For producer information only. Not for use in sales situations. Why is income protection important The people it helps protect.

For producer information only. Not for use in sales situations. 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 The 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. These testimonials may not be representative of other clients’ experiences. It does not imply or guarantee benefits. Jon Montpas and Bruce Hentschel were employees of Principal at the time. Sherron and James Williams and Nancy Thomas have not been paid for their testimonials. 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 Disability insurance has exclusions and limitations. For costs and complete details of the coverage, contact your Principal Life financial 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 Principal ®. Disability insurance from Principal® is issued by Principal Life Insurance Company, Des Moines, IA

For producer information only. Not for use in sales situations. “The one-time benefits covered all my out-of-pocket medical expenses. I was able to take care of the hotel and other expenses, too. I’ve not taken a negative financial hit.” Jon Montpas, IT/Marketing Professional, Principal Claimant “The one-time benefits covered all my out-of-pocket medical expenses. I was able to take care of the hotel and other expenses, too. I’ve not taken a negative financial hit.” Jon Montpas, IT/Marketing Professional, Principal Claimant “I thought income protection would be a wise thing to purchase because you never know what’s going to happen in life.” Nancy Thomas, Teacher – Principal Claimant “I thought income protection would be a wise thing to purchase because you never know what’s going to happen in life.” Nancy Thomas, Teacher – Principal Claimant If James had no coverage, we probably wouldn’t be in our house and would be closing the law firm. My kids would need financial aid to stay in school.” Sherron Williams, Wife of Principal Claimant James Williams, Attorney If James had no coverage, we probably wouldn’t be in our house and would be closing the law firm. My kids would need financial aid to stay in school.” Sherron Williams, Wife of Principal Claimant James Williams, Attorney “The real benefit I received was the comfort and peace of mind that our finances would not be an issue.” Bruce Hentschel, Executive, Principal Claimant “The real benefit I received was the comfort and peace of mind that our finances would not be an issue.” Bruce Hentschel, Executive, Principal Claimant Don’t take it from us, listen to real claimants:

For producer information only. Not for use in sales situations. Our claimants are among the lucky few who have income protection. Fact: Only 1 in 4 households in the US have disability insurance Insurance Barometer Study, Life Happens and LIMRA, resources/agent/barometer2015/, viewed 09/15

For producer information only. Not for use in sales situations. They value … Yet, they …protect Source: 2014 Disability Awareness Study, Council for Disability Awareness. Viewed 3/2016. Most recent available. We need to start the conversation with today’s consumers.

For producer information only. Not for use in sales situations. Help your customers understand the value of their income and all it provides: Paying for everyday expenses and saving for the future!

For producer information only. Not for use in sales situations. Financial security starts with protecting their income.

For producer information only. Not for use in sales situations. They need your help getting started Just keep it simple.

For producer information only. Not for use in sales situations. Start by asking them how they enjoy spending their time and what is important to them. Ask them to consider why they insure things like: Then ask them to insure their paycheck. & Make income protection relatable

For producer information only. Not for use in sales situations. Have them consider their mental checklist: Make income protection relatable

For producer information only. Not for use in sales situations. Share a real life story. Have them think about their network of friends and family – do they know anyone who has been impacted by a serious illness or injury ? Make income protection relatable

For producer information only. Not for use in sales situations. Have them consider what they would do if they no longer had an income Savings? Retirement Accounts? Emergency Funds? Family and friends? Social Security Disability? Loans from a bank or credit cards?

For producer information only. Not for use in sales situations. Help them understand that no one is invincible or can predict the future – and disabilities happen. Overcome common assumptions Most disabilities are things we can’t see and are caused by common conditions like back pain, arthritis, depression and cancer.

For producer information only. Not for use in sales situations. It doesn’t need to be expensive. Overcome common assumptions Typically disability insurance is 1 to 2% of annual income. 1 Colorado resident, male, non-smoker, To Age 65 Your Occupation and Benefit Periods, Residual Disability and Recovery Benefit rider, 10% Select Occupation Discount. These comparisons are for illustrative purposes only.

For producer information only. Not for use in sales situations. Employer-provided disability coverage is a great start, but often it’s not enough. Overcome common assumptions Before a disability … Most group policies cover 60% of income – before taxes After a disability … Can they afford to live on 40% of their income?

For producer information only. Not for use in sales situations. Understand the need and value. Coverage was offered at work. Experienced a life event (new house, new child, etc.). Advisor recommend the product. Recommendation from a friend or family member (especially more likely for younger consumers to select). …and ASK for the sale. Share why others buy income protection Source: 2015 Principal ® Well-Being Index.

For producer information only. Not for use in sales situations. Not sure who needs income protection? Nearly everyone in the working population.

For producer information only. Not for use in sales situations. Ages 22 to 50 (solutions available for those 18 to 60). Earning over $40,000/year. Rely on their income. Healthy and working in a professional-type occupation. Helps you connect with others (Bonus: You may be able to discount their Principal DI coverage). Have other risk protection or financial solutions with you. Ideal Consumer for Income Protection

For producer information only. Not for use in sales situations. Not sure what to offer?

For producer information only. Not for use in sales situations. Talk about the benefits of coverage Monthly benefit payments that could pay millions – and customized coverage for you. Guarantees cost of coverage to age 65. Can’t be canceled unless you stop paying for coverage. Stays with you even if you change jobs. Works well with other disability income solutions. USE THE PROPOSAL For illustrative purposes only.

For producer information only. Not for use in sales situations. Talk about the service. Remember, that you’re selling a promise of: Security. A financial safety net.

For producer information only. Not for use in sales situations. Next steps … Talk about income protection with every client. Offer an income protection review.

For producer information only. Not for use in sales situations. You’ll need this information for a personalized proposal Name Gender Date of birth Occupation and job duties Salary State of residence Tobacco use Known medical issues Desired amount of income replacement benefit Any known existing disability coverage

For producer information only. Not for use in sales situations. Sell $82,500 of first-year premium Individual Disability Income insurance policies in a month. 2 Businesses funding buy- sell agreements with Disability Buy-Out Insurance. 3 Multi-life Individual DI insurance cases with employer involvement. 4 OR 1 Series 700 Compensation schedule (compensation for business products in California differs). Assumes 50% first-year commissions and Quality Business and Quality Producer bonuses for $82,500 in first-year premium. 2 Average premium of $2,500 per policy. 3 Average 3 owners per business; average premium of $3,400 per policy. 4 Average of 11 employees per case; average premium of $1,364 per policy. How can you earn $100,000 in a year?

For producer information only. Not for use in sales situations. Thank you. DI9584 │ 04/2016 | © 2016 Principal Financial Services, Inc.