Principal offers a mix of both term and permanent life insurance solutions:
Principal’s term life insurance policies offer affordable cover over a specified period of time, 10, 15, 20 or 30 years. These plans can be converted to permanent plans after the life of the policy. This type of coverage lessens as costs such as debt, education and mortgage balances reduce over time.
You may consider a term life insurance plan if you have limited finances and a growing family, have a permanent plan and want to supplement your coverage, you are young and want to take advantage of lower rates or you are buying your first life insurance policy.
Principal’s permanent life insurance policies help cover large expenses after your death. Costs covered may include burial expenses, estate liquidity and income for your family. With this type of coverage, the cash value of your policy will grow over time and your loved ones will receive benefits federal income tax-free. Permanent life insurance policies traditionally carry higher premiums than term life policies. However, part of these premiums cans be used toward increasing cash value, which may increase your benefits in the long run.
You may consider a permanent life insurance plan if you are a young investor willing to take risks to build cash value, nearing retirement and desire to invest in your family’s future, want to transition from a term life plan into a permanent plan, have a spouse who relies on your income.
Principal offers 3 types of permanent life insurance:
- Universal life insurance: greater security with secondary guarantees, flexible premiums and death benefits, cash accumulation with floating interest rate and minimum rate guarantee
- Variable universal life insurance: extra income through cash value conversion to annuities, flexibility through aggressive cash accumulation strategies, ability to access tax-deferred cash values without penalty
- Survivorship insurance: use in estate planning to make best use of tax deductions, protects two lives with benefit paid upon second death