1. Principal Select Series AnnuitySM
A single premium deferred annuity with a market value adjustment
Training
The Principal Select Series Annuity is offered by Principal Life Insurance Company.

2. Agenda Looking at your client’s needs Why fixed annuities?
Principal Select Series Annuity
In today’s training agenda, we’ll be covering the following…
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For financial professional use only. Not for distribution to the public.

3. Is your client… In or near retirement
Uncomfortable with potential market volatility
Looking to diversify his/her portfolio
Concerned about outliving assets
Saving for the long term
Looking for principal protection
Wanting a guaranteed death benefit and guaranteed income for life*
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* Guarantees are based on the claims-paying ability of Principal Life Insurance Company. For financial professional use only. Not for distribution to the public.

4. Why fixed annuities?
Provides a way to save tax-deferred for retirement
Provides a long-term savings plan
Provides guaranteed income for life
Assures continuing income for spouses
Provides a guaranteed death benefit to beneficiaries
Death benefit passes outside probate
What are some of the benefits of fixed annuities?
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For financial professional use only. Not for distribution to the public.

5. Principal Select Series Annuity
3-, 4-, 6- and 9-year guarantee periods* with matching surrender charge periods
At end of the guarantee period, interest rate determined annually – never less than Guaranteed Minimum Interest Rate
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*Variations may apply. For financial professional use only. Not for distribution to the public.

6. Features
The minimum initial premium is $5,000 (qualified and nonqualified); $50,000 for 3-year option.
The maximum initial premium is $2 million.
The maximum issue age is 85.
Includes a market value adjustment (MVA), and a waiver of surrender charge and MVA rider (state variations may apply).
Guaranteed Minimum Surrender Value – single premium (less withdrawals) accumulated at 3% per year less surrender charges
For financial professional use only. Not for distribution to the public.

7. Interest rate guarantee and renewals
Guaranteed Minimum Interest Rate (GMIR)
Set at contract issue by Principal Life Insurance Company
Does not change for the life of the contract
For financial professional use only. Not for distribution to the public.

8. Access to money The free surrender amount will be the greater of:
10% of contract year’s beginning account balance
Minimum distribution required by the IRS for qualified plans
The Flexible Withdrawal Option allows for scheduled partial surrenders on an annual, semiannual, quarterly or monthly basis.
Withdrawals made prior to age 59½ may result in a 10% IRS penalty tax.
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For financial professional use only. Not for distribution to the public.

9. Surrender charges* Contract Year 3-year guarantee 4-year 6-year 9-year1 7% 8% 2 3 6% 4 5 5% 6 4% 7 3% 8 2% 9 1%
For New York, the surrender charges are as follows: 3-year, 7%, 6%, 5%; 4-year, 7%, 6%, 5%, 4%; 6-year, 7%, 6%, 5%, 4%, 3%, 2%; 9-year is not available. For financial professional use only. Not for distribution to the public.

10. What is the market value adjustment (MVA)
Adjustment applied to account value if contract is surrendered prior to the end of the guarantee period or if the client withdraws more than the free surrender amount
Depending on current interest rate conditions, it may increase, decrease or have no effect at all on amounts surrendered
Protects Principal Life if money is withdrawn at a time when value of investments backing annuity is low
Client shares some of the risk in exchange for a higher crediting rate
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For financial professional use only. Not for distribution to the public.

11. MVA does not apply to:
Withdrawals made up to the free surrender amount
Withdrawals made after the surrender charge period is over
Death benefits
Benefit options
Withdrawals made as a result of the Waiver of Surrender Charge and Market Value Adjustment Rider
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For financial professional use only. Not for distribution to the public.

12. Contract rider descriptions are not intended to cover all restrictions, conditions or limitations. Refer to rider for full details. 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
Read disclosures.
Insurance issued by Principal Life Insurance Company, a member of the Principal Financial Group®, Des Moines, IA
For financial professional use only. Not for distribution to the public.
PD | © 2016 Principal Financial Services, Inc. | t gx | 09/2016