1. Protecting what matters most
Business owners share what’s important to them and how they plan to protect it
Presenter’s name
The presenter’s title goes on this line

3. Who are business owners?
They’re in communities across the country
Supporting the local and national economy
To get their insights we’ve polled:
1,000 business owners
With 500 or less employees
Through this presentation, we’ll review some key insights to help guide your financial planning conversations.

4. Priorities vary among owners
We asked business owners to rank their top priorities and whether they had a plan in place today. Even though owners rank these as important, many still need help protecting what matters most. For instance, business protection is ranked #1, yet only 36% of owners have a plan in place.
To help you see if these priorities are also yours let’s take a closer look at each of them as they pertain to your business, lifestyle and employees.
Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the
Principal Financial Group. January 2017

5. Solutions for your business
Priorities vary among business owners
Solutions for your business
Business protection (#1 priority)
Protect your business from an unexpected death or disability of an owner or key employee
Key person life and disability are the most popular solutions. With disability overhead expense and key person disability insurance showing growth
Succession planning (#7 priority)
Over half of owners have a plan in place
Don’t forget to have proper funding vehicles in place to exercise the plan
Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the
Principal Financial Group. January 2017

6. Solutions for your lifestyle
Priorities vary among business owners
Solutions for your lifestyle
Income protection (#2 priority)
Works like a “paycheck” when you’re too sick or hurt to work
Majority of business owners would recommend it
Survivor income (#8 priority)
Provides for your family if you die and can be used to achieve certain financial objectives
You’ll be in good company – almost 70% of your peers own it
Estate and legacy planning (#9 priority)
Helps to consider as your business grows
Ensures there are funds to meet your lifetime objectives
Additional note --- Estate and legacy planning may provide you with the liquidity to pay estate taxes and keep your business intact
Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the
Principal Financial Group. January 2017

7. Solutions for your employees
Priorities vary among business owners
Solutions for your employees
Health and wellness (#3 priority)
Employer sponsored programs to help maintain or improve health
Comprehensive health insurance remains the top solution with HSAs gaining in popularity
Non-medical (#4 priority) and voluntary benefits (#10 priority)
Insurance offered at the worksite
Can be paid by the employer or employee
Most owners say employee benefits help with retention
Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the
Principal Financial Group. January 2017

8. Solutions for your employees, cont.
Priorities vary among business owners
Solutions for your employees, cont.
Qualified retirement plans (#5 priority)
Defined contribution or defined benefit retirement solutions
401(k) plans remain the most popular
Supplemental key employee benefits (#6 priority)
Typically targeted to key employees who are critical to the success of the business
Disability income remains the most popular solution
Other solutions may include non-qualified deferred compensation or other executive benefits
Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the
Principal Financial Group. January 2017

9. What stops business owners from planning
We learned that business owners, like you, are tight for time, and financial planning isn’t likely at the top of their daily to do list --- but it should be. Can you relate to this?
Taking the first step can be intimidating and overwhelming.
Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the
Principal Financial Group. January 2017

10. Assembling a team of advisors
Nearly half (49%) use a CPA, followed by an attorney (37%), to assist with insurance and employee benefit needs.
Get started by talking to trusted advisors. Of the 60% of owners who work with a financial professional, nearly half work with a CPA followed by an attorney. Adding a financial professional who’s expertise is in insurance and investments can provide a more robust team working for you.
If you don’t have someone in one of these roles. Don’t worry, ask any of your current advisors for a recommendation.
Working with a trusted financial professional, CPA and attorney can provide the complete support you need to move your business forward.
Source: Financial Solutions for Business Owners, research conducted by Harris Interactive for the
Principal Financial Group. January 2017

11. Thank you
Insurance from Principal® is issued by Principal Life Insurance Company and Principal National Insurance Company, Des Moines, IA
All insurance products have limitations and exclusions. For cost and coverage details, contact your Principal Life 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®.
Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
DI | 08/2017