The Principal Financial Group Offers New Association and Employer Disability Insurance Programs

Business Wire, Sept 22, 2004

DES MOINES, Iowa -- Programs Provide Discounted Coverage to Help Secure Members' and Employees' Financial Futures

The Principal Financial Group(R), the nation's 401(k) leader and premier provider of employee benefits, announces a new individual disability insurance (IDI) association program to complement its existing multi-life program. Both programs make IDI more affordable for association members and employees of growing businesses, and apply to the entire product portfolio: Disability Income, Overhead Expense and Disability Buy-Out.

The new association program provides a 10 percent discount (or more when combined with other discounts) on individual disability insurance to members of pre-approved associations, with no cost to the association. Association executives cite disability insurance as the second most popular type of benefit offered to members(1) - second only to health and life insurance coverage - making this program more timely than ever.

"Disability insurance is the foundation of a successful financial plan - your lifestyle and retirement dreams depend on your ability to work and earn an income. By making affordable, high-quality disability insurance available to more people, we're helping customers protect what they've worked so hard to achieve - not only their savings, but future retirement income and investments," said Michael Scheetz, disability income insurance product director of The Principal(R). "For instance, given the earning potential of a 45 year-old currently making $100,000 a year, he or she has a $3.3 million dollar asset to protect."

For three or more individuals with a common employer(2), The Principal offers a 20 percent multi-life discount (or more when combined with other discounts) - regardless of whether the individual or employer pays the premiums. Through this program, employees are able to purchase discounted individual disability income insurance, or supplement the existing coverage currently offered through their employer.

"While 56 percent of growing businesses provide disability insurance coverage as part of their benefit package, only half of their employees are satisfied with the coverage offered. These statistics are particularly striking when you consider that 45 percent of employees recently surveyed by The Principal are most concerned with how they will cover monthly expenses with respect to their current financial situation," noted Scheetz. "Having ample disability coverage provides the peace-of-mind that you will be able to pay your bills and meet financial obligations in the event of an injury or illness. By participating in an association or employer program, such as that offered by The Principal, coverage is affordable and accessible."

The combination of the association and multi-life programs gives The Principal a comprehensive and competitive offering for marketing to groups of prospects. Clients benefit from receiving a discount on quality, individually owned disability insurance that helps strengthen their overall financial foundation if they become too sick or hurt to work. Producers benefit by receiving multiple marketing opportunities for sales and cross-sales - both within the group and through outside referrals.

Associations and employers interested in learning more about these disability insurance discount programs for their members or employees should contact their local Principal Financial Group representative. Marketers interested in learning more should contact the company's National Sales Desk at 800-654-4278, option 2 -2 -1.

About the Principal Financial Group

The Principal Financial Group(R) (The Principal(R))(3) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $152.1 billion in assets under management(4) and serves some 14.6 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

(1) According to a 2003 American Society of Association Executives survey.

(2) Five lives required in South Dakota for the multi-life discount.

(3) "The Principal Financial Group(R)" and "The Principal(R)" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

(4) As of June 30, 2004.