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Variable Annuities


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

The Principal Investment Plus Variable AnnuitySM offered by Principal Life Insurance Company is suitable for long-term investing and provides unique features you won't find in other investment vehicles.

Principal Variable Annuity Features

  • Multiple Money Managers - The diversity of investment advisors within the Principal Investment Plus Variable Annuity means that you create an investment strategy that can help 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 a death benefit option to help protect your heirs. Since no one can predict whether the market will be up or down at death, the death benefit option ensures that if you die before choosing an annuity payout option, the proceeds pass to your designated beneficiaries.
  • Guaranteed Income for Life - The Principal Investment Plus Variable Annuity offers two optional Guaranteed Minimum Withdrawal Benefit (GMWB) riders that provide guaranteed income for life. Depending on how soon you need income, and the importance of guaranteed protection, you can choose the rider that best fits your needs. The riders are available at an additional cost.
  • 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:
    • Online at
    • Phone - Call our toll-free automated customer service line at 800/852-4450 between 7:00 a.m. and 6:00 p.m. CST (Monday - Friday) to access 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.
  • Fees and Expenses - An annual fee, the lesser of 2% of the accumulated value or $30, is assessed at the end of the contract year for administrative costs unless the account value is $30,000 or more at the end of the contract year. This fee is also charged at the time of full surrender (unless due to death, disability or annuitization). The fee is deducted from the Fixed Account, DCA Plus Fixed Accounts, or variable subaccount with the greatest value. In some cases, the fee may be reduced to guarantee the minimum guaranteed interest rate.
  • Other Fees/Charges - The Principal Investment Plus Variable Annuity has a mortality and expense (M & E) risks charge of 1.25% annually and is applied to the values in the variable subaccounts daily. M & E risks charge covers guaranteed death benefits and other waiver benefits. Principal Life also assesses an administration charge of 0.15% annually that is applied to the variable subaccounts daily. The administration charge covers our costs for administration of the contract that are not covered in the M & E risks charge. Asset management fees for professional management vary by subaccount and are described in the variable annuity prospectus. All the above fees may vary by variable annuity product and are reflected in the daily unit values of the variable subaccounts.
  • Surrender Charges - There are no surrender charges for amounts used to purchase a benefit payment options, amounts paid out at death or withdrawals made under the Waiver of Surrender Charge rider. For withdrawals in excess of the free withdrawal privilege, the contingent deferred surrender charge is:

    Years% Charge
    0 6%
    1 6%
    2 6%
    3 5%
    4 4%
    5 3%
    6 2%
    7 and over 0%

Guarantees are based on the claims paying ability of Principal Life Insurance Company.

Contract rider descriptions are not intended to cover all restrictions or limitations. Refer to the rider for full details. Riders are subject to state availability and may be subject to an additional charge.

Values in separate account subaccounts are not guaranteed and will vary from day to day.

Automatic Portfolio Rebalancing does not guarantee a profit or protect against a loss in declining markets.

Tax-qualified retirement arrangements, such as IRAs, SEPs, and SIMPLE-IRAs are tax-deferred. You derive no additional benefit from the tax deferral feature of the annuity. Consequently, an annuity should be used to fund an IRA, or other tax qualified retirement arrangement, to benefit from the annuity's features other than tax deferral. These features may include guaranteed lifetime income, death benefits without surrender charges, guaranteed caps on fees, and the ability to transfer among investment options without sales or withdrawal charges.

Before investing in a variable annuity, investors should carefully consider the investment objectives, risks, charges and expenses of the contract and the underlying investment options. This and other information is contained in the free prospectus and, if available, the summary prospectus, which can be obtained from your local representative or call 800.852.4450. Please read the prospectus and, if available, the summary prospectus, carefully before investing.

Insurance issued by Principal Life Insurance Company. Securities offered through Princor Financial Services Corporation, 800-852-4450, member SIPC, Des Moines, IA 50392.


Investment and insurance products are: not a deposit · not FDIC Insured ·
not insured by any federal government agency · not a bank guarantee · and may lose value.

Have a question? Call us at 1.800.986.3343

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Securities offered through Princor Financial Services Corporation, member SIPC