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The Fixed Account A stable option for uncertain times Now that your organization has settled on using corporate-owned life insurance to informally finance its nonqualified deferred compensation plan, it’s time to talk details. When you use Principal Executive Variable Universal Life II1 insurance, you get a death benefit that can provide survivor benefits or be used to recover plan costs. Plus, the policy builds cash value. You select how premium payments will be invested by choosing from more than 100 sub-accounts. How these underlying investments perform determines the policy’s cash-value growth. “Great,” you say. “But do I have any protection in a down market?” That’s where the Fixed Account comes in. When you choose this investment option, premiums allocated to the account earn a rate of interest set by us. So you can enjoy more certainty — even in turbulent times. What you get with the Fixed Account Certainty. Flexibility. Versatility. Get a guaranteed minimum interest rate with the potential for a higher current rate. Transfer assets in and out to meet your needs, with some restrictions. Enjoy stable investment returns without giving up the reward potential of a variable product. How the Fixed Account earns interest Fixed Account assets are held in the General Account of the issuing insurance company and earn interest 1 | based on a portfolio of investments (portfolio rate). All Fixed Account values earn the same rate. 2 | The crediting rate is reviewed on a regular basis. 3 | When a new portfolio rate is declared, both current account values and any new money subsequently added to the account are credited with the new rate. 4 | The new rate applies to all account values until the rate changes. Fixed Account requirements Payments/transfers to the account Minimum amount Maximum amount None •$5 million per calendar year for all policies with the same owner/sponsor •The account balance for all policies with the same owner/sponsor may not exceed $20 million Other •No scheduled transfers are permitted from an investment option to the Fixed Account Transfers from the account None •Greater of $5,000 and 25% of the Fixed Account value on December 31 of the previous year may be transferred in a calendar year •One transfer per policy may be made in the first quarter of each calendar year •A policy’s total Fixed Account value may be transferred to one or more investment options over a consecutive four-year period2 Discover the features of the Fixed Account for yourself. Let’s connect Contact your financial representative if you have any questions about your plan. principal.com Principal Life Insurance Company, Des Moines, Iowa 50392 1 ariable universal life V insurance products charge fees such as mortality and expense risk charges, surrender fees, and distribution and administrative expenses. 2 lection must be E received by us in writing and there must be a Fixed Account balance of at least $20,000. Once made, this election is irrevocable. During this four-year period, no transfers or payments to or from the Fixed Account may be made. Before investing, carefully consider the investment option objectives, risks, charges and expenses. Contact a financial professional or visit principal.com for a prospectus or, if available, a summary prospectus containing this and other information. Please read it carefully before investing. Investing involves risk, including possible loss of principal. Guarantees are based on the claims-paying ability of the issuing insurance company. Principal Executive Variable Universal Life II is issued by Principal Life Insurance Company and distributed by Principal Securities, Inc. 800/247-9988, member SIPC, and/or independent broker/dealers. Principal Life and Principal Securities are members of the Principal Financial Group®, Des Moines, IA 50392. 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. LV369-05 | 02/2017 | t170207061p | ©2017 Principal Financial Services