1. For Producer Information Only - Not for Client Presentation PROTECT RETIREMENT SAVINGS DI Retirement Security

2. For producer information only. Not for use in sales situations. DI Retirement Security 1 in 4 of today’s 20-year olds will become disabled before retiring. 1 1 Social Security Administration Fact Sheet, April 2014 | 2 Employee Benefit Research Institute 2014 Retirement Confidence Survey underwritten by the Principal Financial Group ® The risk of a disability The #1 reason for an unexpected early retirement is health problems. 2

3. For producer information only. Not for use in sales situations. DI Retirement Security How would a disability affect your clients? If your clients became too sick or hurt to work, could they… Continue to pay their regular expenses? Maintain their lifestyle? Contribute to their qualified retirement plans? Receive any employer match on those contributions? Contribute to Social Security?

4. For producer information only. Not for use in sales situations. DI Retirement Security Managing those disability risks Individual Disability Income insurance Helps replace a portion of income in the event of a disability DI Retirement Security Helps continue retirement savings contributions in the event of a disability 1 2

5. For producer information only. Not for use in sales situations. DI Retirement Security About DI Retirement Security Pays Individual Disability Income benefits to a trust to be accessed as retirement income.

6. For producer information only. Not for use in sales situations. DI Retirement Security How it works Principal Life Client Irrevocable Trust Premium Benefits deposited and invested Benefits paid out during retirement

7. For producer information only. Not for use in sales situations. DI Retirement Security Assumptions: $2,000/month contributions beginning at age 30, 5% rate of return and age 65 retirement. Consequences of disability at age 40, without DI Retirement Security. The impact on retirement savings

8. For producer information only. Not for use in sales situations. DI Retirement Security Retirement completion

9. For producer information only. Not for use in sales situations. DI Retirement Security Key Features and Product Details

10. For producer information only. Not for use in sales situations. DI Retirement Security 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: www.principal.com/bankerstrust

11. For producer information only. Not for use in sales situations. DI Retirement Security 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 Available for single-life or multi-life cases Occupation classes: All 1– For 2015; maximum amount subject to change based on annual IRS defined contribution 2 – Includes a $50 monthly trust administration fee.

12. For producer information only. Not for use in sales situations. DI Retirement Security Program guidelines Issue ages: 18-60 (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 Discounts: 2 10% Affiliation, 10% Association, 20% Multi-life, 10% MNSA rider, 10% Select Occupation 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. The discount is up to 5% in TX. 2 – Not all discounts can be stacked together and may not be available in all states.

13. For producer information only. Not for use in sales situations. DI Retirement Security Underwriting guidelines DI Retirement Security only Underwriting decision based on the TeleApp and application No other medical underwriting requirements requested Combination DI + DI Retirement Security Underwriting decision based on full medical and financial underwriting guidelines

14. For producer information only. Not for use in sales situations. DI Retirement Security Underwriting guidelines DI Retirement Security is not available for: –Government employees –Individuals who are over-insured based on Principal Life’s current Issue and Participation guidelines. If client has Individual DI coverage with lifetime benefits: –DIRS may not be available, or –Amount may be reduced

15. For producer information only. Not for use in sales situations. DI Retirement Security Three ways to access to trust assets 1.At the end of the benefit period 2.In the event of certain financial hardships 1, such as: Extraordinary medical expenses not covered by insurance Payment of post-secondary education and related fees Inability to make payments on principal residence 3.If the client has not been eligible to receive benefits for 12 consecutive months 1 Upon Banker’s Trust approval

16. For producer information only. Not for use in sales situations. DI Retirement Security Taxability Benefits Tax-free if premiums are paid by individual with after-tax dollars Taxable if premiums are paid by an employer Trust earnings Taxable annually to the client unless benefits are invested in a tax-deferred annuity Clients receive an annual 1099 form from the trust administrator Clients do not need to pay additional taxes on distributed funds that have already been taxed.

17. For producer information only. Not for use in sales situations. DI Retirement Security Forms needed at application time State-specific individual disability insurance application DI Retirement Security supplemental form Signed Trust Agreement Financial and underwriting requirements, as requested by Underwriting

18. For producer information only. Not for use in sales situations. DI Retirement Security Getting started — target market Earn at least $76,000 annually Already have income protection coverage Currently saving for retirement (no documentation required) Majority of policies sold to 3A and above occupations, such as: –Corporate executives, accountants/CPAs, attorneys, business owners, engineers and medical professionals Clients working 20+ hours per week

19. For producer information only. Not for use in sales situations. DI Retirement Security Five Sales Tips 1 Sell DI and DI Retirement Security together 2 Enhance employee benefit packages 3 Talk to clients who are maxing out their 401(k)s 4 Talk to clients who have met their DI issue limits 5 Discuss it during investment reviews

20. For producer information only. Not for use in sales situations. DI Retirement Security Case Study Overview Client had just established a $12 million employer-sponsored 401(k) plan Sales approach Emphasized the importance of continuing retirements savings Solution Voluntary DI Retirement Security program (standard issue; multi-life discount) Compensation 1 $7,510 annual premiums $3,755 FYCs $1,502 renewals Compensation 1 $7,510 annual premiums $3,755 FYCs $1,502 renewals 1 Series 700 compensation – 50% FYCs, no annual coverage increases, 100% persistency, renewals based on 5 year projection.

21. For producer information only. Not for use in sales situations. DI Retirement Security Sample monthly rates AgeMaleFemale 25$30$48 30$35$64 35$42$71 40$53$84 45$66$91 Assumptions: Michigan resident, $2,000/month benefit, 180-day elimination period, To age 65 Benefit Period and Your Occupation Period, 5A occupation class, non-tobacco. $2,000 monthly benefit

22. For producer information only. Not for use in sales situations. DI Retirement Security 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 Financial Group ® are 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, individuals with Group LTD coverage that includes a “retirement supplement,” 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. Disability income insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your Principal Life financial representative. This is a general summary only; additional guidelines and state variations apply. Principal Life Insurance Company is a member of the Principal Financial Group ®, Des Moines, IA, 50392. DI9201 | 12/2014 | © 2014 Principal Financial Services Inc.