Principal Life Insurance Review (2026)

Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294
Last reviewed October 3, 2026 · Published October 3, 2026

Editorial review by a licensed agent who may earn a commission. No insurer pays for placement or grades. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy.

Why Principal matters to business owners

Principal's life products are built for guarantees and predictable costs for business uses such as funding a buy-sell agreement, insuring a key person, or executive bonus plans, more than maximum accumulation. If you own a business and are thinking about who buys your share when you die or retire, life insurance is usually how the agreement gets funded.

IUL Flex II: a low current cap

Principal's crediting page shows IUL Flex II's S&P 500 account at an 8.50% cap with 100% participation and a 0% floor (9/12/2026 segment, Principal). The guaranteed minimum cap is not publicly disclosed, and loan rates and rider terms are not on that page; ask for all three on an illustration.

The lesson in the numbers: the lowest current cap in our set, so the guaranteed terms matter even more. Ask what the cap can fall to.

Guarantees: UL Flex III and SUL Provider

• Universal Life Flex III: repriced for new issues on 1/2/2026, with an optional Extended No-Lapse Guarantee rider to age 100; issue ages 0 to 80 (Principal).
• Survivorship UL Provider: an optional extended no-lapse guarantee to the younger insured's age 100; target ages 55 to 75 (Principal). One of the very few survivorship guarantee products left.
• Principal discontinued UL Provider Edge II after 1/30/2026 (Principal).

Who Principal fits

• Business owners funding a buy-sell or key person need.
• Couples who want a survivorship guarantee for an estate plan.
• Not a fit for maximum-accumulation IUL buyers.

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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer

Frequently asked questions

Sources

1. AM Best: Principal Life Insurance Company rating (4/28/2026)
2. Principal IUL Flex II S&P 500 Price Return account cap (as of 2026-09)
3. Principal Universal Life Flex III was repriced for new issues effective January 2, 2026, with the optional Extended No-Lapse Guarantee rider now running to a maximum age 100; issue ages 0-80, target market ages 45-75, approved in all states (as of 2026-01)
4. Principal Survivorship Universal Life Provider offers an optional extended no-lapse guarantee to the younger insured's age 100; youngest insured issue ages 20-80, second insured to age 90 (any class from Preferred to Uninsurable); minimum face $250,000; approved in all states (as of 2026-02)
5. Principal UL Provider Edge II is no longer available after January 30, 2026 (December 31, 2025 in New York) (as of 2026-01)