Help protect your income and financial future Individual Disability Income Insurance

How solid is your financial foundation?

What is your most valuable asset? Your home may be your biggest asset, but your ability to work and earn an income is your most valuable asset. 1 Motor Trend, January May Projected cumulative income, 35-year-old earning $6,250/month assuming 4% annual increase to age 65

Potential Earnings to Age 65 (with 5% annual salary increases) What is your earnings potential?

The Need Approximately 30% of all people aged 35 to 65 will suffer a disability for at least 90 days, and about one in seven can expect to become disabled for five years or more.* *Health Insurance of America, 2000

Times are different now. What used to cause death, now causes disability… For example, deaths due to hypertension are down 73%, while disabilities due to hypertension have increased by 70%.

Disabilities play no favorites The causes of disability may surprise you. Here’s a typical breakdown (by percentage of claims) of some typical reasons an individual may become disabled.

Source: Principal Life Disability Insurance claims incurred as of March The above is for illustration purposes only and is not intended as an inclusive representation of all claims. Real claims, it can happen ….

Which job would you rather have? * $100,000 less $1,500 in hypothetical annual disability income insurance premiums. Hypothetical premium amount paid and hypothetical annual benefit amount received depends on various factors. Your Financial Representative can illustrate the exact amount eligible for based on current underwriting guidelines.

Could you afford your home without your income? 48% of all home foreclosures are due to a disability. 1 1 out of every 18 mortgages are not being paid because of a disability to the mortgage holder. 2 Protect your mortgage with a disability income insurance policy from Principal Life Insurance Company. 1 - National Underwriter, May National Underwriter, May 2002 / HUD 1998

Can you live on 42% of your income? Is employer-provided group long-term disability (LTD) insurance coverage enough? Chart based on $6,250 gross monthly income ($75,000 annual), with 60% Group long-term disability program, assuming a 30% tax bracket for Federal, State and FICA

Are you covered? Expenses Housing Utilities Groceries Child Care College Tuition Retirement Auto Payments Credit Cards Loan payments Other Insurance Premiums Miscellaneous Disability-Related Expenses $ __________________ List your expenses and possible sources of income you would have if you were unable to work due to an injury or illness. Income Social Security Current DI Coverage Other Sources $ __________________ Total Expenses: $_________ Total Income Shortage: $_________ Disability Income Insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your Principal Life representative. Solution: Individual Disability Income insurance

Questions? Principal Life Insurance Company, Des Moines, Iowa , © 2007 Principal Financial Services, Inc. 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. 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. DI 2245 | HH 641/HH 643/HH 644/HH 750 | #