For financial professional use only. Not for distribution to the public. Life Insurance Opportunities in Property & Casualty Agencies Presenter Name Presenter Title Date

For financial professional use only. Not for distribution to the public. 43% of workers report neither they nor their spouse currently saving for retirement 57% report <$25K in savings and investments $6.8 trillion in pre-retiree financial assets Just 1 of 7 has formal written plan for managing income, assets and expenses in retirement 80% of SMBs no key person insurance >75% of Americans un-insured or underinsured (life insurance) $4 trillion = value of pre-retiree business ownership 76% of SMBs no buy-sell plan, 99+% no ESOP Illiquid Un-insured/ Under-insured Under-planned Under-saved Sources: The 2013 Retirement Confidence Survey, Employee Benefits Research Institute, Mar. 2013; The Pre-Retiree Market: Surveying the Landscape, LIMRA, 2012; Harris Interactive, Business Owner Research, 2012; Many Americans Misinformed About the Cost of Life Insurance, LifeHealthPro, Sept. 10, Market Opportunity

For financial professional use only. Not for distribution to the public. Property & Casualty Opportunity P&C agencies can be a great fit for broadening the risk protection solutions you offer to include life insurance. P&C product commissions continue to decline Health care legislation Need to escape commoditization Life insurance — a proven method And, you have a full list of clients — great prospecting tool!

For financial professional use only. Not for distribution to the public. The Life Insurance Solution Addresses critical risk areas for individuals and businesses Individual ownership down Business ownership is critically low Fewer life agents than P&C agents Life insurance is: –A natural extension of existing business –A way to diversify revenue –A way to strengthen relationship with client –Helps ensure your clients business (and their P+C revenue stream) stays steady

For financial professional use only. Not for distribution to the public. The Principal Difference Lean on us when you need help! All encompassing business life insurance solutions and support — not just product Help you identify and capitalize on the opportunity Protect the client’s needs Strengthen agency/client relationships Guide agents through the process of adding life insurance to their current business

For financial professional use only. Not for distribution to the public. Life Insurance Protection

For financial professional use only. Not for distribution to the public. Life Insurance Advantages Life insurance can be a great solution to your client’s risk protection needs. Death benefit, generally free from income tax Cash value that grows tax-deferred Cost basis (premiums paid) can be recovered on a FIFO basis without being subject to income tax* Loans can generally be taken against the cash value without being subject to income taxation* From an accounting standpoint, life insurance is a tax- advantaged asset on your clients financial statements * As long as the policy is not a modified endowment contract (MEC).

For financial professional use only. Not for distribution to the public. Personal Lines Client Needs Income replacement Funeral expenses Pay off debt Pay off mortgage Estate taxes Estate equalization/creation The Principal Financial Well Being Index, 2 nd Quarter 2013.

For financial professional use only. Not for distribution to the public. Commercial Lines Client Needs Business owners purchase life insurance for a multitude of reasons, including to help: Protect the value of the business for their survivors Supplement retirement savings Retain and reward key employees with an additional benefit Cover the debt of the business for creditors. Protect against financial loss due to the death of a key employee

For financial professional use only. Not for distribution to the public. Principal UnderRight SM Fast. Easy. Just Right.

For financial professional use only. Not for distribution to the public. Principal Accelerated Underwriting SM Available for qualified individual and business applicants, seeking up to $1 million in coverage, ages 18-60: Complete Part A and C of application, including Producer Report, HIPAA, Informed Consent Form, etc. Schedule phone interview No labs, no paramed tests for the 50-60% of applicants who qualify* Underwriting decisions in as little as 48 hours –Policy either issued or sent to full underwriting *Based on age and face amount requirements.

For financial professional use only. Not for distribution to the public. Multi-Life Underwriting Guaranteed Issue SI – Standard/Decline SI - Teleapp Guaranteed 10 or more lives 100% participation 3 questions: Actively at work Absenteeism Tobacco usage Multiples impacted by ownership All permanent products available Standard risk or declined 5 or more lives 75% - 100% participation Simplified application with 6 additional questions Multiples impacted by participation rate All permanent products available Guaranteed availability 5 or more lives 75% - 100% participation Teleapp, MIB, Oral Fluid (APS & MVR if warranted) Additional ratings may apply All permanent products

For financial professional use only. Not for distribution to the public. Business, Owner & Executive Solutions

For financial professional use only. Not for distribution to the public. Multiple Strategies for Multiple Markets Simplified Solutions – Example Using Key Person Consultative Approach – Using Informal Business Valuation and Buy Sell Review Services Tax Planning Approach – Approach with Principal SERP Select SM

For financial professional use only. Not for distribution to the public. Support Before, During & After the Sale The BOES Platform MarketingSalesService Complimentary informal business valuation and buy-sell review Simplified fact finding Business priorities checklist Calculators - Key Person - Retirement Gap - Estate Equalization More than 30 unique plan designs Customized proposals illustrating multiple financing options Products and underwriting for the business market Accelerated Underwriting GI/SI offered on all permanent products Business Market Administration (BMA) – comprehensive plan- level services Annual employee and employer reporting Online access Economic benefit and 101(j) reporting More than 30 plan types, more than 12,000 plans on the books, serving more than 25,000 participants

For financial professional use only. Not for distribution to the public. All-Encompassing Business Life Insurance Solutions Business, Owner & Executive Solutions Nonqualified Deferred Compensation Employee Stock Ownership Plans (ESOP) Key person Buy sell – exit planning Supplemental Retirement Plans (Executive Bonus/SERP Select/Select Reward) Estate planning Elective and supplemental deferred compensation Comprehensive ESOP support Coordinate with BOES on related funding of solutions Management of repurchase obligation All retail life products (variable and fixed) Focus: Protection and retirement income Variable corporate-owned life insurance (COLI) Retirement income All retail life (variable and fixed) and variable COLI Protection and retirement income Sales support coordinated case by case Comprehensive sales support Administration (BMA) – no fee Administration – for a feePolicy administration (BMA)- no fee ESOP plan administration (ESOP platform) – fee-based

For financial professional use only. Not for distribution to the public. Marketing Tools

For financial professional use only. Not for distribution to the public. Revenue Opportunity Calculator

For financial professional use only. Not for distribution to the public. Simple Calculator Inputs Mobile- Friendly

For financial professional use only. Not for distribution to the public. Customized Output

For financial professional use only. Not for distribution to the public. Business Planning Services Fact Finder 5 easy questions to open a business case!

For financial professional use only. Not for distribution to the public. Informal Business Valuation Proposal

For financial professional use only. Not for distribution to the public. Buy-Sell Review Report

For financial professional use only. Not for distribution to the public. Sales Support We have a complete package of materials to approach, educate and help guide your clients to finding solutions to their financial needs. Sales Opportunity Guides for Commercial & Personal Lines Approach and strategy Discussion topics Planning needs and recommendations Let us handle the heavy lifting, while you strengthen your client relationships and grow your business.

For financial professional use only. Not for distribution to the public. Thank You! Start building your life insurance sales opportunities today!

For financial professional use only. Not for distribution to the public. 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 are 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 products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Securities offered through Princor Financial Services Corp., , Member SIPC and/or independent broker/dealers. Principal National, Principal Life, and Princor ® are members of the Principal Financial Group ®, Des Moines, IA 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 . Copyright ©2014 Principal Financial Services, Inc. BB | 09/2014 | t iz