The Principal is committed to the secondary guarantee market. This commitment requires that we closely monitor market trends, economic conditions and our own block of business. It is important that we take steps to manage our business and ensure a strong product for both existing and new policy owners. As a result of in-depth analysis, The Principal has determined that we need to take a pricing increase on SUL single-pay scenarios. To reiterate, this change is focused on our single premium business. You will see relatively little impact on continuous-pay or limited-pay scenarios.

We believe your analysis will show The Principal continuing to stand strong among the competition. Compensation remains unchanged. Our commitment to secondary guarantee products remains unchanged. Our target market remains unchanged:

• Lifetime pay scenarios
• Face amounts above $1 million
• Target ages 60 to 75
• Limited-pay scenarios

And most importantly, our commitment to you remains our number one priority!

Principal SUL Protector remains a strong joint life product supported by a sophisticated suite of estate planning tools and advanced solutions professionals. As with all our product changes, there will be a 30-day transition window starting January 23rd where we will accept applications for both our current and new SUL rates.

Transition Guidelines

Transition Guidelines SUL Protector (2011) to SUL Protector (2012)

• January 23, 2012: SUL Protector (2012) rates are available.
• February 23, 2012: Last day applications can be signed to receive 2011 rates. Applications signed after this date will be issued with the new 2012 rates.
• March 9, 2012: Last day applications can be received in our home office to receive 2011 rates.
• Backdating is not available prior to state approval date and current backdating rules apply.

Cases Pending on January 23, 2012

• Applications in underwriting will be issued with the SUL Protector (2011) rates.
• Request the new 2012 rates by submitting a revised SUL Protector (2012) illustration which may be signed on delivery. No new application is required. Current backdating rules apply.

Recently Issued Policies (COD, Offer or Shortage)

• SUL Protector (2011) rates will be issued with a current date.
• Request for SUL Protector (2012) rates can be made when current dated if the premium received with delivery requirements support it; along with a signed matching illustration. New data pages will be mailed to the client. Current backdating rules apply.

FOR MORE INFORMATION
Contact your Madison Brokerage representative.

For financial professional information only. Not for distribution to the public.
Insurance products from the Principal Financial Group are issued by Principal National Life Insurance Company (except in New York) and Principal Life Insurance Company, Des Moines, IA 50392