PROTECT YOURSELF FROM THE THREAT OF A DISABILITY [Association Name]

What are the chances? 1 in 4 of today’s 20-year olds will become disabled before retiring. 1 95% of disabilities are caused by illnesses, not injuries. 2 1 Social Security Administration Fact Sheet, April (2014 Long Term Disability Claims Review, Council for Disability Awareness, viewed 09/15) 95%

[Association Name] Member Discount Up to a [XX]% Discount 1 Principal Life Insurance Company has worked with the [Association Name] to offer members up to a [XX]% discount 1 on Individual Disability Insurance solutions 2 : Individual Disability Income (DI) Overhead Expense Disability Buy-Out These solutions help to protect your income and business from the threat of a disability. 1 Up to [XX]% refers to the 10% association discount, [10% select occupation discount], [10% affiliation discount] and [up to a 10% Mental/Nervous Substance Abuse Disorder Limitation (MNSA) rider discount]. 2 Financial products available under the association program may differ depending on state approval.

Individual DI insurance Flexible Solutions Fully portable Optional riders Tax-free benefits 1 Advantages: Help maintain your current lifestyle without draining savings or business profits Provide for your family Continue saving for future dreams and retirement Objective: Helps replace a portion of lost income in the event of a disability. 1 When premiums are paid with after-tax dollars

Objective: Reimburses business owners for covered business expenses incurred during a disability. Advantages: Helps ensure your business can remain open if you become too sick or hurt to work. Helps you: −Return to a financially sound business; or −Sell a business that has not depreciated because of the owner’s disability TIP: Maintain your financial health Benefits can help you maintain your financial health and credit ratings Overhead Expense

Lease or mortgage payments Utilities Employee salaries and benefits (some limitations apply) Payments for leasing or purchasing furniture and equipment Accounting, billing, and collection fees Janitorial, security, and maintenance Premiums for malpractice, property, and liability insurance Professional trade dues and subscriptions Overhead Expense Sample covered expenses

*Contact your tax advisor for details. Benefits are tax free when premiums are paid with after-tax dollars. Objective: Funds a buy-sell agreement; reimburses the purchase of a disabled owner’s interest in the business in the event of a long-term disability. Advantages: Benefits are income tax-free – the disabled owner is taxed only on the gain from the sale of the business* Provides a funding solution for the business TIP: Check your Buy-Sell Agreement Make sure it covers total disability and is properly funded. Disability Buy-Out insurance

Principal Life Insurance Company, Des Moines, IA 50392, Disability insurance has limitations and exclusions. For cost and coverage details, contact your Principal Life financial representative. This information 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. 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 ®. DI | 11/2015 | © 2015 Principal Financial Services, Inc. For More Information [Name] [Title] [Company] [ ] [Phone]