value, flexible premium, a flexible death benefit (hence the name "variable"), and investment opportunities. Principal Financial's variable universal life is another permanent type of life insurance. Universal life also offers flexible payments, adjustable coverage, and, depending on the type of universal life policy chosen, may include cash value growth. Principal Financial's universal life insurance offers a death benefit for the entirety of the policyholder's life as long as premiums are paid.
Payments are fixed for those 20 years, and the policy expires at the end of the term. For example, someone may take out a $250,000 policy for 20 years. Term life insurance provides a specific amount of coverage for a set number of years. One of the most attractive things about Principal Financial is the array of policy types it offers. If nothing else, it gives the company something to work toward. They rank ninth among the 24 life insurance companies ranked by J.D. Quality of customer service is in the eyes of the beholder, and while Principal Financial does not have low customer service ratings, there is room for improvement. When it's time to make a change to a policy, chances are the policyholder will need to contact Principal Financial directly. What could be improved Limited online capabilities Out of the multitude of companies on the planet, Principal is one the few recognized for its ethical leadership and involvement with stakeholders. Ethical business practicesĮthisphere Institute, a company dedicated to identifying companies practicing corporate ethics, has named Principal Financial one of the World's Most Ethical Companies eight times. Financial securityĪM Best gives Principal Financial an A+ rating for financial security - an essential rating for policyholders who want their insurer to be there when the need arises. Principal Financial is a company a policyholder can grow with - from their first term life policy through survivorship life insurance that can help with estate planning, the company offers it all.