The Principal Financial Group Enhances Term Life Insurance

Business Wire, May 21, 2008

New issue ages cater to the aging workforce

DES MOINES, Iowa -- As the workforce ages, Americans want more life insurance protection for a longer period of time. According to LIMRA, 20 and 30-year term policies are increasing in popularity while 1 and 5-year term policies are decreasing1. The Principal Financial Group([R]) is meeting this demand by increasing the issue age and reducing the price on its individual term products.

"In times of economic volatility, Americans are staying in the workforce longer, making it more important than ever before to make sure their families are protected against the unexpected," said Greg Linde, vice president of individual life for the Principal Financial Group. "No one wants to think about their own mortality, but being prepared can alleviate some of the angst."

Principal 20 year term is now available until age 65 and Principal 30 year term is available until age 55 (non-tobacco only), up five years from previous policies. A couple with two term policies from The Principal([R])has the option to convert their policies into one survivorship universal life (SUL) policy, offering great flexibility in estate planning. The Principal SUL Protector is a universal life insurance policy that insures two people and pays benefits after both die, providing estate protection when it's needed most. Other features of life insurance from The Principal include a complimentary Financial Services Hotline for beneficiaries and a grief support service to help survivors cope with the loss of a loved one.

"At the same time we've increased the issue age on select products, we've also reduced the price on many of our term products," said Linde. "By enhancing our policies, we're helping our customers plan for a more secure financial future regardless of the way the market swings."

From Here to Security(SM)

To help identify an appropriate level of coverage, The Principal also offers an innovative program to educate consumers on life and disability insurance and to help them achieve financial security. This program is called "From Here to Security,(SM") and it offers consumer education with easy-to-read guides to understanding disability and life insurance. The materials contain definitions, examples, statistics and a personal needs-analysis worksheet. Insurance calculators allow individuals to run "what if" scenarios to determine the appropriate level of coverage for their individual situation.

For more information about term life insurance or the From Here to Security program, contact your Principal Financial Group representative or visit www.principal.com.

About the Principal Financial Group

The Principal Financial Group([R])(The Principal ([R]))2 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 $304.2 billion in assets under management3 and serves some 18.8 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 The Life Buyer Study: United States (2005)

2 "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

3 As of March 31, 2008