Variable Annuities

Overview

Successful investing requires implementing a number of different strategies, including tax benefits and fighting inflation, both of which may be achieved with variable annuities.

In addition, the Principal Investment Plus Variable Annuity^SM offered by Principal Life Insurance Company provides unique features you won't find in other investment vehicles.

Principal Variable Annuity Benefits

• Multiple Money Managers - The diversity of investment advisors within the Principal Investment Plus Variable Annuity means that you create an investment strategy that helps you meet personal objectives. Choosing one - or any combination - of the investment advisors immediately puts their experience to work for you.
• Investment Choices - The subaccounts that make up our portfolio allow you to blend your assets among conservative, moderate, or aggressive investment options. Your return will depend on the performance of the funds you choose.
• Family Protection - The Principal Investment Plus Variable Annuity offers two death benefit options to help protect your heirs. Since no one can predict whether the market will be up or down at death, both death benefit options ensure that if you die before choosing an annuity payout option, the proceeds pass to your designated beneficiaries.
• Investment Protection: Investment Protector Plus (GMWB) Riders - The Principal Investment Plus Variable Annuity offers two guaranteed minimum withdrawal benefit riders that offer investment protection. For an additional fee, you can get 100% of your investment back or lifetime income in the form of withdrawals. The riders also allow you to take advantage of market growth with a step up feature - allowing you to lock in potential market gains to increase your withdrawal amounts. The riders are flexible in that you don't have to choose between the income for life or investment back guarantees - you can vary your withdrawals and start and stop withdrawals as needed.
• Access to Your Money - The Principal Investment Plus Variable Annuity offers a number of different opportunities to access your money - without surrender charges. Some state variations may apply; please read the prospectus for specific information. Withdrawals prior to age 59½ may be subject to a 10% IRS penalty.
• Automatic Portfolio Rebalancing - By electing the Automatic Portfolio Rebalancing (APR) feature, amounts are automatically transferred between the investment divisions according to your preselected allocations. The APR feature helps ensure that your investment maintains your overall financial objectives. Variable annuities allow transfers between your investment options without any adverse tax consequences.
• Access to Account Information - In addition to receiving ongoing statements, you have unlimited access to your account information via:
  • The Internet - Go to www.principal.com and choose Login, then Personal Login, to access your accumulated value at any time.
  • Phone - Call our toll-free automated customer service line at 800/852-4450 between 7:00 a.m. and 9:00 p.m. CST (Monday - Saturday) to access interest rates and policy information or to initiate changes to your contract.
    
• Automatic IRS Minimum Distribution Notification - If you use the Principal Investment Plus Variable Annuity for an IRA, SEP, or SIMPLE IRA and are over age 70½, each year, we notify you of the required withdrawal amount necessary to meet the IRS minimum distribution rules.