Principal Income Annuity Training Classification Internal Use Please

Principal® Income Annuity Training Classification: Internal Use

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. Classification: Internal Use

Agenda • Why income annuities? • Profile of an income annuity client • Principal Income Annuity For financial professional use only. Not for distribution to the public. Classification: Internal Use

Why income annuities? • Provide an income stream for life • Peace of mind — payment stability helps cover essential • • • expenses Changing sources of retirement income Tax advantages of nonqualified annuities No market risk with an income annuity — ability to be more aggressive with remaining assets in portfolio Flexibility of income benefit options Optional inflation protection rider For financial professional use only. Not for distribution to the public. Classification: Internal Use

A typical income annuity client… • • • Is nearing or in retirement Needs to supplement existing retirement funds Wants a diversified investment portfolio Is concerned about outliving assets Wants to start receiving income from the annuity soon For financial professional use only. Not for distribution to the public. Classification: Internal Use

Features • Variety of benefit options: • Fixed Period Income (between 5 -30 years)* Life Income with Guaranteed Period (between 5 -30 years) Joint and Survivor Life Income with Cash Refund Life Income with Installment Refund Fixed Period options between 5 and 15 years available in Maryland; fixed amount not available in Maryland Guarantees are based on the claims-paying ability of Principal Life Insurance Company. For financial professional use only. Not for distribution to the public. Classification: Internal Use

Features • Maximum issue age is 95 (79 for Life Income only) • Contribution limits Minimum contribution: $10, 000 for qualified and nonqualified plans Maximum contribution: $2, 000 for qualified and nonqualified plans; $5, 000 with home office approval For financial professional use only. Not for distribution to the public. Classification: Internal Use

Liquidity Rider* • • • Automatically included No cost Can take a one-time withdrawal Up to 100% of the discounted value of the remaining guaranteed payments (minimum $2, 500) Available with all benefit options except Life Income (both Single Life and Joint and Survivor) * May not be available in all states. For financial professional use only. Not for distribution to the public. Classification: Internal Use

Liquidity Rider hypothetical example Assumptions: ― Male ― Age: 75 ― Premium: $100, 000 ― Benefit Option: Life Income with 10 -year Guarantee Period Year 5 ― 50% withdrawal = $22, 335 (current) ― $20, 938 (up 2%) ― $23, 882 (down 2%) ― Adjusted remaining monthly payments for year 5: $4, 185/year Years 1– 4 ― Payment = $8, 370/year Years 6– 10 ― Payment = $4, 185/year Years 11+ ― Payment = $8, 370/year For financial professional use only. Not for distribution to the public. Classification: Internal Use

Optional cost of living rider • Annual Increase Rider Choose from: 1%, 2%, 3%, 4% or 5% Automatically increases payments each year Available at issue for no additional fee For financial professional use only. Not for distribution to the public. Classification: Internal Use

Optional Limitations Rider* • Restricts ability to: • • • Change the Owner Assign the contract Change the payee No cost May be used for Medicaid planning Consult with client’s attorney if used for Medicaid planning Rider is irrevocable and cannot be issued with the liquidity rider * May not be available in all states. For financial professional use only. Not for distribution to the public. Classification: Internal Use

Contract rider descriptions are not indented 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 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. Annuity products and services are offered through Principal Life Insurance Company, a member of the Principal Financial Group®, Des Moines, IA 50392. For financial professional use only. Not for distribution to the public. PD 855 -08 | © 2019 -2020 Principal Financial Services, Inc. | 1098776 -022020 | 10/2019 Classification: Internal Use