principal variable universal life investment optionsprincipal variable universal life (vul) provides...

Principal Variable Universal Life (VUL) provides life insurance protection and tax advantages, as well

as the potential to accumulate assets for retirement or to meet other needs through a variety of

investment options. The VUL features, combined with the investment leadership of Principal®, can

give you an edge in meeting your retirement goals.

Investment option selection processWe work with many fund companies to provide an array of underlying investment options for VUL

insurance products. Care is taken when selecting the fund companies and the funds they provide.

When selecting investment options for VUL products, Principal looks at several factors.

Quantitative analysis of investment options

To select and monitor an investment option, Principal uses a quantitative analysis, typically

of three- to five-year time frames, to review the historical performance of the investment option

Seven performance factors are used to measure both absolute and risk-adjusted performance.

Flexibility and choicePrincipal believes you should have significant flexibility in investment choices. Our investment

management services provide an expansive investment platform. Clients have access to both

internally and externally managed investment options, including sub-advised options from well-

known investment managers. We understand the importance of choice. We want to provide

investors with the opportunity to diversify their portfolios not only by asset class and investment

strategy, but also by management style. This large selection of investment options allows you to

choose investments that fit your objectives and risk tolerance.

Principal Variable Universal Life

Investment Options

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• AllianceBernstein L.P.

• American Century Investment Management, Inc.

• Brown Advisory, LLC (B)

• Calvert Research and Management

• Capital Research and Management Company (CRM)

• ClearBridge Investments, LLC (CB)

• Columbia Wanger Asset Management LLC

• Columbus Circle Investors (CC)

• Delaware Management Company

• Deutsche Investment Management Americas Inc. (DIM)

• Edge Asset Management (EDGE)

• Fidelity Management & Research Company

• Franklin Advisers, Inc. (FA)

• Franklin Advisory Services, LLC (FAS)

• Franklin Mutual Advisers, LLC (FMA)

• Invesco Advisers, Inc.

• Janus Capital Management LLC

• Lord, Abbett & Co. LLC

• Massachusetts Financial Services Company (MFS)

• Mellon Capital Management Corporation (M)

• Neuberger Berman LLC (N)

• Oppenheimer Funds, Inc.

• Pacific Investment Management Company LLC (PIMCO)

• Principal Global Investors, LLC (PGI)

• Principal Real Estate Investors, LLC (PRI)

• Putnam Investment Management, LLC (P)

• T. Rowe Price Associates, Inc. (TRP)

• Templeton Asset Management Ltd.

• Templeton Investment Counsel, LLC

• The Dreyfus Corporation

• The Vanguard Group, Inc.

• ValMark Advisers, Inc. (V)

• Van Eck Associates Corporation

* The term “investment manager” may be referring to an investment advisor or sub-advisor of an underlying mutual fund.

Investment managers*

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Asset allocation modelsWe offer access to a suite of asset allocation* solutions:

• Principal Strategic Asset Management (SAM) Portfolios — Targeted to your risk tolerance and

investment objectives.

• Principal LifeTime Accounts — Self-adjusting portfolios based on your anticipated retirement date.

• TOPSTM Managed Risk ETF Portfolios — Offer volatility protection with three growth

objective options.

• Principal Self-build Models – Select from over 60 investment options with models based on

your risk tolerance.

Principal SAM Portfolios: Target-risk approach

Each portfolio follows three basic principles:

• Broad diversification across multiple traditional and specialty asset classes.

• Professional investment managers representing a wide range of asset classes, investment styles

and money management firms.

• Structured investment process with disciplined risk management at each stage of the

investment process.

CONSERVATIVE GROWTH PORTFOLIO STRATEGIC GROWTH PORTFOLIO

Seeks above-average growth of capital with little income primarily through equity funds and some fixed- income funds.

Seeks high growth of capital with no income through a diversified mix of domestic and international equity funds.

U.S. Equities Non-U.S. Equities Real Estate Fixed Income

FLEXIBLE INCOME PORTFOLIO CONSERVATIVE BALANCED PORTFOLIO BALANCED PORTFOLIO

Seeks income and long-term capital preservation through fixed-income funds with some limited exposure to domestic equity funds.

Seeks income and some capital growth through a combination of fixed-income funds with some assets in equity funds.

Seeks long-term capital growth and some income through a combination of domestic and international equity funds and fixed-income funds.

* No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values.

4%

72%

3%

21%56%32%

9%

3%

36%

47%

12%

5%

61%

17%16%

24%

64%

7%6% 5%

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Principal LifeTime Accounts: Target-date approach

Help simplify life while still working toward your retirement goals with Principal LifeTime Accounts.

With these accounts, you benefit from the diversification offered by the use of a variety of investment

managers and styles. The portfolio managers for Principal LifeTime Accounts can select from

subaccounts managed by premier investment managers.

PRINCIPAL LIFETIME STRATEGIC INCOME PORTFOLIO

PRINCIPAL LIFETIME 2010 PORTFOLIO



Ideal for participants who are approximately 15 years beyond normal retirement age.

Consider this investment option if you are less than 15 years beyond normal retirement age.

Consider this investment option if you are retiring between 2018 and the end of 2027.





n Fixed Incomen U.S. Equityn Non-U.S. Equityn Real Assets/Other



Consider this investment option if you are retiring beyond 2057.

Principal LifeTime Accounts, which are target-date accounts, invest in underlying Principal Funds.

Each account is managed toward a particular target (retirement) date, or the approximate date

the investor starts withdrawing money. As each Principal LifeTime Account approaches its target

date, the investment mix becomes more conservative by increasing exposure to generally more

conservative investment options and reducing exposure to typically more aggressive investment

options. The asset allocation for each account is regularly re-adjusted within a timeframe that

extends 10-15 years beyond the target date, at which point it reaches its most conservative

allocation. Principal LifeTime Accounts assume the value of the investor’s account will be withdrawn

gradually during retirement. Neither Principal nor the underlying assets of Principal LifeTime

Accounts are guaranteed at any time, including the target date. Investment risk remains at all times.

Allocations based on current allocation targets. They will change over time. No investment strategy,

such as asset allocation or diversification, can guarantee a profit or protect against loss in periods of

declining values.

For all portfolios the retirement age is assumed to be 65 years of age.

73%

13.5%

6.5% 7%

58%23%

11%

8%

40%

35%

16%

9%

45%

24.5%21%

9.5%

53%

16%

24%

7%

57.5%

26%

9%

7.5%

59%

27%

7.5% 6.5%

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TOPS Managed Risk Exchange Traded Funds (ETF) Portfolios

TOPSTM Managed Risk ETF Portfolios are diversified portfolios of index-based Exchange Traded

Funds (ETF). These portfolios monitor and adapt to changing market conditions by employing

a strategy that seeks to protect growth in bull markets and defend against major losses during

market downturns.

They combine a capital protection strategy with volatility management that may provide an

additional layer of protection. These investments include hedge assets that buffer the portfolios

during downturns in the market. By integrating hedge assets with the underlying investments,

overall risk may be reduced and the overall value of the portfolio may be enhanced over certain

market cycles.

TOPSTM Managed Risk ETF Portfolios are professionally managed by Valmark Advisers, sub-advised

by Milliman, Inc.

TOPSTM MANAGED RISK BALANCED ETF PORTFOLIO

TOPSTM MANAGED RISK MODERATE GROWTH ETF PORTFOLIO

TOPSTM MANAGED RISK GROWTH ETF PORTFOLIO

50%50%

65%35%

85%

15%

50%50%

65%35%

85%

15%

50%50%

65%35%

85%

15%

There is no assurance that the Portfolios will achieve their investment objectives.

ETFs are subject to investment advisory and other expenses, which will be indirectly paid by a

Portfolio. ETFs are also subject to brokerage and other trading costs, which could result in greater

expenses to the Portfolio. Because the value of ETF shares depends on the demand in the market,

the adviser may not be able to liquidate the Portfolio’s holdings at the most optimal time, which

could negatively affect performance. Each ETF is subject to specific risks, depending on the nature

of the ETF. These risks could include liquidity risk, sector risk, foreign and emerging market risk, as

well as risks associated with real estate investments and natural resources.

STOCKS

BONDS

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Self-build models

For the do-it-yourself investor, we offer tools to help determine the asset allocation to fit your

clients’ needs. Self-build models are part of an asset allocation program designed for long-term

investing to help balance investment growth and portfolio risk while providing a variety of options.

The five models below vary in the degree of risk and growth potential. To determine which model is

right for your client, help them complete the Investor Profile Quiz (BB10603).

Large U.S.Equity 10%

Large U.S. Equity

18%Large

U.S. Equity 25%

Large U.S. Equity

31%Large

U.S. Equity 38%

Small/Mid U.S. Equity 11%

Small/Mid U.S.Equity 5%

Small/MidU.S. Equity

17%


InternationalEquity 5%

InternationalEquity 11% International

Equity 18%




Fixed Income34%

Fixed Income28%

Fixed Income19%

FixedIncome

11%

Short-TermFixed Income

46%


32%


21%

Short-Term FixedIncome 9%

MODEL I MODEL II MODEL III

MODEL IV MODEL V

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Financial strengthPrincipal has been helping clients with their financial goals for more than 130 years. We are a leader

in offering businesses, individuals and institutional clients a wide range of financial products and

services including retirement and investment services and individual and group insurance through

our diverse family of financial services companies.

• $547.7 billion in assets under management with 19.2 million customers worldwide1.

• Member of the Standard & Poor’s (S&P) 500 Index since July 2002.

• Strong financial strength ratings from the four major U.S. ratings agencies2 validate the solid

business performance and the strength of the capital and liquidity positions of both Principal Life

Insurance Company and Principal National Life Insurance Company.

• Member company Principal Life Insurance Company has been rated A or higher for 75 years by

A.M. Best3.

FOR MORE INFORMATION

To find out more about helping your clients maximize their retirement income, contact the National Sales Desk at 800-654-4278.

1 As of March 31, 20162 Information as of October 20153 AM Best Data. Ratings as of January 2015.

Principal Life Insurance Company and Principal Life Insurance Company, Des Moines, Iowa 50392-0002, www.principal.com

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.

Edge Asset Management, Columbus Circle Investors and Principal Real Estate Investors are internal investment management groups within Principal Global Investors. Early withdrawals or surrenders may be subject to surrender charges (contingent deferred sales charges). Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59 1/2, a 10 percent federal tax penalty may apply. For tax purposes only, withdrawals will come first from any gain in the contract. Federal and state tax laws in this area are complex and subject to change. Consult your personal tax adviser on all tax matters. Withdrawals will generally reduce the death benefit, contract value and any living benefit amount.

Guarantees are based on the claims-paying ability of the issuing insurance company. Guarantees do not apply to the investment performance or account value of the underlying variable portfolios.

Equity investment options involve greater risk, including heightened volatility, than fixed-income options.

Fixed income asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure and interest rate risk and their value will decline as interest rates rise.

Fixed income investment options are subject to interest rate risk and their value will decline as interest rates rise. Neither Principal of bond investment options nor their yields are guaranteed by the U.S. government.

Investing in real estate, small-cap, international and high-yield investment options involves additional risks.

Lower-rated securities are subject to additional credit and default risks.

Real estate investment options are subject to some risks inherent in real estate and real estate investment trusts (REITs), such as risks associated with general and local economic conditions. Investing in REITs involves special risks, including interest-rate fluctuation, credit risks and liquidity risks, including interest conditions on real estate values and occupancy rates.

Small-cap stocks may have additional risks including greater price volatility.

S&P 500® is a trademark of the McGraw-Hill Companies, Inc., and is used under license. The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of investing in the product.

Each index-based investment option is invested in the stocks of the index it tracks. Performance of indices reflects the unmanaged result for the market segment the selected stocks represent. There is no assurance an index-based investment option will match the performance of the index tracked. Investors cannot invest directly in an index.

International investing involves increased risks due to currency fluctuations, political or social instability and differences in accounting standards.

Not all investment advisors or variable subaccounts are available in every state. Values in the subaccounts are not guaranteed and will vary from day to day.

TOPS™ Managed Risk ETF Portfolios assess fees and expenses that are separate and distinct from each respective underlying variable product or fund option.

The TOPS™ Managed Risk ETF Portfolios are managed by ValMark Advisers, Inc. and distributed by Northern Lights Distributors,

LLC. Northern Lights Distributors, LLC is not affiliated with ValMark Advisers, Inc. Milliman, Inc. or Principal Financial Group.

Insurance issued by Principal National Life Insurance Co. (except in NY) and Principal Life Insurance Co. Securities offered through Principal Securities, Inc., 800/247-1737, Member SIPC. Principal Life, Principal National and Principal Securities are members of the Principal Financial Group®, Des Moines, IA 50392.

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.

Not FDIC or NCUA insured May lose value • Not a deposit • No bank or credit union guarantee

Not insured by any Federal government agency

LV628-04 | 05/2017 | t17050507uz | ©2017 Principal Financial Services, Inc

principal variable universal life investment optionsprincipal variable universal life (vul) provides...

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