For financial professional information only. Not for distribution to the public. Product Portfolio Individual Disability Insurance Income protection for your clients most valuable asset

For financial professional information only. Not for distribution to the public. 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 to 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. This publication is intended to provide accurate and authoritative information in regard to the subject matter covered. The accuracy of the information is not guaranteed and is provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Policy and rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to policies and riders for full details. Riders are subject to state availability. Some riders are subject to additional premium. Please remember to abide by the company’s policy on disclosure of compensation. You can obtain more information, as well as a sample disclosure form at 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 issued by Principal Life Insurance Company. a member of the Principal Financial Group®. Not a Deposit | Not FDIC or NCUA Insured | No Bank or Credit Union Guarantee | May Lose Value | Not Insured by any Federal Government Agency

For financial professional information only. Not for distribution to the public. 1 – Not approved in all states, go to: for more information. Not available in California. Comprehensive Offering NEEDSOLUTIONS Income Protection Individual Disability Income (DI) Core Value Income Protection SM Multi-Life DI / Employer Offerings PERSONAL NEEDS Retirement SavingsDI Retirement Security (DIRS) Business Protection Overhead Expense (OE) Business Loan Protection rider 1 Key Person Replacement (KPR) 1 BUSINESS NEEDS Exit PlanningDisability Buy-Out (DBO)

For financial professional information only. Not for distribution to the public. Individual DI Insurance Objective: To help cover income in the event of a disability. Benefits Helps insure an individual can Maintain current lifestyle without draining savings or business profits Continue saving for retirement/future dreams Provide for his/her family

For financial professional information only. Not for distribution to the public. Individual DI Insurance Guidelines Issue Ages 18 to 60 (Single-Life); 18 to 64 (Multi-Life)* Occupation Classes 6A 1, 5A, 5A-M, 4A, 4A-M, 3A, 3A-M, 2A and A Elimination Periods 30 2, 60, 90, 180 and 365 Days Benefit Periods2 years 2, 5 years, To Age 65, To Age 67 and To Age 70 Your Occupation Periods 2 years, 5 years, To Age 65, To Age 67 and To Age 70 Maximum Benefit Limits Issue up to $20,000/month Participate up to $35,000/month *Older ages may be available; subject to underwriting approval 1 – Not approved in all states; not available in CA. For state approval information, visit principal.com/distateapprovals 2 – Not available in CA.

For financial professional information only. Not for distribution to the public. Individual DI Insurance Features No-Cost Riders 1 Benefit Update Capital Sum Benefit Future Benefit Increase Mental/Nervous Substance Abuse Disorder 2 Presumptive Disability Benefit Supplemental Health Benefit Cost Riders 1 Cost of Living Adjustment Catastrophic Disability Benefit Extended Total Disability Benefit Recovery Benefit 3 Regular Occupation Residual Disability Benefit 3 Residual Disability and Recovery Benefit Short-Term Residual Transitional Occupation 1 – Riders are subject to state approval and state variations. They may not be available to all occupation classes or used together on the same policy. | 2 – The MNSA rider is required for single-life policies in CA, FL, LA, and NV. It is not available for single-life cases in any other states except when elected through association cases or when certain riders are placed on a policy for select occupations. For multi-life cases, the rider is required in CA and optional in all other states. The rider is not available in VT. | 3 – Only available in CA.

For financial professional information only. Not for distribution to the public. Individual DI Insurance Discounts 1 1 – Not all can be used together or available in all states. 2 - Not approved in all states; not available in CA. For state approval information, visit Eligible occupations vary by state. 4 - The MNSA rider is required for single-life policies in CA, FL, LA, and NV. It is not available for single- life cases in any other states except when elected through association cases or when certain riders are placed on a policy for select occupations. For multi-life cases, the rider is required in CA and optional in all other states. The rider is not available in VT. Discount amount in Texas is up to 5%. 10% Association 10% Affiliation 2 10% Select Occupation 3 Up to 10% Mental/Nervous Discount 4 20% Multi-Life Discount (based on unisex rates)

For financial professional information only. Not for distribution to the public. Individual DI Benefit Amounts DI Maximum Issue and Participation Limits 1 Occupation ClassIssue Limit Participation with other Individual DI Participation with group LTD 6A 2, 5A, 4A, 3A$20,000$35,000 5A-M, 4A-M 3 $17,000$25,000$35,000 3A-M 3 $15,000$25,000$35,000 2A$8,000$10,000 A$6,000$8,000 1 – If automatic increase riders are on a policy, max limits are lower | 2 – Not approved in all states; not available in CA. For state approval information, visit | 3 – 4A-M and 3A-M policies before the 700 policy series: Issue limit remains $10,000/month, participation limit is $20,000/month

For financial professional information only. Not for distribution to the public. Benefit Update (BU) rider Available for standard premium policies (issue ages 18 to 55) when at least 75% of eligible coverage is purchased Advance update options 1 : –Client loses group disability insurance –Client has at least a 20% sustainable increase in income Client must accept 50% of the BU offer to keep rider on the policy All definitions, discounts, provisions and current rates (at attained age) of the original policy apply No cap 1 or age restrictions for benefit increases Accepted benefit increases pay first year commissions Allows client to purchase increased benefit amounts every three years without undergoing medical underwriting. 1 – Up to issue and participation limits

For financial professional information only. Not for distribution to the public. Catastrophic Disability Benefit (CDB) Rider By definition, this means, solely due to an Injury or Sickness the Insured is: ADL disabled (unable to perform two or more Activities of Daily Living (ADL) without assistance); or Cognitively impaired (loss of brain function); or Presumptively disabled Provides an extra monthly benefit for serious disabilities

For financial professional information only. Not for distribution to the public. Qualifications for CDB rider Activities of Daily Living (2 or more) Bathing Continence Dressing Eating/feeding Toileting or Transferring Cognitively Disabled Loss of brain function Presumptively Disabled Total loss of use: Power of speech Hearing in both ears Sight of both eyes Of both hands, both feet, or one hand and one foot

For financial professional information only. Not for distribution to the public. Catastrophic Disability Benefit (CDB) Rider Issue Ages (Multi-life 18-64) Cost rider. Available to all occupation classes CDB elimination period must be equal to or greater than the base elimination period; 90 day minimum elimination period CDB benefit period must be equal to or less than the base benefit period

For financial professional information only. Not for distribution to the public. Cost of Living Adjustment (COLA) rider Cost rider Provides a Cost of Living Adjustment to the monthly benefit during a disability Occupation Classes: All except A 3% or 6% compounded options available, no cap Not available with a 2 yr benefit period Insured may keep any increased disability benefits, upon returning to work full-time, by paying the additional premium During a disability, helps benefits keep pace with inflation.

For financial professional information only. Not for distribution to the public. Supplemental Health Benefit (SHB) Rider Provides an extra lump sum benefit for certain critical conditions and procedures arising during a disability. No cost rider; automatically added to policy 1 Provides a one-time, lump-sum benefit equal to six times a policy’s Maximum Disability Benefit Benefit paid if insured is disabled under the terms of the policy and survives for the later of 90 days or the elimination period, and is diagnosed with: −Coronary artery by-pass graft surgery −Cancer −Stroke

For financial professional information only. Not for distribution to the public. Objective: Provides a packaged offering for most 2A and 3A occupations 1 Client Advantages Competitively priced protection from a reputable carrier Ability to provide for their family Simplified underwriting process Core Value Income Protection

For financial professional information only. Not for distribution to the public. Core Value Income Protection Guidelines Issue Ages18 to 60 (single-life); 18 to 64 (multi-life) Occupation Classes 1 3A and 2A | Everyone receives 3A rates Elimination Periods60 or 90 days Benefit Periods5 years or To age 65 Your Occupation Periods5 years Maximum monthly benefit amounts$4,175/month 1 Not available for Registered Nurses, court reporters, dental assistants, dental or oral hygienists and dental lab technicians.

For financial professional information only. Not for distribution to the public. Core Value Income Protection Features Riders 12-month Short-Term Residual Disability 1 Future Benefit Increase 1 Mental/Nervous & Substance Abuse Rider (required, except in VT) Available Discounts 10% Association 2 10% Affiliation 2 Up to 10% Mental/Nervous Discount 3 20% Multi-Life Discount (based on unisex rates) 1 - May be removed or modified by an underwriting action. | 2 - Not approved in all states; not available in CA. For state approval information, visit | 3 - Discount amount in Texas is up to 5%.

For financial professional information only. Not for distribution to the public. DI Retirement Security Objective: Helps clients continue saving for retirement in the event of a qualifying disability. Benefits Upon a qualifying disability, benefits are paid to an irrevocable trust to be accessed as retirement income. Minimum income of $76,000 to qualify Target market Individuals who have maxed out traditional disability coverage Individuals committed to saving for retirement Employers who want to offer a comprehensive employee benefits package

For financial professional information only. Not for distribution to the public. DI Retirement Security Guidelines Issue Ages18 to 60 Occupation Classes6A 1, 5A, 5A-M, 4A, 4A-M, 3A, 3A-M, 2A and A Elimination Periods180 or 365 days Benefit PeriodsTo age 65 or To age 67 Your Occupation Periods 2 year, 5 year, To age 65 or To age 67 Maximum monthly benefit amounts 2 Individual-paid: $4,470 Employer-paid: $5,750 (includes $50 monthly administrative fee) 1 – Not approved in all states; not available in CA. For state approval information, visit | 2 – As of 2016; Maximum amounts adjust with IRS contribution guidelines

For financial professional information only. Not for distribution to the public. DI Retirement Security Features Riders Future Benefit Increase Mental/Nervous Substance Abuse Disorder 1 Cost of Living Adjustment Available Discounts 10% Association 10% Affiliation 2 10% Select Occupation 3 Up to 10% Mental/Nervous Discount 1 20% Multi-Life Discount (based on unisex rates) 1 - The MNSA rider is required for single-life policies in CA, FL, LA, and NV. It is not available for single-life cases in any other states except when elected through association cases or when certain riders are placed on a policy for select occupations. For multi-life cases, the rider is required in CA and optional in all other states. The rider is not available in VT. Discount amount in Texas is up to 5%. | 2 – Not approved in all states; not available in CA. For state approval information, visit | 3 – Eligible occupations vary by state.

For financial professional information only. Not for distribution to the public. Overhead Expense Insurance Objective: Reimburse a business owner for covered business expenses incurred during his/her disability. Benefits Helps insure a business can remain open and the owner can either: Return to a financially sound business; or Sell a business that has not depreciated because of the owner’s disability.

For financial professional information only. Not for distribution to the public. Number of Owners 8 or less for fee-for-service professional businesses 4 or less for other types of businesses Issue Ages18 to 60 Occupation Classes5A, 5A-M, 4A, 4A-M, 3A, 3A-M, 2A and A Elimination Periods30, 60 and 90 days Benefit Factors 12, 15, 18, 24 or 30 times (15 and 30 available on HH789 1 ) Maximum Limits (additional guidelines apply) Up to $50,000/month Overhead Expense Insurance Guidelines 1 – Not approved in all states; not available in CA. For state approval information, visit

For financial professional information only. Not for distribution to the public. Overhead Expense Insurance Features Available Discounts Not all can be used together 10% Select Occupation 10% Association 1 20% Multi-Life (based on sex distinct rates) Available Riders No cost Automatic Increase Option Benefit Update Cost rider Business Loan Protection 1 Residual Disability Benefit 2 Return-to-Work 3 1 – Not approved in all states; not available in CA. For state approval information, visit | 2 – Not available in CA | 3 – Only available in CA

For financial professional information only. Not for distribution to the public. Objective: Reimburses owner for covered business- related loan obligations during a disability. Benefits Helps keep the business open and operating Creates goodwill with customers, employees and creditors Helps maintain business owner’s credit rating Business Loan Protection

For financial professional information only. Not for distribution to the public. Business Loan Protection Available as a cost rider on our OE insurance policy Rider has guaranteed premium rates to the Business Loan Protection Termination Date Cannot be conditionally renewed beyond age 65 policy anniversary May have a $0 benefit amount for the OE policy 1 Loan Obligations Covered Balloon, 1 term, variable rate loans, commercial mortgage and lease financing 1- Balloon loans are written for a specific number of years with a balloon payment at the end of the period. These loans may be amortized over a longer period. The BLP rider covers the amount of the payment for the contractual time period as stated in the loan agreement (min. 3 years) rather than the amortized payment over the longer period. Not available in California. For state approvals, go to: principal.com/distateapprovals.

For financial professional information only. Not for distribution to the public. Issue Ages18 to 60 Occupation Classes3A/3A-M and above Elimination PeriodsAll (30, 60, 90, 180 or 365 Days) Benefit Period End of the financial obligation or earlier (3-year minimum), but not to exceed the OE policy’s age 65 policy anniversary Benefit Information Based on loan obligation, up to $20,000/month Benefit maximum is $2 million Available Discounts Not all can be used together 10% Select Occupation 10% Association 20% Multi-Life Business Loan Protection Guidelines Not available in California. For state approvals, go to: principal.com/distateapprovals

For financial professional information only. Not for distribution to the public. Objective: Protect small- to medium-sized businesses from the loss of employees critical to the success of the business due to a total disability. Benefits Benefits can be used at the discretion of the employer. Benefits generally received income tax-free.* *If premiums are paid with post-tax dollars. Key Person Replacement Insurance

For financial professional information only. Not for distribution to the public. 1 - If both monthly and lump sum benefits are applied for, the elimination period on the monthly benefit must be less than the elimination period on the lump sum benefit. Not available in California. For state approvals, go to: principal.com/distateapprovals.principal.com/distateapprovals Key Person Replacement Insurance Guidelines Issue Ages18 to 55 (single- and multi-life) Occupation Classes3A/3A-M and above Elimination PeriodsMonthly: 90 or 180 days 1 Lump sum: 180, 365 or 730 days Benefit OptionsLump sum or combination of monthly and lump sum Maximum Issue LimitsLump sum: Three times earned income, up to $500,000 Monthly benefit: Three times max Individual DI benefit available based on earned income, up to $20,000 Combination: Up to $750,000 Available Discounts 10% Select Occupation 20% Multi-Life (based on sex distinct rates)

For financial professional information only. Not for distribution to the public. Disability Buy-Out Insurance Objective: Funds a buy-sell agreement; helps buy-out a disabled owner’s interest in the business in the event of a long-term disability. Benefits Benefits are income tax-free – the disabled owner is taxed only on the gain from the sale of the business. 1 Provides a funding solution for the business.

For financial professional information only. Not for distribution to the public. Disability Buy-Out 1 Insurance Guidelines Business Interest & Number of Owners Must have 5% ownership interest Number of owners: Single owners 1,2 or 2-10 for 5A, 5A-M, 4A and 4A-M; 2-8 for 3A, 3A-M and 2A; 2-6 for A Issue Ages18 to 60 Occupation ClassesAll 1 Elimination Periods365, 540 and 730 Days Benefit Factors24, 36 and 60 Benefit Payment Methods Lump Sum, Monthly Installments, Combination of Lump Sum and Monthly Installment Maximum Aggregate Up to $3 million 1 – Not approved in all states. For state approvals, go to: principal.com/distateapprovals. 2 - Guidelines, limits and required documentation vary for single business owner DBO HH794 policies. For details, refer to the one-way buy-out market profile (JJ2166).

For financial professional information only. Not for distribution to the public. Disability Buy-Out Insurance Features Available Discounts Not all can be used together 10% Select Occupation 1 10% Association 2 20% Multi-Life (based on unisex rates) 5% Preferred Business Owner 2 Available Riders Benefit Update Benefit Update Valuation 2 Additional Features Death Benefit Exchange Privilege Full Benefit Continuation (cost) 2 Legal/Accounting Fee Benefit Transfer Privilege Waiver of Premium Benefit 1 – Not available on HH794 DBO policies. | 2- Not approved in all states. For state approvals, go to: principal.com/distateapprovals.

For financial professional information only. Not for distribution to the public. Objective: Provide employers with solutions to reward and retain employees Benefits Dozens of ways to structure design Solutions available for key employee and executive perks Employer-paid, employee-paid or combination Discounted premiums Multi-Life/Employer Offerings

For financial professional information only. Not for distribution to the public. Multi-Life/Employer Offerings PROGRAMBENEFITSDISCOUNTS Fully Underwritten Up to max issue and participation limits 20%: 3 or more lives required 1 Simplified Multi-LifeUp to $6,000/month 20%: 3 or more lives required 1 Standard Issue (GSI) Based on census and participating lives 20%: lives 2 25%: 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%: lives 30%: 100+ lives 1 - Greater discount may be available based on number of lives. | or more lives required for physicians

For financial professional information only. Not for distribution to the public. Sales Programs

For financial professional information only. Not for distribution to the public. Complimentary Business Planning Services Informal Business Valuation Five methods used to value the business First step to exit planning conversations Buy-Sell Agreement Review Helps identify potential gaps and provides customized recommendations Summarizes current funding provisions and options to address additional needs Fact Finder BB10847IDI

For financial professional information only. Not for distribution to the public. Business Owner Perks Business Owner Allowance –Opportunity for business owners to qualify for up to $2,000 of additional Individual DI Insurance benefit. Business Owner Program –Making it easier for business owners to qualify for our best rates Motivation Stability Success Size

For financial professional information only. Not for distribution to the public. Simplified Underwriting Maximum issue age –50 (64 for DI multi-life) Fewer routine medical requirements –No blood, urine, exams, EKGs or APSs required. 1 No income verification required for incomes – under $150,000 for Simplified DI or Simplified DI Multi-Life. 2 Accelerated Turnaround –Once the application, any supplements and TeleApp interview is completed and received. 1- Unless a significant and undisclosed medical condition is reported by MIB, significant medical information is derived from the TeleApp, or any other disability coverage has been issued or applied for on a non-medical basis. Urine/HIV test is required in Maine. Prescription history check may be required for physicians. This is not a guaranteed issue program; applications could be rated, ridered or declined. Subject to Issue & Participation limits and minimum premium requirement. | 2 -Financial documentation may be required for certain occupations regardless of income. OE and DBO supplements must also be completed and received. Combined Simplified OE and Simplified DI benefits cannot exceed $10,000/month.

For financial professional information only. Not for distribution to the public. PROGRAM ROUTINE MEDICAL APS/ EKGs FINANCIALSBENEFITS Simplified DINoNo 1 Required if income is above $150,000/year 2 Up to $4,000/month 3 Simplified Multi-Life NoNo 1 Required if income is above $150,000/year 2 Up to $6,000/month 3 Simplified OENoNo 1 OE Statement and Part A of the application Up to $10,000/month 3 Simplified DBO NoNo 1 DBO Statement and Part A of the application Up to $360,000 aggregate Simplified Sales Programs 1- Unless a significant and undisclosed medical condition is reported by MIB, significant medical information is derived from the TeleApp, or any other disability coverage has been issued or applied for on a non-medical basis. Urine/HIV test is required in Maine. Prescription history check may be required for physicians. This is not a guaranteed issue program; applications could be rated, ridered or declined. Subject to Issue & Participation limits and minimum premium requirement. | 2 -Financial documentation may be required for certain occupations regardless of income. OE and DBO supplements must also be completed and received Combined Simplified OE and Simplified DI benefits cannot exceed $10,000/month.

For financial professional information only. Not for distribution to the public. Questions? Principal Life Insurance Company, Des Moines, IA , DI | 4/2016 | ©2016 Principal Financial Services, Inc. For financial professional use only. Not for use in sales situations.