Protecting what matters most Business owners share what’s important to them and how they plan to protect it Presenter’s name The presenter’s title goes on this line

Who are business owners? They’re in communities across the country Supporting the local and national economy To get their insights we’ve polled: 1,000 business owners With 500 or less employees Through this presentation, we’ll review some key insights to help guide your financial planning conversations.

Priorities vary among owners We asked business owners to rank their top priorities and whether they had a plan in place today. Even though owners rank these as important, many still need help protecting what matters most. For instance, business protection is ranked #1, yet only 36% of owners have a plan in place. To help you see if these priorities are also yours let’s take a closer look at each of them as they pertain to your business, lifestyle and employees. Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the Principal Financial Group. January 2017

Solutions for your business Priorities vary among business owners Solutions for your business Business protection (#1 priority) Protect your business from an unexpected death or disability of an owner or key employee Key person life and disability are the most popular solutions. With disability overhead expense and key person disability insurance showing growth Succession planning (#7 priority) Over half of owners have a plan in place Don’t forget to have proper funding vehicles in place to exercise the plan Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the Principal Financial Group. January 2017

Solutions for your lifestyle Priorities vary among business owners Solutions for your lifestyle Income protection (#2 priority) Works like a “paycheck” when you’re too sick or hurt to work Majority of business owners would recommend it Survivor income (#8 priority) Provides for your family if you die and can be used to achieve certain financial objectives You’ll be in good company – almost 70% of your peers own it Estate and legacy planning (#9 priority) Helps to consider as your business grows Ensures there are funds to meet your lifetime objectives Additional note --- Estate and legacy planning may provide you with the liquidity to pay estate taxes and keep your business intact Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the Principal Financial Group. January 2017

Solutions for your employees Priorities vary among business owners Solutions for your employees Health and wellness (#3 priority) Employer sponsored programs to help maintain or improve health Comprehensive health insurance remains the top solution with HSAs gaining in popularity Non-medical (#4 priority) and voluntary benefits (#10 priority) Insurance offered at the worksite Can be paid by the employer or employee Most owners say employee benefits help with retention Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the Principal Financial Group. January 2017

Solutions for your employees, cont. Priorities vary among business owners Solutions for your employees, cont. Qualified retirement plans (#5 priority) Defined contribution or defined benefit retirement solutions 401(k) plans remain the most popular Supplemental key employee benefits (#6 priority) Typically targeted to key employees who are critical to the success of the business Disability income remains the most popular solution Other solutions may include non-qualified deferred compensation or other executive benefits Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the Principal Financial Group. January 2017

What stops business owners from planning We learned that business owners, like you, are tight for time, and financial planning isn’t likely at the top of their daily to do list --- but it should be. Can you relate to this? Taking the first step can be intimidating and overwhelming. Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the Principal Financial Group. January 2017

Assembling a team of advisors Nearly half (49%) use a CPA, followed by an attorney (37%), to assist with insurance and employee benefit needs. Get started by talking to trusted advisors. Of the 60% of owners who work with a financial professional, nearly half work with a CPA followed by an attorney. Adding a financial professional who’s expertise is in insurance and investments can provide a more robust team working for you. If you don’t have someone in one of these roles. Don’t worry, ask any of your current advisors for a recommendation. Working with a trusted financial professional, CPA and attorney can provide the complete support you need to move your business forward. Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the Principal Financial Group. January 2017

Thank you Insurance from Principal® is issued by Principal Life Insurance Company and Principal National Insurance Company, Des Moines, IA 50392. All insurance products have limitations and exclusions. For cost and coverage details, contact your Principal Life 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®.   Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. DI9430-01 | 08/2017