We ve Got You Covered

FOR INDIVIDUALS Principal Universal Life Protector IV SM We ve Got You Covered BB9660-05

The value of guaranteed death benefit protection Security is your priority. You want to be sure your commitments are taken care of for the long term. The Principal Financial Group has you covered with Principal Universal Life Protector IV SM (UL Protector IV). UL Protector IV can help ensure that future obligations are met by providing a guaranteed death benefit. Flexibility to fit your needs 1 The flexibility and choice of UL Protector IV puts you in control: Select the length of the lapse protection guarantee period from a few years to your lifetime. Select the level of premium payments to make. Decrease or increase (subject to underwriting rules in effect at the time) the policy s death benefit. 2 Lapse Protection Rider 3 One of the key features of UL Protector IV is the guaranteed death benefit available at an affordable premium rate. This guaranteed protection is achieved through the Lapse Protection Rider. This rider is added to each policy at the time of issue. The Lapse Protection Rider allows you to guarantee your policy will not lapse for a specified period of time ranging from a few years up to your lifetime. You control how long your policy remains in force by the amount of premium you pay. A Lapse Protection Value accumulates as you pay premiums. As long as the policy s Lapse Protection Value is greater than the loan balance, the policy s coverage is guaranteed not to lapse. The Lapse Protection Value is not available in cash at the time of surrender. In the first year, payment of a minimum premium is required. Your financial professional can help you determine the premium level that provides the appropriate amount and length of death benefit protection to meet your needs. This protection feature is not affected by changes in the rate of interest credited to the policy or by policy charges. This feature is impacted by changes made to the policy (loans, surrenders, etc.), and these changes will affect the lapse protection guarantee period. The amount, frequency, duration or timing of premium payments will have a direct impact on the lapse protection guarantee period.

Surrender Value Feature 4 The Net Surrender Value of a policy has two purposes: 1. To establish the amount of cash available for surrender or loan throughout the life of the contract 2. To confirm the policy is still in force The policy is guaranteed to remain in force as long as the Net Surrender Value is sufficient to cover policy charges. The following diagram shows how the Net Surrender Value and the Lapse Protection Value work together to keep the policy in force. How UL Protector IV protects you 100% of premium payment is used for two simultaneous calculations Surrender Value 5 Lapse Protection Value 5 - Premium Expense Charges - Monthly Policy Charges - Partial Surrenders + Credited Interest - Surrender Charges 4 - Loan Balance = Net Surrender Value If Net Surrender Value is greater than 0, policy remains in force. If Net Surrender Value is less than or equal to 0, check the Lapse Protection Value. - Lapse Protection Premium Expense Charges - Lapse Protection Monthly Policy Charges - Partial Surrenders - Loans + Lapse Protection Interest = Lapse Protection Value If Lapse Protection Value is greater than Loan Balance, policy remains in force. If Lapse Protection Value is less than or equal to Loan Balance, policy lapses. Your policy will remain in force as long as either the Net Surrender Value is greater than zero, or the Lapse Protection Value is greater than the loan balance.

Changes that affect the lapse protection guarantee period Your lapse protection guarantee period may shorten if one or more of the following events occur 2 : You change the amount and/or frequency of your premium payments. You take a loan or partial surrender from the policy. You change the death benefit option. You increase the face amount of the policy (including increases that result from riders). You decrease the face amount of the policy. You add, change or delete a rider that has a charge. Your underwriting risk class changes. Any of these changes can affect the length or existence of the lapse protection guarantee. Prior to making a premium or policy change, contact your financial professional or The Principal at 800-247-9988. We can help you understand the impact a change can have to your lapse protection premium and/or to your lapse protection guarantee period. The policy provides flexibility for you to pay any premium level desired. If you elect to pay the minimum lapse protection guarantee amount, you may not realize the full benefit of cash value growth. If you pay the minimum lapse guarantee amount only, your policy may terminate after the desired lapse protection guarantee period ends. Whether your policy remains in force beyond the desired guarantee period is determined by the presence of adequate net surrender value to cover monthly policy charges. If the desired lapse protection guarantee period is less than the stated policy maturity date, coverage may lapse prior to policy maturity, even if Planned Periodic Premiums are paid.

Additional features 6 Extended Coverage Rider This rider ensures you don t outlive your protection. The lapse protection guarantee period for the policy is extended beyond age 121. This rider is added to all UL Protector IV policies at no additional cost. Children Term Insurance Rider The Children Term Insurance rider provides insurance coverage for eligible (insured) children ages 15 days through 17 years. The minimum coverage is $5,000, and the maximum is $25,000. Multiple children can be covered with this rider. While this rider is in force, coverage of an insured child shall continue until the policy anniversary following the child s 25th birthday. In addition, this rider offers the option to convert coverage on each child by purchasing a permanent policy. The new policy s death benefit can be an amount equal to or up to three times the original death benefit without having to qualify for coverage. There is a cost to have this rider. Waiver of Monthly Policy Charge Rider This rider helps you maintain coverage in the event you become totally disabled and unable to make premium payments. Under the rider, charges to your policy are waived during the Waiver Period if you have met the definition of total disability. There is an additional cost for this rider. Cost of Living Increase Rider This rider permits you to increase your coverage every three years based on increases in the Consumer Price Index (CPI). Accepting these offers can help ensure your death benefit keeps pace with inflation. You do not need to show evidence that you are insurable in order to accept an offer. There is no cost for the rider. However, if you accept an offer, the premium will increase due to the higher death benefit. The rider ceases upon the earliest of these events: you reach age 55, decrease your face amount or decline a cost of living increase offer. Accelerated Benefits Rider You may take advances of up to 75 percent of your policy face amount (maximum of $1 million) if you become terminally ill and have a life expectancy of less than 12 months. If you receive a benefit advance, the portion that exceeds your tax basis in the policy may be taxable as income. There is no cost for this rider.

Partial Surrenders and Loans 2, 4 Emergencies happen in life, and having access to your policy values can be helpful as a means to supplement cash needs. UL Protector IV provides flexibility to allow you to take partial surrenders and/or loans from the policy if there is sufficient cash value available. The withdrawal of policy values will reduce your death benefit, decrease the surrender value and may shorten the length of, or eliminate, the lapse protection guarantee. Your financial professional can help outline your options and provide an illustration to help you see how your policy will be affected. Helping you manage your policy Because the above factors can affect your lapse protection guarantee, The Principal offers you help in managing your policy. Premium Reminders 5 Timely payment of premiums is important to maintain your desired lapse protection guarantee period. After you make your first payment, we will send you reminder notices of the Planned Periodic Premium, which is the amount and frequency of premium you choose. Premiums paid outside of 20 days before through 27 days after the premium due date may reduce the length of the lapse protection guarantee period. If you are enrolled in the Electronic Funds Transfer Program, we will withdraw payment from your authorized bank account on the date it is due. Annual Statements You will receive an annual statement that shows how your policy is performing and how long your lapse protection guarantee period is projected to last based upon your Planned Periodic Premium Duration. Planned Periodic Premium Duration This is the number of years you plan to pay premiums in order to maintain the lapse protection guarantee. This information is stored for each policy and downloaded when your financial professional runs an existing policy illustration. If you want to change the duration, call your financial professional or The Principal home office. Future Illustrations Your financial professional can provide an in force illustration that will show a current snapshot of how your policy is performing. We ve got you covered UL Protector IV helps guarantee your loved ones will be taken care of. It offers flexible and guaranteed death benefit protection, tax-advantaged accessibility and optional policy riders and features all in a single product. Talk to your financial professional today about how UL Protector IV can help cover you and your loved ones.

Guarantees are based on the claims-paying ability of the issuing insurance company. 1 The policy description is not intended to cover all restrictions, conditions or limitations that may apply. Benefits may be limited during the first two years of your policy under the Suicide and Contestability provisions. See the policy for full details. The policy is subject to state variations and availability. 2 Partial surrenders, death benefit option changes, face amount increases and decreases, underwriting risk class changes, and rider additions or deletions are allowed on or after the first policy anniversary. 3 The Lapse Protection Rider, and its underlying protection, will be affected by any changes in premium payment amounts, premium payment frequency, loans, partial surrenders, face amount adjustments, death benefit option changes, risk class changes and addition/deletion of any attached rider. Please see your policy for more information. If the policy is terminated longer than 60 days (subject to state variation) and is later reinstated, the Lapse Protection Rider will be permanently lost. Premiums required to keep the policy inforce without the Lapse Protection Rider will likely be significantly higher. 4 Surrender charges will occur for 19 years on a UL Protector IV policy. Surrender charges will occur longer if you increase the face amount of the policy. 5 Surrender Value and Lapse Protection Value are both affected by the amount, frequency, timing, and length of premium payments, as well as face amount changes, death benefit option changes, risk class changes, addition/subtraction of a rider, partial surrenders, loans and loan repayments. Please discuss the effect of these factors with your financial professional of The Principal, or reference your policy and your policy data pages for all items that affect Surrender Values and/or Lapse Protection Values. 6 Policy rider descriptions are not intended to cover all restrictions, conditions or limitations that may apply. See the policy and rider for full details. Riders are subject to state variation and availability. Some riders may require additional premium. Accelerated Benefits Rider is not available in all states, including Massachusetts. We ll give you an edge Principal National Life Insurance Company and Principal Life Insurance Company, Des Moines, Iowa 50392-0001, www.principal.com While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that none of the member companies of The Principal are rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. Insurance products from the Principal Financial Group (The Principal ) are issued by Principal National Life Insurance Company (except in New York) and Principal LIfe Insurance Company, Des Moines, IA 50392. Not FDIC or NCUA insured May lose value Not a deposit No bank or credit union guarantee Not insured by any Federal government agency BB9660-05 06/2012 t12061502tq Principal National Policy Form SN 46 / Rider Forms SN 42, 49, 50, 51, 52, 53 and 54 Principal Life Policy Form SF 889 / Rider Forms SF 909, 892, 893, 895, 896, 897 and 898