Simplified underwriting Individual Disability Insurance (IDI) Simplified underwriting Presenter’s name The presenter’s title goes on this line

Disability Insurance from Principal® issued by Principal Life Insurance Company. Des Moines, IA 50392. For producer information only. Not for use with consumers or the public. 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 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.

Simplified underwriting benefits1 Benefits offered help set the foundation for protection Eliminates routine medical requirements Reduces need for financial verification Accelerates underwriting timing Available for: Disability Income (DI) – Single and multi-life cases Overhead Expense (OE) Disability Buy-Out (DBO) Key Person Replacement (KPR)2 Why is Simplified so easy? First, your client will NOT need to provide blood, urine, exams, EKG’s or Attending Physicians Statements. Second, in many cases, you will NOT need to collect any financial documentation from your client, and third is Principal Life provides accelerated turnaround timing once the application and TeleApp interview has been completed and received. 1 – Unless a significant medical condition is reported by MIB, significant medical information is obtained from the TeleApp or other available information, or any other disability coverage has been issued or applied for on a non-medical basis. Applications could be rated, ridered or declined based on all underwriting information available; this is not a guaranteed issue program. Urine/HIV test is required in ME. Subject to Issue & Participation limits and minimum premium requirement. In California, there are no labs required for Simplified Single-Life cases up to $6,000/month, but an APS and financial documentation is required. For Simplified OE and DBO, the A occupation are not available. In California, for Simplified DI multi-life, when all three applications are not submitted together, we'll require APSs and financials on the first two applications, but not for any additional applications on that case. TeleApp interviews always required. 2 – Not available in all states. Not available in California. Go to www.principal.com/distateapprovals for details.

Tip: Help clients cover a major expense Up to: $6,000/month issue limit $10,000/month participation limit (excluding group long-term disability) available for Simplified DI, which could be used to help pay for things during a disability, like: Housing Student loans Simplified DI is a great way to help clients hold on to one of their biggest assets – their homes. The benefits provided by a Simplified DI policy can help clients cover their mortgage, premiums for home owner’s insurance and monthly utility bills. For many recent college graduates just starting their careers student loan payments are a significant financial responsibility. Simplified DI is a fast and easy way to help young professionals protect their credit. It provides the benefits needed during a disability to continue making student loan payments.

Key details Disability Income (DI) Overhead Expense   Disability Income (DI) Overhead Expense Disability Buy- Out Key Person Replacement3 Maximum issue & participation limit4 $6,000/month issue limit $10,000/month participation limit* $10,000/month limit $360,000 aggregate limit Maximum issue ages 50 (single-life)5 64 (multi-life)6 50 Occupation classes All All5 3A and above *Excludes group long-term disability insurance. 3 Not available in California and not approved in all states. For more information visit principal.com/distateapprovals. 4 Financials required when applying for more than the simplified amounts – this applies for new applications and adjustments. Financial documentation is required for the following occupations (regardless of the monthly benefit applied for): real estate agent/broker, mortgage loan originator/broker, residential construction, real estate developer, attorney specializing in real estate and residential construction. 5 In California, there are no labs required for Simplified Single-Life cases up to $6,000/month, but an APS and financial documentation is required. For Simplified OE and DBO, the A occupation are not available. In California, for Simplified DI multi-life, when all three applications are not submitted together, we'll require APSs and financials on the first two applications, but not for any additional applications on that case. TeleApp interviews always required. 6 A higher issue age may be available with underwriting approval.

Individual DI Insurance Protects a client’s ability to work and earn an income Feature Guidelines Maximum benefit Up to $6,000/month (issue limit) Up to $10,000/month (participation limit – excluding group long-term disability insurance) Maximum issue age1 Single-life: 50 | Multi-life: 64 Elimination periods All1 Benefit periods All Your Occupation periods Rates Sex distinct (Unisex in Montana) Discounts2 20% Multi-Life3, 10% Association, 10% Select Occupation2, 10% Affiliation2, Up to 10% MNSA4 Read slide. For Multi-Life cases, no employer signature or endorsement letter is required. 1 – In California, there are no labs required for Simplified Single-Life cases up to $6,000/month, but an APS and financial documentation is required. In California, for Simplified DI multi-life, when all three applications are not submitted together, we'll require APSs and financials on the first two applications, but not for any additional applications on that case. TeleApp interviews always required. | 2 – Not all discounts can be stacked together or are available in all states. Visit www.principal.com/distateapprovals for details. | 3 – Can not be used with Dental or Medical residency programs. 3 - The MNSA rider is required for single-life policies in CA, FL, LA, and NV. It is not available for single-life cases in any other states except when elected through association cases or when certain riders are placed on a policy for select occupations. For multi-life cases, the rider is required in CA and optional in all other states. The rider is not available in VT. The discount amount varies in TX.

Don’t forget: Simplified DI Multi-Life1 could be a great employee benefit Everyone receives the 20% Multi-Life discount (on gender-neutral rates). There are no standard medical or financial requirements if applying for less than the simplified issue and participation limits. It works with group disability coverage and can be employer or employee paid. No company endorsement or formal program is needed. Requires 3+ employees with a common employer to purchase coverage. 1 – In California, there are no labs required for Simplified Single-Life cases up to $6,000/month, but an APS and financial documentation is required. In California, for Simplified DI multi-life, when all three applications are not submitted together, we'll require APSs and financials on the first two applications, but not for any additional applications on that case. TeleApp interviews always required.

Overhead Expense insurance Reimburses business owners for covered business expenses. Feature Issue Guidelines Maximum benefit $10,000/month1 Maximum issue age 50 (Single and Multi-Life) Elimination periods All Benefit factors Your Occupation periods Rates Sex distinct (Unisex in MT and CA) Discounts2 20% Multi-Life3, 10% Select Occupation2, 10% Association2 Read slide 1 – Combined Simplified OE and Simplified DI benefits cannot exceed $16,000/month. 2 – Not all discounts can be stacked together or are available in all states. Visit www.principal.com/distateapprovals for details. 3 – Not available in Ohio.

Disability Buy-Out insurance Funds a buy-sell agreement to purchase a disabled business owner’s interest. Feature Issue Guidelines Maximum benefit $360,000 aggregate Maximum issue age 50 (Single and Multi-Life) Elimination periods All Benefit factors Rates Sex distinct (Unisex in MT and CA) Discounts1 20% Multi-Life2, 5% Preferred Business Owner1, 10% Select Occupation1, 10% Association1 Read slide 1 – Not all discounts can be stacked together or are available in all states. Visit www.principal.com/distateapprovals for details. 2 – Not available in Ohio.

Key Person Replacement insurance* Provides benefits to help the business transition after the total disability of a key employee. Feature Issue Guidelines Maximum benefit $360,000 aggregate Maximum issue age 50 (Single and Multi-Life) Elimination periods All Benefit factors Rates Sex distinct (Unisex in MT and CA) Discounts1 20% Multi-Life, 10% Association2 Read slide *Not available in California. For state approvals visit www.principal.com/distateapprovals 1 – Not all discounts can be stacked together or are available in all states. Visit www.principal.com/distateapprovals for details. 2 – Association Discount not available for OE insurance in California

About TeleApp What is it? 15-minute confidential phone interview In-house counselors ask Part B medical insurability questions 888-Teleapp Advantages Fewer labs and APSs needed Clients answer insurability questions just once Interviews can be conducted before other parts of the application are submitted The TeleApp service from Principal Life Insurance Company is a 15-20 minute confidential phone interview where counselors ask the insurability questions found in Part B of the Individual Disability Insurance application. Principal Life’s service is staffed by an extensively-trained, in-house group of individuals dedicated solely to this interview process. A Reflexive Questioning System prompts the interviewer to gather appropriate details based on the client’s responses to the application questions. TeleApp counselors gather thorough medical information during the interview. Because the information gathered is so thorough, fewer labs and APSs need to be ordered, resulting in a quicker underwriting decision. With Principal Life’s TeleApp service, clients only answer the insurability questions one time while applying for Individual Disability Insurance. And, the interview can be conducted before Parts A and C of the application are received, also resulting in quicker turnaround time for you and your client.

Submitting business with Simplified 1 Complete Parts A and C of the application and any required forms 2 Obtain appropriate signatures 3 Schedule a TeleApp Interview. (888-TeleApp) 4 Submit the completed application Most of the time, Simplified Underwriting takes place automatically when basic requirements are met. However, to ensure Simplified underwriting is used, follow the steps below. Step One: Complete Parts A and C of the application and any required forms Step Two: Obtain appropriate signatures Step Three: Schedule a TeleApp Interview (1-888-TeleApp) Required to receive Simplified Sales Program guidelines Indicate to the counselor this is a Simplified application and no additional medical requirements are needed Step Four: Submit completed applications Submit applications, any required supplements or financials, cover pages, and the Producer Report

Questions DI9184-02 | 7/2017 | © 2017 Principal Financial Services, Inc. For financial professional use only. Not for use with consumers or the public.