Income Protection Step-by-Step From Here to Security SM Presenter Name | Title Financial Security

Why do you work? To pay the bills To secure your dreams for the future To accomplish something To make your life work

What if you become too sick or hurt to work? What would happen to your income? How would you maintain your lifestyle? Pay your bills? What would happen to your retirement dreams and other financial goals?

It’s time to address your financial security Go back to fundamentals. Risk protection products are the foundation of a successful financial strategy. Americans are looking for ways to be financially secure.

STEP 1: Understand the need. STEP 2: Protect your dreams for the future. STEP 3: Review your plan regularly. Three-step process

STEP 1: Understand the need 6 1 in 4 of today’s 20-year olds will become disabled before retiring. 1 The average long-term disability lasts 2.5 years 2 50% of Americans would be in financial trouble in one month or less following a disability 3 1 Social Security Administration Fact Sheet, Feb Gen Re Disability Fact Book 3 The Life and Health Foundation for Education (LIFE) survey, conducted by Kelton, April 2012

Disabilities play no favorites Principal Life disability insurance claims payments issued in The above is for illustrative purposes only and is not intended as an inclusive representation of all claims, or a promise to pay any specific claims. STEP 1

What is your most valuable asset? 1 Business Insider, Average Car Prices Continue to Creep Upwards, July National median existing single-family sale, 4 th quarter 2011, National Association of REALTORS ®. | 3 Projected cumulative income of a 35-year-old earning $6,250/month, assuming a 4 percent annual increase to age 65. Your ability to work and earn an income is your most valuable asset. HOME $166,200 2 CAR $33,000 1 INCOME $4,216,000 3 STEP 1

STEP 2: Protect your dreams for the future How solid is your financial foundation?

Savings Borrowing Group long-term disability insurance Social Security Workers’ Compensation Individual Disability Income Insurance Consider your disability income sources STEP 2

Savings Most people don’t have enough savings. One year of disability could wipe out your savings. You won’t be able to continue saving for retirement. Borrowing What bank will give you a loan without employment? Available disability income sources STEP 2

Available disability income sources Chart based on $6,250 gross monthly income ($75,000 annually), with 60% group long- term disability program, assuming a 30% tax bracket for Federal, State and FICA. Group long-term disability (LTD) insurance coverage STEP 2

Social Security Approve only 35% of all claims Must meet four conditions Six-month waiting period Benefits typically replace only a fraction of pre-disability income Available disability income sources Source: Social Security Administration, Workers’ Compensation Covers only work-related illness or injury on the job Coverage and benefits vary STEP 2

Current standard of living Future earnings Your home Retirement savings and other assets You have a lot to lose Insurability Credit rating Peace of mind Dreams for the future STEP 2

Individual Disability Income insurance Premiums guaranteed through age 65 Tax-free benefits (when paid with after-tax dollars) Quality benefit provisions Can be stand-alone or supplemental coverage Bonuses and incentive pay can be covered Policy and any applicable discounts fully portable Protect your ability to work and earn an income with Individual Disability Income (DI) insurance from Principal Life Insurance Company. STEP 2

STEP 3: Review your plan regularly Pick a day you’ll remember. Some events demand immediate attention: -Marriage or divorce -Birth or adoption of a child -Children graduating from college or leaving home -Inheritance or other windfall -Major increase in debt, including the purchase of a new home -Paying off the mortgage -New job or promotion -Death of a spouse -Changing a beneficiary

Determine appropriate coverage based on your personal situation Determine appropriate policy features and riders Complete forms Regularly review your plan Submit any claims for benefits I can help you: Calculate how much income protection you need principal.com/ disabilitysecure STEP 3

Disability income insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your Principal Life financial representative. While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Principal Life Insurance Company, Des Moines, Iowa , DI | 09/2013 | © 2013 Principal Financial Services WE’LL GIVE YOU AN EDGE ®