From Here to SecuritySM

Conference Title and Date

Speaker Name, Title

While this communication may be used to promote or market a transaction or an idea that is discussed in the presentation, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal is not 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.

Before investing in variable life insurance, investors should carefully consider the investment objectives, risks, charges, and expenses of the policy and the underlying investment options. This and other information is contained in the free prospectus, which can be obtained from your local representative. Please read the prospectus carefully before investing.

Insurance issued and plan administrative services provided by Principal Life Insurance Company. Securities offered through Princor Financial Services Corporation, 800/247-4123, member SIPC. Principal Life and Princor® are members of the Principal Financial Group®, Des Moines, IA 50392.

Do you count on employee benefits?• 401(k) Plan

• Defined benefit pension plan*

• Disability income insurance

• Workers compensation

• Life insurance

• Health insurance

* “In the past 20 years, the number of defined benefit plans in America has dropped by nearly 75%. Today, less than 17% of workers have access to this type of pension plan.”

Employee Benefits Research Institute, Policy Forum, 2004

Employee benefits are great, but……

• Not everyone enjoys the same level of benefits.

• They may not solve all your needs.

• You may not stay in your current job forever.

• What happens to them when you retire?

• They may not keep up with inflation.

• They usually are not guaranteed and could disappear.

• You have little or no control over them.

Many people are inadequately protected

• Two-thirds of surviving spouses report the lack of

adequate life insurance had a devastating impact on their families’ financial security.

• After five years, 42% of surviving spouses consider their financial situation worse than before the death of their loved one.

Source: The Financial Impact of Premature Death, LIMRA International, 2003

Life insurance ownership has declined

35 62 70 90

Your net worth

Where are you on the lifeline?

accumulate preserve spend down

• Where are you?• Where are you going?• What are the obstacles?• What can you do to assure success?

“In recent years, the United States (along with the rest of the industrialized world) has seen an increase in life expectancy, and this trend is expected to continue. Presently, at age 65, a man has a 50 percent chance of living beyond age 85, and a woman has a 50 percent chance of living beyond age 88. While this increased longevity may be viewed as positive, it also presents a host of risks.”

With Longevity Comes Risk: LIMRA MarketFacts, Spring 2006

Life expectancy is on the rise

Premature death causes economic disruptions

• Loss of a major source of income

• Loss of benefits, such as medical and disability insurance

• Loss of potential future earnings, savings towards retirement and savings for education.

Source: The Financial Impact of Premature Death, LIMRA International, 2003

Then why is life insurancethe last thing we think about?

• Rising medical premiums?

• Planning for retirement?

• Saving for college funding?

Why do people buy life insurance?

Income replacement 66%

Final expenses 42%

Pay off mortgage 33%

Transfer wealth 22%

Who is Buying Individual Life and Why?

2005; LIMRA International

Why do people buy life insurance?, cont.

• Single people

• Young families

• Middle age couples

• Retired couples

• Business owners

Income tax features of life insurance

• The death benefit is generally free from income tax

• The cash value grows tax-deferred

• The cost basis (premiums paid) can be recovered on a FIFO basis without being subject to income tax*

• Loans can generally be taken against the cash value without being subject to income taxation*

*If not a modified endowment

Types of individual life insurance

• Term – Low-cost protection

• Universal life – Flexible death benefit and premium.

• Universal life with secondary guarantees – Long-term protection

• Variable universal life – Flexible death benefit and premium.

• Whole life – Fixed premium and protection for the long term

How much life insurance do you need?

• Final expenses and cash needs

• Long-term financial obligations

• Living expenses

• Current financial resources

For those seeking a comprehensive analysis, Financial Strategies assesses where you are now, where you want to go and how to best get there.

Financial Strategies

Get a handle on all aspectsof your financial picture

Not everyone wants or needs a complete analysis. Some may prefer an examination of specific needs. For them, we offer a free From Here to Security check-up to examine their life and disability insurance needs.

From Here to SecuritySM

Why participate in theFrom Here to Security Program?

• Financial goal-setting can make positive things happen.

• Our financial professionals work with you to provide information about your current situation and ideas for future solutions.

• You will work with professionals that meet your employer’s standards.

Why participate in theFrom Here to Security Program?, cont.

• Affordable options can be discussed.• Simplicity -- You may be able to address these issues

during working hours.• No fees are charged for this service.

Next steps

1. Decide what service(s) you want from us:

• From Here to Security

• Financial Strategies

2. Sign up for a free meeting

3. Begin the journey to financial security

Thank you!

Name and Contact information

# 5293082008 8/06