1. Principal Lifetime Income Solutions II Variable AnnuitySM
Training

2. Please note:
To complete this course you must view every slide AND Complete and submit the attestation at the end of the course. Use the arrow keys at the bottom to move through the course.

3. Agenda - Product features - GMWB riders - Target Income Protector
Why variable annuities?
Profile of a variable annuity client
Principal Lifetime Income Solutions II Variable Annuity
- Product features
- GMWB riders
- Target Income Protector
- Flexible Income Protector
For financial professional use only. Not for distribution to the public.

4. Why variable annuities?
Provides a way to save tax-deferred for retirement
Provides a long-term savings plan
Growth potential
Provides guaranteed lifetime income
Provides a guaranteed death benefit to beneficiaries
Death benefit passes outside probate
Guarantees are based on the claims-paying ability of Principal Life Insurance Company.
For financial professional use only. Not for distribution to the public.

5. A typical Principal Lifetime Income Solutions II client is …
Planning for retirement
Interested in an investment that provides guaranteed income for life
Someone with a long-term investment horizon
Interested in tax-deferred savings
Concerned about the impact of market volatility on their retirement income
Looking for protection for their family
For financial professional use only. Not for distribution to the public.

6. Product features Features Premiums
Details
Premiums
$2,000 qualified $5,000 nonqualified
$500 minimum additional premium
$2 million max without home office approval
Issue ages
45-80
Fees and expenses
M&E: 1.25%
Administration charge: 0.15%
Annual fee: less of $30 or 2% of accumulated value; waived if accumulated value is $30,000 or more
Surrender charges
Seven-year surrender charge scale by deposit
Surrender charges waived at death or annuitization
For financial professional use only. Not for distribution to the public.

7. Product features Features Free withdrawal amount Greatest of:
Details
Free withdrawal amount
Greatest of:
10% premium payments
Contract earnings
Required minimum distribution (RMD)
Waiver of surrender charge rider
Waives surrender charges due to death, disability or nursing home*
Death benefit
Accumulated value
Premium payments, less any withdrawals
The highest seventh-anniversary (7, 14, 21 etc.) accumulated value plus any premium payments and less any withdrawals made after that anniversary
Guaranteed minimum withdrawal benefit riders
Two options
Must elect one at issue
May terminate after five years
*Automatic issue to age 80. There is a one-year waiting period before the rider can be exercised. State variations may apply.
For financial professional use only. Not for distribution to the public.

8. Not available with this rider
GMWB rider features
Rider features
Target Income Protector
Flexible Income Protector
Charge
For current rider charges for new issues, please refer to the prospectus and applicable GMWB Charges and Percentages prospectus supplement
Bonus
For current bonus information for new issues, please refer to the prospectus and applicable GMWB Charges and Percentages prospectus supplement
Not available with this rider
Step-up
Automatic annual step-up each contract anniversary until the later of age 80 or 10 years after issue
For financial professional use only. Not for distribution to the public.

9. GMWB rider features Withdrawal benefit payment Investment options
Target Income Protector
Flexible Income Protector
Withdrawal benefit payment
Single/joint life options available
Withdrawal benefit payment is based on withdrawal benefit base and age at first withdrawal
Withdrawal benefit payment is based on withdrawal benefit base, age at first withdrawal and how long client defers taking withdrawals
Investment options
May allocate between any of the investment options available with each rider
Diversified Growth Volatility Control
Diversified Balanced Volatility Control
Diversified Income
Fidelity VIP Government Money Market
Diversified Growth
Diversified Balanced
Diversified Growth Managed Volatility
Diversified Balanced Managed Volatility
For financial professional use only. Not for distribution to the public.

10. DCA Plus program Six-month or 12-month option
Provides a guaranteed return over the six or 12 month period
All funds must be transferred out over the given time period
Each monthly transfer amount is equal to the DCA Account value divided by the number of months remaining in the account (note: transfers always happen on the 28th of the month)
Only available for new premiums and can’t be used in conjunction with Automatic Portfolio Rebalancing
If money is added to an existing DCA account, the premium will receive the rate in effect when the money is added and will be transferred out over the monthly transfers remaining in the current account
Clients are allowed one six-month and one 12-month DCA account at a given time
For financial professional use only. Not for distribution to the public.

11. Target Income Protector rider may be right for…
Clients who are looking for guaranteed income for life
Clients who are interested in receiving a bonus if no withdrawals are taken
Clients who are willing to pay more for a guaranteed minimum withdrawal benefit rider to receive higher withdrawal benefit payment percentages
For financial professional use only. Not for distribution to the public.

12. Target Income Protector rider
Offers a deferral bonus
Offers fewer investment options than the Flexible Income Protector rider
Includes volatility control funds
Help limit exposure to market volatility by reducing exposure to equity asset classes
May deliver lower investment returns
Volatility control funds may cost more

13. Target Income Protector rider
Withdrawal benefit payment percentage - tiered single/joint life percentages (joint life percentage is lower).
Bonus – automatically applied to the guarantee each year during the bonus period until a withdrawal is taken
Not included in the contract’s accumulated value
Once a withdrawal is taken, no longer eligible for the bonus
Step-up: annual automatic
Current bonus, withdrawal benefit payment percentages and rider fees can be found in the GMWB Charges and Percentages prospectus supplement.   .
For financial professional use only. Not for distribution to the public.

14. Flexible Income Protector rider may be right for….
Clients who are interested in guaranteed income for life
Clients who are concerned about fees and are looking for a lower cost guaranteed minimum withdrawal benefit rider
Clients who aren’t looking for a deferral bonus
For financial professional use only. Not for distribution to the public.

15. Flexible Income Protector rider
Offers more investment options than the Target Income Protector rider
Does not include volatility control funds
Lower cost than the Target Income Protector rider
Withdrawal percentage based on age and how long client defers taking withdrawals

16. Flexible Income Protector rider
Withdrawal benefit payment percentage - tiered single/joint life percentages (joint life percentage is lower)
Bonus – Not available with this rider
Step-up: annual automatic
Current withdrawal benefit payment percentages and rider fees can be found in the GMWB Charges and Percentages prospectus supplement. .
For financial professional use only. Not for distribution to the public.

17. Annual Step-up
Available on both Target Income Protector and Flexible Income Protector riders
Automatic annual step-up
Withdrawal benefit base automatically resets to match any growth in the accumulated value
Available each year to the later of age 80 or 10 years after contract date
Rider charge resets to current charge at step-up
If charges increase, client may opt out of future step-ups to keep current fee .
For financial professional use only. Not for distribution to the public.

18. For Life Withdrawal Benefit
Target Income Protector rider - withdrawal benefit payment is based on withdrawal benefit base and age at time of first withdrawal
Flexible Income Protector rider – withdrawal benefit payment is based on withdrawal benefit base, age at time of first withdrawal and how long client defers taking withdrawals
Joint life percentage is lower because the payout period can be considerably longer on a joint life election. Based on younger covered life at time of first withdrawal.
Client does not need to elect single or joint life until the time at first withdrawal
Withdrawals prior to age 59 ½ may be subject to 10% IRS penalty tax
For financial professional use only. Not for distribution to the public.

19. For Life Withdrawal Benefit
The GMWB Withdrawal Benefit Payment Percentages are provided in a monthly prospectus supplement
Withdrawals greater than the For Life withdrawal payment percentage will be treated as excess withdrawals
All withdrawals prior to the contract anniversary following the oldest owner’s age 59 ½ are treated as excess withdrawals when calculating the For Life withdrawal benefit payment
Withdrawal percentages are locked in at the time of first withdrawal and do not change for the life of the contract
For financial professional use only. Not for distribution to the public.

20. Unique Features for Joint Life
Not available to non natural owners
Spouse must be either joint owner and/or primary beneficiary
Spouse must be legally married
Prior to withdrawals, eligible spouse changes can be made due to divorce or marriage (no changes after withdrawals begin)
Only one spousal continuation is allowed
For financial professional use only. Not for distribution to the public.

21. What happens at death
At death of the owner (or first owner if joint owners)
A non-spouse beneficiary can take the death benefit
Spousal Continuation
If spouse is primary beneficiary, the spouse can continue the rider
If withdrawals started prior to death
If single life elected, the rider terminates
If joint life elected, For Life payments continue as long as the spouse is the covered life
Note: For Life will remain at the same Joint Life withdrawal benefit payment percentage set at the time of first withdrawal
If withdrawals did NOT start prior to death
Spouse can continue the For Life with the Single Life option
For financial professional use only. Not for distribution to the public.

22. RMD Programs and Termination
Required Minimum Distributions (RMD) Program
- Withdrawals taken to satisfy RMDs will not be treated as excess withdrawals as long as the RMD Program for GMWB riders guidelines are followed
Terminations
- The Target Income Protector and Flexible Income Protector riders may be terminated after five contract years
- These riders will “automatically” terminate with a change of ownership
- These riders will terminate if the contract is terminated
For financial professional use only. Not for distribution to the public.

23. Policy rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details. Riders are subject to state availability. Principal Lifetime Income Solutions II Variable AnnuitySM is issued by Principal Life Insurance Company and distributed through Principal Securities, Inc., , member SIPC and/or independent broker/dealers. Securities sold by a Principal Securities Registered Representative are offered through Principal Securities. Principal Life and Principal Securities are members of the Principal Financial Group®, Des Moines, IA
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 FDIC or NCUA Insured
May lose value · Not a deposit · No bank or credit union guarantee
Not insured by any Federal government agency
For financial professional use only. Not for distribution to the public.
RF2320| © 2017 Principal Financial Services, Inc. | t pe | 02/2017