Is Principal a Good Insurance Company?
At Diversified Insurance Brokers, we guide pre-retirees and retirees in comparing insurance and annuity carriers based on financial strength, product transparency, and how well their solutions align with retirement income goals. If you’re asking, “Is Principal a good insurance company?” the short answer is yes—they earn excellent ratings and have a long history. However, “good” doesn’t automatically mean they are the best fit for your particular retirement strategy. In this review, we’ll explore what stands out, what to watch, and why you may still want to compare other carriers.
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Company Snapshot & Financial Strength
Principal Financial Group, headquartered in Des Moines, Iowa, has been serving customers for well over a century and offers insurance and retirement solutions across the U.S. Its key life insurance subsidiaries (e.g., Principal Life Insurance Company) carry industry-leading ratings including A+ (Superior) from A.M. Best and AA- from Fitch Ratings, which signal a very strong ability to meet obligations. This foundation provides a level of trust often sought by retirement savers.
Product Lines & Distribution Model
Principal offers a range of solutions including term life, universal life, retirement plans, group benefits, and annuities. Their annuity lineup includes fixed and variable options, and they work through a national distribution network. For individuals seeking income-oriented annuities, it’s important to compare terms, payout riders, and features—particularly when income is the objective.
Where Principal Stands Out
- Strong ratings and long history. Stability and paid-claims track record matter for retirement promises.
- Comprehensive solutions. Life, annuities, retirement plans and employee benefits under one brand.
- Transparent track record. Public ratings affirm their commitment to policyholder obligations.
Considerations & When to Shop Alternatives
- If your primary goal is maximum guaranteed income from an annuity, some niche carriers may offer higher payout rates or more aggressive income riders—compare them.
- While Principal is strong, every contract matters—surrender charges, liquidity features, free-withdrawal options and rider costs vary widely; these should be benchmarked against leaders in the field like in our deep dive on what is a fixed annuity?
- Working with an independent broker often gives you access to multiple carriers—not just one. If you’re limited to the carrier’s own distribution network, you might miss better options.
Who May Find Principal a Good Fit?
- You prioritize financial stability and select a carrier with top-tier ratings.
- You are purchasing life insurance or an annuity through a workplace plan or retirement-advisor channel.
- You value a full-service provider offering both insurance protection and retirement income accumulation.
When You Should Definitely Compare Beyond Principal
- Your primary focus is guaranteed lifetime income rather than accumulation or protection alone.
- You want the best liquidity, or highest free withdrawal features, in a fixed or fixed indexed annuity—look at our comparison of fixed vs fixed indexed annuities.
- You prefer an advisor who can show you dozens of carriers side-by-side rather than one brand only; see why a best independent insurance agent matters.
Bottom Line
Yes, Principal is a good insurance company. Its strong financial strength, long history, and broad product offerings make it a solid choice for insurance and retirement needs. That said, when your goal is securing guaranteed income in retirement or income-focused annuities, “good” may not be enough—shop and compare the contract details, riders, and payout features. At Diversified Insurance Brokers, we help you gather illustrations, compare carriers like Principal against competitors, and choose the product that aligns with your goals, timeline, and comfort with risk.
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FAQs: Is Principal a Good Insurance Company?
What are Principal’s financial strength ratings?
Principal’s key insurance subsidiaries carry A+ (Superior) from A.M. Best and AA- from Fitch, signaling very strong ability to meet policyholder obligations.
Does Principal offer strong annuity products?
Yes—they offer annuities, but if your objective is maximizing guaranteed income or advanced income riders, you should compare across multiple carriers.
Are Principal’s rates best-in-market?
Not always. While stable and well-structured, niche carriers may offer higher payout rates or specialized features for income-focused buyers.
How important is working with an independent broker when using Principal?
Very. Independent brokers can compare Principal’s offering against other carriers, ensuring you don’t miss better terms or higher incomes.
Is Principal a good fit for retirees?
Yes—especially if you value financial stability and product breadth—but if your focus is immediate guaranteed income from an annuity, compare options carefully.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
