Lincoln Financial vs Principal Financial Group

Verdict

The most important difference is who can buy. Lincoln Financial still sells individual life insurance to households through independent financial professionals, banks and broker-dealers. Principal Financial Group announced in June 2021 that it would stop selling term and universal life to retail consumers. Since then its individual life sales go to owners, executives and key employees of small and medium-sized businesses, for uses such as key person, buy-sell and deferred compensation plans. A family looking for a term policy cannot buy one from Principal; a business owner might.

Both are publicly traded, shareholder-owned companies, and neither sells whole life. Lincoln's lineup is term (10, 15, 20 or 30 years), indexed and variable universal life, and MoneyGuard, which combines life insurance with long-term care riders. Principal's profile lists term, universal, indexed and variable universal life for the business market, and says it no longer sells universal life with lifetime secondary guarantees.

On financial strength, Principal's profile shows AM Best A+ (Superior), affirmed in April 2025, with Fitch AA-; Lincoln's shows A (Excellent) from AM Best as of February 2026 and A2 from Moody's. The Principal date is older, so confirm that it is current. Both have reinsured large blocks to outside reinsurers (Lincoln to Fortitude Re in 2023; Principal to a Sixth Street affiliate in 2022) while continuing to administer the policies. Lincoln also faces cost-of-insurance litigation on older universal life policies, with a class settlement given final approval in June 2025 and related cases still pending.

Choose Lincoln Financial if

• You are an individual or family buyer, since Principal no longer sells retail life.
• You want indexed or variable universal life, or a survivorship IUL, through an independent advisor.
• You want MoneyGuard, which combines life insurance with long-term care benefits.
• You want 10-, 15-, 20- or 30-year level term that converts to a Lincoln permanent policy before age 70.

Choose Principal Financial if

• You own or run a small or midsize business and need key person, buy-sell or deferred compensation coverage.
• You already use Principal for group benefits or a retirement plan and want to coordinate.
• You are an existing Principal policyholder looking for the servicing details; your contract was not changed by the 2021 exit.
• You put weight on AM Best A+ (Superior) and Fitch AA-, as published in the Principal profile.

Key differences

Before you decide

If you are shopping for family coverage, Lincoln is the only one of the two that applies. If you are a business owner, ask an advisor to price the same coverage from both and use how to compare life insurance quotes fairly to line up the quotes. Check rating dates with AM Best, S&P, Moody's and Fitch ratings explained, and read when your life insurance policy is sold to another company to see what reinsurance deals mean for your contract. key person life insurance explains one of the main business uses.