1. Principal Secure Choice Indexed 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 Why fixed deferred indexed annuities?
Profile of an indexed annuity client
Principal Secure Choice Indexed Annuity
Principal Secure Choice crediting methods
For financial professional use only. Not for distribution to the public.

4. Why fixed deferred indexed annuities?
Provides a way to save tax-deferred for retirement
Provides a long-term savings plan
Provides guaranteed lifetime income
Assures continuing income for spouses
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 indexed annuity client is…
In or near retirement
Concerned about market volatility and looking for a savings vehicle to protect their principal
Looking for financial portfolio diversification
Wants returns that can better track inflation and aren’t subject to losses
Concerned about outliving his or her savings
Saving for the long term
Wants higher level of protection — guaranteed death benefit and guaranteed income for life
Guarantees are based on the claims-paying ability of Principal Life Insurance Company.
For financial professional use only. Not for distribution to the public.

6. Principal Secure Choice Indexed Annuity
4, 5, 6 and 7-year surrender charge periods
Choice between two crediting methods:
Annual Point-to-Point
Performance Trigger
Opportunity for growth because performance with both crediting methods is based in part on the performance of the S&P 500® Index (excluding dividends)
Allocate accumulated value to one crediting method at a time, but can switch between methods at each contract anniversary
For financial professional use only. Not for distribution to the public.

7. Annual Point-to-Point Index Crediting Method
Crediting methods
Annual Point-to-Point Index Crediting Method
Index Crediting Amount
Amounts credited linked to the S&P 500® Index
Contract measures the percentage change in the index from the beginning of a contract year to the end of that contract year
The percentage change is credited to the accumulated value up to the specified cap
Index credit amount equals the accumulated value, multiplied by the lesser of:
The index change multiplied by participation rate, or
The index cap
Once index credit amounts are credited, they are locked in and will not decrease in subsequent years, even if the S&P 500® Index declines
Amount credited will never be less than zero
Credited annually at each contract anniversary
Index Cap
Set at contract issue
Adjusted annually
Minimum index cap set at contract issue and for each subsequent surrender charge period
Participation Rate
Will not change for the life of the contract
The S&P 500® Index does not reflect dividends paid on the stocks underlying the index. If renewal would extend the contract beyond the annuitization date these will be redetermined annually on each contract anniversary.
For financial professional use only. Not for distribution to the public.

8. Performance Trigger Index Crediting Method
Crediting methods
Performance Trigger Index Crediting Method
Index Crediting Amount
Amounts credited linked to the S&P 500® Index
Index credit amount equals (if the index performance is either flat or positive) the accumulated value, multiplied by the trigger percentage
Once index credit amounts are credited, they are locked in and will not decrease in subsequent years, even if the S&P 500® Index declines
Amount credited will never be less than zero
Credited annually at each contract anniversary
Trigger Percentage
Set at contract issue
Adjusted annually
Minimum trigger percentage set at contract issue and for each subsequent surrender charge period
The S&P 500® Index does not reflect dividends paid on the stocks underlying the index. If renewal would extend the contract beyond the annuitization date these will be redetermined annually on each contract anniversary.
For financial professional use only. Not for distribution to the public.

9. Product details Minimum initial premium
$10,000 or more (qualified or nonqualified)
Maximum initial premium
$2 million
Maximum issue age is 85*
Annuity matures at age 95
Premium credit is the percentage of the premium to be credited to the accumulated value at contract issue
Clients may be eligible for a higher premium credit percentage by increasing their premium1
1May not be available with all surrender charge periods.
For financial professional use only. Not for distribution to the public.

10. Product details
Renewal window during the last 30 days of the surrender charge period1
Client automatically renews into the same surrender charge period (unless they elect another surrender charge period); surrender charges restart
Client receives the best index cap or trigger percentage between the beginning and end of the renewal window based on the index crediting method chosen
During the renewal window client can withdraw accumulated value without paying any surrender charges
130-day renewal feature is not available in Florida or Delaware. Florida and Delaware contracts will renew into a one-year guarantee period at the end of the initial guarantee period and surrender charges will not restart.
For financial professional use only. Not for distribution to the public.

11. Product details Free surrender amount will be greater of:
10% of contract year accumulated value
Minimum distribution required by the IRS for qualified plans
The minimum accumulated value must be at least $5,000
For financial professional use only. Not for distribution to the public.

12. Surrender charges Period 4-Year 5-Year 6-Year 7-Year Year 1 9% Year 28%
Year 4 7%
Year 5 6%
Year 6 5%
Year 7 4%
For financial professional use only. Not for distribution to the public.

13. Guaranteed minimum surrender value1
If clients fully surrender the contract, they’re guaranteed 90% of their original investment minus any withdrawals, growing at 1% per year
Clients receive the guaranteed minimum surrender value if the surrender value is greater than the contract’s accumulated value minus any applicable surrender charges
1While this guarantee can be beneficial to clients who decide to fully surrender the contract after a long period of negative market growth, it is not a guaranteed minimum interest rate. Guarantees are based on the claims-paying ability of Principal Life Insurance Company. Subject to change upon renewal.
For financial professional use only. Not for distribution to the public.

14. Product details When are surrender charges waived?
Death or annuitization
Waiver of Surrender Charge rider
– Terminal illness
– Nursing home
– Disability
During the 30-day renewal window
For financial professional use only. Not for distribution to the public.

15. 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. 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
Insurance issued by Principal Life Insurance Company. Principal Life is a member of the Principal Financial Group®, Des Moines, IA 50392, principal.com
For financial professional use only. Not for distribution to the public.
RF2177B-04 | © 2016 Principal Financial Services, Inc. | t ms | 07/2016