Principal Indexed Universal Life Flex II℠ Cost-effective coverage with an indexed boost

Why Indexed Universal Life (IUL)? Large and growing market Upside potential, downside protection Two options to meet the need Get your share: Talking to your clients about Principal IUL can create new opportunities for you and protection solutions for them. For financial professional information only. Not for use with the public.

A fresh new look for IUL Flex Non-network 2017 CSO update Align with the market Meet regulatory requirement Shift more toward where the market is Maintain strengths All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. For financial professional information only. Not for use with the public.

What changed? Lower policy charges and cap Premiums for long-term coverage improved 20-year cash values hold steady Shorter surrender charge period for older insureds Increase in loan charge rate For financial professional information only. Not for use with the public.

Get more with less A lower cap enables lower policy charges, which makes the product: Less sensitive to index-linked returns. Better able to compete when illustrated at lower rates. Some people are more comfortable with a lower maximum illustrated rate. For financial professional information only. Not for use with the public.

Low-cost coverage Male, age 55, Preferred Non-Tobacco, $1 million death benefit, premium solve for $1 of cash value at age 100 Premium @ Maximum rate @ 5% 20-year cash value Lapse age IRR AIG Value+ IUL $10,482 $191,749 100 -0.9% $170,925 95 -2.0% Principal IUL Flex II $10,587 $239,815 1.2% $210,191 96 -0.1% John Hancock Protection IUL $10,939 $169,800 -2.5% $136,998 90 -4.7% Protective Indexed Choice UL $11,087 $256,561 1.4% $233,449 0.5% AXA BrightLife Protect $11,368 $203,418 -1.1% $195,565 -1.5% Pacific Life Indexed Protector 2* $11,772 $102,009 -8.9% $87,295 92 -10.8% *40% blend The data shown in these comparisons is taken from various company illustrations. Information is current and accurate to the best of our knowledge as of September 2017. The comparisons in this communication are of different products that vary in fees, expenses, features and benefits. For financial professional information only. Not for use with the public.

Efficient cash value accumulation Age 55, male, Preferred Non-Tobacco, $1 million death benefit, DBO 1, CVAT $10,587 level-pay prem. for all products Cap Maximum rate 20-year cash value Protection to age Principal IUL Flex II 10.00% 6.05% $239,839 100 Protective Indexed Choice UL 9.50% 5.81% $237,930 97 Nationwide YourLife IUL Protector 9.00% 6.40% $210,842 AIG Value+ IUL $196,072 101 VOYA IUL Protector 10.50% 6.28% $176,058 89 AXA BrightLife Protect 8.50% 5.32% $175,533 93 Prudential Founders Plus UL 9.25% 5.70% $167,476 95 The data shown in these comparisons is taken from various company illustrations. Information is current and accurate to the best of our knowledge as of September 2017. The comparisons in this communication are of different products that vary in fees, expenses, features and benefits. For financial professional information only. Not for use with the public.

Who’s a good prospect? Age 35-65 Budget-conscious Believes in the market but doesn’t want the volatility Seeks more growth opportunity than fixed products offer For financial professional information only. Not for use with the public.

The right product for the situation Principal IUL Flex II Principal IUL Accumulation Funding level Up to 2X IUL Flex II target premium IUL Accumulation target premium and greater Maximize protection • Long-term guarantees are important Illustrating at lower rates Cash value growth is most important Intend to take income stream Need high early cash value (business case) For financial professional information only. Not for use with the public.

What are top strategies? Businesses Executive benefits for key employees Key person protection Buy-sell plan Families Income replacement Estate planning Sales idea: look at an IUL Flex II and UL Protector IV combo.   For financial professional information only. Not for use with the public.

Ready to get started? Brush up on the details with updated marketing materials. Talk to the specialists - your life RVP or internal wholesaler. Build your client conversations: Consumer video Introduction to IUL brochure For financial professional information only. Not for use with the public.

Principal National Life Insurance Company and Principal Life Insurance Company, Des Moines, Iowa 50392-0002, www.principal.com Insurance products issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co. Principal National and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. S&P® and S&P 500® and S&P 500® Total Return are registered trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by The Company. The S&P 500® and S&P 500® Total Return is a product of S&P Dow Jones Indices LLC and has been licensed for use by The Company. The Company’s policy is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or its affiliates and none of S&P Dow Jones Indices LLC or its affiliates make any representation or warranty regarding the advisability of investing in such product(s). For financial professional use only. Not for use with the public. Principal, Principal and symbol design and Principal Financial Group are trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group. BB12084 | 10/2017 | t17092509y9 | ©2017 Principal Financial Services, Inc.     

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