Principal Secure Choice Indexed AnnuitySM Training

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Agenda Why fixed deferred indexed annuities? Profile of an indexed annuity client Principal Secure Choice Indexed Annuity Principal Secure Choice crediting methods For financial professional use only. Not for distribution to the public.

Why fixed deferred indexed annuities? Provides a way to save tax-deferred for retirement Provides a long-term savings plan Provides guaranteed lifetime income Assures continuing income for spouses Provides a guaranteed death benefit to beneficiaries Death benefit passes outside probate Guarantees are based on the claims-paying ability of Principal Life Insurance Company. For financial professional use only. Not for distribution to the public.

A typical indexed annuity client is… In or near retirement Concerned about market volatility and looking for a savings vehicle to protect their principal Looking for financial portfolio diversification Wants returns that can better track inflation and aren’t subject to losses Concerned about outliving his or her savings Saving for the long term Wants higher level of protection — guaranteed death benefit and guaranteed income for life Guarantees are based on the claims-paying ability of Principal Life Insurance Company. For financial professional use only. Not for distribution to the public.

Principal Secure Choice Indexed Annuity 4, 5, 6 and 7-year surrender charge periods Choice between two crediting methods: Annual Point-to-Point Performance Trigger Opportunity for growth because performance with both crediting methods is based in part on the performance of the S&P 500® Index (excluding dividends) Allocate accumulated value to one crediting method at a time, but can switch between methods at each contract anniversary For financial professional use only. Not for distribution to the public.

Annual Point-to-Point Index Crediting Method Crediting methods Annual Point-to-Point Index Crediting Method Index Crediting Amount Amounts credited linked to the S&P 500® Index Contract measures the percentage change in the index from the beginning of a contract year to the end of that contract year The percentage change is credited to the accumulated value up to the specified cap Index credit amount equals the accumulated value, multiplied by the lesser of: The index change multiplied by participation rate, or The index cap Once index credit amounts are credited, they are locked in and will not decrease in subsequent years, even if the S&P 500® Index declines Amount credited will never be less than zero Credited annually at each contract anniversary Index Cap Set at contract issue Adjusted annually Minimum index cap set at contract issue and for each subsequent surrender charge period Participation Rate Will not change for the life of the contract The S&P 500® Index does not reflect dividends paid on the stocks underlying the index. If renewal would extend the contract beyond the annuitization date these will be redetermined annually on each contract anniversary. For financial professional use only. Not for distribution to the public.

Performance Trigger Index Crediting Method Crediting methods Performance Trigger Index Crediting Method Index Crediting Amount Amounts credited linked to the S&P 500® Index Index credit amount equals (if the index performance is either flat or positive) the accumulated value, multiplied by the trigger percentage Once index credit amounts are credited, they are locked in and will not decrease in subsequent years, even if the S&P 500® Index declines Amount credited will never be less than zero Credited annually at each contract anniversary Trigger Percentage Set at contract issue Adjusted annually Minimum trigger percentage set at contract issue and for each subsequent surrender charge period The S&P 500® Index does not reflect dividends paid on the stocks underlying the index. If renewal would extend the contract beyond the annuitization date these will be redetermined annually on each contract anniversary. For financial professional use only. Not for distribution to the public.

Product details Minimum initial premium $10,000 or more (qualified or nonqualified) Maximum initial premium $2 million Maximum issue age is 85* Annuity matures at age 95 Premium credit is the percentage of the premium to be credited to the accumulated value at contract issue Clients may be eligible for a higher premium credit percentage by increasing their premium1 1May not be available with all surrender charge periods. For financial professional use only. Not for distribution to the public.

Product details Renewal window during the last 30 days of the surrender charge period1 Client automatically renews into the same surrender charge period (unless they elect another surrender charge period); surrender charges restart Client receives the best index cap or trigger percentage between the beginning and end of the renewal window based on the index crediting method chosen During the renewal window client can withdraw accumulated value without paying any surrender charges 130-day renewal feature is not available in Florida or Delaware. Florida and Delaware contracts will renew into a one-year guarantee period at the end of the initial guarantee period and surrender charges will not restart. For financial professional use only. Not for distribution to the public.

Product details Free surrender amount will be greater of: 10% of contract year accumulated value Minimum distribution required by the IRS for qualified plans The minimum accumulated value must be at least $5,000 For financial professional use only. Not for distribution to the public.

Surrender charges Period 4-Year 5-Year 6-Year 7-Year Year 1 9% Year 2 8% Year 4 7% Year 5 6% Year 6 5% Year 7 4% For financial professional use only. Not for distribution to the public.

Guaranteed minimum surrender value1 If clients fully surrender the contract, they’re guaranteed 90% of their original investment minus any withdrawals, growing at 1% per year Clients receive the guaranteed minimum surrender value if the surrender value is greater than the contract’s accumulated value minus any applicable surrender charges 1While this guarantee can be beneficial to clients who decide to fully surrender the contract after a long period of negative market growth, it is not a guaranteed minimum interest rate. Guarantees are based on the claims-paying ability of Principal Life Insurance Company. Subject to change upon renewal. For financial professional use only. Not for distribution to the public.

Product details When are surrender charges waived? Death or annuitization Waiver of Surrender Charge rider – Terminal illness – Nursing home – Disability During the 30-day renewal window For financial professional use only. Not for distribution to the public.

Policy rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details. Riders are subject to state availability. 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®. Not FDIC or NCUA Insured May lose value · Not a deposit · No bank or credit union guarantee Not insured by any Federal government agency Insurance issued by Principal Life Insurance Company. Principal Life is a member of the Principal Financial Group®, Des Moines, IA 50392, principal.com For financial professional use only. Not for distribution to the public. RF2177B-04 | © 2016 Principal Financial Services, Inc. | t15111302ms | 07/2016