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About Principal
Principal Financial Group is a major Iowa-based financial services company with over 145 years of history in retirement products. Principal Life specializes in variable annuities, registered index-linked annuities (RILAs), and income-focused solutions for pre-retirees and retirees. Known for product flexibility and structured segment options, Principal offers both accumulation and income strategies with meaningful choices around downside protection and rider features.
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How we scored them
Income Options85/100
Financial Strength96/100
Fees & Costs78/100
Flexibility88/100
Customer Service82/100
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The tradeoffs
What works
- Strong A+ ratings from both AM Best and S&P
- Flexible structured segment design on RILA products with multiple protection levels
- Three-rider approach on income VAs allowing buyers to choose accumulation strategy
- Competitive RILA participation rates with optional performance lock-in feature
- Automatic deferred income rider on some VAs with no additional cost
What to watch
- RILA products carry real downside risk beyond buffers—not principal-protected
- Interim value adjustments on RILA mid-term withdrawals can be substantial
- Layered fee structures on income products can exceed 3% annually
- Complex product designs require buyer understanding of structured products
- Some products have limited state availability
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Best fit for these buyers
Investors comfortable with market-linked or structured products seeking income
Buyers who want flexibility to choose different accumulation strategies for income riders
Pre-retirees aged 45-70 planning both growth and eventual lifetime income
Those valuing product depth with multiple indices, segment terms, and buffer options