DI Retirement Security Helping you continue saving for retirement in the event of a disability

Protecting Retirement Dreams Workers rank their ability to earn a living and their retirement savings as their number 1 and 2 most valuable financial resources 1 Nearly 2/3 of workers don’t believe they are financially prepared for a comfortable retirement 2 Nearly 1 in 4 workers entering the workforce today will become disabled before retirement 3 1 Council for Disability Awareness 2010 Consumer Disability Awareness Survey 2 The Principal Financial Well-Being Index SM, 1 st Quarter Social Security Administration, Fact Sheet, Feb

How solid is your financial foundation? If earned income is the foundation of your financial structure, consider insuring it to the extent possible

It’s not the money, it’s the security House Student loans Safe transportation Food Clothing Gas Insurance Taxes Vacations Travel After covering daily living expenses and any medical bills, little income may be left for retirement savings.

Contribute to your 401(k) Receive an employer match on those contributions (if available) Contribute to Social Security DI Retirement Security is designed to help you secure your retirement dreams in the event of disability. Impact on retirement savings In the event of a disability, you would no longer be able to…

Helping you protect your retirement dreams Assumptions: $2,000/month contributions beginning at age 30, 5% rate of return and age 65 retirement. Potential loss due to disability at age 40 without continued contributions to retirement savings.

Comprehensive Benefits Individual Disability Income (DI) insurance: Provides a monthly benefit to help you cover daily living expenses DI Retirement Security: Provides a monthly benefit to help you continue saving for retirement in the event of a disability.

Comprehensive Benefits

DI Retirement Security HOW IT WORKS INSUREDPRINCIPAL LIFE IRREVOCABLE TRUST Before a disability, DI insurance premiums are paid to Principal Life. The trust invest the benefits (after a risk assessment is conducted) At the end of the benefit period, trust assets are distributed Disability occurs, benefits are paid to an Irrevocable Trust For more on trust investment options: principal.com/bankerstrust

About the investment options Asset allocation models (based on risk tolerance): –Balanced Allocation, Growth Allocation, Aggressive Growth Allocation and Conservative Allocation –Class C shares Additional investment options are available: –Annuity –Mutual Funds View models:

Program guidelines Minimum annual income to qualify: $76,000 Maximum benefit amount: 1 –$4,470/month individual pay 2 –$5,750/month employer-pay 2 Minimum benefit amount: $1,000/month Investment management fees are assessed on the mutual funds in which the trust invests 1– Amounts for 2015; Maximum amount subject to change based on annual IRS defined contribution guidelines. 2 – Includes a $50 monthly trust administration fee.

Program guidelines Issue ages: (all occupation classes) Elimination Periods: 180 or 365 days Benefit Periods: To Age 65 and To Age 67 Your Occupation Periods: 2 year, 5 year, To Age 65, To Age 67 Available Riders: Future Benefit Increase, Cost of Living Adjustment, and Mental/Nervous Substance Abuse Disorder Limitation (MNSA) 1 Discount opportunities are available 1– Required on all single-life Individual Disability Income insurance policies in FL, LA and NV; required on all cases in California; optional in all other states for multi-life cases. Not available in Vermont. Discount applies; up to 10% in all states except TX (up to 5%).

Access to trust assets If you become disabled and begin accumulating assets in an irrevocable trust: You begin receiving trust assets at the end of your benefit period (age 65 or 67) Upon Banker’s Trust approval, trust assets may be available in the event of certain financial hardships If you recover from the disability and stop receiving benefits, you can access accumulated trust assets after being off claim for 12 consecutive months. Should you pass away before the end of the benefit period value of the trust passes to the estate

For more information Contact your local representative. 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. Insurance is issued by Principal Life Insurance Company, a member of the Principal Financial Group ®, Des Moines, Iowa Disability insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your Principal Life representative. 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 The Principal is not 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. DI Retirement Security is issued as a non-cancelable, guaranteed renewable, individual disability income insurance policy. It is not a pension or retirement program or a substitute for such a program. DI Retirement Security is not available for government employees or anyone who is over insured based on Principal Life's current issue and Participation guidelines. It may not be available or the benefit amount may be reduced for certain occupations if there is existing DI coverage with lifetime benefits. Additional underwriting guidelines may apply. DI | 07/2014 | © 2014 Principal Financial Services, Inc.