1. For Producer Information Only. Not For Use In Sales Situations. Disability is Recurring Revenue Learn How to Sell It A series of Sales Calls and Training Sessions Why DI is important for your clients How You can benefit from selling DI

2. For Producer Information Only. Not For Use In Sales Situations.

3. IDI Solutions Jacob Thompson Internal Wholesaler Income protection for your clients most valuable asset

4. For Producer Information Only. Not For Use In Sales Situations. 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 ®. Disability insurance from Principal ® is issued by Principal Life Insurance Company Des Moines, IA 50392. Agenda Individual Disability Insurance solutions What’s new for Business owners Selling Life and DI together Sales tips for integrating IDI into P&C practices

5. For Producer Information Only. Not For Use In Sales Situations. Why your agents should sell DI? Helps establish a solid financial foundation Protects other solutions you’ve sold Sets you apart from the competition Market opportunities with individuals and business owners

6. For Producer Information Only. Not For Use In Sales Situations. NEED SOLUTIONS Income Protection Individual Disability Income (DI) Core Value Income Protection SM Multi-Life DI / Employer Offerings PERSONAL NEEDS Retirement Savings DI Retirement Security Business Protection Overhead Expense Business Loan Protection rider 1 Key Person Replacement 1 BUSINESS NEEDS Exit Planning Disability Buy-Out (DBO) – NEW offering 1 1 1 2 2 3 3 4 4 Principal Disability Solutions 1 – Not available in California. Not approved in all states.

7. For Producer Information Only. Not For Use In Sales Situations. Source: 2015 Business Owner Research Study, conducted by Harris Interactive. Business Needs: Market Opportunity Top two business owners priorities Business protection Income protection Reality is…they need your help 70% do not have any form of business protection 72% do not have income protection

8. For Producer Information Only. Not For Use In Sales Situations. Disability Buy-Out (HH794) 1 Affordability Lower new issue rates (in almost all cases) 5% Preferred Business Owner Discount 6A occupation class Flexibility One-Way Buy-Out *Differentiator* Benefit Update Valuation Rider Full Benefit Continuation feature (cost) Offer coverage to Age 67 Note: The underwriting guidelines for HH794 are consistent with HH703. 1 – Not available in California. Not approved in all states. Visit: www.principal.com/distateapprovals.www.principal.com/distateapprovals Approved in over 30 states. As of 3/22/16 Approved in over 30 states. As of 3/22/16

9. For Producer Information Only. Not For Use In Sales Situations. One-Way Buy-Out (Industry Game-Changer)

10. For Producer Information Only. Not For Use In Sales Situations. Making it easier for business owners to qualify for our best rates on all IDI products Business Owner Program Motivation Stability Success Size

11. For Producer Information Only. Not For Use In Sales Situations. These are general guidelines – every situation is unique. Business Owner Program Business Stability Financial Success Business Size = Occupation Class 5 years of ownership Less than 50% manual duties 50%+ ownership $150,000+ annual income 50+ employees6A 1 $100,000+ annual income 10+ employees5A $60,000+ annual income 5+ employees4A 1-4 employees3A 1 – Not available in California. Not approved in all states.

12. For Producer Information Only. Not For Use In Sales Situations. Only 1 in 5 households in the United States have disability insurance. Source: Nielsen Household Survey, 2015. Personal Needs: Market Opportunity

13. For Producer Information Only. Not For Use In Sales Situations. Why sell Life and DI together? 1 It helps diversify your portfolio offering. 2 It provides benefits that can help clients and their loved ones cover expenses, including premiums and fees on other solutions they have with you. 3 Strengthen your relationship with clients.

14. For Producer Information Only. Not For Use In Sales Situations. Streamlined underwriting for life and DI No lab tests 1 Fewer requirements needed Faster underwriting decisions Available in all states Takes advantage of Accelerated Life underwriting and Simplified DI underwriting. Double clients risk protection in half the time 1 No blood, urine, exams, EKGs or APSs required, 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 Maine. Subject to Issue & Participation limits and minimum premium requirement.

15. For Producer Information Only. Not For Use In Sales Situations. 1.Complete applications for Life or disability insurance. 2.Request a Combination TeleApp Interview (medical questions). 3.Submit a request (e.g., QuickQuote/prelim request) for the other line of business. 4.Once you’ve heard back from underwriting, confirm with your client if he/she is interested in the other line of coverage and submit a formal application. How streamlined underwriting works

16. For Producer Information Only. Not For Use In Sales Situations. Additional details Accelerated Life Underwriting 1 Simplified DI Who qualifies Ages 18 to 60 Preferred and Super Preferred risk classes Ages 18 to 50; may be available to older ages Benefits Up to $1 millionUp to $4,000 (single life) Up to $6,000 (multi-life) Medical Requirements No lab testing for qualified applicants who have no significant medical or nonmedical conditions 2 No routine medical requirements 3 Financial Verification N/ANo financial verification for annual incomes less than $150,000 (certain occupations excluded) 1 – Principal Accelerated Underwriting SM is an expedited program offered by Principal Life Insurance Company. Applicants may qualify based on age, face amount and personal history. 2 – Based on age, face amount, product and personal history. 3 – No blood, urine, exams, EKGs or APSs required, 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 Maine. Subject to Issue & Participation limits and minimum premium requirement.

17. For Producer Information Only. Not For Use In Sales Situations. Buying a house Buying a new car Expanding their business Having or adopting a child Conversation Starters Around life events Use flier LH141 to start the conversation on risk protection with Life and DI P&C agents have a unique opportunity to work with clients during “life events”.

18. For Producer Information Only. Not For Use In Sales Situations. Don’t forget, the biggest competition for risk protection isn’t the competition …. It’s everyday life and other “priorities.” Ask about income protection today.

19. For Producer Information Only. Not For Use In Sales Situations. “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 Disability Claimant (Supplemental Health Benefit rider) “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 Disability Claimant (Supplemental Health Benefit rider) “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 Disability 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 Disability 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 Disability 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 Disability 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 Disability 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 Disability Claimant When the unexpected happens – having a safety net makes all the difference …

20. For Producer Information Only. Not For Use In Sales Situations. Thank you. © 2016 Principal Financial Services, Inc DI9577 | 03/2016 | © 2016 Principal Financial Services, Inc