Principal National Life

[Life]

Hello, I was offered a policy from Principal National Life. A universal life policy and at the bottom of the illustration it reads all guarantees are are subject to the claim paying ability. It you purchased a Universal Life policy where it had no cash value later in life, but a death benefit with a no lapse guarantee, what would happen if the company went under? would you get anything?

And is this company worth taking the risk on?

Thanks for your help.

 

[WinoBlues]

Hello, I was offered a policy from Principal National Life. A universal life policy and at the bottom of the illustration it reads all guarantees are are subject to the claim paying ability. It you purchased a Universal Life policy where it had no cash value later in life, but a death benefit with a no lapse guarantee, what would happen if the company went under? would you get anything?

And is this company worth taking the risk on?

Thanks for your help.

Not easy to answer on the guarantee. A lot depends on the State it is issued in. And the provisions of the Guarantee Fund in your State.

I am also contracted with Principal National Life and am comfortable writing them. That being said, They are not a go to company for me. I use them mostly for the table shave products. There are just other companies that fit my clients better when looking at a Guaranteed Universal Life policy.

 

[Life]

thanks...

I looked them up in ohio and im from ri. it looks like they only started filing insurance reports in 2007. You have any history on them?

 

[pcbinsurance]

The Principal Financial Group: Built on Strength - Principal.com

 

[blue_wynd]

Hello, I was offered a policy from Principal National Life. A universal life policy and at the bottom of the illustration it reads all guarantees are are subject to the claim paying ability. It you purchased a Universal Life policy where it had no cash value later in life, but a death benefit with a no lapse guarantee, what would happen if the company went under? would you get anything?

And is this company worth taking the risk on?

Thanks for your help.

If we are talking about a GUL, even with no cash value left in the policy (due to higher mortality rates, lower interest, longer life, etc.) you are still be good as long as you had been paying the minimum premium on time with no missed payments. Otherwise, other factors come into play.

As for the company itself, you will need to check on its current AM ratings and history and see if you are comfortable with its financials. Also if the face value of the policy is within the amount covered by your state guaranty fund, you are still covered even if the company go under; again up to the limit set by the fund.

 

[Life]

They are not licensed in my state so my state fund might not cover. Finding out if ohio will cover me as out of state resident.

Also, not sure if they cover universal no lapse guarantee after the cash value runs out but he death benefit is still there. ohio covers up to 300k in death benefit.

 

[BNTRS]

Principal is "licensed" in your state. The company does business in all 50 states and has been in business for 134 years. The insurance company is owned by the Principal Financial Group, a large financial services multinational. Home office is in Iowa.

The death benefit on a GUL is covered just as the death benefit is covered by any policy.

The likelihood that Principal goes under is small. All insurance contracts come with the understanding that Principal has pointed out to you. That benefits are subject to the claims paying ability of the insurer.

 

[scagnt83]

They are not licensed in my state so my state fund might not cover. Finding out if ohio will cover me as out of state resident.

Also, not sure if they cover universal no lapse guarantee after the cash value runs out but he death benefit is still there. ohio covers up to 300k in death benefit.

They have to be licensed in your state to sell policies in your state. Principle is licensed in all 50 states. And like BNTRS already stated, they are a very well established company.


The point of a no-lapse guarantee is to maintain a death benefit in the event that the CV runs out.


Are you not asking your agent this stuff? Are you doing this yourself too? Using an agent does not cost you a dime more in premium.... considering your other thread, you need a good independent agent to help you with questions and concerns.

 

[Life]

You are correct..they are licensed...the website was incorrect I had to call my state and thank you all for the information!