1. HELP EMPLOYERS OFFER INCOME PROTECTION Multi-Life Individual Disability Insurance For producer information only. Not for use in sales situations.

2. Multi-Life Advantages 1 Flexible design options 2 Affordable coverage – with discounts 3 Easy to implement

3. For producer information only. Not for use in sales situations. Why offer multi-life solutions EMPLOYERSEMPLOYEESYOU Helps attract and retain a quality workforce A valuable benefit that helps protect income Portable policy and discounts Sell multiple policies at once – increasing compensation potential TRIPLE ADVANTAGES

4. For producer information only. Not for use in sales situations. The value of the Multi-Life Discount When 3 or more employees with a common employer purchase any Individual Disability Insurance from Principal Life. No formal employer involvement required. 20 % DISCOUNT AGEMULTI-LIFE 25$18/month 35$25/month 45$38/month Assumptions: Michigan resident, To Age 65 Your Occupation and Benefit periods, 90-day Elimination Period, Residual and Recovery Benefit rider, 5A occupation class, non-tobacco. SAMPLE PREMIUM $1,000 Monthly Benefit

5. For producer information only. Not for use in sales situations. Getting started in the market WHO TO TARGET Small- to medium-size businesses Professional and grey collar occupations –Banking, engineering, accounting, law, veterinary medicine, architecture, etc. Voluntary benefits –Business with up to 250 eligible lives –Annual incomes of $35,000 or more Employer-paid benefits –Business with 10 to 30 participating lives –Annual incomes of $375,000 or more Review your existing block of business and ask for referrals. Prospect with local businesses; employees can be in multiple locations.

6. For producer information only. Not for use in sales situations. Opening doors with employers DESIGN REVIEW Discuss goals of client’s benefit program Review the current benefit offering Look for gaps in coverage –No benefits in place –Group disability benefits only –Executives and key employees under- protected –Retirement savings unprotected

7. For producer information only. Not for use in sales situations. Offering DI as an employee benefit PROGRAMBENEFITSDISCOUNTS Fully Underwritten Up to max issue and participation limits 20%: 3 or more lives required 1 Simplified Multi- Life Up to $6,000/month 20%: 3 or more lives required 1 Standard Issue (GSI) Based on census and participating lives 20%: 10-49 lives 2 25%: 50-99 lives 30%: 100+ lives Fallback GSI Initially up to max issue and participation limits Fallback GSI offer based on census and participating lives 20%: 8-49 lives 2 25%: 50-99 lives 30%: 100+ lives 1 Greater discount may be available based on number of lives. | 2 25 or more lives required for physicians Who pays the premium? Employer, employee or a combination.

8. For producer information only. Not for use in sales situations. Fully Underwritten Multi-Life 20% Multi-Life Discount Full underwriting reviews conducted, providing the opportunity for the maximum level of benefits For groups with 3+ lives | All occupation classes When employees need greater than $6,000 in monthly benefits Individual DI benefits: Up to $20,000/month; participating up to $30,000/month 1 All riders available 1 Additional guidelines apply

9. For producer information only. Not for use in sales situations. Case Example 1 CLIENT: Dental Practice HOW THEY WERE ACQUIRED: Producer has already put Individual DI and Overhead Expense coverage in place for one dentist. SOLUTION: 20% Multi-Life Discount offered by providing fully underwritten Individual DI to two other employees in the practice.

10. For producer information only. Not for use in sales situations. Simplified Multi-Life Program For groups with 3+ lives | All occupation classes When employees need monthly benefits below $6,000 Individual DI benefits: Up to $6,000/month Accelerated turnaround once the application and TeleApp interview are completed and received All riders available including Benefit Update 1 - Unless a significant medical condition is reported by MIB, significant medical information is obtained from the TeleApp or other available information, or any other disability coverage has been issued or applied for on a non- medical basis. Prescription history check may be required for physicians. Applications could be rated, ridered or declined based on all underwriting information available; this is not a guaranteed issue program. Urine/HIV test is required in Maine. Subject to Issue & Participation limits and minimum premium requirement. | 2 - Financial documentation may be required for certain occupations regardless of income earned. 20% Multi-Life Discount Streamlined underwriting; no routine medical requirements 1 or income documentation (up to $150,000/year; 2 may request census)

11. For producer information only. Not for use in sales situations. Case Example 2 CLIENT: Hospital System HOW THEY WERE ACQUIRED: Client placed a public bid seeking supplemental Individual DI coverage. SOLUTION: Simplified underwriting program (requiring just 3 employees to participate) offered on a voluntary basis to approximately 6,000 eligible employees.

12. For producer information only. Not for use in sales situations. Standard Issue (GSI) Minimum lives: 1 10 for employer-paid cases; 15 (with 20% participating) for employee-paid cases 3A occupation class or higher Individual DI benefits: Based on census and participating lives (typically up to $7,500/month) Standard coverage for approved group Cost of Living Adjustment (COLA) and Conditionally Renewable rider available; others available with underwriting approval 1 5 lives when Principal Life Group LTD coverage is sold; 25+ lives required for physician groups Up to 30% Discount For larger cases; no routine medical requirements or individual financials (just employee census)

13. For producer information only. Not for use in sales situations. Case Example 3 CLIENT: Organization of Insurance Professionals HOW THEY WERE ACQUIRED: Existing client who had purchased life insurance SOLUTION: Employer-paid GSI for the 10 management employees. Coverage supplemented group LTD; targeted 75% total income replacement ratio.

14. For producer information only. Not for use in sales situations. Fallback GSI Minimum lives: 1 8 for employer-paid cases; 15 (with 20% participating) for employee-paid cases 3A occupation class or higher Individual DI benefits: Up to $20,000/month; participating up to $30,000/month 1 Fallback GSI benefits: Based on census and participating lives All riders available for fully underwritten. COLA and Conditionally Renewable riders available for Fallback GSI; others available with underwriting approval 1 5 lives when Principal Life Group LTD coverage is sold; 25+ lives required for physician groups Up to 30% Discount For larger cases; maximum benefits available with safety net GSI offer if employee does not meet underwriting guidelines

15. For producer information only. Not for use in sales situations. Case Example 4 CLIENT: Local Bank HOW THEY WERE ACQUIRED: Producer had worked with the bank for some time. As employee numbers grew, she offered supplemental Individual DI coverage. SOLUTION: Voluntary Fallback GSI (requiring 20% participation)

16. For producer information only. Not for use in sales situations. Successful Enrollment The multi-life sale is a two-step process: 1.Selling it to the employer 2.Selling it to the employee Employee communication is key Promote the offering in print and electronically Present at group kick-off meetings Hold one-on-one consultations Follow up with employees Establish a process for reaching newly eligible employees ALL CASES Take advantage of marketing materials and communication materials from Principal Life LARGER CASES Customized proposals, pre-filled applications and enrollment kits available

17. For producer information only. Not for use in sales situations. DESIGN CONSIDERATIONS

18. For producer information only. Not for use in sales situations. Protect more of your client’s income with Individual DI insurance Full paycheck. Healthy and working Group LTD benefits before taxes Group LTD benefits after taxes Supplement Group LTD Insurance

19. For producer information only. Not for use in sales situations. Executive Coverage Gaps INCOME GROUP LTD MONTHLY BENEFIT INCOME REPLACMENT PERCENTAGE $100,000 $5,000 60% $150,00040% $200,00030% $250,00024% Assumptions: 60% Group LTD benefit with a monthly cap of $5,000, before tax figures Group LTD monthly benefit caps can create an income replacement gap for highly compensated employees. Individual DI Insurance can help fill the gap, replacing a greater percentage of income.

20. For producer information only. Not for use in sales situations. Structure LTD and DI for affordability Lower the group LTD maximum monthly benefit Benefit cap doesn’t affect most employees Provide supplemental DI for highly compensated Change the group LTD definition of income Cover base salaries only with group LTD Supplement with DI to cover bonuses/commission Vary the max monthly benefit by employee class Different benefit amounts for different classes can lower the overall cost of group coverage

21. For producer information only. Not for use in sales situations. Protecting Retirement Savings DI Retirement Security pays monthly benefits to a trust to be accessed as retirement income.

22. For producer information only. Not for use in sales situations. 22 Questions ? While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance issued by Principal Life Insurance Company a member of the Principal Financial Group ®, Des Moines, IA 50392, www.principal.com. www.principal.com No part of this presentation may be reproduced or used in any form or by any means, electronic or mechanical, including photocopying or recording, or by any information storage and retrieval system, without prior written permission from the Principal Financial Group. Copyright © 2014 Principal Financial Services, Inc. DI8944 | 12/2014 | © 2014 Principal Financial Services, Inc. Contact your local representative.