IUL Accumulation Everyone loves a good accumulation story

Professionals, business owners, key employees Principal Indexed Universal Life AccumulationSM (IUL Accumulation) offers protection to help meet family, retirement and business needs with: Greater growth potential than fixed UL, and without the full market risk of variable products Features that maximize accumulation and optimize distributions Most appropriate for: Ages 35 - 55 Professionals, business owners, key employees Need supplemental income source All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. For financial professional information only. Not for use with the public

Features for accumulation and distribution Index-linked accounts Loan options Accumulated value enhancement Adjusted segment balance Surrender Value Enhancement Rider Automated income platform For financial professional information only. Not for use with the public.

Accounts that fuel growth potential S&P 500 price return index- linked account Crediting method: Annual point- to-point. Key benefit: Can produce strong index interest in many types of positive index movements. Current rates:* Participation: 100%, Cap: 12%, Floor: 0% S&P 500 total return index- linked account Crediting method: Annual monthly average. Key benefit: Index value includes reinvested dividends. Valuable in volatile markets. Current rates:* Participation: 110%, Cap: 18%, Floor: 0% Fixed account Crediting method: Crediting rate is declared by Principal®. Key benefit: Guaranteed minimum rate of 2% Current rate:* 4.5% * Rates are subject to change For financial professional information only. Not for use with the public.

A reward for long-term policy ownership Accumulated value enhancement is a 0.25% rate credited to net accumulated value in policy years 11+ Guaranteed as long as the Fixed Account is crediting more than the guaranteed minimum (2%) Credit is applied regardless of index performance Illustrations – reflected in Current Values column For financial professional information only. Not for use with the public.

A balance sheet boost for business clients Surrender Value Enhancement Rider is used when a business needs high early cash surrender values Year 1 cash surrender value generally in excess of 95 percent of premium, within our target market and with proper funding Greater up-front values result in lower long-term values For financial professional information only. Not for use with the public.

Income flexibility with loan options Standard policy loan Alternate policy loan Offers Certainty Opportunity Charge rate Fixed Credit rate Variable (Ranges between cap and floor) Advantage Current zero net-cost yrs. 11+ Potential for indexed gains Disadvantage No indexed gains Potential large net cost For financial professional information only. Not for use with the public.

How loans work Assumes $100,000 cash value and $20,000 loan taken Standard loan Alternate loan For financial professional information only. Not for use with the public.

Giving credit where credit is due Starting value Partial surrender @ end of mo. 6 Index-linked rate credited Index-linked interest applied Principal approach $10,000 $5,000 10% $750 [($10k x .5) + ($5k x .5)] = $7,500 x 10% Other approach $500 ($5k x 10%) This example simplifies the formula – it’s actually based on the number of days money withdrawn is in the segment. Significant benefit in the draw-down phase For financial professional information only. Not for use with the public.

Turning accumulation into distributions What it does Benefit Payments start Single form begins income stream Lets client make better use of time Death benefit option changes Flips from DBO 2 to DBO 1 Maximizes accumulation, prepares for distribution Distribution type changes Switches from surrenders to loans at cost basis Keeps income tax-free Income re-calculated Amount is adjusted based on actual performance Ensures target-ending cash value goal Life Paid-Up Rider activates Policy converts to reduced paid-up status Prevents policy lapse and resulting taxes For financial professional information only. Not for use with the public.

A unique supplemental retirement story Start with time-saving Principal Accelerated UnderwritingSM No lab testing or paramed exams1 for those who qualify 2. Add the benefits of an accumulation-focused IUL product Index-linked growth potential without market participation No income-based funding limits Get easy access to cash Automated income platform No penalty for withdrawals prior to age 59½2 Tax-free3 income that adds tax diversification to a portfolio Availability of death benefit advances (chronic and terminal illness4) allow other retirement assets to remain intact 1 For 40-50% of applicants who qualify based on age, product, face amount and personal history 2 As long as the policy isn’t a Modified Endowment Contract 3 If structured properly, withdrawals and policy loans are not taxable 4 Availability varies by state For financial professional information only. Not for distribution to the public.

Start selling it today All marketing materials available at principlal.com/iulaccum Call for quotes and case design assistance Refer to slide. For financial professional information only. Not for distribution to the public.

Principal National Life Insurance Company and Principal Life Insurance Company, Des Moines, Iowa 50392-0002, www.principal.com Insurance products from the Principal Financial Group® (Principal ®) are issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co. S&P® and S&P 500® and S&P 500® Total Return are registered trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by The Company. The S&P 500® and S&P 500® Total Return is a product of S&P Dow Jones Indices LLC and has been licensed for use by The Company. The Company’s policy is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or its affiliates and none of S&P Dow Jones Indices LLC or its affiliates make any representation or warranty regarding the advisability of investing in such product(s). Principal, Principal and symbol design and Principal Financial Group are trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group. BB11931-01 | 06/2018 | 498647-052018 | ©2018 Principal Financial Services Disclosures

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