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CUSIP No.: 74254PTF9
    
    Principal Amount: U.S. $3,213,000.00
 PRINCIPAL LIFE INCOME FUNDINGS TRUST 2007-80
 PRINCIPAL ® LIFE CORENOTES ®
  o þ
 o þ  o  o    o  o  o   o    o  o
   
 Principal® is a registered service mark of Principal Financial Services, Inc. and is used under license.CoreNotes® is a registered service mark of Merrill Lynch & Co.




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þ o    th     o þ      þ o        o þ
 o  o  o  o  o  o  o                     þ o
   Section 3(c)
 2




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Dated: Original Issue Date
    THE PRINCIPAL LIFE INCOME FUNDINGS TRUST
     SPECIFIED ON THE FACE OF THIS NOTE
By: U.S. Bank Trust National Association, not in its
individual capacity but solely as Trustee.By:
    /s/ Janet P. OHaraAuthorized Officer 3




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Dated: Original Issue Date
    CITIBANK, N.A.
As Indenture TrusteeBy:
    /s/ Nancy ForteAuthorized Signatory 4




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[REVERSE FORM OF NOTE]
 Section 1. General .
 Section 2. Currency .
 Section 3. Determination of Interest Rate and Certain Other Terms .
 (a)
    
    Fixed Rate Notes. If this Note is specified on the face hereof as a Fixed
Rate Note:
   Interest PaymentFrequency
    
    Interest Payment DatesMonthly
    
    Fifteenth day of each calendar month,
beginning in the first calendar month
following the month this Note was issued.Quarterly
    
    Fifteenth day of every third calendar
month, beginning in the third calendar
month following the month this Note was
issued.Semi-annual
    
    Fifteenth day of every sixth calendar
month, beginning in the sixth calendar
month following the month this Note was
issued.Annual
    
    Fifteenth day of every twelfth calendar
month, beginning in the twelfth calendar
month following the month this Note was
issued.
  (b)
    
    Floating Rate Notes. If this Note is specified on the face hereof as a
Floating Rate Note:
 Interest Rate Basis
 5




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Effective Rate
 Spread; Spread Multiplier; Index Maturity
 Regular Floating Rate Note provided, however
 Floating Rate/Fixed Rate Notes provided,
however
 Interest Reset Dates
 6




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provided, however
 Interest Determination Dates provided, however
 Calculation Dates
 7




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Maximum or Minimum Interest Rate
 Interest Payments
 Rounding
 8




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Interest Factor
 Determination of Interest Rate Basis
 CD Rate Notes
 9




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CMT Rate Notes
 (1)
    
    if Reuters Page FRBCMT is specified on the face hereof:
 i.
    
    the percentage equal to the yield for United States
Treasury securities at constant maturity having the Index Maturity
specified on the face hereof as published in H.15(519) under the caption
Treasury Constant Maturities, as the yield is displayed on Reuters
Service (or any successor service) on page FRBCMT (or any other page as may
replace the specified page on that service) (Reuters Page FRBCMT), for
the particular Interest Determination Date; orii.
    
    if the rate referred to in clause (i) does not so
appear on Reuters Page FRBCMT, the percentage equal to the yield for United
States Treasury securities at constant maturity having the particular
Index Maturity and for the particular Interest Determination Date as
published in H.15(519) under the caption Treasury Constant Maturities; oriii.
    
    if the rate referred to in clause (ii) does not so
appear in H.15(519), the rate on the particular Interest Determination Date
for the period of the particular Index Maturity as may then be published by
either the Federal Reserve System Board of Governors or the United States
Department of the Treasury that the Calculation Agent determines to be
comparable to the rate which would otherwise have been published in
H.15(519); oriv.
    
    if the rate referred to in clause (iii) is not so
published, the rate on the particular Interest Determination Date
calculated by the Calculation Agent as a yield to maturity based on the
arithmetic mean of the secondary market bid prices at approximately 3:30
P.M., New York City time, on that Interest Determination Date of three
leading primary United States
 10




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government securities dealers in The City of New York (which may include the
purchasing agent or its affiliates) (each, a Reference Dealer) selected by
the Calculation Agent from five Reference Dealers selected by the
Calculation Agent and eliminating the highest quotation, or, in the event of
equality, one of the highest, and the lowest quotation or, in the event of
equality, one of the lowest, for United States Treasury securities with an
original maturity equal to the particular Index Maturity, a remaining term
to maturity no more than one year shorter than that Index Maturity and in a
principal amount that is representative for a single transaction in the
securities in that market at that time; orv.
    
    if fewer than five but more than two of the prices
referred to in clause (iv) are provided as requested, the rate on the
particular Interest Determination Date calculated by the Calculation Agent
based on the arithmetic mean of the bid prices obtained and neither the
highest nor the lowest of the quotations shall be eliminated; orvi.
    
    if fewer than three prices referred to in clause (iv)
are provided as requested, the rate on the particular Interest
Determination Date calculated by the Calculation Agent as a yield to
maturity based on the arithmetic mean of the secondary market bid prices as
of approximately 3:30 P.M., New York City time, on that Interest
Determination Date of three Reference Dealers selected by the Calculation
Agent from five Reference Dealers selected by the Calculation Agent and
eliminating the highest quotation or, in the event of equality, one of the
highest and the lowest quotation or, in the event of equality, one of the
lowest, for United States Treasury securities with an original maturity
greater than the particular Index Maturity, a remaining term to maturity
closest to that Index Maturity and in a principal amount that is
representative for a single transaction in the securities in that market at
that time; orvii.
    
    if fewer than five but more than two prices referred to
in clause (vi) are provided as requested, the rate on the particular
Interest Determination Date calculated by the Calculation Agent based on
the arithmetic mean of the bid prices obtained and neither the highest nor
the lowest of the quotations will be eliminated; orviii.
    
    if fewer than three prices referred to in clause (vi)
are provided as requested, the CMT Rate in effect on the particular
Interest Determination Date; or
 (2)
    
    if Reuters Page FEDCMT is specified on the face hereof:
 i.
    
    the percentage equal to the one-week or one-month, as
specified on the face hereof, average yield for United States Treasury
securities at constant maturity having the Index Maturity specified on
the face hereof
 11




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as published in H.15(519) opposite the caption Treasury Constant
Maturities, as the yield is displayed on Reuters Service (or any successor
service) (on page FEDCMT or any other page as may replace the specified page
on that service) (Reuters Page FEDCMT), for the week or month, as
applicable, ended immediately preceding the week or month, as applicable, in
which the particular Interest Determination Date falls; orii.
    
    if the rate referred to in clause (i) does not so
appear on Reuters Page FEDCMT, the percentage equal to the one-week or
one-month, as specified on the face hereof, average yield for United States
Treasury securities at constant maturity having the particular Index
Maturity and for the week or month, as applicable, preceding the particular
Interest Determination Date as published in H.15(519) opposite the caption
Treasury Constant Maturities; oriii.
    
    if the rate referred to in clause (ii) does not so
appear in H.15(519), the one-week or one-month, as specified on the face
hereof, average yield for United States Treasury securities at constant
maturity having the particular Index Maturity as otherwise announced by
the Federal Reserve Bank of New York for the week or month, as applicable,
ended immediately preceding the week or month, as applicable, in which the
particular Interest Determination Date falls; oriv.
    
    if the rate referred to in clause (iii) is not so
published, the rate on the particular Interest Determination Date
calculated by the Calculation Agent as a yield to maturity based on the
arithmetic mean of the secondary market bid prices at approximately 3:30
P.M., New York City time, on that Interest Determination Date of three
Reference Dealers selected by the Calculation Agent from five Reference
Dealers selected by the Calculation Agent and eliminating the highest
quotation, or, in the event of equality, one of the highest, and the lowest
quotation or, in the event of equality, one of the lowest, for United
States Treasury securities with an original maturity equal to the
particular Index Maturity, a remaining term to maturity no more than one
year shorter than that Index Maturity and in a principal amount that is
representative for a single transaction in the securities in that market at
that time; orv.
    
    if fewer than five but more than two of the prices
referred to in clause (iv) are provided as requested, the rate on the
particular Interest Determination Date calculated by the Calculation Agent
based on the arithmetic mean of the bid prices obtained and neither the
highest nor the lowest of the quotations shall be eliminated; orvi.
    
    if fewer than three prices referred to in clause (iv)
are provided as requested, the rate on the particular Interest
Determination Date calculated by the Calculation Agent as a yield to
maturity based on the arithmetic
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mean of the secondary market bid prices as of approximately 3:30 P.M., New
York City time, on that Interest Determination Date of three Reference
Dealers selected by the Calculation Agent from five Reference Dealers
selected by the Calculation Agent and eliminating the highest quotation or,
in the event of equality, one of the highest and the lowest quotation or, in
the event of equality, one of the lowest, for United States Treasury
securities with an original maturity greater than the particular Index
Maturity, a remaining term to maturity closest to that Index Maturity and in
a principal amount that is representative for a single transaction in the
securities in that market at the time; orvii.
    
    if fewer than five but more than two prices referred to
in clause (vi) are provided as requested, the rate on the particular
Interest Determination Date calculated by the Calculation Agent based on
the arithmetic mean of the bid prices obtained and neither the highest nor
the lowest of the quotations will be eliminated; orviii.
    
    if fewer than three prices referred to in clause (vi)
are provided as requested, the CMT Rate in effect on that Interest
Determination Date.
 If two United States Treasury securities with an original maturity greater than the
Index Maturity specified on the face hereof have remaining terms to maturity equally
close to the particular Index Maturity, the quotes for the United States Treasury
security with the shorter original remaining term to maturity will be used.
 Commercial Paper Rate Notes
 13




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Money Market Yield =
    
    D x 360
    
    x 100360  (D x M)
  Constant Maturity Swap Rate Notes
 Federal Funds Open Rate Notes
 14




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Federal Funds Rate Notes
 LIBOR Notes
 15




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Prime Rate Notes
 Treasury Rate Notes
 16




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Bond Equivalent Yield =
    
    D x N
    
    x 100360  (D x M)
  Discount Notes.
 Principal and Interest
 Redemption; Repayment; Acceleration
 17




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Section 4. Redemption
 Section 5. Sinking Funds
 Section 6. Repayment.
 18




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Section 7. Modifications and Waivers . provided
 Section 8. Obligations Unconditional
 Section 9. Events of Default
 Section 10. Withholding; No Additional Amounts; Tax Event and Redemption.
  19




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Section 2.04
 Section 11. Listing
 Section 12. Collateral
 Section 13. No Recourse Against Certain Persons
 Section 14. Miscellaneous.
   20




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Section 15. GOVERNING LAW
 21




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$DATE:
    
    
    
    NOTICE: The signature on this Option
to Elect Repayment must(Principal Amount to be repaid, if
amount to be repaid is less than the
Principal Amount of this Note
(Principal Amount remaining must be
an authorized denomination)
    
    correspond
with the name as written upon the
face of this Note in every
particular, without alteration or
enlargement or any change whatever.
Fill in for registration of Notes if
to be issued otherwise than to the
registered Holder:Name:$
    
    
    
    Address:(Please print name and address
including zip code)
  22




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® ®
 ® ®
   23




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® ®
  24




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25




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ANNEX A
 REPAYMENT ELECTION FORM
Principal Life Insurance Company
Principal® Life CoreNotes®
Cusip Number ________
   
    
    The Financial Institution has received a request for repayment from the executor or other
authorized representative (the AUTHORIZED REPRESENTATIVE) of the deceased beneficial
owner listed below (the DECEASED BENEFICIAL OWNER) of Principal® Life CoreNotes® (CUSIP
No. ___) (the NOTES).
    
    At the time of his or her death, the Deceased Beneficial Owner owned Notes in the
principal amount listed below.
    
    The Deceased Beneficial Owner purchased the Notes either within ninety (90) days of their
issuance or acquired the Notes at least six (6) months before the date of death of such
Deceased Beneficial Owner.
    
    The Financial Institution currently holds such notes as a direct or indirect participant
in The Depository Trust Company (the DEPOSITARY).
    
    The Financial Institution agrees to the following terms:
    
    The Financial Institution shall follow the instructions (the INSTRUCTIONS)
accompanying this Repayment Election Form (this FORM).
    
    The Financial Institution shall make all records specified in the Instructions supporting
the above representations available to U.S. Bank Trust National Association (the TRUSTEE)
or the [Name of Issuing Trust] (the TRUST) for inspection and review within five business
days of the Trustees or the Trusts request.
    
    If the Financial Institution, the Trustee or the Trust, in any such partys reasonable
discretion, deems any of the records specified in the Instructions supporting the above
representations unsatisfactory to substantiate a claim for repayment, the Financial
Institution shall not be obligated to submit this Form, and the Trustee or Trust may deny
repayment. If the Financial Institution cannot substantiate a claim for repayment, it shall
notify the Trustee immediately.
    
    Repayment elections may not be withdrawn.
    
    The Financial Institution agrees to indemnify and hold harmless the Trustee and the Trust
against and from any and all claims, liabilities, costs, losses, expenses, suits and damages
resulting from the Financial Institutions above representations and request for repayment
on behalf of the Authorized Representative.
 A-1




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
    
    The Notes will be repaid on the first Interest Payment Date to occur at least 20 calendar
days after the date of acceptance of the notes for repayment, unless such date is not a
business day, in which case the date of repayment shall be the next succeeding business day.
    
    Subject to the Trusts rights to limit the aggregate principal amount of Notes as to
which exercises of the Survivors Option shall be accepted in any one calendar year, all
questions as to the eligibility or validity of any exercise of the Survivors Option will be
determined by the Trustee, in its sole discretion, which determination shall be final and
binding on all parties.
 
 ®
 ®
 A-2




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(1)
 
  (2)
 
  (3)
 
  (4)
 
  (5)
 
  (6)
 
  (7)
 
  (8)
    
    Financial Institution
    
    
    (9
    )
    
    Wire instructions for payment:Representative Name:
    
    
    
    
    
    Bank Name:Phone Number:
    
    
    
    
    
    ABA Number:Fax Number:
    
    
    
    
    
    Account Name:Mailing Address (no P.O. Boxes):
    
    
    
    
    
    Account Number:Reference (optional):
 TO BE COMPLETED BY THE TRUSTEE:
 (A)
    
    Election Number*:(B)
    
    Delivery and Payment Date:(C)
    
    Principal Amount:(D)
    
    Accrued Interest:(E)
    
    Date of Receipt of Form by the Trustee:(F)
    
    Date of Acknowledgment by the Trustee:
 
 *
    
    To be assigned by the Trustee upon receipt of this Form. An acknowledgement, in the form of a
copy of this document with the assigned Election Number, will be returned to the party and
location designated in item (8) above. A-3




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INSTRUCTIONS FOR COMPLETING REPAYMENT ELECTION FORM AND EXERCISING
REPAYMENT OPTION
  1.
    
    Collect and retain for a period of at least three years (1) satisfactory evidence of the
authority of the Authorized Representative, (2) satisfactory evidence of death of the Deceased
Beneficial Owner, (3) satisfactory evidence that the Deceased Beneficial Owner beneficially
owned, at the time of his or her death, the notes being submitted for repayment, (4)
satisfactory evidence that the notes being submitted for repayment either were purchased
within ninety (90) days of their issuance or were acquired by the Deceased Beneficial Owner at
least six (6) months before the date of the death of such Deceased Beneficial Owner, and (5)
any necessary tax waivers. For purposes of determining whether the notes will be deemed
beneficially owned by an individual at any given time, the following rules shall apply:
 
    
    If a note (or a portion thereof) is beneficially owned by tenants by the entirety or
joint tenants, the note (or relevant portion thereof) will be regarded as beneficially owned
by a single owner. Accordingly, the death of a tenant by the entirety or joint tenant will
be deemed the death of the beneficial owner and the entire principal amount so owned will
become eligible for repayment.
    
    The death of a person beneficially owning a note (or a portion thereof) by tenancy in
common will be deemed the death of the beneficial owner only with respect to the deceased
owners interest in the note (or relevant portion thereof) so owned, unless a husband and
wife are the tenants in common, in which case the death of either will be deemed the death
of the beneficial owner and the entire principal amount so owned will be eligible for
repayment.
    
    A note (or a portion thereof) beneficially owned by a trust will be regarded as
beneficially owned by each beneficiary of the trust to the extent of that beneficiarys
interest in the trust (however, a trusts beneficiaries collectively cannot be beneficial
owners of more notes than are owned by the trust). The death of a beneficiary of a trust
will be deemed the death of the beneficial owner of the notes (or relevant portion thereof)
beneficially owned by the trust to the extent of that beneficiarys interest in the trust.
The death of an individual who was a tenant by the entirety or joint tenant in a tenancy
which is the beneficiary of a trust will be deemed the death of the beneficiary of the
trust. The death of an individual who was a tenant in common in a tenancy which is the
beneficiary of a trust will be deemed the death of the beneficiary of the trust only with
respect to the deceased holders beneficial interest in the note, unless a husband and wife
are the tenants in common, in which case the death of either will be deemed the death of the
beneficiary of the trust.
    
    The death of a person who, during his or her lifetime, was entitled to substantially all
of the beneficial interest in a note (or a portion thereof) will be deemed the death of the
beneficial owner of that note (or relevant portion thereof), regardless of the registration
of ownership, if such beneficial interest can be established to the satisfaction of the
Trustee. Such beneficial interest will exist in many cases of street name or nominee
ownership, custodial arrangements, ownership by a trustee, ownership under the Uniform
Transfers of Gifts to Minors Act and community property or other joint ownership
arrangements between spouses. Beneficial interest will be evidenced by such factors as the
power to sell or otherwise dispose of a note, the right to receive the proceeds of sale or
disposition and the right to receive interest and principal payments on a note.
 2.
    
    Indicate the name of the Deceased Beneficial Owner on line (1).3.
    
    Indicate the date of death of the Deceased Beneficial Owner on line (2).
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4.
    
    Indicate the name of the Authorized Representative requesting repayment on line (3).5.
    
    Indicate the name of the Financial Institution requesting repayment on line (4).6.
    
    Affix the authorized signature of the Financial Institutions representative on line (5). THE
SIGNATURE MUST BE MEDALLION SIGNATURE GUARANTEED.7.
    
    Indicate the principal amount of notes to be repaid on line (6).8.
    
    Indicate the date this Form was completed on line (7).9.
    
    Indicate the name, mailing address (no P.O. boxes, please), telephone number and
facsimile-transmission number of the party to whom the acknowledgment of this election may be
sent in item (8).10.
    
    Indicate the wire instruction for payment on line (9).11.
    
    Leave lines (A), (B), (C), (D), (E) and (F) blank.12.
    
    Mail or otherwise deliver an original copy of the completed Form to:
 
 13.
    
    FACSIMILE TRANSMISSIONS OF THE REPAYMENT ELECTION FORM WILL NOT BE ACCEPTED.14.
    
    If the acknowledgement of the Trustees receipt of this Form, including the assigned Election
Number, is not received within ten days of the date such information is sent to Citibank,
N.A., contact the Trustee at 100 Wall Street, 16th Floor, New York, New York 10005, attention:
Corporate Trust Administration, telephone number: (212) 361-2458.15.
    
    For assistance with this Form or any questions relating thereto, please contact U.S. Bank
Trust National Association at 100 Wall Street, 16th Floor, New York, New York 10005,
attention: Corporate Trust Administration, telephone number: (212) 361-2458.
 A-5