1. Get Started with Income Protection Individual Disability Insurance

2. This publication is intended to provide accurate and authoritative information in regard to the subject matter covered. The accuracy of the information is not guaranteed and 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. These testimonials may not be representative of other clients’ experiences. It does not imply or guarantee benefits. Jon Montpas is a stockholder of Principal and former employee of Principal. Bruce Hentschel is an employee and stockholder of Principal. Sherron and James Williams and Nancy Thomas have not been paid for their testimonials. 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.www.principal.com Disability insurance has exclusions and limitations. For costs and complete details of the coverage, contact your Principal Life financial 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 ®. Disability insurance from Principal® is issued by Principal Life Insurance Company, Des Moines, IA 50392. For financial professional use only. Not for use in sales situations.

3. They value … Yet, they …protect Source: 2014 Disability Awareness Study, Council for Disability Awareness. Viewed 3/2016. Most recent available. We need to start the conversation with today’s consumers. For financial professional use only. Not for use in sales situations.

4. “The one-time benefits covered all my out-of-pocket medical expenses. I was able to take care of the hotel and other expenses, too. I’ve not taken a negative financial hit.” Jon Montpas, IT/Marketing Professional, Principal Claimant “The one-time benefits covered all my out-of-pocket medical expenses. I was able to take care of the hotel and other expenses, too. I’ve not taken a negative financial hit.” Jon Montpas, IT/Marketing Professional, Principal Claimant “I thought income protection would be a wise thing to purchase because you never know what’s going to happen in life.” Nancy Thomas, Teacher – Principal Claimant “I thought income protection would be a wise thing to purchase because you never know what’s going to happen in life.” Nancy Thomas, Teacher – Principal Claimant If James had no coverage, we probably wouldn’t be in our house and would be closing the law firm. My kids would need financial aid to stay in school.” Sherron Williams, Wife of Principal Claimant James Williams, Attorney If James had no coverage, we probably wouldn’t be in our house and would be closing the law firm. My kids would need financial aid to stay in school.” Sherron Williams, Wife of Principal Claimant James Williams, Attorney “The real benefit I received was the comfort and peace of mind that our finances would not be an issue.” Bruce Hentschel, Executive, Principal Claimant “The real benefit I received was the comfort and peace of mind that our finances would not be an issue.” Bruce Hentschel, Executive, Principal Claimant Don’t take it from us, listen to real claimants: For financial professional use only. Not for use in sales situations.

5. Our claimants are among the lucky few who have income protection. Fact: Only 1 in 4 households in the US have disability insurance. 2015 Insurance Barometer Study, Life Happens and LIMRA, https://www.lifehappens.org/industry- resources/agent/barometer2015/, viewed 09/15 For financial professional use only. Not for use in sales situations.

6. Help your customers understand the value of their income and all it provides: Paying for everyday expenses and saving for the future! For financial professional use only. Not for use in sales situations.

7. Financial security starts with protecting their income. For financial professional use only. Not for use in sales situations.

8. Individual Disability Income (DI) Insurance For financial professional use only. Not for use in sales situations.

9. OBJECTIVE | Replace income lost when a disability prevents an individual from working and earning an income. BENEFITS | Helps people: Maintain current lifestyle without draining savings or business profits Continue saving for retirement and future dreams Provide for his/her family Individual DI Insurance For financial professional use only. Not for use in sales situations.

10. Ages 22 to 50 (solutions available for those 18 to 60). Earning over $40,000/year. Rely on their income. Healthy and working in a professional-type occupation. Helps you connect with others (Bonus: You may be able to discount their Principal DI coverage). Have other risk protection or financial solutions with you. Ideal consumer for income protection For financial professional use only. Not for use in sales situations.

11. 1 When Do I Receive My Benefits? 2 How Long Do I Receive Benefits? 3 How Much Coverage Can I Purchase? 4 How Do I Qualify For Benefits? 5 How Much Will The Coverage Cost Me? Five questions clients will ask About an Individual DI policy For financial professional use only. Not for use in sales situations.

12. When Do I Receive My Benefits? 1 After the Elimination Period DEFINITION Waiting period before benefits begin DEFINITION Waiting period before benefits begin For financial professional use only. Not for use in sales situations.

13. How long do I receive benefits? 2 For the duration of the Benefit Period DEFINITION Length of time benefits are paid DEFINITION Length of time benefits are paid For financial professional use only. Not for use in sales situations.

14. How much can I purchase? 3 Depends on the eligible Benefit Amount DEFINITION The amount of disability benefit received each month DEFINITION The amount of disability benefit received each month For financial professional use only. Not for use in sales situations.

15. How do I qualify for benefits? 4 Total Disability Residual Disability Catastrophic Disability Presumptive Disability Capital Sum Disability Depends on policy terms For financial professional use only. Not for use in sales situations.

16. Qualifying for benefits During the Your Occupation Period, the client is unable to perform the substantial and material duties of his/her occupation and is not working. Total Disability Residual Disability Client is not totally disabled, but solely due to an injury or sickness, is unable to work at full capacity in his/her “your occupation” or is working in another occupation, and loses at least 20% of your prior earnings. (Provides a portion of benefits 1 ) 1 – Cost rider; state variation/wording apply. For financial professional use only. Not for use in sales situations.

17. Activities of Daily Living: Bathing, continence, dressing, eating/feeding, toileting or transferring Cognitively Disabled: Loss of brain function Presumptively Disabled: Total loss of use: Power of speech, hearing in both ears, sight of both eyes, or both hands, both feet, or one hand and one foot 1 – Cost rider; state variation/wording apply. Catastrophic Disability Client loses the ability to perform two or more Activities of Daily Living, becomes cognitively impaired or presumptively disabled. (Provides an additional monthly benefit 1 ) Qualifying for benefits For financial professional use only. Not for use in sales situations.

18. Presumptive Disability Capital Sum Disability Total loss of use, without the possibility of recovery, of: the power of speech, hearing in both ears, sight in both eyes, both hands, both feet, or one hand and one foot. (Expedites full disability benefit.) Total and irrecoverable loss of use, without any possibility of recovery, of the sight in one eye or the use of a hand or foot. (Provides additional lump sum benefit) Qualifying for benefits For financial professional use only. Not for use in sales situations.

19. How much will it cost? 5 Depends on a Variety of Factors AVERAGE Costs 1 to 3% of annual income $ AVERAGE Costs 1 to 3% of annual income $ Age Gender Tobacco use Occupation Policy terms For financial professional use only. Not for use in sales situations.

20. They need your help getting started For financial professional use only. Not for use in sales situations.

21. Talk about it 1 2 Talk about the need 3 Talk about the features and benefits 4 Talk about the affordability For financial professional use only. Not for use in sales situations.

22. Make it relatable Your due diligence It’s up to you Change your phrasing The personal touch Less is more Don’t just wing it For financial professional use only. Not for use in sales situations.

23. Make it relatable Mental Checklist For financial professional use only. Not for use in sales situations.

24. Have them consider what they would do if they no longer had an income Savings? Retirement Accounts? Emergency Funds? Family and friends? Social Security Disability? Loans from a bank or credit cards?

25. Talk about the features and benefits Monthly benefits that could add up to millions over a lifetime Guaranteed, non-renewable coverage to age 65 Tax-free benefits, when premiums are paid with after-tax dollars Portable coverage USE THE PROPOSAL For financial professional use only. Not for use in sales situations.

26. Sales idea Which option would you choose? OPTION AOPTION B $100,000 $98,000$60,000 Working, before taxes $0 Disabled, no insurance Working, less DI insurance premium, before taxes Disabled with a DI policy, after taxes Annual Income For financial professional use only. Not for use in sales situations.

27. It doesn’t need to be expensive Premiums are a few pennies on the dollar Discounts are often available Typically costs less than other common expenses For financial professional use only. Not for use in sales situations.

28. Fit your clients’ needs and budget Structuring Coverage Lower PremiumRicher Benefits Elimination PeriodIncrease the lengthDecrease the length Benefit PeriodDecrease the lengthIncrease the length Your Occupation Period Decrease the lengthIncrease the length Monthly Benefit Amount Lower the amountIncrease the amount For financial professional use only. Not for use in sales situations.

29. Sample Premiums Comprehensive Coverage 1,2 Moderate Coverage 1,3 Basic Coverage 4 Monthly Benefit $2,450$1,850$1,500 Total Monthly Premium Male: $89 Female: $154 Male: $57 Female: $99 Male: $20 Female: $35 1 90 day Elimination Period, To Age 65 Benefit and Your Occupation Period, Total Disability Covered 2 Residual Disability Covered, Cost of Living Adjustment Rider; both are cost riders 3 Short-Term Disability Benefit rider (12-month duration) 4 180-day Elimination Period, 5 year Benefit and Your Occupation Period, Total Disability Covered Assumptions: Michigan resident, HH 750 policy, $40,000/annual income, 4A occupation class, non-tobacco, age 35. For financial professional use only. Not for use in sales situations.

30. Next steps For financial professional use only. Not for use in sales situations.

31. Offer an Income Protection Review Ask clients to send you any copies of their existing policies or policy information We can review policies with you to identify coverage gaps Many clients don’t know what coverage they have or the amount of their benefits…if any For financial professional use only. Not for use in sales situations.

32. You’ll need this information for a personalized proposal Name Gender Date of birth Occupation and job duties Salary State of residence Tobacco use Known medical issues Desired amount of income replacement benefit Any known existing disability coverage For financial professional use only. Not for use in sales situations.

33. Thank you DI8631-2 | 05/2016 | © 2016 Principal Financial Services, Inc. For financial professional use only. Not for use in sales situations.