Introduction to Individual Disability Insurance Presenter’s name The presenter’s title goes on this line For producer information only. Not for use with consumers or the public.

Edward Jones Code of Conduct Principal is a sponsor of this Regional Meeting. We have contributed a fee to help defer some of the costs of the meeting. Our sponsorship of this regional meeting creates a conflict of interest to the extent that you consider the sponsorship in rendering advice to your clients regarding disability insurance products. As a result, you CANNOT consider Principal's sponsorship in determining which products to recommend to your clients. Edward Jones Reasonable Access You are prohibited from recommending our disability insurance products to customers based on incentives provided to this firm and its financial advisors. DI8833EJ | 10/2015 For producer information only. Not for use with consumers or the public.

Insurance from Principal® is issued by Principal National Life Insurance Company (except in New York) and Principal Life Insurance Company, 711 High Street, Des Moines, IA 50392.   DI Retirement Security is issued as a non-cancelable, guaranteed renewable, individual disability income insurance policy. It is not a pension or retirement program or a substitute for such a program. DI Retirement Security is not available to anyone who is over insured based on Principal current Issue and Participation guidelines. It may not be available or the benefit amount may be reduced for certain occupations if there is existing DI coverage with lifetime benefits. Additional underwriting guidelines may apply. This information is provided with the understanding that 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. Please remember to abide by the company’s policy on disclosure of compensation. You can obtain more information, as well as a sample disclosure form, at www.principal.com. 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®. Not a Deposit | Not FDIC or NCUA Insured | No Bank or Credit Union Guarantee | May Lose Value | Not Insured by any Federal Government Agency 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. DI8833 | 10/2015 For producer information only. Not for use with consumers or the public.

Help clients build a solid financial foundation For producer information only. Not for use with consumers or the public.

Top reasons to offer income protection It’s your responsibility to discuss a complete risk protection strategy It’s a great door opener Upon a disability, it helps clients pay their bills – including any products they have with you It helps diversify your offering Solutions are available in sought-after markets For producer information only. Not for use with consumers or the public.

Target market Who to look for Where to look Ages 30 to 55 Earn at least $40,000 per year Have other risk and/or protection products with you Work in occupations with little manual duties Consider your natural markets Ask current IDI clients to refer their friends For producer information only. Not for use with consumers or the public.

Getting started For producer information only. Not for use with consumers or the public.

Educational materials DI2722 Educational materials Product and program profiles Total income protection series (TIPS) Study group seminars and CE’s Case studies JJ1674 JJ2076 For producer information only. Not for use with consumers or the public.

Overcoming objections I won’t need it It’s not worth it I’m already covered For producer information only. Not for use with consumers or the public.

I won’t need it For producer information only. Not for use with consumers or the public.

It’s not worth it For producer information only. Not for use with consumers or the public.

I’m already covered For producer information only. Not for use with consumers or the public.

Working together Life insurance Disability insurance Offers a death benefit to help the people you care about most. Offers a “living” benefit to help cover daily living expenses if you become too sick or hurt to work. For producer information only. Not for use with consumers or the public.

Key terms For producer information only. Not for use with consumers or the public.

The policy Definition of disability Rider Helps determine whether or not you can receive benefit payments A feature you can add to your policy to enhance or limit benefit payments. For producer information only. Not for use with consumers or the public.

Timing Elimination period Benefit period Often called a “waiting period,” it’s the number of days you have to wait before you receive monthly benefits after you become too sick or hurt to work. This is how long you receive monthly benefits while you’re not able to work. For producer information only. Not for use with consumers or the public.

Costs and benefits Premium Benefit amount Like a bill, it’s what you pay for coverage while you’re healthy and working. The money you receive each month, like a “paycheck”, to help replace your lost income when you’re unable to work. For producer information only. Not for use with consumers or the public.

Consumer journey For producer information only. Not for use with consumers or the public.

JJ1239 Awareness Consumers with very little knowledge of disability insurance and the need for it. Use materials that provide a good overview of the concept in order to entice them to learn more about the product details. JJ1151 JJ1907POD For producer information only. Not for use with consumers or the public.

Consideration They are aware of the need, but require additional information (e.g. product details, what are the steps in the application/underwriting process, etc.) Use real life examples to help explain different concepts or features. JJ1507 For producer information only. Not for use with consumers or the public.

Decision They are ready to review the illustration and make the purchase. For producer information only. Not for use with consumers or the public.

Ongoing support They have purchased at least one IDI solution from Principal, but they need to know that we will still be there for them if they ever need to adjust or use their policy. JJ1379 For producer information only. Not for use with consumers or the public.

Comprehensive product offering For producer information only. Not for use with consumers or the public.

Comprehensive Offering NEED SOLUTIONS Income Protection Individual Disability Income (DI) Core Value Income ProtectionSM Multi-Life DI / Employer Offerings PERSONAL NEEDS Retirement Savings DI Retirement Security (DIRS) Business Protection Overhead Expense (OE) Business Loan Protection rider1 Key Person Replacement (KPR)1 BUSINESS NEEDS Exit Planning Disability Buy-Out (DBO) 1 2 3 4 1 – Not approved in all states, go to: www.principal.com/distateapprovals for more information. Not available in California. For producer information only. Not for use with consumers or the public. 24

Individual DI Insurance Objective: To help cover income in the event of a disability. Benefits Helps insure an individual can Maintain current lifestyle without draining savings or business profits Continue saving for retirement/future dreams Provide for his/her family For producer information only. Not for use with consumers or the public.

Core Value Income Protection Objective: Provides a packaged offering for most 2A and 3A occupations1 Client Advantages Competitively priced protection from a reputable carrier Ability to provide for their family Simplified underwriting process 1 This does not include registered nurses (RNs), court reporters, dental assistants, dental hygienists and dental lab technicians. For producer information only. Not for use with consumers or the public.

DI Retirement Security Objective: Helps clients continue saving for retirement in the event of a qualifying disability. Benefits Upon a qualifying disability, benefits are paid to an irrevocable trust to be accessed as retirement income. Minimum income of $76,000 to qualify Target market Individuals who have maxed out traditional disability coverage Individuals committed to saving for retirement Employers who want to offer a comprehensive employee benefits package For producer information only. Not for use with consumers or the public.

Overhead Expense Insurance Objective: Reimburse a business owner for covered business expenses incurred during his/her disability. Benefits Helps insure a business can remain open and the owner can either: Return to a financially sound business; or Sell a business that has not depreciated because of the owner’s disability. For producer information only. Not for use with consumers or the public.

Business Loan Protection Objective: Reimburses owner for covered business-related loan obligations during a disability. Benefits Helps keep the business open and operating Creates goodwill with customers, employees and creditors Helps maintain business owner’s credit rating For producer information only. Not for use with consumers or the public.

Key Person Replacement Insurance Objective: Protect small- to medium-sized businesses from the loss of employees critical to the success of the business due to a total disability. Benefits Benefits can be used at the discretion of the employer. Benefits generally received income tax-free.* *If premiums are paid with post-tax dollars. For producer information only. Not for use with consumers or the public.

Disability Buy-Out Insurance Objective: Funds a buy-sell agreement; helps buy-out a disabled owner’s interest in the business in the event of a long-term disability. Benefits Benefits are income tax-free – the disabled owner is taxed only on the gain from the sale of the business.1 Provides a funding solution for the business. 1 Any portion of the payout that is structured as a non-compete or severance pay may be taxed differently. The gain may be considered an installment sale if at least one payment is received after the close of the tax year in which the sale was made. For producer information only. Not for use with consumers or the public.

Multi-Life/Employer Offerings Objective: Provide employers with solutions to reward and retain employees Benefits Dozens of ways to structure design Solutions available for key employee and executive perks Employer-paid, employee-paid or combination Discounted premiums For producer information only. Not for use with consumers or the public.

Multi-Life/Employer Offerings PROGRAM BENEFITS DISCOUNTS Fully Underwritten Up to max issue and participation limits 20%: 3 or more lives required1 Simplified Multi-Life Up to $6,000/month Standard Issue (GSI) Based on census and participating lives 20%: 10-49 lives2 25%: 50-99 lives 30%: 100+ lives Fallback GSI Initially up to max issue and participation limits Fallback GSI offer based on census and participating lives 20%: 8-49 lives2 1 - Greater discount may be available based on number of lives. | 2 - 25 or more lives required for physicians For producer information only. Not for use with consumers or the public.

Service and support For producer information only. Not for use with consumers or the public.

principal.com/dicares Claims service principal.com/dicares For producer information only. Not for use with consumers or the public.

Business Owner Perks Business Owner Allowance Business Owner Program Opportunity for business owners to qualify for up to $2,000 of additional Individual DI Insurance benefit. Business Owner Program Making it easier for business owners to qualify for our best rates Motivation Stability Success Size For producer information only. Not for use with consumers or the public.

Simplified Underwriting Maximum issue age 50 (64 for DI multi-life) Fewer routine medical requirements No blood, urine, exams, EKGs or APSs required.1 No income verification required for incomes under $150,000 for Simplified DI or Simplified DI Multi-Life.2 Accelerated Turnaround Once the application, any supplements and TeleApp interview is completed and received. 1- Unless a significant and undisclosed medical condition is reported by MIB, significant medical information is derived from the TeleApp, or any other disability coverage has been issued or applied for on a non-medical basis. Urine/HIV test is required in Maine. Prescription history check may be required for physicians. This is not a guaranteed issue program; applications could be rated, ridered or declined. Subject to Issue & Participation limits and minimum premium requirement. | 2 -Financial documentation may be required for certain occupations regardless of income. OE and DBO supplements must also be completed and received. Combined Simplified OE and Simplified DI benefits cannot exceed $10,000/month. For producer information only. Not for use with consumers or the public.

Simplified Sales Programs ROUTINE MEDICAL APS/ EKGs FINANCIALS BENEFITS Simplified DI No No1 Required if income is above $150,000/year2 Up to $4,000/month3 Simplified Multi-Life Up to $6,000/month3 Simplified OE OE Statement and Part A of the application Up to $10,000/month3 Simplified DBO DBO Statement and Part A of the application Up to $360,000 aggregate 1- Unless a significant and undisclosed medical condition is reported by MIB, significant medical information is derived from the TeleApp, or any other disability coverage has been issued or applied for on a non-medical basis. Urine/HIV test is required in Maine. Prescription history check may be required for physicians. This is not a guaranteed issue program; applications could be rated, ridered or declined. Subject to Issue & Participation limits and minimum premium requirement. | 2 -Financial documentation may be required for certain occupations regardless of income. OE and DBO supplements must also be completed and received. 3 3 - Combined Simplified OE and Simplified DI benefits cannot exceed $10,000/month. For producer information only. Not for use with consumers or the public.

For Producer Information Only. Not For Use In Sales Situations. ePay is available! Clients can now pay for disability policies online at www.principal.com (no login required!): In just over a month … 650 polices paid for online resulting in $1 million of premium. For Producer Information Only. Not For Use In Sales Situations.

principal.com/edwardjones Marketing support We have it all: Testimonials Emails Presentations Videos Fliers Much more principal.com/edwardjones For producer information only. Not for use with consumers or the public.

Thank you Contact information DI8833-02  | 10/2016  |  ©2016 Principal Financial Services, Inc. For producer information only. Not for use with consumers or the public.