# EDGAR Filing Document

**Accession Number:** 0000009712
**File Stem:** 0001104659-23-027983
**Filing Date:** 2023-3
**Character Count:** 371354
**Document Hash:** 61aeb2f876e98209b666826c9971433a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-027983.hdr.sgml**: 20241004

**ACCESSION NUMBER**: 0001104659-23-027983

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20230302

**DATE AS OF CHANGE**: 20230428

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PRINCIPAL LIFE INSURANCE CO
- **CENTRAL INDEX KEY:** 0000009712

**ORGANIZATION NAME:**
- **IRS NUMBER:** 420127290

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-267959
- **FILM NUMBER:** 23699993

**BUSINESS ADDRESS:**
- **STREET 1:** 711 HIGH STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50392-0300
- **BUSINESS PHONE:** 5152475111

**MAIL ADDRESS:**
- **STREET 1:** 711 HIGH STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50392-0300

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL MUTUAL LIFE INSURANCE CO
- **DATE OF NAME CHANGE:** 19920929

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BANKERS LIFE CO
- **DATE OF NAME CHANGE:** 19600201

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BANKERS LIFE ASSOCIATION
- **DATE OF NAME CHANGE:** 19600201

Registration No. 333-267959

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**PRE-EFFECTIVE AMENDMENT NO. 2**

**TO**

**FORM S-1**

**REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933**

**Principal Life Insurance Co**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Iowa** | **6311** | **42-0127290** |
| **(State or other jurisdiction of incorporation or organization)** | **(Primary Standard Industrial Classification Code Number)** | **(I.R.S. Employer Identification Number)** |

---

**The Principal Financial Group, Des Moines, Iowa 50392**

**(800) 986-3343**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Doug Hodgson**

**The Principal Financial Group, Des Moines, Iowa 50392**

**(515) 362-2384**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

Approximate date of commencement of proposed sale to the public: Continuously on and after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: ⌧

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ◻ Accelerated filer ◻ <br> Non-accelerated filer ⌧ Smaller reporting company ◻ <br> Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ◻

 **PRINCIPAL<sup>®</sup> STRATEGIC OUTCOMES** 

 **INDEX-LINKED DEFERRED ANNUITY**

**Prospectus dated __________, 202___**

This prospectus describes the Principal<sup>®</sup> Strategic Outcomes, an individual, single premium, index-linked deferred annuity (the "Contract"), issued by Principal Life Insurance Company ("the Company," "we," "our" or "us"). The Contract is designed to help individuals accumulate part of their retirement savings and achieve other long-term investment goals, as well as provide retirement income through Annuitization. The Contract is a single premium product, which means that no additional Premium Payments can be made after the Contract Date.

This prospectus provides information about the Contract that you, as Owner ("you" or "your"), should know before investing. It describes all material rights and obligations under the Contract and any material differences due to state variations. The Contract or certain of its Segment Options and/or features may not be available in all states or with all broker-dealers. Please review this entire prospectus and talk with your financial professional to obtain specific information.

The Contract does not provide tax deferral benefits, beyond those already provided under the Internal Revenue Code, for Contracts purchased as a qualified contract. Amounts withdrawn from the Contract may also be subject to taxes and a 10% federal penalty if taken before age 59½.

**These securities have not been approved or disapproved by the Securities and Exchange Commission ("SEC") or any state securities commission, nor has the SEC or any state securities commission passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.**

If you are a new investor in the Contract, you may cancel your Contract within 15 calendar days of receiving it. In some states, this cancellation period may be longer. Upon cancellation you will receive either a full refund of your Premium Payment or your Contract Accumulated Value. At the time of cancellation if you receive the Contract Accumulated Value and your Premium Payment is allocated to an Index-Linked Segment Option, you assume the risk of negative performance of the reference Index, which could result in negative adjustments to the Contract Accumulated Value. **See 5. PURCHASING THE CONTRACT – <u>Right to Examine the Contract (Free Look)</u>** and consult with your financial professional for additional information about the specific cancellation terms that apply.

The minimum Premium Payment is $20,000. Your Premium Payment will initially be held in the Initial Holding Account. After the limited period of time during which your Premium Payment (and any credited interest) is held in the Initial Holding Account, your Premium Payment and earnings, if any, will be allocated among the Contract's investment options as specified by you. These include index-linked investment options ("Index-Linked Segment Options") and a fixed interest investment option ("Fixed Segment Option"). Each investment option has an investment term of either one, two, or six years ("Segment Term").

Each Index-Linked Segment Option is tied to the performance of a specific market index ("Index") for a Segment Term. Each has either a floor or buffer feature providing limited protection against negative Index performance at the end of the Segment Term. Each also has a cap and participation rate feature that potentially limits gain from positive Index performance at the end of the Segment Term. The Fixed Segment Option credits interest at a fixed rate during the Segment Term.

We reserve the right to add and remove Index-Linked Segment Options as available investment options, which could also include adding or removing certain downside protection levels. There is no guarantee that any Index-Linked Segment Option will always be available in the future. However, we will always offer at least one Index-Linked Segment Option that is either currently offered or substantially similar to one that is currently offered. If you do not want to invest in any investment option under the Contract, your only option will be to surrender your Contract. Surrendering your Contract may cause you to incur Surrender Charges, negative adjustments to certain values under the Contract, and may have negative tax consequences.

 **Any obligations under this Contract are subject to the creditworthiness and overall claims-paying ability of the Company.**

 **Index-linked deferred annuity contracts are complex insurance and investment vehicles. This Contract is a security and there is a risk of substantial loss of your principal and earnings. The risk of loss may be greater when early withdrawals (full or partial) are taken due to any charges and adjustments applied to such withdrawals. These charges and adjustments may result in loss even when the value of a Segment Option has increased. Withdrawals (both partial and full), Annuitizations and death benefits that occur on a date other than the Segment End Date could significantly reduce the values under the Contract and the amount of interest credited at the Segment End Date due to the Bond and Equity Adjustments and Surrender Charges. Because of the adjustments and charges on these types of transactions, you may experience a loss even if the performance of the Index has been positive. The Bond Adjustment applies on a Segment End Date, which means you could experience a loss even when Index performance has been positive and the transaction occurs on a Segment End Date. In addition, you or your beneficiaries (as applicable) will not receive the full protection of any buffer or floor feature when one of these transactions occurs on a date other than the Segment End Date because of these same adjustments.**

For the above reasons, the Contract is not appropriate for investors who plan to take withdrawals beyond the Free Surrender Amount or Surrender the Contract during the first six Contract Years due to the imposition of Surrender Charges.

**Refer to the RISK FACTORS section beginning on page [to be added by amendment] of this prospectus for important information about the Contract's investment risks**.

**You should talk with a financial professional about the Contract's features, benefits, risks and fees, and whether the Contract is appropriate for you based on your financial situation and objectives.**

**An investment in the Contract is not a deposit or obligation of any bank and is not insured or guaranteed by any bank, the Federal Deposit Insurance Corporation or any other government agency.** 

The principal underwriter of the Contract is Principal Securities, Inc.

No person is authorized to give any information or to make any representation in connection with this Contract other than those contained in this prospectus.

---

| | | |
|:---|:---|:---|
|  | **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| [**1.**](#a_001) | [**GLOSSARY**](#a_001) | [4](#a_001) |
| [**2.**](#a_002) | [**SUMMARY**](#a_002) | [7](#a_002) |
| [**3.**](#a_003) | [**RISK FACTORS**](#a_003) | [15](#a_003) |
| [**4.**](#Kalai_001) | [**INFORMATION ON THE INDICES**](#Kalai_001) | 23 |
| [**5.**](#a_004) | [**FEES AND CHARGES**](#a_004) | [25](#a_004) |
| [**6.**](#a_005) | [**PURCHASING THE CONTRACT**](#a_005) | [30](#a_005) |
| [**7.**](#a_006) | [**FIXED SEGMENT OPTION MECHANICS**](#a_006) | [33](#a_006) |
| [**8.**](#a_007) | [**INDEX-LINKED SEGMENT OPTION MECHANICS**](#a_007) | [33](#a_007) |
| [**9.**](#a_008) | [**OPTIONS AT END OF SEGMENT TERM**](#a_008) | [44](#a_008) |
| [**10.**](#a_009) | [**CONTRACT VALUES**](#a_009) | [45](#a_009) |
| [**11.**](#a_010) | [**WITHDRAWALS**](#a_010) | [46](#a_010) |
| [**12.**](#a_011) | [**DEATH BENEFIT**](#a_011) | [48](#a_011) |
| [**13.**](#a_012) | [**STATEMENTS**](#a_012) | [51](#a_012) |
| [**14.**](#a_013) | [**ANNUITIZATION**](#a_013) | [51](#a_013) |
| [**15.**](#a_014) | [**TAXES**](#a_014) | [54](#a_014) |
| [**16.**](#a_015) | [**ADDITIONAL INFORMATION ABOUT THE CONTRACT**](#a_015) | [59](#a_015) |
|  | [The Contract](#a_016) | [59](#a_016) |
|  | [Reliance on Rule 12h-7](#a_017) | [59](#a_017) |
|  | [The Separate Account](#a_018) | [59](#a_018) |
|  | [The General Account](#a_019) | [59](#a_019) |
|  | [Delay of Payments and Other Transactions](#a_020) | [59](#a_020) |
|  | [Setting Cap Rates, Participation Rates and Annual Interest Rates](#a_021) | [60](#a_021) |
|  | [Misstatement of Age or Gender](#a_022) | [60](#a_022) |
|  | [Assignment](#a_023) | [60](#a_023) |
|  | [Contract Termination](#a_024) | [60](#a_024) |
|  | [Reinstatement](#a_025) | [60](#a_025) |
|  | [Telephone and Internet Services](#a_026) | [61](#a_026) |
|  | [Important Information About Customer Identification Procedures](#a_027) | [62](#a_027) |
|  | [State Regulation](#a_028) | [62](#a_028) |
|  | [Financial Statements and Independent Registered Public Accounting Firm](#a_029) | [63](#a_029) |
|  | [Legal Proceedings](#a_030) | [63](#a_030) |
|  | [Householding](#a_031) | [63](#a_031) |
| [**17.**](#a_032) | [**STATE VARIATIONS**](#a_032) | [63](#a_032) |
| [**18.**](#a_033) | [**INFORMATION ABOUT THE COMPANY**](#a_033) | [64](#a_033) |
| [**19.**](#a_034) | [**FINANCIAL STATEMENTS**](#a_034) | [72](#a_034) |
| [**APPENDIX A — INDEX DISCLOSURES**](#a_035) | [**APPENDIX A — INDEX DISCLOSURES**](#a_035) | [A - 1](#a_035) |
| [**APPENDIX B — SEGMENT INTERIM VALUE EXAMPLES**](#a_036) | [**APPENDIX B — SEGMENT INTERIM VALUE EXAMPLES**](#a_036) | [B - 1](#a_036) |
| [**APPENDIX C — STATE VARIATIONS**](#a_037) | [**APPENDIX C — STATE VARIATIONS**](#a_037) | [C - 1](#a_037) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **GLOSSARY** 

The terms defined below are used throughout this prospectus. These terms are capitalized throughout this prospectus with the exception of "we," "our," "us," "you" and "your."

**Accumulated Value (Contract Accumulated Value)** - the sum of the Segment Interim Values, Segment Values, and Fixed Segment Values, as applicable, plus the total value of any allocation to the Initial Holding Account. Segment Interim Values include the Equity Adjustment, as applicable. The Bond Adjustment is not included in the Accumulated Value.

**Annuitant** - the person, including any Joint Annuitant, whose life determines the annuity benefit under this Contract.

 **Annuitization (Annuitize)** - the application of a portion or all of the Accumulated Value, adjusted for the Bond Adjustment, to an annuity benefit payment option to make annuity benefit payments. A Bond Adjustment applies regardless of when the Annuitization occurs, including on the Segment End Date.

**Annuitization Date** - the date all of the Owner's Accumulated Value is applied to an annuity benefit payment option.

 **Bond Adjustment** - an adjustment (which could be positive, negative, or equal to zero) to the amount Surrendered. A Bond Adjustment applies regardless of when the Surrender occurs, including on the Segment End Date. The Bond Adjustment only applies to money allocated to the Segment Options and does not apply to money allocated to the Initial Holding Account.

**Buffer Rate** - for each Buffer Segment Option, the maximum amount of negative Index performance we will absorb at the end of the Segment Term. You will be responsible for any negative Index performance that exceeds the Buffer Rate, which could result in significant loss of principal and/or prior earnings.

**Buffer Segment Option** - any Index-Linked Segment Option that includes a Buffer Rate. If you select a Buffer Segment Option for investment, your investment will incur loss at the end of the Segment Term for any negative Index performance beyond the Buffer Rate. If negative Index performance does not go beyond the Buffer Rate, you will not incur loss as a result of negative Index performance. For example, if a particular Segment Option has a 10% Buffer Rate and the Index Change at the end of the Segment Term is -15%, your investment tied to that Segment Option will lose 5%. If the Index Change at the end of that Segment Term had been -8%, your investment would have lost 0%.

**Cap Rate** - if you select an Index-Linked Segment Option with a Cap Rate for investment, at the end of the Segment Term, you may participate in any positive Index performance up to the Cap Rate, but no positive Index performance beyond the Cap Rate. For example, if the Segment Option has a 15% Cap Rate and the Index Change at the end of the Segment Term is 12%, your investment tied to that Segment Option will gain 12%. If the Index Change at the end of that Segment Term had been 25%, your investment would only have gained 15% due to the Cap Rate limitation.

**Contract Anniversary** - the same day and month as the Contract Date in each Contract Year.

**Contract Date** - the date the Contract is issued and that is used to determine Contract Years.

**Contract Year** - the one-year period beginning on the Contract Date and ending one day before the Contract Anniversary and each subsequent one-year period beginning on a Contract Anniversary. For example, if the Contract Date is June 5, 2023, the first Contract Year ends on June 4, 2024, and the first Contract Anniversary falls on June 5, 2024.

 **Crediting Base** - for each Index-Linked Segment Option selected for investment, the amount allocated to the Segment Option on the Segment Start Date, reduced by a negative adjustment upon any Surrender or deduction of charges or fees from that Segment Option prior to the Segment End Date. Generally, for each Surrender the Crediting Base will be reduced by the same proportion that the Segment Interim Value was reduced by the Surrender. A negative adjustment could be greater than the amount Surrendered or deducted. During the Segment Term, the Crediting Base is only a reference value to make sure transactions affecting amounts invested in a Segment Option are reflected to date, and it is not itself an indication of how much is available before the end of a Segment Term. On the Segment Start Date, the Crediting Base represents the amount contributed to a Segment Option. Please note that the Crediting Base is not the same as the Segment Interim Value. The Segment Interim Value is based on an estimate of the value of the amount in a particular Segment Option before the end of a Segment Term, which represents the Accumulated Value available for that Segment Option prior to the end of the Segment Term.

**Data Page(s)** - the portion of the Contract that contains information specific to your Contract. Current or revised Data Pages may be sent to you from time to time that reflect the current status of your Contract.

**Equity Adjustment** - for each Index-Linked Segment Option selected for investment, an adjustment (which could be positive, negative, or equal to zero) used to calculate the Segment Interim Value on each Valuation Day between the Segment Start Date and Segment End Date. The Equity Adjustment does not apply on the Segment End Date.

**Fixed Segment Option** - any investment option that credits interest at a fixed rate for a Segment Term.

**Fixed Segment Value** - for each Fixed Segment Option selected for investment, the Accumulated Value allocated to the Segment Option on the Segment Start Date, plus interest credited to that Segment Option during the Segment Term, less any amount deducted from that Segment Option during the Segment Term.

**Floor Rate** - for each Floor Segment Option, the maximum amount of negative Index performance you could absorb at the end of the Segment Term. We will absorb any negative Index performance that exceeds the Floor Rate.

**Floor Segment Option** - any Index-Linked Segment Option that includes a Floor Rate. If you select a Floor Segment Option for investment, your investment will incur loss at the end of the Segment Term for any negative Index performance up to the Floor Rate, but your investment will not incur loss for any negative Index performance beyond the Floor Rate. For example, if the Segment Option has a 10% Floor Rate and the Index Change at the end of the Segment Term is -5%, your investment will lose 5%. If the Index Change at the end of the Segment Term had been -15%, your investment would have only lost 10% because of the 10% Floor Rate.

**Free Surrender Amount** - the amount that may be Surrendered through a full or partial withdrawal from the Contract without a Surrender Charge. A Bond Adjustment will apply to the Free Surrender Amount regardless of when the withdrawal occurs, including on the Segment End Date. An Equity Adjustment will apply to the Free Surrender Amount withdrawn on all dates other than the Segment End Date.

**Good Order** - when an instruction or request is received in our Home Office, or other place we may specify, and it has such clarity and completeness that we do not have to exercise any discretion to carry out the instruction or request. We may require that the instruction or request be given in a certain form.

**Guaranteed Minimum Interest Rate** - the guaranteed minimum annual interest rate for the Initial Holding Account and any Fixed Segment Option.

**Home Office** - Company's corporate headquarters located at Principal Financial Group, Des Moines, Iowa 50392-1770.

**Index (Indices)** - the Index or Indices to which the Index-Linked Segment Options are linked and are used in the calculation of the Segment Credits.

**Index Change** - the net percentage change in the Index Value of an Index between the Segment Start Date and the Segment End Date.

**Index Value** - the closing value of an Index that is published on a Valuation Day. If on any specific day an Index Value is not published, the last-published Index Value will be used.

**Index-Linked Segment Option** - any Buffer Segment Option or Floor Segment Option.

**Initial Holding Account** - an account that holds the Premium Payment (including any credited interest) until it is transferred to the applicable Segment Option(s) selected for the initial Segment Term.

**Internal Revenue Code (Code)** - the Internal Revenue Code of 1986, as amended.

**Joint Annuitant** - an Annuitant whose life determines the annuity benefit under this Contract. Any reference to the death of the Annuitant means the death of the first Annuitant to die.

**Joint Owner(s)** - an Owner who has an undivided interest with the right of survivorship in this Contract with another Owner. Any reference to the death of the Owner means the death of the first Owner to die.

**Lock-In Date** – the Valuation Day we receive Notice in Good Order to lock in the Segment Option or, if there are Lock-In Threshold(s) established for the Segment Option, the Valuation Day where the Equity Adjustment reaches and/or crosses the threshold you set.

 **Lock-In Threshold** – an upper and/or lower level (threshold) for a Segment Option and, if the performance of the Index during a Segment Term reaches and/or crosses that level, the Segment Lock-In is automatically triggered for that Segment Option. An upper threshold is a threshold that is above the current Equity Adjustment and a lower threshold is a threshold that is below the current Equity Adjustment. An upper threshold can be set to lock-in gains, and a lower threshold can be set to limit losses.

**Non-qualified Contract** - a Contract that does not qualify for favorable tax treatment as a Qualified Plan, Individual Retirement Annuity, Roth IRA, SEP IRA, Simple-IRA or Tax Sheltered Annuity.

 **Notice** - any form of communication we receive in Home Office (e.g., U.S. mail, fax, email) providing the information we need, either in writing or another manner that we approve in advance. Your notices may be mailed to us at:

Principal Life Insurance Company

Attn: RIS Annuity Services

PO Box 9382

Des Moines, Iowa 50306-9382

**Owner** - the person who owns all rights and privileges of this Contract (includes a Joint Owner, if any). If the Owner is not a natural person, the Owner must be an entity with its own taxpayer identification number (TIN).

**Participation Rate** - if you select an Index-Linked Segment Option with a Participation Rate for investment, at the end of the Segment Term, you will participate in a percentage of any positive Index performance. That percentage will equal the Participation Rate. For example, if the Segment Option has a 90% Participation Rate and the Index Change at the end of the Segment Term is 10%, your investment will gain 9%. If the If the Index-Linked Segment Option also has a Cap Rate, you will not participate in any positive Index performance in excess of the Cap Rate.

**Premium Payment** - the gross amount you contributed to the Contract.

**Qualified Plan(s)** - retirement plans that receive favorable tax treatment under Section 401 or 403(a) of the Internal Revenue Code.

**Required Minimum Distribution Amount ("RMD")** - the amount required to be distributed each calendar year for purposes of satisfying the RMD rules of Section 401(a)(9) of the Internal Revenue Code and related Code provisions.

**Segment Allocation Percentage** - the percentage of Accumulated Value allocated to a Segment Option.

**Segment Anniversary** - the same day and month as the first Segment Start Date in each Contract Year.

**Segment Credit** – the amount of gain or loss applied to your investment on the Segment End Date for each Index-Linked Segment Option selected for investment. The Segment Credit is calculated only on the Segment End Date. The Segment Credit is calculated by (i) multiplying the Crediting Base by the Index Change, and then (ii) applying the Index-Linked Segment Option's Buffer Rate, Floor Rate, Cap Rate, and/or Participation Rate, as applicable. Segment Credits could be positive, negative, or equal to zero. If Segment Credits are negative, you will lose principal and/or prior earnings.

**Segment End Date** - the last day of a Segment Term. The day and month on which any Segment End Date falls will always be the same day and month for each applicable Segment Term. The Segment End Date coincides with the next Segment Start Date.

**Segment Interim Value** - the value of your investment in an Index-Linked Segment Option on any day between the Segment Start Date and the Segment End Date. Segment Interim Value is calculated at the beginning of each Valuation Date. Segment Interim Value will equal the Crediting Base adjusted for the Equity Adjustment on that Valuation Date.

**Segment Lock-In** - a feature of your Contract under which you are able to lock in an Index-Linked Segment Option's Equity Adjustment prior to the Segment End Date. These lock-in features are available with all of the Index-Linked Segment Options under the Contract. For a particular Segment Option, you are only able to exercise one Segment Lock-In per Segment Term and the Segment Lock-In is not applied retroactively.

**Segment Option** - any Index-Linked or Fixed Segment Option.

**Segment Return** – is calculated by taking the Index Change, then applying the Index-Linked Segment Option's Buffer Rate, Floor Rate, Cap Rate, and/or Participation Rate, as applicable.

**Segment Start Date** - the first day of the Segment Term. The day and month on which any Segment Start Date falls will always be the same day and month for each applicable Segment Term.

**Segment Term** - the duration of a Segment Option's investment term, expressed in years. In addition, for Index-Linked Segment Options, the number of years that a Segment Option is linked to a particular Index's performance. The Segment Term begins on the Segment Start Date and ends on the Segment End Date.

**Segment Value** - for each Index-Linked Segment Option selected for investment, the value of your allocation to that Segment Option on the Segment End Date after the application of Segment Credits and fees (if any).

**Surrender** - the removal of amount(s) from your Contract (unless otherwise specified), including a partial withdrawal, a full withdrawal, payment of a death benefit, or Annuitization. Deductions for Contract fees and charges are not Surrenders under the Contract. The Surrender amount is the amount of Accumulated Value surrendered, adjusted for any applicable Bond Adjustment, but prior to the deduction of any applicable Surrender Charges and other fees.

**Surrender Charge** - the charge deducted upon certain Surrenders taken from the Contract before the Annuitization Date.

 **Surrender Value** - the Accumulated Value adjusted for any applicable Bond Adjustment and minus any applicable Surrender Charges and other fees (if any). A Bond Adjustment applies regardless of when the Surrender Value is calculated, including on the Segment End Date. In calculating the Surrender Value, there is not a direct adjustment for an Equity Adjustment. Instead, any applicable Equity Adjustment would be applied in calculating the Accumulated Value. The resulting Accumulated Value is then used in calculating the Surrender Value. See the definition of Accumulated Value above for more information.

**Transfer** moving all or a portion of your Accumulated Value from one Segment Option to one or more Segment Options on the transferring Segment Option's Segment End Date.

**Valuation Date (Valuation Days)** - any day that the New York Stock Exchange ("NYSE") is open for trading, and trading is not restricted. A Valuation Day begins at the close of normal trading of the NYSE, generally 4:00 p.m. E.T., and ends at the close of normal trading of the NYSE on the next day it is open.

**we, our, us** - Principal Life Insurance Company (also referred to throughout this prospectus as the Company).

**you, your** - the Owner of this Contract, including any Joint Owner.

**2. SUMMARY**

The following Questions and Answers provide summary information about various features, purposes and restrictions of the Contract.

**<u>Q1: What are the primary purposes of the Contract and for whom may the Contract be appropriate?</u>**

The Principal<sup>®</sup> Strategic Outcomes single premium index-linked deferred annuity may help you with your long-term retirement planning and other long-term financial needs. The primary purposes of this Contract are to help you save money for retirement, on a tax deferred basis, and provide you with income through your retirement. The Contract offers multiple Segment Options from which you can choose.

Through the Annuitization feature, the Contract can supplement your retirement income by providing a stream of periodic payments. For additional information, see **14. ANNUITIZATION.** The Contract also offers a death benefit to help financially protect your designated beneficiaries. For additional information, see **12. DEATH BENEFIT.**

Any earnings under your Contract accumulate on a tax-deferred basis. Your earnings are not taxed until money is taken out of the Contract, such as when you make a withdrawal, you receive an income payment, or a death benefit is paid.

This Contract may be appropriate for you if you:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Are
 looking for some level of downside protection with indirect exposure to equity markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Have
 a long-term investment horizon or want to protect against the risk of you or your spouse
 outliving your income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Want
 possible tax-deferred growth; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Want
 a potential death benefit.

This Contract is not intended for someone who is not comfortable taking on the risk of losses to the amount invested or someone who intends to take significant withdrawals during the first six years of owning the Contract. For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS.**

**<u>Q2: At a high level how does this product operate?</u>**

This single premium index-linked deferred annuity offers several Segment Options in which to allocate: including Index-Linked Segment Options that provide a 10% buffer and some that provide a floor; and a Fixed Segment Option that provides a fixed interest rate. An Index-Linked Segment Option tracks performance of a linked Index. There are multiple Indices identified in this prospectus from which to choose and on which the returns/performance are based. In exchange for a specified amount of downside protection, the Segment Options provide either a Cap Rate or Participation Rate that limit upside gains. The initial Cap Rate(s) and/or Participation Rate(s) are determined when you purchase your Contract and are reset on each Segment Start Date. A Cap Rate serves as a maximum amount of gain you can be credited at the end of a Segment Term. A Participation Rate is the percentage of positive investment performance (for a Segment Option) in which you will participate for a Segment Term. At the end of a Segment Term, you may choose to reject the new Participation Rate or Cap Rate (as applicable) by Transferring to another available Segment Option by providing us Notice at least two Valuation Days prior to the end of the Segment Term for a given Segment Option. You may select from the available Segment Terms, which are currently 1-year, 2-year and 6-year Segment Terms.

**<u>Q3: What are the available Segment Options\*?</u>**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Segment Options Available** | &nbsp;&nbsp; **Segment Options Available** | &nbsp;&nbsp; **Segment Options Available** | &nbsp;&nbsp; **Segment Terms Available** <br> **(Limits on Downside Loss)**  | &nbsp;&nbsp; **Segment Terms Available** <br> **(Limits on Downside Loss)**  | &nbsp;&nbsp; **Segment Terms Available** <br> **(Limits on Downside Loss)**  |
| &nbsp;&nbsp; **Crediting Method** | &nbsp;&nbsp; **Indices** | &nbsp;&nbsp; **Limits of Upside Gain (Rates)** | &nbsp;&nbsp; **1-year Segment Term** | &nbsp;&nbsp; **2-year Segment Term** | &nbsp;&nbsp; **6-year Segment Term** |
| &nbsp;&nbsp; Point-to-Point | &nbsp;&nbsp; S&P 500 (Price Return Index; SPX) | &nbsp;&nbsp; Cap Rate & Participation Rate | &nbsp;&nbsp; 10% Buffer | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; Not Available |
|  | &nbsp;&nbsp; S&P 500 (Price Return Index; SPX) | &nbsp;&nbsp; Participation Rate (Uncapped) | &nbsp;&nbsp; 10% Buffer <br> 0% Floor <br> 10% Floor  | &nbsp;&nbsp; 10% Buffer | &nbsp;&nbsp; 10% Buffer |
|  | &nbsp;&nbsp; Russell 2000 (Price Return Index; RTY) | &nbsp;&nbsp; Participation Rate (Uncapped) | &nbsp;&nbsp; 10% Buffer | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; 10% Buffer |
|  | &nbsp;&nbsp; MSCI EAFE (Price Return Index; MXEA) | &nbsp;&nbsp; Participation Rate (Uncapped) | &nbsp;&nbsp; 10% Buffer | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; 10% Buffer |
|  | &nbsp;&nbsp; SG Smart Climate Index (SGIXSMAC) | &nbsp;&nbsp; Participation Rate (Uncapped) | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; 10% Buffer |
| &nbsp;&nbsp; Fixed | &nbsp;&nbsp; Fixed Segment | &nbsp;&nbsp; Fixed Rate | &nbsp;&nbsp; Guaranteed Minimum Interest Rate | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; Not Available |

---

\*The availability of Segment Options may vary by broker-dealer. You may obtain information about the Segment Options that are available to you by contacting your financial professional.

**<u>Q4: Where is my Premium Payment held before the initial Segment Term?</u>**

Beginning on the Contract Date, your Premium Payment will be held in the Initial Holding Account for no longer than twenty one (21) calendar days. If we exercise the right to hold your Premium Payment in the Initial Holding Account until the end of the free look period, your Premium Payment could be held in the Initial Holding Account up to sixty (60) additional days. While in the Initial Holding Account the amount invested earns only a fixed interest rate. Interest will be credited on the amount held in the Initial Holding Account at a fixed rate determined at Contract issue. On the next Segment Start Date, the total amount in the Initial Holding Account will be transferred to the Segment Option(s) as described immediately below so long as we receive the Premium Payment at least two Valuation Days prior to the Segment Start Date. For additional information, see **6. PURCHASING THE CONTRACT.**

**<u>Q5: How is interest applied to my investment in a Fixed Segment Option?</u>**

Amounts allocated to a Fixed Segment Option earn interest at the applicable annual interest rate for the Segment Term. The annual interest rate declared at the beginning of the Segment Term is guaranteed until the Segment End Date. Interest will be credited on a daily basis during the Segment Term. The daily rate is calculated as [(1+Annual Interest Rate) ^ (1/365)-1].

For each Fixed Segment Option that you select for investment, the Fixed Segment Value at any time will be equal to the Accumulated Value allocated to the fixed Segment Option on the Segment Start Date, plus interest credited to that Segment Option during the Segment Term, less any amount deducted from that Segment Option during the Segment Term.

For the initial Segment Term, the annual interest rates for the Fixed Segment Options will be listed on your Data Page. We may declare different interest rates for subsequent Segment Terms. At least fifteen (15) days prior to the end of any Segment Term, we will provide notice of the annual interest rates for the Fixed Segment Options that will be available for investment. This notice of the upcoming renewal will be in writing and the rates will be publicly available prior to the Segment Start Date for the new Segment Terms on www.principal.com/individuals/invest-retire/annuities.

We determine the annual interest rates for the Fixed Segment Options at our discretion. In no event will we declare an annual interest rate lower than the Guaranteed Minimum Interest Rate of 0.05%. You bear the risk that we will not credit interest for a new Segment Term at a rate greater than the Guaranteed Minimum Interest Rate.

For additional information, see **7. FIXED SEGMENT OPTION MECHANICS.**

**<u>Q6: How is gain or loss applied to my investment in an Index-Linked Segment Option at the end of a Segment Term?</u>**

On the Segment Start Date, the Crediting Base represents the amount contributed into the Segment Option (subject to certain adjustments). The Segment Credit is calculated and applied to the Crediting Base only on the Segment End Date. The Segment Credit will change the respective Segment Option's Crediting Base, which will then be used as the Crediting Base for the amounts invested in a new Segment Option (assuming no withdrawals or annuitizations on the same day as the Segment Credit). Segment Credits could be negative, meaning you could lose principal and/or prior earnings.

On each applicable Segment End Date, a calculation is performed to determine the Segment Credit that will change the respective Segment Option's Crediting Base. The calculation involves a review of the change in the Index Value for the particular Segment Option. The change in the Index Value is the difference between the Index Value on the Segment End Date and the Index Value on the Segment Start Date divided by the Index Value on the Segment Start Date. If the change in the Index Value is positive, the Segment Return on the Segment End Date will be as described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· When
 the Participation Rate is less than 100%, the Segment Return will be the change in the Index
 Value reduced by the Participation Rate up to the Cap Rate (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· When
 the Participation Rate is greater than 100%, the Segment Return will be the change in the
 Index Value increased by the Participation Rate up to the Cap Rate (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· When
 the Participation Rate is 100%, the Segment Return will be the change in the Index Value
 up to the Cap Rate (as applicable).

If the change in the Index Value is negative, the negative Segment Return will be subject to the Buffer or Floor Rate (as applicable). With the Buffer Segment Option, the Company will absorb losses for the applicable Segment Option up to the Buffer Rate and you will be responsible for any loss greater than the Buffer Rate. With the Floor Segment Option, the Company will absorb losses for the applicable Segment Option greater than the Floor Rate and you will be responsible for any loss up to the Floor Rate.

For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS.**

 **<u>Q7: How is the value of my investment in the Contract calculated before the end of a Segment Term?</u>**

The Contract Accumulated Value before the end of a Segment Term is the sum of the Segment Interim Values, Segment Values, and Fixed Segment Values, as applicable, plus the total value of any allocation to the Initial Holding Account. The Segment Interim Value for a particular Segment Option reflects the Equity Adjustment that provides the current estimate of what the Segment Value would be at the end of the Segment Term based on the expected value of the reference Index. The Segment Interim Value is applicable on any day before the end of the Segment Term and assumes there are no Surrenders between the date the Segment Interim Value is calculated and the Segment End Date.

For information on how Segment Interim Value is calculated and factors into Surrender Value, see the following Q&A below: **<u>What is the Segment Interim Value and how does it factor into a Surrender under the Contract?</u>**

For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS.**

**<u>Q8: At the end of a Segment Term for a Segment Option, what are my options under the Contract?</u>**

At the end of a Segment Term for any Segment Option, the following options are available to you:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· You
 may reinvest your Accumulated Value allocated to the ended Segment Option in the same Segment
 Option for another Segment Term if the Segment Option is still available. Please note, the
 Cap Rate, Participation Rate, or annual interest rate we declare for the new Segment Term
 may differ (higher or lower) from the previous Segment Term, subject to the guaranteed limits
 described in this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· You
 may Transfer your Accumulated Value allocated to the ended Segment Option to any other Segment
 Option that is available for investment. Transfers from a Segment Option are only allowed
 on the Segment End Date. Cap and Participation Rates will be made available to you at least
 15 days prior to the Segment Start Date. Your Transfer requests must be received by us at
 least two Valuation Days prior to the end of a Segment Term for the given Segment Option.
 If you submit a Transfer request but we do not receive it prior to the start of that two-day
 period, your Accumulated Value will be automatically re-invested as described in **9. OPTIONS AT END OF SEGMENT TERM**. The Segment End Date counts as one of those two Valuation Days.
 If the Segment End Date is not on a Valuation Day, the Valuation Day prior to the Segment
 End Date counts as one of those two Valuation Days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· You
 may withdraw or Annuitize your Accumulated Value allocated to the ended Segment Option, subject
 to the terms and conditions described in this prospectus. Withdrawals and Annuitization are
 not restricted to Segment End Dates, but amounts withdrawn or Annuitized from a Segment Option
 on its Segment End Date will not be based on a Segment Interim Value and are not subject
 to an Equity Adjustment. However, such withdrawals will still be subject to the Bond Adjustment
 and may be subject to Surrender Charges (Surrender Charges do not apply upon Annuitization).
 A Bond Adjustment is an adjustment (which could be positive, negative, or equal to zero)
 to the amount Surrendered. A Bond Adjustment applies regardless of when the Surrender occurs,
 including on the Segment End Date.

For additional information, see **9. OPTIONS AT END OF SEGMENT TERM, 11. WITHDRAWALS** and **14. ANNUITIZATION.**

**<u>Q9: What is the Segment Interim Value and how does it factor into a Surrender under the Contract?</u>**

Surrender Value, Accumulated Value, and Segment Interim Value are important terms to know in better understanding how Surrenders are handled under your Contract. They are addressed in turn here:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Surrender
 Value. The Surrender Value represents the amount that is available under the Contract as
 part of a Surrender and equals the Accumulated Value plus or minus the Bond Adjustment and
 minus any applicable Surrender Charges and other fees (if any). In calculating the Surrender
 Value, a Bond Adjustment is factored in, which could have a negative impact on the Surrender
 Value. A Bond Adjustment applies at all times due to the need for the Company to have the
 underlying investments backing up the Contract closely match up with the Company's
 obligations under the Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Contract
 Accumulated Value. As mentioned in an earlier Q&A, the Contract Accumulated Value before
 the end of a Segment Term is the sum of the Segment Interim Values, Segment Values, and Fixed
 Segment Values, as applicable, plus the total value of any allocation to the Initial Holding
 Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Segment
 Interim Value. As referenced above, the Contract Accumulated Value before the end of a Segment
 Term is the sum of the Segment Interim Values, Segment Values, and Fixed Segment Values,
 as applicable, plus the total value of any allocation to the Initial Holding Account. The
 Segment Interim Value for a particular Segment Option reflects the Equity Adjustment that
 provides the current estimate of what the Segment Value would be at the end of the Segment
 Term based on the expected value of the reference Index. The Segment Interim Value is applicable
 on any day before the end of the Segment Term and assumes there are no Surrenders between
 the date the Segment Interim Value is calculated and the Segment End Date. In order to calculate
 your Segment Interim Value, we apply a formula that is not directly tied to the actual performance
 of the applicable Index. Instead, we calculate it by determining the value of hypothetical
 investments and derivatives that we may or may not actually hold in order to provide a current
 estimate of the value of the Segment Option at the end of the Segment Term. In arriving
 at a Segment Interim Value, an Equity Adjustment is made, which could have a negative impact
 on the Segment Interim Value. **The Segment Interim Value may result in a loss even if the Index Value at the time the Segment Interim Value is calculated is higher than the Index Value on the Segment Start Date.** Generally, the Segment Interim Value will be lower earlier
 in a Segment Term or if the Current Index Value is less than the Beginning Index Value. For
 the specific calculation to determine the Segment Interim Value, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS – Segment Interim Value.** 

**<u>Q10: Prior to the end of a Segment Term for a Segment Option, what are my options under the Contract?</u>**

You may withdraw all or a portion of the Contract at any time before the Annuitization Date. Types of Surrenders are full withdrawals of the Contract, partial withdrawals, payment of a death benefit and Annuitizations. The Surrender Value is: subject to a Bond Adjustment being applied, which could be negative; and reduced by any applicable Surrender Charge and fee(s) (Contract fees and/or prorated share of the charge(s) for optional rider(s)). Full and partial withdrawals may be subject to taxes and to a separate 10% federal tax penalty if made before the Owner is 59½ years old. For additional information, see **11. WITHDRAWALS.**

There is a Free Surrender Amount under your Contract for Surrenders up to 10% of the Premium Payment decreased by any partial Surrenders and/or partial Annuitization made since the last Contract Anniversary. Subject to these restrictions, you will not incur a Surrender Charge for any withdrawals less than or equal to the Free Surrender Amount but the withdrawal will be subject to the Equity Adjustment and Bond Adjustment. For additional information, see **5. FEES AND CHARGES - Deferred Sales Load ("Surrender Charges")** - Free Surrender Amount.

**<u>Q11: What are the Company's rights, if any, to discontinue an Index?</u>**

The Indices available on the Contract Date are not guaranteed for the life of the Contract. We reserve the right to change or discontinue an Index, either at the end or in the middle of a Segment Term. The substitution of an Index will have no impact on an Index-Linked Segment Option's Segment Term, Cap Rate, Participation Rate, Buffer Rate, or Floor Rate, as applicable.

When substituting an Index, we will attempt to select an alternative Index that, in our judgment, has an investment and risk profile similar to the original Index. We will notify you at least 30 days in advance of the substitution, and the notice will include the Index and Segment Option(s) involved. In the event that it is necessary to substitute on less than 30 days' notice due to circumstances outside of our control, we will provide notice of the substitution as soon as practicable.

If the substitution of an Index occurs in the middle of a Segment Term, the point-to-point method will be used in measuring performance of the original Index from the Segment Start Date to the date of substitution and performance of the new Index from the day after substitution through the Segment End Date.

We reserve the right to add and remove Index-Linked Segment Options as available investment options, which could also include adding or removing certain downside protection levels. There is no guarantee that any Index-Linked Segment Option will always be available in the future. However, we will always offer at least one Index-Linked Segment Option that is either currently offered or substantially similar to one that is currently offered.

**<u>Q12: What is the optional Rate Enhancement Rider?</u>**

The Rate Enhancement Rider is an optional benefit that can only be elected at the time the Contract is issued. The Rate Enhancement Rider effective date is the same as the Contract Date.

The Rate Enhancement Rider provides an increased Participation Rate and/or Cap Rate on the Index-Linked Segment Options to which you have amounts allocated. The increased Participation Rate and/or Cap Rate (as applicable) are publicly available prior to purchase of the Contract on www.principal.com/individuals/invest-retire/annuities and also shown on your Contract's Data Page. While the purchase of the Rider ensures that your Participation Rate and/or Cap Rate (as applicable) will be higher than the standard rates, there is no guaranteed minimum increase to the standard rates that you will receive by purchasing the Rider. The increase may vary by Segment Option as well based on factors such as reference Index, Segment Term, and downside protection level.

The annual charge for the Rate Enhancement Rider is 0.95%, which is deducted daily. If the Rate Enhancement Rider is terminated, the charge for the Rate Enhancement Rider also is terminated. The Rate Enhancement Rider can only be terminated on a Segment Anniversary divisible by six.

For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Optional Rate Enhancement Rider.**

**<u>Q13: What is the Bond Adjustment?</u>**

The Bond Adjustment is an adjustment (which could be positive, negative, or equal to zero) to the amount Surrendered based on the change in the fair value of the hypothetical fixed income assets supporting our financial obligations under the Contract. A Bond Adjustment applies regardless of when the Surrender or Annuitization occurs, including on the Segment End Date. A Bond Adjustment applies at all times due to the need for the Company to have the underlying investments backing up the Contract closely match up with the Company's obligations under the Contract. The Bond Adjustment only applies to money allocated to the Segment Options and does not apply to money allocated to the Initial Holding Account.

For additional information, see **10. CONTRACT VALUES Bond Adjustment.**

**<u>Q14: What are the Contract's lock-in features?</u>**

The Contract's lock-in features allow you to lock in an Index-Linked Segment Option's Equity Adjustment prior to the Segment End Date. These lock-in features are available with all of the Index-Linked Segment Options under the Contract. There is no additional charge for these lock-in features.

The lock-in features may be of interest to people who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Are
 interested in eliminating some of the uncertainty regarding Index performance for the remainder
 of a Segment Term; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Are
 wanting to potentially limit the impact of a negative Segment Credit they may otherwise receive.

Upon exercising a lock-in, on the Segment End Date, the Owner will receive a Segment Credit equal to the locked-in Equity Adjustment. Between the date of lock-in and the Segment End Date, the Segment Interim Value will be calculated using the locked-in Equity Adjustment. **If a lock-in has been exercised and the current Segment End Date is later than the next Segment Anniversary, the Segment End Date is moved up to the next Segment Anniversary.** Under either method for exercising a lock-in, you will not know the locked-in Equity Adjustment in advance because the Equity Adjustment is calculated at the end of the Valuation Day after you exercise the lock-in. The Bond Adjustment will still apply to any Surrenders even after a lock-in has been exercised. Such a Bond Adjustment would apply in the same manner as to a Segment Option that has not been locked in.

For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Segment Lock-In Feature.**

**<u>Q16: What fees and charges apply under the Contract?</u>**

Your Contract is subject to certain fees and charges. There is a charge ("Surrender Charge") that applies if you withdraw money from your Contract during the first six Contract Years. The maximum Surrender charge is 8% of the amount withdrawn, declining down to 0% after the sixth Contract Anniversary. Unless you have the Rate Enhancement Rider as part of your Contract (see paragraph immediately below), there are no other Contract charges or administrative fees.

If you have the Rate Enhancement Rider as part of your Contract, there is a separate rider fee for having this benefit. This rider is an optional benefit under this Contract. The annual charge for this rider is 0.95%, which is deducted daily from the Crediting Base. The charge will only be charged for the Index-Linked Segment Options.

Other fees or charges that may apply are premium tax, Bond Adjustment, and Equity Adjustment, which could reduce amounts available upon Surrender. Other factors that could limit your investment performance include Participation Rates and Cap Rates, which are included in exchange for the downside protection provided by the Segment Options.

For additional information, see **5. FEES AND CHARGES.**

**<u>Q17: What are the Contract's Annuitization benefits?</u>**

Any time after the second Contract Year, you may Annuitize your Contract by electing to receive payments under an annuity benefit payment option. The amount you can apply to the annuity benefit payment option is the Accumulated Value, adjusted by the Bond Adjustment, which could be a negative adjustment. You may elect to Annuitize the entire Contract (full Annuitization) or a portion of your Contract (partial Annuitization). The Maximum Annuitization Date is shown on the Data Page and is generally the Contract Anniversary following the Annuitant's age 95. If Joint Annuitants are named on the application, the Maximum Annuitization Date will be set based on the age of the older Joint Annuitant.

For additional information, see **14. ANNUITIZATION.**

**<u>Q18: What are the Contract's death benefits?</u>**

If the age of the oldest Owner on the date the application is signed is 79 or younger, the death benefit is equal to the greater of 1 or 2 where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. Is the Accumulated Value, subject to the Bond Adjustment (which could be negative), on the date we receive the proof of death and all required documents in Good Order; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Is the Premium Payment minus an adjustment (as described below) for each partial Surrender (and any applicable Surrender Charge and fees) and an adjustment for each partial Annuitization made prior to the date we receive the poof of death and all required documents.

The adjustment for each partial Surrender (and any applicable Surrender Charges and fees) and for each partial Annuitization will reduce the death benefit in the same proportion that the Accumulated Value was reduced on the date of the partial Surrender or partial Annuitization. The adjustment for partial Surrenders is equal to (1 divided by 2) multiplied by 3, where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Is the amount of the partial Surrender (and any applicable Surrender Charges and fees) or the amount of the partial Annuitization; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Is the Accumulated Value immediately prior to the partial Surrender or partial Annuitization; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Is the Premium Payment adjusted for prior partial Surrenders and partial Annuitizations immediately prior to the current partial Surrender or partial Annuitization.

If the age of the oldest Owner on the date the application is signed is 80 or older, the death benefit is equal to the Accumulated Value, subject to the Bond Adjustment (which could be negative), on the date we receive the proof of death and all required documents in Good Order.

If the Owner or any Joint Owner dies prior to the Annuitization Date, we will pay the death benefit upon our receipt of required documents and Notice, in Good Order, including due proof of death. Proof of death includes a copy of a death certificate, a certified copy of a court order, a written statement by a medical doctor, or other proof satisfactory to us.

The Accumulated Value will remain invested in the Segment Options until the Valuation Day on which we receive the required documents in Good Order. If more than one beneficiary is named, each beneficiary's portion of the death benefit will remain invested in the Segment Options until the Valuation Day on which we receive the required documents for that beneficiary.

We will pay interest on the death benefit from the first day the Accumulated Value is no longer invested in the Segment Options until payment is made. We will determine the rate of interest, which will not be less than the interest rate required by the applicable state's law.

For additional information, see **12. DEATH BENEFIT.**

**<u>Q19: How do investors provide reallocation instructions and other requests to Principal Life?</u>**

Ways to contact Principal Life Insurance Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Calling
 us at 1-800-852-4450 between the hours of 7 a.m. and 6 p.m. Central Time

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Mailing
 your instructions to us at the below address:

Principal Life Insurance Company

Attn: RIS Annuity Services

P O Box 9382

Des Moines, Iowa 50306-9382

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Faxing
 us at 1-866-894-2093

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Visiting
 www.principal.com using your secure login.

**<u>Q20: Does the Contract Have Any Optional Benefits</u>**

The Rate Enhancement Rider is an optional benefit that can only be elected at the time the Contract is issued. The Rate Enhancement Rider provides an increased Participation Rate and/or Cap Rate on the Index-Linked Segment Options. The annual charge for this rider is 0.95%, which is deducted daily. For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Optional Rate Enhancement Rider.**

**3. RISK FACTORS**

**Risk of Loss**

An investment in this Contract is subject to the risk of poor investment performance of the Index-Linked Segment Options to which you have allocated Accumulated Value. You can lose money by investing in this Contract, including loss of principal and/or prior earnings. While limited protection from losses is provided under your Contract through either a Buffer Segment Option or Floor Segment Option, you bear some level of the risk of decline in your Contract's Accumulated Value resulting from the performance of the Index-Linked Segment Options and the risk of losses may be significant. Because of the Equity Adjustment and/or Bond Adjustment, in extreme circumstances it is theoretically possible the total loss could be 100% (i.e., a complete loss of your Premium Payment and any prior earnings) even if your Contract is outside of the Surrender Charge period. While the Equity Adjustment only applies on dates other than the Segment End Date, the Bond Adjustment always applies, even on the Segment End Date. For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS.**

**Risk of Loss in Exercising Free Look** 

Upon exercising your free look rights, the amount we will return to you will be based on the state law applicable to your Contract as follows:

&nbsp;&nbsp;&nbsp;&nbsp;· In
 the states that require us to return your Premium Payment, we will return your Premium Payment
 without any interest earned.

&nbsp;&nbsp;&nbsp;&nbsp;· In
 states where we return your Contract Accumulated Value, the free look amount will be the
 Contract Accumulated Value plus any premium tax charge deducted. If you have elected to have
 taxes withheld, we will subtract any applicable federal and state income tax withholding
 from the amount returned to you. For these states, the risk to you is that you may receive
 less money upon the exercise of your free look rights than you paid into the Contract in
 Premium Payment. This risk exists because your Contract Accumulated Value can decrease during
 the free look period.

&nbsp;&nbsp;&nbsp;&nbsp;· In
 states that require us to return the greater of your Premium Payment and your Contract Accumulated
 Value, the free look amount will be the greater of the values in the previous two bullets.

For additional information, see **6. PURCHASING THE CONTRACT - Right to Examine the Contract (Free Look).**

**Initial Holding Account Risk**

When you first invest in the Contract, your Premium Payment will be held in the Initial Holding Account temporarily. While in the Initial Holding Account the amount invested earns only a fixed interest rate.

**Index Performance Risk**

The Accumulated Value of your Contract is dependent on the performance of the Index-Linked Segment Options to which you have allocated any of the Accumulated Value. Based on your investment objectives, you direct the allocation of the Accumulated Value, which takes effect at the applicable Segment Start Date. There can be no assurance that your investment objectives will be achieved.

Other considerations include the following:

&nbsp;&nbsp;&nbsp;&nbsp;· The
 performance of an Index is based on changes in the values of the securities or other investments
 that comprise or define the Index. The securities comprising or defining the Indices are
 subject to a variety of investment risks, many of which are complicated and interrelated.

&nbsp;&nbsp;&nbsp;&nbsp;· Because
 the Index-Linked Segment Options are each comprised of a collection of equity securities,
 the value of the component securities is subject to market risk and issuer risk. Market risk
 is the risk that the respective market ups and downs likely will cause the value of the securities
 to go up or down. The ups and downs can be because of disasters and other events, such as
 storms, earthquakes, fires, outbreaks of infectious diseases, terrorist attacks, political
 and social developments, and military and governmental actions. Equity markets also are subject
 to the risk that the value of the securities may fall due to general market and economic
 conditions.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 value of equity securities also may go up or down for reasons directly related to the issuers
 of the securities. This issuer risk is the risk that the value of an issuer's securities
 may decline for reasons directly related to the issuer, as opposed to the market generally.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 performance fluctuations of the Indices can occur rapidly and unpredictably, and negative
 Index performance can cause you to have investment losses. While you will not be directly
 invested in the Index, if you allocate amounts to an Indexed-Linked Segment Option, you will
 have indirect exposure to the investment risks of the applicable Index. For additional information,
 see **8. INDEX-LINKED SEGMENT OPTION MECHANICS.** 

&nbsp;&nbsp;&nbsp;&nbsp;· Investing
 in the Contract does not mean you are invested in the companies that comprise the Indexes.
 You will have no voting rights, no rights to receive cash dividends or other distributions,
 and no other rights with respect to the companies that make up the Indexes.

Each of the Indices available under this Contract has its own unique risks. They are discussed here.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>The S&P 500® Price Return Index</u> 

This index is comprised of equity securities issued by large-capitalization ("large cap") U.S. companies. Generally, it is more difficult for large-cap companies to pivot their strategies quickly in response to changes in their industry. In addition, because they typically are more well-established, it is rare to see large-cap companies have the high growth rates that can be seen with small-capitalization ("small cap") companies.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Russell 2000® Price Return Index</u> 

This index is comprised of equity securities of small-cap U.S. companies. Generally, the securities of small-cap companies are more volatile and riskier than the securities of large-cap companies.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>MSCI EAFE Price Return Index</u> 

This index is an equity index that is designed to represent the performance of large and mid-cap securities across 21 developed markets around the world but excluding the U.S. and Canada. Unique to this index (as compared to the other available Indices) are risks relating to political, social, and economic developments abroad, as well as risks resulting from differences between the regulations and reporting standards and practices to which U.S. and foreign issuers are subject. To the extent foreign securities are denominated in foreign currencies, their values may be adversely affected by changes in currency exchange rates. All of the risks of investing in foreign securities are typically increased by investing in emerging market countries. Shifts in these factors can result in this index being more volatile than other Indices.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>SG Smart Climate Index</u> 

This Index provides investment exposure to the performance of large-capitalization U.S. stocks that are selected based on proprietary climate risk preparedness scores and certain environmental, social, and governance (ESG) filters. The Index provides exposure to such stocks through its underlying index, the SG Climate Transition Risk Index (the "Underlying SGI Index").

The Index is subject to several risks, such as the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **ESG Methodology Risk.** The Underlying SGI Index is composed of stocks that are selected based
 on an ESG methodology that includes climate risk scores and ESG exclusion filters. Investors'
 views about ESG matters may differ from the Underlying SGI Index's ESG methodology.
 As such, the ESG methodology may not reflect the beliefs or values of any particular investor.
 There is no guarantee that the ESG methodology will ultimately enhance the performance of
 the Index. The ESG methodology could detract from the performance of the Index, as companies
 with lower ESG ratings may perform better than companies with higher ESG ratings over the
 short or long term. Due to the inherent difficulty of forecasting within complex systems
 and the general unpredictability of future events, there is no guarantee that the predictive
 climate risk models used by the Underlying SGI Index will identify stocks that will perform
 well if climate events occur.

Amounts invested in a Segment Option that is linked to the Index are *not* invested in the Index, the Underlying SGI Index, or the underlying stocks. Amounts that you invest in the Contract become assets of the Company. The assets in the Company's General Account and the Separate Account, which the Company invests to support its payment obligations under the Contract, are *not* invested based on ESG factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Performance Drag Risk.** The performance of the Index will always be worse than the performance of
 the underlying index. The Index reflects deductions that reduce performance, including a
 negative performance adjustment equal to 1.50% and fixed replication costs equal to 0.50%,
 each as an annualized percentage of Index Value. In addition, the performance of the Index
 is reduced by assumed costs of borrowing equal to the U.S. Federal Funds Rate. Without these
 deductions, the performance of the Index over any one year period would be higher by approximately
 2.00% plus the U.S. Federal Funds Rate. While these deductions are not charges under the
 Contract, they result in lower Index Values and may therefore negatively impact the performance
 of your Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Large-Cap Risk.** Large-capitalization companies may be less able than smaller capitalization companies
 to adapt to changing market conditions. Large-capitalization companies may be more mature
 and subject to more limited growth potential compared with smaller capitalization companies.
 During different market cycles, the performance of large-capitalization companies has trailed
 the overall performance of the broader securities markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Index Disruption Risk.** Disruptive and extraordinary events could impair the operation of the
 Index or the Underlying SGI Index. For example, these events could relate to the unavailability
 of necessary data to apply the ESG methodology, an insufficient number of eligible stocks,
 or the termination or breach of a third-party licensing agreement. Should a disruptive or
 extraordinary event occur, the index provider may take any actions permitted by the index
 rules, such as postponing calculations or rebalances, adjusting the terms of an index to
 preserve its economic characteristics, restating index values, or discontinuing the index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **New Index Risk.** The Index and the Underlying SGI Index have limited performance histories.
 Generally, there is less publicly available information about the Index and the Underlying
 SGI Index compared to more established market indexes. Inquiries regarding the Index or the
 Underlying SGI Index should be directed to your financial professional or Principal Life
 Insurance Company either by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Calling us at 1-800-852-4450 between
 the hours of 7 a.m. and 6 p.m. Central Time

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Sending us your inquiry at the
 below address:

Principal Life Insurance Company

Attn: RIS Annuity Services

P O Box 9382

Des Moines, Iowa 50306-9382

For more detailed information about this and the other available Indices, see **APPENDIX A - INDEX DISCLOSURES**.

**Liquidity Risk**

<u>Liquidity Risk Generally</u>

This Contract is not suitable as a short-term savings vehicle and is not appropriate if you need ready access to cash. The benefits of tax deferral and allocation to Segment Options for the full Segment Terms are better for investors with long investment time horizons. Surrender charges apply for up to six years after the Premium Payment and these charges will reduce the value of your Contract if you withdraw money during that time. While the Contract provides for up to a 10% free surrender amount, such a Surrender still would be subject to a Bond Adjustment and Equity Adjustment. There also may be adverse tax consequences if you take early withdrawals from the Contract, including amounts withdrawn from the Contract being subject to a 10% federal penalty if taken before age 59½, which would be in addition to any other federal or state income taxes payable.

<u>Limits on Transfers</u>

The restrictions applicable to Transfers also creates liquidity risk. You are only able to make Transfers of Accumulated Value among the various Segment Options at the end of a Segment Term. This significantly limits your ability to react to changes in market conditions during Segment Terms. Your Transfer requests must be received by us at least two Valuation Days prior to the end of a Segment Term. If you submit a Transfer request but we do not receive it prior to the start of that two-day period, your Accumulated Value will be automatically re-invested as described in **9. OPTIONS AT END OF SEGMENT TERM**. The Segment End Date counts as one of those two Valuation Days. If the Segment End Date is not on a Valuation Day, the Valuation Day prior to the Segment End Date counts as one of those two Valuation Days.

In the absence of instructions, your Accumulated Value in the Segment Option that is ending will be automatically re-invested in the same Segment Option for another Segment Term. If we no longer offer the same Segment Option, we will select a new Segment Option from those that we do offer. The Segment Option selected will be one with the same Index with a one-year Segment Term and the same Buffer Rate or Floor Rate as the Segment Option that just ended. If there is no such Segment Option, the Accumulated Value for the applicable Segment Option will be allocated to the one-year Fixed Segment Option. Please note, the Cap Rate, Participation Rate, or annual interest rate we declare for the new Segment Term may differ (higher or lower) from the previous Segment Term, subject to the guaranteed limits described in this prospectus.

Transfers from a Segment Option are only allowed on the Segment End Date. If you wish to Transfer, you must Notify us at least two Valuation Days prior to the end of the Segment Term for the given Segment Option. If you submit a Transfer request but we do not receive it prior to the start of that two-day period, your Accumulated Value will be automatically re-invested as described in **9. OPTIONS AT END OF SEGMENT TERM**. The Segment End Date counts as one of those two Valuation Days. If the Segment End Date is not on a Valuation Day, the Valuation Day prior to the Segment End Date counts as one of those two Valuation Days. If you fail to Transfer Index-Linked Accumulated Value at the end of a Segment Term and do not wish to remain invested in a particular Index-Linked Segment Option for another Segment Term, you will need to take a full withdrawal of the related Accumulated Value. Withdrawing all or some of the Accumulated Value may cause you to incur Surrender Charges, negative adjustments to certain values under your Contract, and negative tax consequences, as discussed in this section. For additional information, see **9. OPTIONS AT END OF SEGMENT TERM.**

See **"Segment Interim Value Risk"** below for information on how liquidity risks relate to our Interim Value calculation.

<u>Consequences of Withdrawals/Surrenders Generally</u>

There is a risk of loss of principal and/or prior earnings if you take a full or partial withdrawal from your Contract during the first six Contract Years where a Surrender Charge would be deducted. This risk also applies if you are invested in an Indexed-Linked Segment Option even where the Index is performing positively as of the date of your withdrawal. Because adjustments and charges are imposed when amounts are withdrawn before the end of a Surrender Charge period and/or the end of a Segment Term, these withdrawals can result in a loss of principal even if Index performance has been positive. If you set up scheduled withdrawals, your exposure to these risks will repeat as long as the scheduled withdrawals continue.

The only potential ongoing Contract charge with this Contract is the charge for the optional Rate Enhancement Rider. If you elected to include the Rate Enhancement Rider with your Contract, the ongoing charge for the rider could also cause amounts available for withdrawal under your Contract to be less than what has been invested in the Contract, even if Index performance has been positive.

Note. The limits on downside loss provided by the floor feature or buffer feature, as applicable, are for the entire Segment Term for a particular Segment Option and are not annual limits. As a result, the downside protection will be less if measured for any period of time that is less than the duration of the Segment Term.

Note. You also bear the risk that continued negative Index Changes may result in zero or negative Segment Credits being credited to your Accumulated Value over multiple Segment Terms. If an Index-Linked Segment Option is credited with negative Segment Credits for multiple Segment Terms, the cumulative loss may exceed the stated limit of the Buffer Rate or Floor Rate for any single Segment Term. For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS.**

We may defer payments under this Contract for up to six months if the insurance regulatory authority of the state in which we issued the Contract approves such deferral.

For additional information, see **11. WITHDRAWALS.**

**Credit Risks**

Our General Account assets support the obligations under the Contract and are subject to the claims of our creditors. As such, the guarantees under the Contract are subject to our financial strength and claims-paying ability. There is a risk that we may default on those guarantees. You need to consider our financial strength and claims-paying ability in meeting the guarantees under the Contract. You may obtain information on our financial condition by reviewing our financial statements included in this prospectus. Additionally, information concerning our business and operations is set forth under the section titled "Management's Discussion and Analysis." More information about the Company, including its financial strength ratings, can be found by visiting https://investors.principal.com/investor-relations/our-business/credit-ratings/default.aspx. The assets in Principal Life Insurance Company Separate Account R are not subject to our creditors.

The amount you invest is not placed in a registered separate account and your rights under the Contract to invested assets and the returns on those assets are subject to Company's claims paying ability. The assets in the unregistered Separate Account are insulated, which means they are not subject to the claims of the creditors of the Company. This unregistered Separate Account is also non-unitized, which means neither an Owner nor amounts allocated to the Segment Options participate in the performance of the assets held in the Separate Account.

**Segment Interim Value Risk**

On each Valuation Day of the Segment Term, other than the first and last day, we determine the Segment Interim Value for each Indexed-Linked Segment Option. In order to calculate your Segment Interim Value, we apply a formula that is not directly tied to the actual performance of the applicable Index. Instead, we calculate it by determining the value of hypothetical investments and derivatives that we may or may not actually hold in order to provide a current estimate of the value of the Segment Option at the end of the Segment Term. This means that even if the Index has performed positively, it is possible that the Segment Interim Value may have decreased. For more information and to see how we calculate the Segment Interim Value, see **APPENDIX B - SEGMENT INTERIM VALUE EXAMPLES.**

If you allocate Accumulated Value to an Index-Linked Segment Option, Segment Credits will not be credited to your Accumulated Value in the particular Segment Option until the end of the Segment Term. Amounts withdrawn from an Index-Linked Segment Option prior to the end of a Segment Term will not have a Segment Credit applied to it. This includes Accumulated Value being applied to pay a death benefit or to an Annuitization option during a Segment Term. Except for the first and last Valuation Day of a Segment Term, your Segment Interim Value is the amount available for withdrawals, Annuitization and death benefits (collectively, "Surrenders"). **There is risk that this Segment Interim Value could be less than your original Premium Payment even if the applicable Index has been performing positively.**

The Crediting Base because of a Surrender generally will be reduced by the same proportion as the Segment Interim Value is reduced by the Surrender. As a result, application of a negative adjustment will result in a lower Segment Interim Value. Also, a negative adjustment will result in less gain or more loss, as applicable, at the end of a Segment Term. A negative adjustment could be greater than the amount Surrendered or deducted.

**Buffer and Floor Rate Risk**

The Buffer or Floor Rate that is applicable to a Segment Option only provides you with limited protection. In other words, you could lose a significant amount of your Premium Payment and/or prior earnings under the Contract. In extreme circumstances, for Index-Linked Segment Options it is theoretically possible the total loss could be 100% (i.e., a complete loss of your Premium Payment and/or any prior earnings).

You also bear the risk that continued negative Index Changes may result in zero or negative Segment Credits being credited to your Accumulated Value over multiple Segment Terms. Given that the Floor Rate and Buffer Rate (as applicable) are expressed as to a single Segment Term, if an Index-Linked Segment Option is credited with negative Segment Credits for multiple Segment Terms, the cumulative loss may exceed the stated limit of the Buffer Rate or Floor Rate for any single Segment Term. For the 0% Floor Rate Segment Option, Segment Credits will not be negative so long as the funds are held to the Segment End Date. In addition, the limits on downside loss provided by the floor feature or buffer feature, as applicable, are for the entire Segment Term for a particular Segment Option and are not annual limits. As a result, the downside protection will be less if measured for any period of time that is less than the duration of the **full** Segment Term. For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS.**

For withdrawals, Annuitizations and death benefits that occur during a Segment Term, you or your beneficiaries (as applicable) will not receive the full protection of the Buffer Rate or Floor Rate in the calculation of the Segment Interim Value. In order to receive the full protection, the particular transaction must occur on the Segment End Date.

**Cap Rate and Participation Rate Risk**

If you choose to allocate amounts to an Index-Linked Segment Option subject to a Cap Rate, the Cap Rate limits the positive Index Change, if any, that may be credited to your Contract for a given Segment Term. The Cap Rates do not guarantee a certain amount of Segment Return. The Segment Return for an Index-Linked Segment Option may be less than the positive return of the Index because any positive return of the respective Index is subject to a maximum in the form of a Cap Rate.

The Cap Rates benefit the Company when Index performance is positive at a rate that is higher than the applicable Cap Rate because the Cap Rate limits the amount of positive Segment Return that we may be obligated to credit for any Segment Term. We set the Cap Rates at our discretion. **You bear the risk that we will not set the Cap Rates higher than 0.50%, which is the guaranteed minimum Cap Rate.**

If you choose to allocate amounts to an Index-Linked Segment Option subject to a Participation Rate, at the end of the Segment Term, your participation in any positive Index performance will be limited to a percentage of the positive Index performance. That percentage will equal the Participation Rate.

The Participation Rate limits the positive Index Change, if any, that may be credited to your Contract for a given Segment Term. The Segment Return for an Index-Linked Segment Option subject to a Participation Rate will be less than the positive return of the Index. We set the Participation Rates at our discretion. **You bear the risk that we will not set the Participation Rates higher than 5.00%, which is the guaranteed minimum Participation Rate.** If, in addition to having a Participation Rate, the Index-Linked Segment Option also has a Cap Rate, you will not participate in any positive Index performance in excess of the Cap Rate. The only Segment Option in which a Contract Owner can have both a Cap Rate and Participation Rate is the one with the S&P 500 (Price Return) Index with a one-year Segment Term. When positive performance is subject to both a Cap Rate and Participation Rate, the interest credited on the Segment End Date will typically equal the positive change in the Index Value multiplied by the Participation Rate up to the Cap Rate.

Segment Options can have different Buffer Rates or Floor Rates, which will impact the Cap Rate and/or Participation Rate offered on the Segment Options. The Buffer Rate or Floor Rate, as applicable, will never change for a specific Segment Option. If a different Buffer Rate or Floor Rate is introduced, it will be offered on a new Segment Option.

For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS.**

**Segment Lock-In Risk**

If you exercise a Segment Lock-In, the Segment Credit you receive may be lower than the Segment Credit you would have received on the Segment End Date if you hadn't exercised the Segment Lock-In. You also may receive less than the full protection of the Buffer Rate or Floor Rate (as applicable). This is due to an Equity Adjustment being applied in calculating the Segment Credit instead of the point-to-point crediting method. If a lock-in is exercised, the Segment Option's Floor Rate, Buffer Rate, Cap Rate, and/or Participation Rate will no longer be applied on the Segment End Date. In addition, the amount of the Equity Adjustment is unknown at the time the Segment Lock-In is exercised (as discussed immediately below).

At the time you exercise a Segment Lock-In, you will not know the locked-in Equity Adjustment in advance because the Equity Adjustment is calculated at the end of the Valuation Day. If you submit a Segment Lock-In request, the locked-in Equity Adjustment may be lower or higher than the Equity Adjustment that was last calculated before you submitted your request. If you establish Lock-In Thresholds, you will not know the locked-in Equity Adjustment in advance, although the locked-in Equity Adjustment will be at least equal to the upper threshold or lower threshold, as applicable. For additional information on how the Equity Adjustment is calculated, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS – Segment Interim Value –** Calculation of Equity Adjustment**.**

We will not provide advice or notify you regarding whether you should exercise the Segment Lock-In features or the optimal time for doing so. We will not warn you if you exercise the Segment Lock-In features at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to exercise the Segment Lock-In features.

Once a Segment Lock-In is executed, it is irrevocable for that Segment Term. A lock-in will not be applied retroactively and can only be exercised for the entire Segment Option. A Segment Lock-In may only be exercised once per Segment Term for each Index-Linked Segment Option.

For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Segment Lock-In Feature.**

**Segment Option and Index Availability Risk**

There is no guarantee that any particular Segment Option or Index will be available during the entire period that you own your Contract. We may replace an Index if it is discontinued or if there is a substantial change in the calculation of the Index, or if hedging instruments become difficult to acquire or the cost of hedging becomes excessive.

Other considerations relating to this risk include:

&nbsp;&nbsp;&nbsp;&nbsp;· In
 addition to the investment performance and risks of loss that already are part of your Contract,
 the returns you otherwise may have anticipated may not be available in situations where the
 Company reserves the right to discontinue an Index in the middle of a Segment Term. This
 is due in part to the fact that, if we substitute an Index, the performance of the new Index
 may differ from the original Index. This may negatively affect the Segment Credit you earn
 during the Segment Term or the Segment Interim Values that you can lock-in under the Segment
 Lock-In feature.

· We
 may replace an Index at any time during a Segment Term; however, we will notify you in writing
 at least 30 days prior to replacing an Index. If we replace an Index, this does not cause
 a change in the Cap, Participation, Floor or Buffer Rates, as applicable. You will have no
 right to reject the replacement of an Index, and you will not be permitted to Transfer Segment
 Interim Values until the end of the applicable Segment Term even if we replace the Index
 during such Segment Term. The new Index and the replaced Index (which you may have previously
 chosen) may not be similar with respect to their component securities or other instruments,
 although we will attempt to select a new Index that is similar to the old Index.

· At
 the end of the Segment Term, you may Transfer your Segment Value to another Segment Option
 or to a Fixed Segment Option without charge. If you do not want to remain invested in the
 relevant Segment Option for the remainder of the Segment Term, your only option will be to
 withdraw the related Segment Interim Value, which may cause you to incur Surrender Charges,
 negative adjustments to certain values under your Contract, and negative tax consequences,
 as discussed in this section.

&nbsp;&nbsp;&nbsp;&nbsp;· Changes
 to the Cap and Participation Rates, if any, occur at the beginning of the next Segment Term.
 We will provide written notice at least 15 days prior to each Segment Start Date instructing
 you how to obtain the Cap and Participation Rates for the next Segment Term. Cap and Participation
 Rates will be made available to you at least 15 days prior to the Segment Start Date. You
 are only able to make Transfers of Accumulated Value among the various Segment Options at
 the end of a Segment Term. Your Transfer requests must be received by us at least two Valuation
 Days prior to the end of a Segment Term. If you submit a Transfer request but we do not receive
 it prior to the start of that two-day period, your Accumulated Value will be automatically
 re-invested as described in **9. OPTIONS AT END OF SEGMENT TERM**. The Segment End Date
 counts as one of those two Valuation Days. If the Segment End Date is not on a Valuation
 Day, the Valuation Day prior to the Segment End Date counts as one of those two Valuation
 Days.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Participation Rates and/or Caps Rates for the new Segment Term will be publicly available
 on www.principal.com/individuals/invest-retire/annuities prior to the Segment Start Date
 of the Segment Term.

&nbsp;&nbsp;&nbsp;&nbsp;· If
 you do not like a new Cap or Participation Rate for a particular Segment Option, at the end
 of the current Segment Term, you may Transfer your Segment Value to another Segment Option
 or to Fixed Segment Option without charge.

&nbsp;&nbsp;&nbsp;&nbsp;· We
 may also add or remove an Index or Index-Linked Segment Option during the time that you own
 the Contract. We reserve the right to add and remove Index Segment Options as available investment
 options. There is no guarantee that any Index-Linked Segment Option will always be available
 in the future. However, we will always offer at least one Index-Linked Segment Option that
 is either currently offered or is substantially similar to one that is currently offered.
 Such option will include an Index that is comparable to an Index currently offered under
 the Contract. If only one Index-Linked Segment Option is available, you will be limited to
 that Segment Option for investment.

&nbsp;&nbsp;&nbsp;&nbsp;· If
 you do not want to invest in any investment option under the Contract, your only option will
 be to Surrender your Contract. Surrendering your Contract may cause you to incur Surrender
 Charges, negative adjustments to certain values under the Contract, and may have negative
 tax consequences, as discussed in this section.

&nbsp;&nbsp;&nbsp;&nbsp;· We
 will not substitute any Index until the new Index has received any necessary regulatory clearances.
 Any addition, substitution, or removal of an Index-Linked Segment Option or Index will be
 communicated to you in writing. If we add or remove an Index (as opposed to replacing an
 Index), the changes will not be effective for your Contract until the start of the next Segment
 Term. Adding or removing an Index does not cause a change in the Floor or Buffer Rates, as
 applicable. Any Index-Linked Segment Option based on the performance of the newly added Index
 may have a new Cap and Participation Rate.

&nbsp;&nbsp;&nbsp;&nbsp;· You
 should evaluate whether our ability to make the changes described above, and your ability
 to react to such changes, are appropriate based on your investment goals. When such changes
 occur, you should also evaluate whether those changes are appropriate based on your investment
 goals and, if not, you should evaluate your options under the Contract, which may be limited
 and may have negative consequences associated with them, as described in this section.

For additional information, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Discontinuation or Substitution of an Index** and **9. OPTIONS AT END OF SEGMENT TERM.**

**Risks Affecting Our Administration of Your Contract**

Our operations and/or the activities and operations of our service providers and business partners are subject to certain risks that are beyond our control, including systems failures, cyber-attacks, and pandemics (and similar events). These risks are not unique to the Company and they could materially impact our ability to administer the Contract.

The Company is highly dependent upon its computer systems and those of its business partners. This makes the Company potentially susceptible to operational and information security risks resulting from a cyber-attack. These risks include direct risks, such as theft, misuse, corruption and destruction of data maintained by the Company, and indirect risks, such as denial of service attacks on service provider websites and other operational disruptions that impede our ability to electronically interact with service providers. Operational disruptions and system failures also could occur based on other natural or man-made events, which could have similar impacts on your Contract. Although we make substantial efforts to protect our computer systems from these security risks, including internal processes and technological defenses that are preventative or detective, and other controls designed to provide multiple layers of security assurance, there can be no guarantee that we or our service providers will avoid losses affecting contracts such as the security incidents described above.

If your Contract is adversely affected as a result of the failure of our cyber-security controls, we will take reasonable steps to restore your Contract.

**Rider Reinstatement Risk**

Following termination of your Contract and Rate Enhancement Rider, the Contract and Rate Enhancement Rider can both, in certain circumstances, be reinstated. If the Rate Enhancement Rider is reinstated when you reinstate your Contract, we will deduct Rate Enhancement Rider charges scheduled during the period between the termination and reinstatement and make any other adjustments necessary to reflect any change in the amount reinstated and the Contract Accumulated Value as of the date of termination.

 **4. INFORMATION ABOUT THE INDICES**

 <u>Index Volatility Generally</u>

Generally, the securities of small-cap companies are more volatile and riskier than the securities of large-cap companies. Foreign securities can be more volatile than domestic securities because of the risks relating to political, social, and economic developments abroad, as well as risks resulting from differences between the regulations and reporting standards and practices to which U.S. and foreign issuers are subject. To the extent foreign securities are denominated in foreign currencies, their values may be adversely affected by changes in currency exchange rates.

 <u>Information Specific to Each Index</u> 

 *S&P 500® Price Return Index (SPX)*

The S&P 500® Price Return Index was established by Standard & Poor's. The S&P 500® Price Return Index includes 500 large cap stocks from leading companies in leading industries of the U.S. economy, capturing 75% coverage of U.S. equities. The S&P 500® Price Return Index does not include dividends declared by any of the companies included in this Index.

 *Russell 2000® Price Return Index (RTY)*

The Russell 2000® Price Return Index was established by Russell Investments. The Russell 2000® Price Return Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000® Price Return Index is a subset of the Russell 3000® Index representing appropriately 10% of the total market capitalization of that Index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership. The Russell 2000® Price Return Index does not include dividends declared by any of the companies included in this Index.

 *MSCI EAFE Price Return Index (MXEA)*

The MSCI EAFE Price Return Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the United States and Canada. The MSCI EAFE Price Return Index does not include dividends declared by any of the companies included in this index. International securities carry additional risks, including currency exchange fluctuation and different government regulations, economic conditions and accounting standards. The product referred to herein is not sponsored, endorsed or promoted by MSCI, and MSCI bears no liability with respect to any such product or any index on which such product is based.

 *SG Smart Climate Index*

 **Summary**

The SG Smart Climate Index (Bloomberg Ticker: SGIXSMAC) is a rules-based index that aims to provide investment exposure to the performance of stocks of U.S. large-capitalization companies that are selected based on proprietary climate risk preparedness scores and certain environmental, social, and governance (ESG) exclusion filters. Climate risk generally refers to the risk of negative impacts on a company's business or financial condition due to climate-related conditions around the globe or the transition to a lower carbon economy. The climate risk models used in connection with the Index seek to identify large U.S. companies that are more likely to perform well in future climate scenarios.

The Index is an "excess return" index. The Index's return reflects the total return on an investment in the underlying component stocks (including reinvestment of all dividends, interest, and other income), less certain negative adjustments and deductions that reduce the performance of the Index. See "Performance Drags" below.

The sponsor of the Index and the Underlying SGI Index (as defined below) is Société Générale. The index calculator is S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC). The climate risk models used in connection with the Index are produced by Entelligent, Inc. On January 12, 2022, Societe Generale, through an indirect wholly owned subsidiary, acquired a passive ownership interest and a board seat in Entelligent, Inc. Sustainalytics provides the data used to support the ESG exclusion filters. None of these companies are affiliated with Principal.

 **Underlying SGI Index** 

The Index is composed of a single underlying index, the SG Climate Transition Risk Index (Bloomberg Ticker: SGIXCTR) (the "Underlying SGI Index"). The Underlying SGI Index is a weighted index comprised of 150 to 250 stocks selected from the S&P 500 Index. The Underlying SGI Index is a "gross total return" index, meaning that its return reflects the total return on an investment in the component stocks (including reinvestment of all dividends, interest, and other income), less the fixed replication costs described under "Performance Drags" below.

Stocks are selected and weighted for the Underlying SGI Index using the following three-step process:

&nbsp;&nbsp;&nbsp;&nbsp;· *Step One – ESG Exclusion Filters*: Starting with all the companies included in the S&P
 500 Index, proprietary filters are applied to exclude companies that fail to pass certain
 ESG criteria. Based on these filters, the following companies may be excluded from the Underlying
 SGI Index:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Companies involved in
 major controversies (*i.e.*, operations incidents, employee incidents, governance incidents)
 that have an impact on the environment and society, and associated business risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Companies involved in
 a range of products, services, or business activities that are generally viewed as being
 controversial (*e.g.*, weapons, tobacco, alcohol, gambling, thermal coal, fossil fuel,
 genetically modified organisms); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Companies breaching any
 U.N. Global Compact Principles, which set forth principles related to human rights, labor,
 environment, and anti-corruption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Companies involved in
 a major controversy or controversial business activity may not always be excluded. The ESG
 exclusion filters take into account the degree of involvement. For example, oil companies
 with substantive investments in a clean energy future may not be excluded. However, companies
 involved in certain business activities beyond specific thresholds (*e.g.*, 0% of revenues
 from sale of assault weapons, 5% revenues from extraction of thermal coal, 10% of revenues
 from sale of tobacco products), and any company in breach of a U.N Global Compact Principle,
 will be excluded.

&nbsp;&nbsp;&nbsp;&nbsp;· *Step Two – Climate Risk Scoring*: Each company remaining after step one is assigned a
 climate risk score. Climate risk scores are calculated using proprietary models that predict
 company profitability and share price performance under different climate scenarios in the
 future. Within each Global Industry Sector Classification, the companies are ranked by their
 respective climate risk scores, with the best scoring companies on the top and the worst
 scoring companies on the bottom. Companies ranked in the top half for each Global Industry
 Sector Classification are selected for inclusion in the Underlying SGI Index.

&nbsp;&nbsp;&nbsp;&nbsp;· *Step Three – Weighting*: Component stocks of companies with better climate risk scores
 receive higher weightings than those of companies with worse climate risk scores, subject
 to minimum and maximum weighting restrictions designed to limit sector bias and provide diversification.

The Underlying SGI Index is reconstituted using the three-step process described above on a quarterly basis. The selection and weighting of stocks for the Underlying SGI Index is fully systematic and rules-based.

 **Performance Drags**

The performance of the Index reflects certain deductions, all of which serve to reduce Index Levels:

&nbsp;&nbsp;&nbsp;&nbsp;1. The Index's
 return reflects a negative performance adjustment equal to 1.50%, as an annualized percentage
 of Index Value, in the form of a "synthetic dividend." It is applied daily and
 is intended to replicate the impact that an annual dividend of 1.50% would have on the Index
 Level. *This "synthetic dividend" is not a dividend paid by the underlying component stocks and is not an amount payable to you. It only serves to reduce the performance of the Index.* 

&nbsp;&nbsp;&nbsp;&nbsp;2. Assumed fixed
 replication costs are deducted from the performance of the Underlying SGI Index. These costs
 equal 0.50%, as an annualized percentage of the index level, and are deducted on a daily
 basis. These assumed costs are intended to represent the costs that would be incurred in
 connection with replicating the performance of the Underlying SGI Index.

&nbsp;&nbsp;&nbsp;&nbsp;3. The performance
 of the Index reflects the return on an investment in the underlying component stocks through
 the use of borrowed funds. The assumed costs of borrowing are deducted from the Index Level.
 The assumed costs of borrowing are deducted on a daily basis and equal the current U.S. Federal
 Funds Rate as reported on Bloomberg. The U.S. Federal Funds Rate is the rate of interest
 that banks charge each other for short-term loans.

 **License**

Use of the Index in connection with annuity contracts has been licensed to Principal. The licensing agreement has an initial term ending on or about [to be added by amendment], and thereafter automatically renews annually unless terminated by either party.

 **New Index**

This Index and the Underlying SGI Index have limited performance histories, dating back to September 7, 2022 and April 2, 2022, respectively. There is less publicly available information about the Index and the Underlying SGI Index compared to more established market indexes. Inquiries regarding the Index or the Underlying SGI Index should be directed to our Administrative Office or your financial intermediary.

See **APPENDIX A** for the applicable index disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **FEES AND CHARGES** 

Certain charges are deducted under the Contract. If the charge is not sufficient to cover our costs, we bear the loss. If the expense is more than our costs, the excess is profit to the Company. We expect a profit from all the fees and charges listed below, except Premium Tax.

**Deferred Sales Load ("Surrender Charge")**

No sales charge is collected or deducted when the Premium Payment is applied under the Contract. A Surrender Charge is assessed on certain full or partial withdrawals. The Surrender Charge is calculated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. Apply the Bond Adjustment against
 the withdrawal amount requested (adjustment could be positive or negative); then

&nbsp;&nbsp;&nbsp;&nbsp;2. Multiply the Surrender Charge
 percentage by the amount from step 1

The Surrender Charge is then deducted from the requested withdrawal amount. See the Surrender Charge Example below for more details. A Surrender Charge does not apply to Annuitizations, Death Benefits, or withdrawals equal to or less than the Free Surrender Amount.

If you specify the percentages to be withdrawn from each Segment Option as part of a partial withdrawal request, those allocation percentages will also apply to the Surrender Charges. If you do not provide us with specific percentages, the charge is deducted in the same proportion as the Accumulated Value in the Segment Options.

The amounts we receive from the Surrender Charge are used to cover some of the expenses of the sale of the Contract (primarily commissions, as well as other promotional or distribution expenses). If the Surrender Charge collected is not enough to cover the actual costs of distribution, the costs are paid from the Company's General Account assets instead of charging you any additional amount.

The maximum Surrender Charge is 8% of the amount withdrawn, declining down to 0% after the sixth Contract Anniversary as follows:

---

| | |
|:---|:---|
| **SURRENDER CHARGE TABLE** | **SURRENDER CHARGE TABLE** |
| **Contract Year** | **Surrender Charge** |
| 1 | 8.00% |
| 2 | 8.00% |
| 3 | 7.00% |
| 4 | 6.00% |
| 5 | 5.00% |
| 6 | 4.00% |
| 7+ | 0.00% |

---

<u>Surrender Charge Example</u>

The following example shows how the Surrender Charge is calculated and impacts values. For purposes of this example, the following assumptions were used:

&nbsp;&nbsp;&nbsp;&nbsp;· Premium
 Payment = $100,000.00

&nbsp;&nbsp;&nbsp;&nbsp;· Crediting
 Base = $100,000.00

&nbsp;&nbsp;&nbsp;&nbsp;· Equity
 Adjustment percentage = 0%

&nbsp;&nbsp;&nbsp;&nbsp;· Equity
 Adjustment amount = $0.00

&nbsp;&nbsp;&nbsp;&nbsp;· Accumulated
 Value prior to withdrawal = Crediting Base + Equity Adjustment amount = $100,000.00

&nbsp;&nbsp;&nbsp;&nbsp;· Partial
 withdrawal occurs during first Contract Year

---

| | |
|:---|:---|
|  Crediting Base | $100000.00 |
|  Accumulated Value prior to withdrawal | $100000.00 |
|  Free Surrender Amount | $10000.00<sup>1</sup> |
|  Withdrawal Amount | $20000.00 |
|  Portion of Crediting Base Surrendered | $20000.00<sup>2</sup> |
|  Bond Adjustment Percentage | -2.50% |
|  Bond Adjustment Amount | -$500.00<sup>3</sup> |
|  Withdrawal Amount after Bond Adjustment | $19500.00<sup>4</sup> |
|  Surrender Charge Percentage | 8.00% |
|  Surrender Charge | $760.00<sup>5</sup> |
|  Withdrawal Amount after Surrender Charge (excluding any tax withholding) | $18740.00<sup>6</sup> |
|  Accumulated Value after Withdrawal | $80000.00<sup>7</sup> |

---

1) The Free Surrender Amount is $10,000.00. This was calculated by multiplying the Premium Payment ($100,000.00) by allowed Free Surrender Amount (10%).

2) For purposes of providing a simplified example, the portion of the Crediting Base Surrendered is equal to the Withdrawal Amount. For other examples see **8. INDEX-LINKED SEGMENT OPTION MECHANICS** Negative Adjustments to Crediting Base Examples.

3) The Bond Adjustment amount is negative $500.00. For this example, we assumed the Bond Adjustment percentage was negative 2.50%. The Bond Adjustment amount was calculated by multiplying the portion of the Crediting Base Surrendered ($20,000.00) times the Bond Adjustment percentage (negative 2.50%).

4) The Withdrawal Amount after Bond Adjustment is equal to the Withdrawal Amount ($20,000.00) minus the Bond Adjustment amount ($500.00), which is $19,500.00.

5) The Surrender Charge amount is $760.00. For this example, we assumed a Surrender Charge percentage of 8.00%, which would be the case if the partial withdrawal occurred during the first or second Contract Year. The Surrender Charge amount is calculated by subtracting the Free Surrender Amount ($10,000.00) from the withdrawal amount after Bond Adjustment ($19,500.00) and multiplying the difference by the Surrender Charge percentage (8.00%).

6) The Withdrawal Amount after Surrender Charge is the Withdrawal Amount ($20,000.00) minus the Bond Adjustment Amount ($500.00) minus the Surrender Charge ($760.00), which is $20,000.00 - $500.00 - $760.00 = $18,740.00.

7) The Accumulated Value after Withdrawal is the Accumulated Value prior to Withdrawal ($100,000.00) minus the Withdrawal Amount ($20,000.00), which is $100,000.00 - $20,000.00 = $80,000.00.

<u>Free Surrender Amount</u>

There is a free surrender amount available under your Contract. Subject to the limitations set forth below, you will not incur a Surrender Charge for any withdrawals less than or equal to the free surrender amount, but the withdrawal will still be subject to the Bond Adjustment, which could be a negative adjustment. The Bond Adjustment applies regardless of when the withdrawal is taken, including on the Segment End Date.

The free surrender amount may be withdrawn without a Surrender Charge. This amount is the greater of (1) and (2) where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) is 10% of the Premium Payment decreased by any partial withdrawals and/or partial Annuitizations made since the last Contract Anniversary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) is any amount distributed as a result of the Required Minimum Distribution ("RMD") of the then current Federal Income Tax Regulation for this Contract minus any partial Surrenders and/or partial Annuitization.

Any free surrender amount not taken in a Contract Year is not added to the amount available under the free surrender amount for any following Contract Year(s).

<u>When Surrender Charges Do Not Apply</u>

The Surrender Charge does not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;· amounts
 applied under an annuity benefit payment option; or

&nbsp;&nbsp;&nbsp;&nbsp;· a
 withdrawal amount up to the free surrender amount; or

&nbsp;&nbsp;&nbsp;&nbsp;· payment
 of any death benefit; or

&nbsp;&nbsp;&nbsp;&nbsp;· amounts
 distributed to satisfy the RMD, provided that the amount withdrawn does not exceed the minimum
 distribution amount that would have been calculated based on the value of this Contract alone;
 or

&nbsp;&nbsp;&nbsp;&nbsp;· an
 amount transferred from a Contract used to fund an IRA to another annuity contract issued
 by the Company to fund an IRA of the participant's spouse when the distribution is
 made pursuant to a divorce decree.

<u>Free Surrender Example</u>

The following example shows you have the free surrender feature works.

---

| | |
|:---|:---|
|  **For purposes of the example, the following assumptions were used:** |  |
|  Premium Payment | $100000.00 |
|  Crediting Base | $100000.00 |
|  Equity Adjustment Percentage | 0.00% |
|  Equity Adjustment Amount | $0.00 |
|  Accumulated Value prior to withdrawal | $100000.00 |
|  **Based on the above assumptions, the below numbers are calculated as described in the footnotes below the table.** | **Based on the above assumptions, the below numbers are calculated as described in the footnotes below the table.** |
|  Free Withdrawal Amount | $10000.00<sup>1</sup> |
|  Withdrawal Amount | $10000.00 |
|  Portion of Crediting Base Surrendered | $10000<sup>2</sup> |
|  Bond Adjustment Percentage | -1.56% |
|  Bond Adjustment Amount | -$156.00<sup>3</sup> |
|  Withdrawal Amount after Bond Adjustment | $9844.00<sup>4</sup> |
|  Surrender Charge Percentage | 8.00% |
|  Surrender Charge | $0.00<sup>5</sup> |
|  Withdrawal Amount after Surrender Charges | $9844.00<sup>6</sup> |
|  Accumulated Value after Withdrawal | $90000.00<sup>74</sup> |

---

1) The Free Surrender Amount is $10,000.00. This was calculated by multiplying the Premium Payment ($100,000.00) by allowed Free Surrender Amount (10%).

2) For purposes of providing a simplified example, the portion of the Crediting Base Surrendered is equal to the Withdrawal Amount. For other examples see **8. INDEX-LINKED SEGMENT OPTION MECHANICS** Negative Adjustments to Crediting Base Examples.

3) The Bond Adjustment amount is negative $156.00. For this example, we assumed the Bond Adjustment percentage was negative 1.56%. The Bond Adjustment amount was calculated by multiplying the portion of the Crediting Base Surrendered ($10,000.00) times the Bond Adjustment percentage (negative 1.56%).

4) The Withdrawal Amount after Bond Adjustment is equal to the Withdrawal Amount ($10,000.00) minus the Bond Adjustment amount ($156.00), which is $9,844.00.

5) The Surrender Charge amount is $0.00 because the withdrawal is within the Free Surrender Amount.

6) The Withdrawal Amount after Surrender Charge is the Withdrawal Amount ($10,000.00) minus the Bond Adjustment Amount ($156.00) minus the Surrender Charge ($0.00), which is $10,000.00 - $156.00 - $0.00 = $9,844.00.

7) The Accumulated Value after Withdrawal is the Accumulated Value prior to Withdrawal ($100,000.00) minus the Withdrawal Amount ($10,000.00), which is $100,000.00 - $10,000.00 = $90,000.00.

<u>Waiver of Surrender Charge Rider</u>

This rider is automatically added to the Contract at issue (subject to state approval and state variations may apply). There is no charge for this benefit.

This rider waives the Surrender Charge on withdrawals made after the first Contract Anniversary if the Owner or Annuitant has a critical need. The Segment Interim Value calculations, Bond Adjustments and negative adjustments to Crediting Base discussed in other sections of the prospectus (including Equity Adjustments) will still apply to amounts deducted under this waiver.

A critical need is limited to confinement to a health care facility, terminal illness diagnosis, or total and permanent disability.

The benefits are available for a critical need if the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 Owner or Annuitant has a critical need; and

&nbsp;&nbsp;&nbsp;&nbsp;· the
 critical need did not exist before the Contract Date.

For purposes of this rider, the following definitions apply:

&nbsp;&nbsp;&nbsp;&nbsp;· health
 care facility - a licensed hospital or inpatient nursing facility providing daily medical
 treatment and keeping daily medical records for each patient (not primarily providing just
 residency or retirement care). This does not include a facility owned or operated by the
 Owner, Annuitant or a member of their immediate family. If the critical need is confinement
 to a health care facility, the confinement must continue for at least 60 consecutive days
 after the Contract Date and the Surrender must occur within 90 days of the confinement's
 end. Notice must be provided within 90 days after confinement ends.

&nbsp;&nbsp;&nbsp;&nbsp;· terminal
 illness - sickness or injury that results in the Owner's or Annuitant's life
 expectancy being 12 months or less from the date notice to receive a distribution from the
 Contract is received by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· total
 and permanent disability - the Owner or Annuitant is unable to engage in any occupation for
 pay or profit due to sickness or injury.

**Maximum Potential Loss Due to Equity Adjustment and Bond Adjustment** 

Before the end of a Segment Term for an Index-Linked Segment Option, if any of the following transactions occurs, the transaction will be based on the Segment Interim Value of your investment in that Index-Linked Segment Option:

&nbsp;&nbsp;&nbsp;&nbsp;· you
 take a full or partial withdrawal,

&nbsp;&nbsp;&nbsp;&nbsp;· you
 exercise the Lock-In feature,

&nbsp;&nbsp;&nbsp;&nbsp;· you
 Annuitize the Contract,

&nbsp;&nbsp;&nbsp;&nbsp;· the
 Contract's death benefit is paid, or

&nbsp;&nbsp;&nbsp;&nbsp;· a
 fee or charge is deducted from that Index-Linked Segment Option.

The Equity Adjustment applies to all the above transactions and could result in a loss beyond the downside protection for the Index-Linked Segment Option. The Bond Adjustment only applies to full or partial withdrawals, Annuitization, and death benefits and could also result in a loss beyond the downside protection for the Index-Linked Segment Options. In extreme circumstances, for any Index-Linked Segment Option, the total loss could be 100% (*i.e*., a complete loss of your principal and/or any prior earnings).

**Premium Taxes**

We do not currently assess premium taxes for any Contract at issue. We reserve the right to deduct an amount to cover any premium taxes imposed by states or other jurisdictions. If we elect to begin deducting any premium taxes, we will provide you with 30 days advance written notice. Any deduction is made from either the Premium Payment when we receive it, or the Accumulated Value when you request a withdrawal (full or partial) or you request application of the Accumulated Value (full or partial) to an annuity benefit payment option. Premium taxes generally range from 0% in most states to as high as 3.50%.

**Optional Benefit – Rate Enhancement Rider**

The Rate Enhancement Rider is an optional benefit that can only be elected at the time the Contract is issued. The Rate Enhancement Rider provides an increased Participation Rate and/or Cap Rate on the Index-Linked Segment Options.

The annual charge for this rider is 0.95%, which is deducted daily. The charge will only be charged for the Index-Linked Segment Options. The rider charge is intended to reimburse us for the cost of providing the enhanced rates.

The charge is reflected in Segment Interim Value because it is deducted from the Crediting Base. The charge is applied against and deducted daily from the Crediting Base prior to other Contract activity (e.g., Surrender, Segment Credits) on a particular day. If you exercise a Segment Lock-In, this charge continues to be applied against and deducted from the Crediting Base.

<u>Rate Enhancement Rider Charge Example</u>

If your Crediting Base is $100,000.00 at the start of your Segment Term, the daily charge deducted from your Crediting Base for the rider would be $2.60 ($100,000.00 \* 0.95% / 365). In that example, on the 100<sup>th</sup> day after the Segment Start Date, the Crediting Base would be $100,000.00 – ($2.60 \* 100) = $99,740.00.

For more information on the Rate Enhancement Rider, please see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Optional Rate Enhancement Rider.**

**6.** **PURCHASING THE CONTRACT** 

**How to Buy a Contract**

If you want to buy a Contract, you must submit an application and make a Premium Payment. If the application is complete, received in Good Order and meets all other regulatory and Company requirements, the Contract is issued after we receive the Premium Payment. We reserve the right to reject a Premium Payment that is comprised of multiple payments paid to us over a period of time. If we permit you to make multiple payments as part of your Premium Payment, the Contract will not be issued until all such payments are received. We reserve the right to hold such multiple payments in a non-interest bearing account until the date of Contract issuance.

The date the Contract is issued is the Contract Date. The Contract Date is the date used to determine Contract Years, regardless of when the Contract is delivered.

<u>Premium Payment</u>

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Premium Payment for a Contract may not be less than $20,000 without our prior approval.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Premium Payment is subject to a Surrender Charge period that begins upon issuance of the
 Contract.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Premium Payment is to be made by personal or financial institution check (for example, a
 cashier's check). We reserve the right to refuse a Premium Payment that we feel presents
 a fraud or money laundering risk. Examples of the types of Premium Payments we will not accept
 are cash, money orders, starter checks, travelers checks, credit card checks, and foreign
 checks.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Premium Payment for a Contract may not be greater than $2,000,000 (maximum premium limit)
 without our prior approval. For further information, please call 1-800-852-4450.

&nbsp;&nbsp;&nbsp;&nbsp;· We
 reserve the right to treat all of your and/or your spouse's Principal index-linked
 deferred annuity contracts as one contract for purposes of determining whether you have exceeded
 the maximum premium limit (without Home Office approval).

&nbsp;&nbsp;&nbsp;&nbsp;· This
 Contract is a single premium index-linked deferred annuity. After the Premium Payment is
 added to the Contract at Contract issuance, no additional Premium Payments will be accepted.

<u>Initial Holding Account</u>

Beginning on the Contract Date, your Premium Payment will be held in the Initial Holding Account for no longer than twenty-one (21) calendar days. If we exercise the right to hold your Premium Payment in the Initial Holding Account until the end of the free look period, your Premium Payment could be held in the Initial Holding Account up to sixty (60) additional days. Interest will be credited on the amount held in the Initial Holding Account at a fixed rate determined at Contract issue. The Guaranteed Minimum Interest Rate for the Initial Holding Account will be 0.05%. The Initial Holding Account is only used when the Contract is initially purchased. Once money transfers out of the Initial Holding Account on the initial Segment Start Date, the Initial Holding Account is no longer available.

The Segment Start Dates will be the 9<sup>th</sup> and the 23<sup>rd</sup> of each month. On the next Segment Start Date, the total amount in the Initial Holding Account will be transferred to the Segment Option(s) as described immediately below so long as we receive the Premium Payment at least two Valuation Days prior to the Segment Start Date. If the Premium Payment is not received at least two Valuation Days prior to a Segment Start Date, the Premium Payment will remain in the Initial Holding Account until the following Segment Start Date. For example, if we receive your application in Good Order and your Premium Payment on the 8<sup>th</sup> of the month, your Segment Start Date will be the 23<sup>rd</sup> of that month because your application and Premium Payment were not received two or more Valuation Days prior to the 9<sup>th</sup>. In that situation the Premium Payment would remain in the Initial Holding Account until the 23<sup>rd</sup> of that month.

<u>Allocation to the Segment Options</u>

&nbsp;&nbsp;&nbsp;&nbsp;· On
 your application, you direct how the amount transferred out of the Initial Holding Account
 will be allocated to the Segment Option(s).

&nbsp;&nbsp;&nbsp;&nbsp;· A
 complete list of the Segment Options and available Segment Terms may be found in **2. SUMMARY.** 

&nbsp;&nbsp;&nbsp;&nbsp;· Allocations
 must be in percentages.

&nbsp;&nbsp;&nbsp;&nbsp;· Percentages
 must be in whole numbers and total 100%.

&nbsp;&nbsp;&nbsp;&nbsp;· Once
 an amount is allocated to a particular Segment Option, the amount cannot be transferred until
 the end of the Segment Term for that particular Segment Option.

**Contract Owner Rights**

During the accumulation period, you have all rights to the benefits under the Contract. The Annuitant and any Joint Annuitant (if not the Owner or Joint Owner, respectively) do not have any rights to the Contract. All of your rights of ownership cease upon your death. At that point the death benefit will become payable according to your benefit instructions.

During the Annuitization period you are still the only person with material rights to the Contract. For more details on the Annuitization period, see ___. After the death of the Owner the primary beneficiary(ies) have the rights to the death benefit, if any.

If your Contract is part of a qualified plan, IRA, SEP, or SIMPLE-IRA, you may not change either the Owner or the Annuitant.

You may change the Owner and/or Annuitant of your Non-qualified Contract at any time. Your request must be in writing and approved by us. After approval, the change is effective as of the date you signed the request for change.

If an Annuitant who is not an Owner dies while the Contract is in force, a new Annuitant may be named unless the Owner is a corporation, trust or other entity.

While this Contract is in force, you have the right to name or change a beneficiary. This may be done as part of the application process or by sending us a written request. Unless you have named an irrevocable beneficiary, you may change your beneficiary designation by sending us Notice.

**Right to Examine the Contract (Free Look)**

It is important to us that you are satisfied with the purchase of your Contract. Under state law, you have the right to return the Contract for any reason during the examination offer period (a "free look period"). The free look period is the later of 15 days after the Contract is delivered to you, or such later date as specified by applicable state law. For a state-by-state description of material variations of this Contract, see Appendix C.

Upon exercising your free look rights, the amount we will return to you will be based on the state law applicable to your Contract as follows:

&nbsp;&nbsp;&nbsp;&nbsp;· In
 the states that require us to return your Premium Payment, we will return your Premium Payment
 without any interest earned.

&nbsp;&nbsp;&nbsp;&nbsp;· In
 states where we return your Contract Accumulated Value, the free look amount will be the
 Contract Accumulated Value plus any premium tax charge deducted, and minus any applicable
 federal and state income tax withholding. For these states, the risk to you is that you may
 receive less money upon the exercise of your free look rights than you paid into the Contract
 in Premium Payment. This risk exists because your Contract Accumulated Value can decrease
 during the free look period.

&nbsp;&nbsp;&nbsp;&nbsp;· In
 states that require us to return the greater of your Premium Payment and your Contract Accumulated
 Value, the free look amount will be the greater of the values in the previous two bullets.

The Contract Accumulated Value would be subject to the Segment Interim Value calculation (which includes an Equity Adjustment) if your Premium Payment is allocated to a Segment Option. If you receive the Contract Accumulated Value, you assume the risk of any drop in Segment Interim Value on Premium Payment allocated to the Index-Linked Segment Options. If your Contract is issued in a state that requires a refund of your Premium Payment upon cancellation of your Contract during the free look period, you will not receive any interest earned while in the Initial Holding Account.

Although we currently allocate to the Segment Options prior to the end of the free look period (after holding the money in the Initial Holding Account), during times of economic uncertainty and with prior notice to you, we may exercise our right to keep the Premium Payment in the Initial Holding Account during the entire free look period, which varies by state and whether your Contract is a replacement or not. The maximum duration of the free look period is 60 days subject to changes in state law.

If your Premium Payment remains in the Initial Holding Account for the entire free look period and you don't cancel the Contract during that time, after the free look period ends your Accumulated Value will be allocated to the Segment Options you select on the next Segment Start Date.

The amount of your refund and the length of the free look period may depend on whether your Contract is a replacement of another insurance or annuity contract. Generally, for Contracts issued as a replacement, this period is 30 days. If your Contract is an IRA or Roth IRA and you cancel within the first 7 days, you will receive the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Premium Payment made, plus any prior earnings; or

&nbsp;&nbsp;&nbsp;&nbsp;· Your
 Accumulated Value, plus any premium tax charge deducted, less any applicable federal and
 state income tax withholding and, depending on the state in which the Contract was issued,
 any applicable fees and charges.

After the first 7 days, your state's law will determine the amount you will receive (as described earlier in this provision).

To exercise your free look, you must send the Contract and a written request to us postmarked before the close of business on the last day of the free look period. If you properly exercise your free look, we will cancel the Contract.

You may obtain more specific information regarding the free look from your registered representative or by calling us at 1-800-852-4450.

**Distribution of the Contract**

Principal Securities, Inc. (the "principal underwriter") serves as principal underwriter for the contracts. We have entered into an underwriting agreement with the principal underwriter that covers distribution of the contracts. The principal underwriter is registered as a broker-dealer with the SEC under the 1934 Act, and with the securities commissions in the states in which it operates and is a member of the Financial Industry Regulatory Authority ("FINRA"). The principal underwriter is a member of the Securities Investors Protection Corporation. You may contact FINRA by calling 1-800-289-9999 or online at www.finra.org for information about the principal underwriter as well as your broker-dealer and their respective financial professional. Principal underwriter will use its best efforts to perform its distribution services, but is not required to sell any number or dollar amount of Contracts.

With the exception of New York, the Company intends to offer the Contract in all jurisdictions where it is licensed to do business and where the Contract is approved. We may stop offering the contracts at any time.

The principal underwriter may perform various administrative services on our behalf. We may fund certain of the principal underwriter's operating and other expenses, including overhead, legal and accounting fees, training, compensation and other expenses associated with the contracts. Financial professionals associated with the principal underwriter and their managers are also eligible for various benefits.

We offer the contracts on a continuous basis. Contracts are sold only by licensed financial professionals in those states where the Contracts may be lawfully sold. The principal underwriter and the Company enter into selling agreements with unaffiliated broker-dealer firms (the "selling broker-dealers") for the sale of the contracts through those firms and their financial professionals. The financial professionals will be registered representatives of the selling broker-dealers that are registered as broker-dealers under the 1934 Act and members of FINRA.

The Company and/or the principal underwriter pay compensation to broker-dealers, financial institutions, and other parties ("Financial Intermediaries") for the sale of contracts according to schedules in the selling agreements and other agreements reached between the Company, the principal underwriter and the Financial Intermediaries. Such compensation generally consists of commissions on premiums paid on the Contract.

The amount and timing of commissions paid to selling broker-dealers may vary depending on the selling agreements and the contract sold but will not be more than 6.5% of the Premium Payment. Some selling broker-dealers may elect to receive a smaller amount of commission at the time of the sale and an ongoing trail commission for as long as the Contract remains in effect or as agreed in the selling agreement. We may pay or allow other promotional incentives or payments to selling broker-dealers in the form of cash or other compensation to the extent permitted by FINRA rules and other applicable laws and regulations.

The financial professionals who solicit sales of the contracts typically receive a portion of the compensation paid to the selling broker-dealers in the form of commissions or other compensation, depending on the agreement between the selling broker-dealer and the financial professional. The financial professionals may also be eligible for various cash benefits, such as bonuses, insurance benefits, and financing arrangements, and non-cash items. Non-cash items include conferences seminars and trips (including travel, lodging and meals in connection therewith), entertainment, merchandise, priority operations support, preferred programs, and other similar items. Sales of the contracts may help financial professionals qualify for such benefits.

Commissions and other incentives or payments described above are not charged directly to you. We intend to recoup commission and other expenses through fees and charges deducted under the Contract.

 **7. FIXED SEGMENT OPTION MECHANICS**

There is only one Fixed Segment Option for this Contract. This Fixed Segment Option has a one-year Segment Term.

Amounts allocated to a Fixed Segment Option earn interest at the applicable annual interest rate for the Segment Term. The annual interest rate declared at the beginning of the Segment Term is guaranteed until the Segment End Date. Interest will be credited on a daily basis during the Segment Term. The daily rate is calculated as [(1+Annual Interest Rate) ^ (1/365)-1].

If you allocate Accumulated Value to the Fixed Segment Option, the Fixed Segment Value at any time will be equal to the Accumulated Value allocated to the Segment Option on the Segment Start Date, plus interest credited to that Segment Option during the Segment Term, less any amount deducted from that Segment Option during the Segment Term.

For the initial Segment Term, the annual interest rates for the Fixed Segment Options will be listed on your Data Page. We may declare different interest rates for subsequent Segment Terms. At least fifteen (15) days prior to the end of any Segment Term, we will provide notice of the annual interest rates for the Fixed Segment Options that will be available for investment. This notice of the upcoming renewal will be in writing and the rates will be publicly available prior to the Segment Start Date for the new Segment Terms on www.principal.com/individuals/invest-retire/annuities.

We determine the annual interest rates for the Fixed Segment Options at our discretion. In no event will we declare an annual interest rate lower than the Guaranteed Minimum Interest Rate of 0.05%. You bear the risk that we will not credit interest for a new Segment Term at a rate greater than the Guaranteed Minimum Interest Rate.

We reserve the right to add and remove Fixed Segment Options as available investment options. There is no guarantee that any Fixed Segment Option will always be available for investment in the future. If we remove a Fixed Segment Option, it will be closed such that no reinvestments or Transfers will be allowed into that Segment Option. If you are currently invested in a Fixed Segment Option that has been removed, you may remain in that Segment Option until the end of the Fixed Segment Term.

**8. INDEX-LINKED SEGMENT OPTION MECHANICS**

**General Information**

This single premium index-linked deferred annuity offers several Segment Options in which to allocate, including Index-Linked Segment Options that provide a 10% buffer and some that provide a floor, and a Fixed Segment Option that provides a fixed interest rate. An Index-Linked Segment Option tracks performance of a linked Index. There are four Indices from which to choose and on which the returns/performance are based. The available Index-Linked Segment Options for this Contract are shown in the table below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp; **Segment Options Available** | &nbsp;&nbsp; **Segment Options Available** | &nbsp;&nbsp; **Segment Options Available** | &nbsp;&nbsp; **Segment Terms Available** <br> **(Limits on Downside Loss)**  | &nbsp;&nbsp; **Segment Terms Available** <br> **(Limits on Downside Loss)**  | &nbsp;&nbsp; **Segment Terms Available** <br> **(Limits on Downside Loss)**  |
| &nbsp;&nbsp; **Crediting<br> Method** | &nbsp;&nbsp; **Indices** | &nbsp;&nbsp; **Limits of Upside<br> Gain (Rates)** | &nbsp;&nbsp; **1-year<br> Segment <br> Term** | &nbsp;&nbsp; **2-year <br> Segment<br> Term** | &nbsp;&nbsp; **6-year<br> Segment<br> Term** |
| &nbsp;&nbsp; Point-to-Point | &nbsp;&nbsp; S&P 500 (Price Return Index; SPX) | &nbsp;&nbsp; Cap Rate & Participation Rate | &nbsp;&nbsp; 10% Buffer | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; Not Available |
|  | &nbsp;&nbsp; S&P 500 (Price Return Index; SPX) | &nbsp;&nbsp; Participation Rate (Uncapped) | &nbsp;&nbsp; 10% Buffer <br> 0% Floor <br> 10% Floor  | &nbsp;&nbsp; 10% Buffer | &nbsp;&nbsp; 10% Buffer |
|  | &nbsp;&nbsp; Russell 2000 (Price Return Index; RTY) | &nbsp;&nbsp; Participation Rate (Uncapped) | &nbsp;&nbsp; 10% Buffer | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; 10% Buffer |
|  | &nbsp;&nbsp; MSCI EAFE (Price Return Index; MXEA) | &nbsp;&nbsp; Participation Rate (Uncapped) | &nbsp;&nbsp; 10% Buffer | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; 10% Buffer |
|  | &nbsp;&nbsp; SG Smart Climate Index (SGIXSMAC) | &nbsp;&nbsp; Participation Rate (Uncapped) | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; 10% Buffer |
| &nbsp;&nbsp; Fixed | &nbsp;&nbsp; Fixed Segment | &nbsp;&nbsp; Fixed Rate | &nbsp;&nbsp; Guaranteed Minimum Interest Rate | &nbsp;&nbsp; Not Available | &nbsp;&nbsp; Not Available |

---

\*The availability of Segment Options may vary by broker-dealer. You may obtain information about the Segment Options that are available to you by contacting your financial professional.

The Index-Linked Segment Options provide either a Cap Rate or Participation Rate that apply to upside gains. The initial Cap Rate(s) and/or Participation Rate(s) are determined when you purchase your Contract and are reset on segment renewals. For additional information on Cap and Participation Rates, see **Segment Credits on Segment End Date** within this section. At the end of a Segment Term, you may choose to reject the new Participation Rate or Cap Rate (as applicable) by Transferring to another available Segment Option by providing us Notice at least two Valuation Days prior to the end of the Segment Term. For additional information, see **9. OPTIONS AT END OF SEGMENT TERM.**

You may select from the available Segment Terms, which are currently 1-year, 2-year and 6-year Segment Terms. The minimum amount you can allocate to any single Segment Option is $1,000.00. Other than a maximum Premium Payment at the Contract level, there is no maximum amount that can be allocated to a Segment Option.

Index-Linked Segment Options are Buffer Segment Options and Floor Segment Options. These investment options receive Segment Credits based on the performance of a linked Index and applying a Buffer Rate, Floor Rate, Cap Rate and/or Participation Rate, as applicable. Segment Terms range from one to six years and are linked to one of the following Indices: S&P 500® Price Return Index (SPX); Russell 2000® Price Return Index (RTY); MSCI EAFE Price Return Index (MXEA); and SG Smart Climate Index (SGIXSMAC).

**Segment Credits on Segment End Date**

<u>Point-to-Point Crediting Method</u>

For each Index-Linked Segment Option, its Segment Term is not only the potential duration of your investment in that Segment Option, but also the length of time that the Segment Option is linked to the performance of its Index.

The Index-Linked Segment Options are linked to the performance of their Indices based on the point-to-point crediting method. Under this approach, the amounts you allocate to one or more Segment Options that are linked to certain Indices will change in values during defined periods of time (i.e., the Segment Term). In other words, a specific Index's performance rate, whether positive or negative, is generally measured on a point-to-point basis from the Index's value on the first day of the Segment Term to the Index's value on the last day of the Segment Term. The Index performance from the Segment Start Date to the Segment End Date is the percentage change in the value of the applicable Index between those dates.

Certain of the following rates will apply to the Index-Linked Segment Options that are currently offered under the Contract:

&nbsp;&nbsp;&nbsp;&nbsp;· Cap
 Rate - When positive performance is subject to a Cap Rate, the interest credited on the Segment
 End Date will typically equal the positive change in the Index Value multiplied by the Participation
 Rate up to the Cap Rate. The Cap Rate applies for the entire duration of the Segment Term.
 For Segment Terms longer than one year, your Segment Option's Cap Rate would be lower
 if measured on an annual basis.

&nbsp;&nbsp;&nbsp;&nbsp;· Participation
 Rate – When positive performance is subject to a Participation Rate, the interest credited
 on the Segment End Date will typically equal the positive change in the Index Value multiplied
 by the Participation Rate. The Participation Rate applies for the entire duration of the
 Segment Term. If your Contract also has a Cap Rate, please see the bullet point immediately
 above for information on how the Participation Rate and Cap Rate operate together.

&nbsp;&nbsp;&nbsp;&nbsp;· Buffer
 Rate – When negative performance is subject to a Buffer Rate, we will absorb any loss
 up to the maximum Buffer Rate. Any negative Index Value change in excess of the Buffer Rate
 will be your responsibility. The Buffer Rate applies for the entire duration of the Segment
 Term. For Segment Terms longer than one year, your Segment Option's Buffer Rate would
 be lower if measured on an annual basis.

&nbsp;&nbsp;&nbsp;&nbsp;· Floor
 Rate - When negative performance is subject to a Floor Rate, we will absorb any loss in excess
 of the Floor Rate. Any negative Index Value change less than the Floor Rate will be your
 responsibility. The Floor Rate applies for the entire duration of the Segment Term. For Segment
 Terms longer than one year, your Segment Option's Floor Rate would be higher if measured
 on an annual basis.

<u>Point-to-Point Crediting Method Examples</u>

For each scenario below, assume a 1-year Segment Term with a 0% Floor Rate, a 5% Cap Rate, and a 75% Participation Rate.

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| | | | | |
|:---|:---|:---|:---|:---|
| Scenario | Beginning Index Value | Ending Index Value | Index Change | Segment Credit percentage |
| 1 | 100 | 125 | 25% | 5% |
| 2 | 100 | 105 | 5% | 3.75% |
| 3 | 100 | 100 | 0% | 0% |
| 4 | 100 | 95 | -5% | 0% |
| 5 | 100 | 85 | -15% | 0% |

---

For each scenario below, assume a 1-year Segment Term with a 10% Floor Rate, a 15% Cap Rate, and a 100% Participation Rate.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Scenario | Beginning Index Value | Ending Index Value | Index Change | Segment Credit percentage |
| 1 | 100 | 125 | 25% | 15% |
| 2 | 100 | 105 | 5% | 5% |
| 3 | 100 | 100 | 0% | 0% |
| 4 | 100 | 95 | -5% | -5% |
| 5 | 100 | 85 | -15% | -10% |

---

For each scenario below, assume a 6-year Segment Term with a 10% Buffer Rate, an uncapped Cap Rate, and a 110% Participation Rate.

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| | | | | |
|:---|:---|:---|:---|:---|
| Scenario | Beginning Index Value | Ending Index Value | Index Change | Segment Credit percentage |
| 1 | 100 | 200 | 100% | 110% |
| 2 | 100 | 125 | 25% | 27.5% |
| 3 | 100 | 100 | 0% | 0% |
| 4 | 100 | 95 | -5% | 0% |
| 5 | 100 | 75 | -25% | -15% |

---

**Because we only calculate Segment Credits on the Segment End Date, the Segment Credit typically does not reflect the highest or lowest Index Value that occurred during the Segment Term. The Index Change is subject to further adjustment(s) in arriving at a Segment Credit for the Segment Option. The adjustment(s) are based on any Cap Rate, Participation Rate, Buffer Rate or Floor Rate that may apply.**

**Segment Interim Value**

Segment Interim Values only apply on dates other than the Segment Start Date and Segment End Date.

Before the end of a Segment Term for an Index-Linked Segment Option, if any of the following transactions occurs, the transaction will be based on the Segment Interim Value of your investment in that Index-Linked Segment Option:

&nbsp;&nbsp;&nbsp;&nbsp;· you
 take a full or partial withdrawal,

&nbsp;&nbsp;&nbsp;&nbsp;· you
 exercise the Lock-In feature,

&nbsp;&nbsp;&nbsp;&nbsp;· you
 Annuitize the Contract,

&nbsp;&nbsp;&nbsp;&nbsp;· the
 Contract's death benefit is paid, or

&nbsp;&nbsp;&nbsp;&nbsp;· a
 fee or charge is deducted from that Index-Linked Segment Option.

The Equity Adjustment applies to all the above transactions and could result in a loss beyond the downside protection for the Index-Linked Segment Option. The Bond Adjustment only applies to full or partial withdrawals, Annuitization, and death benefits and could also result in a loss beyond the downside protection for the Index-Linked Segment Options. In extreme circumstances, for any Index-Linked Segment Option, the total loss could be 100% (*i.e*., a complete loss of your principal and/or any prior earnings).

The Segment Interim Value is the Crediting Base adjusted for the Equity Adjustment for each Index-Linked Segment Option. The Crediting Base is the amount allocated to the Segment Option on the Segment Start Date, reduced by a negative adjustment upon any Surrender or deduction of charges or fees from that Segment Option prior to the Segment End Date. The calculation for the Segment Interim Value is:

*Segment Crediting Base \* (1 + Equity Adjustment percentage)*

Generally, the Segment Interim Value will tend to reflect less gain and more loss (as applicable) than would apply at the end of a Segment Term. This means that you might not receive the full protection of a Buffer or Floor Rate reflected in your Segment Interim Value. **The Segment Interim Value may result in a loss even if the Index Value at the time the Segment Interim Value is calculated is higher than the Index Value on the Segment Start Date.** Generally, the Segment Interim Value will be lower earlier in a Segment Term or if the Current Index Value is less than the Beginning Index Value.

Note: even for a Segment Option that offers a 0% Floor, please be aware the Segment Interim Value could be negative due to the Equity Adjustment calculation. As a result, any Surrender prior to the Segment End Date could result in loss of principal and/or prior earnings.

<u>Calculation of Equity Adjustment</u>

The Equity Adjustment is intended to be close to the change in the market value of derivative instruments that hedge risks associated with our obligation to apply Segment Credits to the Index-Linked Segment Options. The Equity Adjustment accounts for changes in the then current estimate of the Company's obligations to provide the promised performance at the end of the Segment Term. The adjustment takes into account the applicable Buffer Rate, Floor Rate, Cap Rate, and Participation Rate through the use of the Black-Scholes pricing model to track the market value of the hypothetical derivative instruments on days other than the Segment End Date. The Equity Adjustment is the adjustment to the Crediting Base, expressed as a percentage, based on the change in the value of the hypothetical derivative assets which are designed to replicate credits provided by a Segment Option at the end of a Segment Term. It does not apply to either the Initial Holding Account or the Fixed Segment Option. On the Segment Start Date and Segment End Date, the Equity Adjustment is zero.

The Equity Adjustment is calculated as:

*Derivative Val<sub>Cur </sub>– (Derivative Val<sub>Beg</sub> \* [1 – (Time Elapsed / Segment Term)])*

Where:

&nbsp;&nbsp;&nbsp;&nbsp;· *Derivative Val<sub>Cur </sub>* is
 the value, calculated using the Black-Scholes formula, of a hypothetical basket of derivatives
 associated with the Index-Linked Segment Option on the date the Equity Adjustment is calculated.

&nbsp;&nbsp;&nbsp;&nbsp;· *Derivative Val<sub>Beg</sub>* is the value, calculated using the Black-Scholes formula,
of a hypothetical basket of derivatives associated with the Index-Linked Segment Option on the Segment Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;· *Time Elapsed* is the number of whole years elapsed between the Segment
Start Date and the date the Equity Adjustment is calculated.

&nbsp;&nbsp;&nbsp;&nbsp;· *Segment Term* is
 the Segment Term.

Parameters (such as interest rates, volatility, and dividends) used in the Black-Scholes formula to calculate the value of derivatives will be consistent with the most recently available market data for such parameters. These parameters are provided by an independent third-party and, if any of these parameters become unavailable for any reason, we will select a new parameter or provider at our sole discretion.

The hypothetical basket of derivatives used in the Equity Adjustment depends on the Segment Option selected and may include:

&nbsp;&nbsp;&nbsp;&nbsp;· Buffer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Long
 ATM Call

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Short
 OTM Call

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Short
 OTM Put

&nbsp;&nbsp;&nbsp;&nbsp;· Floor

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Long
 ATM Call

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Short
 OTM Call

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Short
 ATM Put

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Long
 OTM Put

The duration of each derivative is based on the Segment Term selected. The underlying index of each derivative is based on the Segment Option selected. The moneyness of each derivative depends on the structured payoff of the Segment Option. "Moneyness" is a term used to describe whether a contract is either in the money (ITM), out of the money (OTM) or at the money (ATM). The following is a brief description of ITM, OTM and ATM.

&nbsp;&nbsp;&nbsp;&nbsp;· ITM
 - An option that is in-the-money, or ITM, has intrinsic value. A call option is ITM if the
 strike price is below the underlying security's current trading price. A put
 option is ITM if the strike price is above the current price of the underlying security.

&nbsp;&nbsp;&nbsp;&nbsp;· OTM
 - An option that is out-of-the-money, or OTM, has no intrinsic value. A call option is OTM
 if the strike price is above the underlying security's current trading price. 
 Put options are OTM if the strike price is lower than the current price of the underlying
 security.

&nbsp;&nbsp;&nbsp;&nbsp;· ATM
 - An at-the-money, or ATM, option is a call or a put option that has a strike price about
 equal to the current price of the underlying security.

**Negative Adjustments to Crediting Base**

<u>Crediting Base</u>

On the initial Segment Start Date, the Crediting Base for any Segment Option is the amount from the Initial Holding Account that gets allocated to the specific Segment Option.

On any other date, the Crediting Base for any Segment Option is equal to the following for that Segment Option:

*Cred Base<sub>Prev </sub>– Seg Fee + Seg Credit + Transfers<sub>In </sub>– Transfers<sub>Out </sub>– Surrenders*

Where:

&nbsp;&nbsp;&nbsp;&nbsp;· *Cred Base<sub>Prev</sub>* is
 the Segment Crediting Base on the previous day

&nbsp;&nbsp;&nbsp;&nbsp;· *Seg Fee* is
 the Segment Fee amount applied to the Segment Option on this date

&nbsp;&nbsp;&nbsp;&nbsp;· *Seg Credit* is
 the amount of Segment Credits credited to the Segment Option on this date

&nbsp;&nbsp;&nbsp;&nbsp;· *Transfers<sub>In </sub>* is
 the amount transferred from other Segment Options to this Segment Option on this date

&nbsp;&nbsp;&nbsp;&nbsp;· *Transfers<sub>Out </sub>* is
 the amount transferred to other Segment Options from this Segment Option on this date

&nbsp;&nbsp;&nbsp;&nbsp;· *Surrenders* is
 the Surrender amount deducted from this Segment Option on this date

Segment Fees (arising from the optional Rate Enhancement Rider) and Surrenders may be applied on any day in the Segment Term. Segment Credits and Transfers are only applied at the end of a Segment Term.

<u>Impact of Negative Adjustments</u>

The three areas in which negative adjustments to your Crediting Base will occur are Rate Enhancement Rider fees, Surrenders and negative Segment Credits. The Crediting Base will be reduced daily for the Rate Enhancement Rider fees if that rider is selected.

 *Surrenders that occur before the Segment End Date*: the Crediting Base will be reduced by the same proportion that the Segment Interim Value was reduced by the Surrender unless the Surrender is a partial withdrawal satisfying the Required Minimum Distribution requirement for your Contract. If the Segment Interim Value is greater than the Crediting Base, the Crediting Base will be reduced by a lesser amount than the amount withdrawn. If the Segment Interim Value is less than the Crediting Base, the Crediting Base will be reduced by a greater amount than the amount withdrawn. If the Surrender is a partial withdrawal satisfying the Required Minimum Distribution requirement for your Contract, the negative adjustment to your Crediting Base will be no greater than the amount of the Segment Interim Value withdrawn. The Equity Adjustment and Bond Adjustment are included in the Segment Interim Value withdrawn.

 *Surrenders that occur on the Segment End Date:* the Crediting Base will be reduced by the amount of the Accumulated Value withdrawn. The Bond Adjustment is included in the Accumulated Value withdrawn, and the Equity Adjustment does not apply since the Surrender occurs on the Segment End Date.

If you receive a negative Segment Credit on the Segment End Date, the Crediting Base will be reduced by the entire amount of the negative Segment Credit.

<u>Negative Adjustments to Crediting Base Examples</u>

Below is an example of how a negative Segment Credit causes a negative adjustment to the Crediting Base. Assume this is a 1-year Segment Option with a Premium Payment of $100,000.00.

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| | | | |
|:---|:---|:---|:---|
| Contract Year | Beginning Crediting<br> Base | Segment Credit | Crediting Base After <br> Segment Credit |
| 1 | $100000.00 | $5000.00 | $105000.00 |
| 2 | $105000.00 | -$15000.00 | $90000.00 |
| 3 | $90000.00 | $2000.00 | $92000.00 |

---

For an example of how the Rate Enhancement Rider charge causes a negative adjustment to the Crediting Base, see **Optional Rate Enhancement Rider** below.

Below is an example of how a partial withdrawal at the end of a Segment Term causes a negative adjustment to the Crediting Base. In this example, the Equity Adjustment is $0 because the Equity Adjustment does not apply on Segment End Dates. The Bond Adjustment does still apply on Segment End Dates due to the need for the Company to have the underlying investments backing up the Contract closely match up with the Company's obligations under the Contract. The Bond Adjustment is applied to the portion of the Crediting Base that is being Surrendered. The Accumulated Value represents the sum of the Segment Values because the withdrawal occurs on the Segment End Date.

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| | |
|:---|:---|
|  Premium Payment | $100000.00 |
|  Crediting Base | $100000.00 |
|  Equity Adjustment Percentage | 0.00% |
|  Equity Adjustment Amount | $0.00 |
|  Accumulated Value prior to Withdrawal | $100000.00 |
|  Required Minimum Distribution | $0.00 |
|  Free Surrender Amount | $10000.00<sup>1</sup> |
|  Withdrawal Amount | $20000.00 |
|  Portion of Crediting Base Surrendered | $20000.00<sup>2</sup> |
|  Bond Adjustment Percentage | -2.05% |
|  Bond Adjustment Amount | -$410.00<sup>3</sup> |
|  Withdrawal Amount after Bond Adjustment | $19590.00<sup>4</sup> |
|  Surrender Charge Percentage | 8.00% |
|  Surrender Charge | $767.20<sup>5</sup> |
|  Withdrawal Amount after Surrender Charges | $18822.80<sup>6</sup> |
|  Crediting Base after Withdrawal | $80000.00<sup>7</sup> |
|  Accumulated Value after Withdrawal | $80000.00<sup>8</sup> |

---

1) The Free Surrender Amount is $10,000.00. This was calculated by multiplying the Premium Payment ($100,000.00) by allowed Free Surrender Amount (10%).

2) The portion of the Crediting Base Surrendered is $20,000.00. At the end of a Segment Term the Equity Adjustment is equal to $0, so the portion of Crediting Base Surrendered is equal to the Withdrawal Amount.

3) The Bond Adjustment amount is negative $410.00. For this example, we assumed the Bond Adjustment percentage was negative 2.05%. The Bond Adjustment amount was calculated by multiplying the portion of the Crediting Base Surrendered ($20,000.00) times the Bond Adjustment percentage (negative 2.05%).

4) The Withdrawal Amount after Bond Adjustment is equal to the Withdrawal Amount ($20,000.00) minus the Bond Adjustment amount ($410.00), which is $19,590.00.

5) The Surrender Charge amount is $767.20. For this example, we assumed a Surrender Charge percentage of 8.00%, which would be the case if the partial withdrawal occurred during the first or second Contract Year. The Surrender Charge amount is calculated by subtracting the Free Surrender Amount ($10,000.00) from the withdrawal amount after Bond Adjustment ($19,590.00) and multiplying the difference by the Surrender Charge percentage (8.00%).

6) The Withdrawal Amount after Surrender Charge is the Withdrawal Amount ($20,000.00) minus the Bond Adjustment Amount ($410.00) minus the Surrender Charge ($767.20), which is $20,000.00 - $410.00 - $767.20 = $18,822.80.

7) The Crediting Base after Withdrawal is $80,000.00. This amount is calculated by subtracting the portion of the Crediting Base Surrendered (20,000.00) from the initial Crediting Base ($100,000.00).

8) The Accumulated Value after Withdrawal is the Crediting Base after Withdrawal ($80,000.00) multiplied by the Equity Adjustment percentage (0.00%) plus one (1), which is $80,000.00 \* (0.00% + 1) = $80,000.00.

Below is an example of how a partial withdrawal in the middle of a Segment Term causes a negative adjustment to the Crediting Base. In this example, the Equity Adjustment applies because the partial withdrawal occurs in the middle of the Segment Term. The Bond Adjustment applies as well due to the need for the Company to have the underlying investments backing up the Contract closely match up with the Company's obligations under the Contract. The Bond Adjustment is applied to the portion of the Crediting Base that is being Surrendered. The Accumulated Value represents the sum of the Segment Interim Values because the withdrawal occurs in the middle of the Segment Term.

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| | |
|:---|:---|
|  Premium Payment | $100000.00 |
|  Crediting Base | $100000.00 |
|  Equity Adjustment Percentage | 5.22% |
|  Equity Adjustment Amount | $5220.00 |
|  Accumulated Value (also Segment Interim Value)<sup>1</sup> prior to Withdrawal | $105220.00 |
|  Required Minimum Distribution | $0.00 |
|  Free Surrender Amount | $10000.00<sup>2</sup> |
|  Withdrawal Amount | $20000.00 |
|  Portion of Crediting Base Surrendered | $19007.79<sup>3</sup> |
|  Bond Adjustment Percentage | -1.56% |
|  Bond Adjustment Amount | -$296.52<sup>4</sup> |
|  Withdrawal Amount after Bond Adjustment | $19703.48<sup>5</sup> |
|  Surrender Charge Percentage | 8.00% |
|  Surrender Charge | $776.28<sup>6</sup> |
|  Withdrawal Amount after Surrender Charges | $18927.20<sup>7</sup> |
|  Crediting Base after Withdrawal | $80992.21<sup>8</sup> |
|  Accumulated Value after Withdrawal | $85220.00<sup>9</sup> |

---

1) In this example, the Accumulated Value equals the Segment Interim Value because the partial withdrawal occurs in the middle of the Segment Term, and there is only one Segment Option.

2) The Free Surrender Amount is $10,000.00. This was calculated by multiplying the Premium Payment ($100,000.00) by allowed Free Surrender Amount (10%).

3) The portion of the Crediting Base Surrendered is $19,007.79. This was calculated by dividing the partial withdrawal amount ($20,000.00) by the Accumulated Value immediately prior to the partial withdrawal ($105,220.00) and multiplying the result by the Crediting Base immediately prior to the partial withdrawal ($100,000.00).

4) The Bond Adjustment amount is negative $296.52. For this example, we assumed the Bond Adjustment percentage was negative 1.56%. The Bond Adjustment amount was calculated by multiplying the portion of the Crediting Base Surrendered ($19,007.79) times the Bond Adjustment percentage (negative 1.56%).

5) The Withdrawal Amount after Bond Adjustment is equal to the Withdrawal Amount ($20,000.00) minus the Bond Adjustment amount ($296.52), which is $19,703.48.

6) The Surrender Charge amount is $776.28. For this example, we assumed a Surrender Charge percentage of 8.00%, which would be the case if the partial withdrawal occurred during the first or second Contract Year. The Surrender Charge amount is calculated by subtracting the Free Surrender Amount ($10,000.00) from the withdrawal amount after Bond Adjustment ($19,703.48) and multiplying the difference by the Surrender Charge percentage (8.00%).

7) The Withdrawal Amount after Surrender Charge is the Withdrawal Amount ($20,000.00) minus the Bond Adjustment Amount ($296.52) minus the Surrender Charge ($776.28), which is $20,000.00 - $296.52 - $776.28 = $18,927.20.

8) The Crediting Base after Withdrawal is $80,992.21. This amount is calculated by subtracting the portion of the Crediting Base Surrendered (19,007.79) from the initial Crediting Base ($100,000.00).

9) The Accumulated Value after Withdrawal is the Crediting Base after Withdrawal ($80,992.21) multiplied by the Equity Adjustment percentage (5.22%) plus one (1), which is $80,992.21 \* (5.22% + 1) = $85,220.00.

Below is an example of how a Required Minimum Distribution (RMD) withdrawal causes a negative adjustment to the Crediting Base. This is an example where the Accumulated Value immediately prior to the RMD withdrawal is less than the Crediting Base. If the Accumulated Value immediately prior to the RMD withdrawal is equal to or greater than the Crediting Base or occurs on a Segment End Date, the RMD withdrawal will follow the calculations in the two examples immediately above. When the partial withdrawal is satisfying the RMD requirement for your Contract, the Crediting Base is reduced for the RMD portion of the withdrawal by the lesser of the RMD amount for your Contract and the portion of the Crediting Base Surrendered. In this example, the Equity Adjustment applies because the partial withdrawal occurs in the middle of the Segment Term. The Bond Adjustment applies as well due to the need for the Company to have the underlying investments backing up the Contract closely match up with the Company's obligations under the Contract. The Bond Adjustment is applied to the portion of the Crediting Base that is being Surrendered. The Accumulated Value represents the sum of the Segment Interim Values because the withdrawal occurs in the middle of the Segment Term.

---

| | |
|:---|:---|
|  Premium Payment | $100000.00 |
|  Crediting Base | $100000.00 |
|  Equity Adjustment Percentage | -12.83% |
|  Equity Adjustment Amount | -$12830.00 |
|  Accumulated Value (also Segment Interim Value)<sup>1</sup> prior to withdrawal | $87170.00 |
|  Required Minimum Distribution | $4500.00 |
|  Free Surrender Amount | $10000.00<sup>2</sup> |
|  Withdrawal Amount | $4500.00 |
|  Portion of Crediting Base Surrendered | $5162.33<sup>3</sup> |
|  Bond Adjustment Percentage | 2.34% |
|  Bond Adjustment Amount | $120.80<sup>4</sup> |
|  Withdrawal Amount after Bond Adjustment | $4620.80<sup>5</sup> |
|  Surrender Charge Percentage | 8.00% |
|  Surrender Charge | $0.00<sup>6</sup> |
|  Withdrawal Amount after Surrender Charges | $4620.80<sup>7</sup> |
|  Reduction to Crediting Base | $4500.00<sup>8</sup> |
|  Crediting Base after Withdrawal | $95500.00<sup>9</sup> |
|  Accumulated Value after Withdrawal | $83247.35<sup>10</sup> |

---

1) In this example, the Accumulated Value equals the Segment Interim Value because the partial withdrawal occurs in the middle of the Segment Term, and there is only one Segment Option.

2) The Free Surrender Amount is $10,000.00. This was calculated by multiplying the Premium Payment ($100,000.00) by allowed Free Surrender Amount (10%).

3) The portion of the Crediting Base Surrendered is $5,162.33. This was calculated by dividing the partial withdrawal amount ($4,500.00) by the Accumulated Value immediately prior to the partial withdrawal ($87,170.00) and multiplying the result by the Crediting Base immediately prior to the partial withdrawal ($100,000.00).

4) The Bond Adjustment amount is positive $120.80. For this example, we assumed the Bond Adjustment percentage was positive 2.34%. The Bond Adjustment amount was calculated by multiplying the portion of the Crediting Base Surrendered ($5,162.33) times the Bond Adjustment percentage (positive 2.34%).

5) The Withdrawal Amount after Bond Adjustment is equal to the Withdrawal Amount ($4,500.00) plus the Bond Adjustment amount ($120.80), which is $4,620.80.

6) The Surrender Charge amount is $0.00 because the withdrawal is within the Free Surrender Amount.

7) The Withdrawal Amount after Surrender Charge is the Withdrawal Amount ($4,500.00) plus the Bond Adjustment Amount ($120.80) minus the Surrender Charge ($0.00), which is $4,500.00 + $120.80 - $0.00 = $4,620.80.

8) The Reduction to Crediting Base is $4,500.00, which is calculated by taking the lesser of the RMD amount for your Contract ($4,500.00) and the portion of the Crediting Base Surrendered ($5,162.33) since the withdrawal is for the RMD amount for your Contract.

9) The Crediting Base after Withdrawal is $95,500.00. This amount is calculated by subtracting the Reduction to Crediting Base ($4,500.00) from the initial Crediting Base ($100,000.00).

10) The Accumulated Value after Withdrawal is the Crediting Base after Withdrawal ($95,500.00) multiplied by the Equity Adjustment percentage (-12.83%) plus one (1), which is $95,500.00 \* (-12.83% + 1) = $83,247.35.

<u>Below is an example of how the Rate Enhancement Rider Charge causes a negative adjustment to the Crediting Base</u>

If your Crediting Base is $100,000.00 at the start of your Segment Term, the daily charge deducted from your Crediting Base for the rider would be $2.60 ($100,000.00 \* 0.95% / 365). In that example, on the 100<sup>th</sup> day after the Segment Start Date, the Crediting Base would be $100,000.00 – ($2.60 \* 100) = $99,740.00.

**Optional Rate Enhancement Rider**

The Rate Enhancement Rider is an optional benefit that can only be elected at the time the Contract is issued. The Rate Enhancement Rider effective date is the same as the Contract Date unless a different rider effective date is shown on your Contract's Data Page. The Rate Enhancement Rider is available for all Index-Linked Segment Options.

<u>Rider Benefit</u>

The Rate Enhancement Rider provides an increased Participation Rate and/or Cap Rate on the Index-Linked Segment Options. While the purchase of the Rider ensures that your Participation Rate and/or Cap Rate (as applicable) will be higher than the standard rates, there is no guaranteed minimum increase to the standard rates that you will receive by purchasing the Rider. The increased Participation Rate and/or Cap Rate (as applicable) are shown on your Contract's Data Page.

<u>Rider Risk</u>

The risk in purchasing this rider is that you may not receive additional Segment Credits in excess of the Rate Enhancement Rider fee. For example, one situation where no benefit is provided for a Segment Term would be if the additional positive Segment Credit received is less than the Rate Enhancement Rider fee. Also, if performance of the applicable Segment Option is negative for a Segment Term, you will not receive additional Segment Credits under this rider for that Segment Term.

<u>Rider Charge</u>

The annual charge for the Rate Enhancement Rider is 0.95%, which is deducted daily. If the Rate Enhancement Rider is terminated (as discussed below), the charge for the Rate Enhancement Rider ends.

<u>Rider Termination</u>

The Rate Enhancement Rider terminates on the earliest of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Contract is terminated; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A
 Segment Anniversary divisible by six, in which we receive your request to terminate the Rate
 Enhancement Rider (for example, if your initial Segment Start Date was 9/1/2022, you could
 only terminate the Rate Enhancement Rider on 9/1/2028, 9/1/2034, 9/1/2040, etc.).

If the Rate Enhancement Rider terminates for any reason other than your full Surrender of your Contract, the Rate Enhancement Rider may not be reinstated. If you Surrender your Contract with the Rate Enhancement Rider attached and the Contract is later reinstated, the Rate Enhancement Rider also must be reinstated. If the Contract and the Rate Enhancement Rider are reinstated, the Rate Enhancement Rider will be reinstated as of the termination date. **At the time the Rate Enhancement Rider is reinstated, we will deduct Rate Enhancement Rider charges scheduled during the period between the termination and reinstatement and make any other adjustments necessary to reflect any change in the amount reinstated and the Contract Accumulated Value as of the date of termination.**

**Discontinuation or Substitution of an Index**

The Indices available on the Contract Date are not guaranteed for the life of the Contract. For any Index-Linked Segment Option, we will substitute an existing Index if the Index is discontinued or when there is a substantial change in the calculation of the Index that materially modifies the performance or values of the Index. We may also substitute an Index should Index Values become unavailable for any reason. The substitution of an Index will have no impact on an Index-Linked Segment Option's Segment Term, Cap Rate, Participation Rate, Buffer Rate, or Floor Rate, as applicable.

When substituting an Index, we will attempt to select an alternative Index that, in our judgment, has an investment and risk profile similar to the original Index. We will notify you at least 30 days in advance of the substitution, and the notice will include the Index and Segment Option(s) involved. In the event that it is necessary to substitute on less than 30 days' notice due to circumstances outside of our control, we will provide notice of the substitution as soon as practicable. If required by law, any substitution of an Index is subject to approval by the state insurance authorities where the Contract was issued.

If the substitution of an Index occurs in the middle of a Segment Term, the point-to-point method will be used in measuring performance of the original Index from the Segment Start Date to the date of substitution and performance of the new Index from the day after substitution through the Segment End Date. An example of how the change in the Index Value would be calculated if a substitution of an Index occurs in the middle of a Segment Term is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Assume
 the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Substitution
 happens halfway through the Segment Term

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Performance
 of the original Index is 5% from the Segment Start Date to the date of substitution

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Performance
 of the new Index is -2% from the day after substitution through the Segment End Date

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 change in the Index Value for the full Segment Term would be 3%, which is the performance
 of the original Index from the Segment Start Date to the date of the substitution (5%) reduced
 by the negative performance of the new Index from the day after substitution through the
 Segment End Date (-2%).

We reserve the right to add and remove Index Segment Options as available investment options. There is no guarantee that any Index-Linked Segment Option will always be available in the future. However, we will always offer at least one Index-Linked Segment Option that is either currently available or substantially similar to one that is currently offered. Such option will include an Index that is comparable to an Index currently offered under the Contract. If only one Index-Linked Segment Option is available, you will be limited to that Segment Option for investment.

If we remove an Index-Linked Segment Option, it will be closed such that no reinvestments or Transfers will be allowed into that Segment Option. If you are currently invested in an Index-Linked Segment Option that is being removed, you may remain in that Segment Option until the end of the Segment Term.

**Segment Lock-In Feature**

The Contract's lock-in features allow you to lock in an Index-Linked Segment Option's Equity Adjustment prior to the Segment End Date. These lock-in features are available with all of the Index-Linked Segment Options under the Contract. There is no additional charge for these lock-in features.

The lock-in features may be of interest to people who:

&nbsp;&nbsp;&nbsp;&nbsp;· Are
 interested in eliminating some of the uncertainty regarding future Index performance; or

&nbsp;&nbsp;&nbsp;&nbsp;· Are
 wanting to potentially limit the impact of a negative Segment Credit they may otherwise receive
 if they don't lock-in.

Upon exercising a lock-in, the Owner will receive a Segment Credit on the Segment End Date where the Index Change is equal to the locked-in Equity Adjustment instead of being calculated using the point-to-point crediting method. The Segment Credit you receive may be lower than the Segment Credit you would have received on the Segment End Date if you hadn't exercised the Segment Lock-In. You also may receive less than the full protection of the Buffer Rate or Floor Rate (as applicable). This is due to an Equity Adjustment being applied in calculating the Segment Credit instead of the point-to-point crediting method. If a lock-in is exercised, the Segment Option's Floor Rate, Buffer Rate, Cap Rate, and/or Participation Rate will no longer be applied on the Segment End Date. Between the date of lock-in and the Segment End Date, the Segment Interim Value will be calculated using the locked-in Equity Adjustment. **If a lock-in has been exercised and the current Segment End Date is later than the next Segment Anniversary, Segment Term is shortened, and the Segment End Date is moved up to the next Segment Anniversary.** For example, if the Segment Start Date is 9/1/2022 for a 6-year Segment Option (Segment End Date is 9/1/2028 before lock-in) and you exercise a lock-in on 6/22/2025, the Segment End Date will move to 9/1/2025 at the time of exercising the lock-in.

There are two ways to exercise a lock-in for an Index-Linked Segment Option: Manual Segment Lock-In and Automatic Segment Lock-In.

**Manual Segment Lock-In.** Under this method, you exercise a lock-in by submitting a request directing us to lock in the Equity Adjustment for an Index-Linked Segment Option. We will lock in the Equity Adjustment on the Valuation Day we receive your request in Good Order. For example, if you submit a request in Good Order prior to the end of the Valuation Day (generally 4:00 p.m. E.T.) to lock in a Segment Option, the lock-in will be effective on that day (Lock-In Date). If your request is received in Good Order after the end of the Valuation Day (generally 4:00 p.m. E.T.), or on a weekend or on a holiday, the lock-in will be effective on the next Valuation Day (Lock-In Date).

**Automatic Segment Lock-In.** Under this method, if a lock-in has not yet occurred, you may contact us to set an upper Lock-In Threshold and/or lower Lock-In Threshold. An upper Lock-In Threshold may be set to lock in gains and a lower Lock-In Threshold may be set to limit losses. If you set an upper Lock-In Threshold, we will automatically lock in the Equity Adjustment during the remainder of the Segment Term if the Equity Adjustment reaches and/or crosses the upper Lock-In Threshold. Conversely, if you set a lower Lock-In Threshold, we will lock in the Equity Adjustment during the remainder of the Segment Term if the Equity Adjustment reaches and/or crosses the lower Lock-In Threshold. For example, if an upper threshold of 10% is set, the Segment Option will not lock in until the Equity Adjustment is at least 10%. This means the locked in Equity Adjustment will be 10% or greater. If a lower threshold of -5% is set, the Segment Option will not lock in until the Equity Adjustment is less than or equal to -5%. This means the locked in Equity Adjustment will be -5% or lower. Please note, we will not accept a request to establish an upper or lower Lock-In Threshold unless the requested Lock-In Threshold is higher or lower, respectively, than the last-calculated Equity Adjustment. Lock-In Threshold(s) may be removed or changed if you provide us with Notice in Good Order at least two Valuation Days prior to the Segment End Date, provided a lock-in has not yet occurred for the specified Segment Option during the Segment Term.

You can request a Segment Lock-In or set Lock-In Threshold(s) on any Valuation Day up to two Valuation Days prior to the applicable Segment End Date. In order to request a Segment Lock-In or set Lock-In Threshold(s) you must provide us with Notice. If you submit a Segment Lock-In request, the Lock-In Date will be the Valuation Day we receive Notice in Good Order to lock the Segment Option. If you establish a Lock-In Threshold, the Lock-In Date will be the Valuation Day where the Equity Adjustment triggers the threshold you set.

Under either method for exercising a lock-in, you will not know the locked-in Equity Adjustment in advance because the Equity Adjustment is calculated at the end of the Valuation Day after you exercise the lock-in. If you submit a Segment Lock-In request, the locked-in Equity Adjustment may be lower or higher than the Equity Adjustment that was last calculated before you submitted your request. If you establish Lock-In Thresholds, the locked-in Equity Adjustment will be at least equal to the upper threshold or lower threshold, as applicable. For example, if an upper threshold of 10% is set, the Segment Option will not lock in until the Equity Adjustment is at least 10%. This means the locked in Equity Adjustment will be 10% or greater. If a lower threshold of -5% is set, the Segment Option will not lock in until the Equity Adjustment is less than or equal to -5%. This means the locked in Equity Adjustment will be -5% or lower.

We will not provide advice or notify you regarding whether you should exercise the lock-in features or the optimal time for doing so. We will not warn you if you exercise the lock-in features at a sub-optimal time. We are not responsible for any losses related to your decision whether or not to exercise the lock-in features.

A potential advantage of setting a higher/positive threshold is that you can capture positive Index performance (through a positive Segment Credit) even if the Index's performance later turns negative. A potential disadvantage of setting a higher/positive threshold is that the positive Index performance beyond the threshold could move even higher, i.e., more positive, in which case you would miss out on a more positive Segment Credit than the one resulting from your lock-in.

A potential advantage of setting a lower/negative threshold is that you can limit the impact of a negative Segment Credit you may otherwise receive if you don't lock-in. This would be a situation where the performance of the particular Index goes further negative beyond the negative threshold you set. A potential disadvantage of setting a lower/negative threshold is that the negative Index performance could turn positive after your lock-in is triggered, in which case you may miss out on a positive Segment Credit or a less-negative Segment Credit.

Once a lock-in is executed, it is irrevocable for that Segment Term. A lock-in will not be applied retroactively and can only be exercised for the entire Segment Option. A lock-in may only be exercised once per Segment Term for each Index-Linked Segment Option.

We reserve the right to limit the availability of the lock-in features to only certain Index-Linked Segment Options in the future.

**9. OPTIONS AT END OF SEGMENT TERM**

At the end of a Segment Term for any Segment Option, the following options are available to you:

&nbsp;&nbsp;&nbsp;&nbsp;· You
 may reinvest your Accumulated Value allocated to the ended Segment Option in the same Segment
 Option for another Segment Term if that Segment Option is still available. Please note, the
 Cap Rate, Participation Rate, or annual interest rate we declare for the new Segment Term
 may differ (higher or lower) from the previous Segment Term, subject to the guaranteed limits
 described in this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;· You
 may Transfer your Accumulated Value allocated to the ended Segment Option to any other Segment
 Option that is available for investment. Transfers from a Segment Option are only allowed
 on the Segment End Date. If you wish to Transfer, you must Notify us at least two Valuation
 Days prior to the end of the Segment Term for the given Segment Option. If you submit a Transfer
 request but we do not receive it prior to the start of that two-day period, your Accumulated
 Value will be automatically re-invested as described in the paragraph below. The Segment
 End Date counts as one of those two Valuation Days. If the Segment End Date is not on a Valuation
 Day, the Valuation Day prior to the Segment End Date counts as one of those two Valuation
 Days. No Notice is required if you want to be automatically re-invested.

&nbsp;&nbsp;&nbsp;&nbsp;· You
 may withdraw or Annuitize your Accumulated Value allocated to the ended Segment Option, subject
 to the terms and conditions described in this prospectus. Withdrawals and Annuitization are
 not restricted to Segment End Dates, but amounts withdrawn or Annuitized from a Segment Option
 on its Segment End Date will not be based on a Segment Interim Value. However, such withdrawals
 may be subject to surrender charges (surrender charges do not apply upon Annuitization).
 See **5. FEES AND CHARGES - Deferred Sales Load ("Surrender Charge")**. In addition,
 such withdrawals and Annuitizations on a Segment End Date will be subject to the Bond Adjustment
 but not an Equity Adjustment. See **10. CONTRACT VALUES - Bond Adjustment**.

In the absence of instructions, your Accumulated Value in the ended Segment Option will be automatically re-invested in the same Segment Option for another Segment Term, as described above. If we no longer offer the same Segment Option, we will select a new Segment Option from those that we do offer. The Segment Option selected will be one with the same Index with a one-year Segment Term and the same Buffer Rate or Floor Rate as the Segment Option that just ended. If there is no such Segment Option, the Accumulated Value for the applicable Segment Option will be allocated to the one-year Fixed Segment Option. Cap Rates, Participation Rates, and annual interest rates will be declared as described immediately below.

As each Segment Term nears its Segment End Date, we will provide at least fifteen (15) days advance notice of the Segment Options that will be available to you on the Segment End Date, including where to obtain the Cap Rates, Participation Rates, and annual interest rates for the new Segment Terms. This notice of the upcoming renewal will be in writing and the rates will be publicly available prior to the Segment Start Date for the new Segment Terms on www.principal.com/individuals/invest-retire/annuities. Any or all of these Cap Rates, Participation Rates, and annual interest rates may be different (higher or lower) from the Cap Rates, Participation Rates, and annual interest rates that we declared for previous Segment Terms, subject to the guaranteed limits described in this prospectus. We may offer different rates (higher or lower) to new investors or classes of investors that purchased the Contract at different times. The Accumulated Value automatically re-invested, as described above, will be subject to the declared Cap Rates, Participation Rates, and annual interest rates, as applicable, on the Segment Start Date.

**10. CONTRACT VALUES**

**Accumulated Value**

The Accumulated Value is the sum of the Segment Interim Values, Segment Values, and Fixed Segment Values, as applicable, plus the total value of any allocation to the Initial Holding Account. Segment Interim Values include the Equity Adjustment, as applicable. The Bond Adjustment is not included in the Accumulated Value.

**Bond Adjustment**

The Bond Adjustment is an adjustment (which could be positive, negative, or zero) to the amount Surrendered to account for changes in the value of longer-term assets that may have been used to support the Company's financial obligations under the Contract. The Bond Adjustment is the adjustment based on the change in value of the hypothetical fixed income assets supporting the Company's financial obligations under the Contract. The Company invests in fixed income assets to support the value of the Segment Options. The Bond Adjustment is intended to be close to the change in value of the fixed income assets that are sold to cover any distribution from the Contract. It applies to all Segment Options on any full and partial withdrawals, Annuitizations and death benefits (including those taken on a Segment End Date). A Bond Adjustment applies at all times due to the need for the Company to have the underlying investments backing up the Contract closely match up with the Company's obligations under the Contract. The Bond Adjustment only applies to money allocated to the Segment Options and does not apply to money allocated to the Initial Holding Account.

The Bond Adjustment is calculated as:

*Cred Base \* {[(1+ Index Val<sub>Beg</sub>) / (1+ Index Val<sub>Cur</sub>)]<sup>Time Rem.</sup> – 1}*

Where:

&nbsp;&nbsp;&nbsp;&nbsp;· *Cred Base* is
 the Crediting Base immediately prior to any Surrender

&nbsp;&nbsp;&nbsp;&nbsp;· *Index Val<sub>Beg</sub>* is
 the Beginning Bond Adjustment Index Value

&nbsp;&nbsp;&nbsp;&nbsp;· *Index Val<sub>Cur</sub>* is
 the Current Bond Adjustment Index Value

&nbsp;&nbsp;&nbsp;&nbsp;· *Time Rem* is
 the number of whole months remaining until the end of the current Bond Adjustment Period,
 divided by 12.

The Bond Adjustment Index is the 6 Year Point on the A Rated US Bloomberg Fair Value Curve. If this Index becomes unavailable for the Company to utilize or the calculation of the values substantially changes, the Company may choose another Bond Adjustment Index and you will be made aware of the change. The initial Beginning Bond Adjustment Index Value is equal to the closing price of this Index on the Contract Date. Each Beginning Bond Adjustment Index Value after the initial one is equal to the closing price of this Index on the Segment Anniversary divisible by six (i.e., 6, 12, 18, etc.). The Current Bond Adjustment Index Value is equal to the most recent closing price of this Index on the day the adjustment is calculated. The first Bond Adjustment period begins on the first Segment Start Date, and it restarts on each Segment Anniversary divisible by six.

The risk with the Bond Adjustment is that you could receive a lower amount on withdrawals, Annuitization or death benefits because the Bond Adjustment could be negative based on interest rate movements. **Generally, a Bond Adjustment will be negative when the Current Bond Adjustment Index Value is greater than the Beginning Bond Adjustment Index Value.**

**11. WITHDRAWALS**

**This section describes full and partial withdrawals under your Contract.** For information about the risks in taking withdrawals, see **3. RISK FACTORS - Liquidity Risk -** <u>Consequences of Withdrawals/Surrenders Generally</u>. For examples showing the interaction between withdrawals and Index-Linked Segment Options, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - <u>Negative Adjustments to Crediting Base Examples</u>.**

**Withdrawals Generally**

You may make full or partial withdrawals under this Contract at any time prior to the Annuitization Date provided the Owner and Joint Owner, if any, are living and provided that you give us Notice in Good Order at our Home Office. Withdrawal requests may be sent to us at:

Principal Life Insurance Company

PO Box 9382

Des Moines, Iowa 50306-9382

When you request a withdrawal, the amount provided to you is the Surrender Value, which includes the Segment Interim Value if the withdrawal is not on a Segment Start Date or Segment End Date of the Segment Option being withdrawn from. In arriving at the Surrender Value, we will apply a Bond Adjustment to the Accumulated Value and subtract any applicable Surrender Charge and other applicable fees (see **5. FEES AND CHARGES,** and **9. CONTRACT VALUES - Bond Adjustment**). A Bond Adjustment applies regardless of when the withdrawal is taken, including on the Segment End Date. Full and partial withdrawals may be subject to taxes and to a separate 10% federal tax penalty if made before the Owner is 59½ years old (see **15. TAXES**).

Withdrawals are generally paid within seven days of the effective date of the request for Surrender (or earlier if required by law). However, certain delays in payment are permitted (see **16. ADDITIONAL INFORMATION ABOUT THE CONTRACT – Delay of Payments and Other Transactions**).

**Full Withdrawal**

You may take a full withdrawal under this Contract for the Surrender Value. The following provisions apply to full withdrawals:

&nbsp;&nbsp;&nbsp;&nbsp;· You
 may take the withdrawal under the Contract at any time before the Annuitization Date.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Surrender Value at any time is the Accumulated Value (on the date we receive your Notice
 in Good Order) adjusted for the Bond Adjustment, less any applicable Surrender Charge and
 other fees and charges.

&nbsp;&nbsp;&nbsp;&nbsp;· We
 reserve the right to require you to return the Contract.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 written consent of all collateral assignees and irrevocable beneficiaries must be obtained
 prior to a full withdrawal. A collateral assignment is an agreement under which you assign
 the annuity benefits to a lender as collateral for a loan. An irrevocable beneficiary is
 someone whose name cannot be removed from this annuity Contract without his or her consent.

For additional information on the risks involved in taking a full withdrawal, see **3. RISK FACTORS - Liquidity Risk.**

<u>Partial Withdrawals</u>

You may take unscheduled and scheduled partial withdrawals from this Contract by providing us Notice. Partial withdrawals reduce the Accumulated Value and Crediting Base of the Contract and are deducted proportionately from the Segment Options unless you direct otherwise. The deductions are based on the values as of the end of day of the effective date of the withdrawal.

*Unscheduled Partial Withdrawal*

&nbsp;&nbsp;&nbsp;&nbsp;· You
 may withdraw a part of your Accumulated Value at any time before the Annuitization Date.

&nbsp;&nbsp;&nbsp;&nbsp;· You
 must specify the dollar amount of the withdrawal (which must be at least $100).

&nbsp;&nbsp;&nbsp;&nbsp;· If
 you specify withdrawal allocation percentages as part of a partial withdrawal request, the
 withdrawal is deducted from the Segment Options according to the withdrawal allocation percentages
 you provide to us.

&nbsp;&nbsp;&nbsp;&nbsp;· If
 you do not provide us with specific withdrawal allocation percentages, the withdrawal is
 deducted in the same proportion as the Accumulated Value is spread throughout the Segment
 Options at that point in time.

&nbsp;&nbsp;&nbsp;&nbsp;· Your
 Accumulated Value after the unscheduled partial withdrawal must be equal to or greater than
 $5,000; we reserve the right to increase this amount up to and including $10,000. If your
 Accumulated Value is less than the minimum threshold, we will treat the request as a request
 for a full withdrawal.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 written consent of all collateral assignees and irrevocable beneficiaries must be obtained
 prior to withdrawal.

For additional information on the risks involved in taking an unscheduled partial withdrawal, see **3. RISK FACTORS - Liquidity Risk.**

*Scheduled Partial Withdrawal*

&nbsp;&nbsp;&nbsp;&nbsp;· You
 may request partial withdrawals from any of the Segment Options (to which you are allocated)
 on a scheduled basis.

&nbsp;&nbsp;&nbsp;&nbsp;· Your
 Accumulated Value must be at least $5,000 when the scheduled partial withdrawals begin.

&nbsp;&nbsp;&nbsp;&nbsp;· You
 may specify monthly, quarterly, semi-annually or annually and choose a withdrawal date (other
 than the 29th, 30th or 31<sup>st</sup> of any month).

&nbsp;&nbsp;&nbsp;&nbsp;· If
 the selected date is not a Valuation Date, the partial withdrawal is completed on the next
 Valuation Date.

&nbsp;&nbsp;&nbsp;&nbsp;· We
 take amounts from your Segment Option(s) to equal, in total, the dollar amount of the partial
 withdrawal request plus or minus the Bond Adjustment (as applicable) and plus any applicable
 Surrender Charge.

&nbsp;&nbsp;&nbsp;&nbsp;· Scheduled
 partial withdrawals will end on the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the
 date we receive Notice in Good Order to end the payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the
 date you take a full withdrawal from the Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the
 date all or a portion of the Accumulated Value is applied to an annuity benefit payment option;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the
 date the death benefit is distributed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the
 Annuitization Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the
 Accumulated Value is zero.

&nbsp;&nbsp;&nbsp;&nbsp;· For
 additional information on the risks involved in taking a scheduled partial withdrawal, see **3. RISK FACTORS - Liquidity Risk.** 

&nbsp;&nbsp;&nbsp;&nbsp;· The
 written consent of all collateral assignees and irrevocable beneficiaries must be obtained
 prior to a partial withdrawal.

**12. DEATH BENEFIT**

**General Death Benefit Provisions**

If the Owner or any Joint Owner dies prior to the Annuitization Date, we will pay the death benefit upon our receipt of required documents and Notice, in Good Order, including due proof of death. Proof of death includes a copy of a death certificate, a certified copy of a court order, a written statement by a medical doctor, or other proof satisfactory to us.

The Accumulated Value will remain invested in the Segment Options until the Valuation Day on which we receive the required documents in Good Order. If more than one beneficiary is named, each beneficiary's portion of the death benefit will remain invested in the Segment Options until the Valuation Day on which we receive the required documents for that beneficiary. The death benefit is subject to the Segment Interim Value (which will include an Equity Adjustment) and a Bond Adjustment, which factors in market performance. See **3. RISK FACTORS - Segment Interim Value** and **10. CONTRACT VALUES - Bond Adjustment.**

We will pay interest on the death benefit from the first day the Accumulated Value is no longer invested in the Segment Options until payment is made. We will determine the rate of interest, which will not be less than the interest rate required by the applicable state's law.

If the Owner or any Joint Owner dies prior to the Annuitization Date, the death benefit may be distributed in a lump sum or within five years of the date of death or distributed over a time period not extending beyond the life expectancy of the beneficiary as provided for in Internal Revenue Code ("IRC") section 72(s), as may be amended from time to time. If payments are made over the life expectancy of the beneficiary, they must begin not later than one year after the date of death of the Owner or Joint Owner.

If the Owner or Joint Owner dies on or after the Annuitization Date and before the entire interest in this Contract has been distributed, the remaining portion of such interest will be distributed at least as rapidly as required under applicable federal tax laws, including, particularly, IRC section 72(s), as may be amended from time to time. This approach will apply to the Annuity Benefit Options other than the Life Income and Joint and Survivor options.

Notwithstanding any provision to the contrary in this Contract, any payment of death benefits must comply with all applicable laws, including IRC section 72(s), as may be amended from time to time.

**Death of Owner(s)**

The following provisions apply upon an Owner's death if a Contract is not jointly owned:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If the surviving spouse is the only primary beneficiary, the surviving spouse may elect to become the Owner and continue the Contract or elect to receive the death benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the primary beneficiary is not the surviving spouse, the primary beneficiary will receive the death benefit.

The following provisions apply upon the death of the first Joint Owner to die when a Contract is jointly owned:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The surviving Joint Owner will be treated as the primary beneficiary. Any other beneficiary designation on record will be treated as contingent beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the surviving Joint Owner is the spouse of the deceased Joint Owner, the surviving spouse may elect to become the Owner and continue the Contract or elect to receive the death benefit.

**Death of Annuitant(s)**

If an Annuitant who is not an Owner dies while this Contract is in force, a new Annuitant may be named unless the Owner is a corporation, trust, or other entity.

If the Owner is a corporation, trust or other entity, the death benefit will be payable upon the death of the Annuitant, or, in the case of Joint Annuitants, upon the death of the first Joint Annuitant to die.

**Death Benefit**

If the age of the oldest Owner on the date the application is signed is 79 or younger, the death benefit is equal to the greater of 1 or 2 where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Is the Accumulated Value, subject to the Bond Adjustment, on the date we receive the proof of death and all required documents in Good Order; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Is the Premium Payment minus a proportional adjustment (as described below) for each partial withdrawal (and any applicable Surrender Charge and fees) and proportional adjustment for each partial Annuitization made prior to the date we receive the poof of death and all required documents.

The proportional adjustment for each partial Surrender (and any applicable Surrender Charges and fees) and for each partial Annuitization will reduce the death benefit in the same proportion that the Accumulated Value was reduced on the date of the partial Surrender or partial Annuitization. The proportional adjustment for partial Surrenders is equal to (1 divided by 2) multiplied by 3, where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Is the amount of the partial Surrender (and any applicable Surrender Charges and fees) or the amount of the partial Annuitization; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Is the Accumulated Value immediately prior to the partial Surrender or partial Annuitization; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Is the Premium Payment adjusted for prior partial Surrenders and partial Annuitizations immediately prior to the current partial Surrender or partial Annuitization.

If the age of the oldest Owner on the date the application is signed is 80 or older, the death benefit is equal to the Accumulated Value, subject to the Bond Adjustment, on the date we receive the proof of death and all required documents in Good Order. Assumptions for the following examples:

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Accumulated Value accounts for the Segment Interim Value calculations.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Accumulated Value is the sum of the Segment Interim Values for all Segment Options. These
 examples could be allocated to one or many Segment Options, and the examples would be the
 same.

&nbsp;&nbsp;&nbsp;&nbsp;· Any
 charges taken prior to the date of the example are accounted for in the Accumulated Value
 already.

&nbsp;&nbsp;&nbsp;&nbsp;· There
 have been no prior Surrenders.

<u>Death Benefit Example 1</u>

This example is intended to demonstrate that when the Accumulated Value is greater than the Premium Payment, the Bond Adjustment could reduce the Death Benefit to lower than the Premium Payment. Assuming the age of the oldest owner on the date the application was signed was less than 80, the Death Benefit would equal the Premium Payment since the Accumulated Value adjusted for the Bond Adjustment is less than the Premium Payment.

Contract Issue date = August 31

Age of the oldest Owner on the date the application was signed = 65

Premium Payment = $100,000

On November 3 of the same calendar year, assume the Accumulated Value is $101,000 and the Bond Adjustment is -$3,000.

The Death Benefit on November 3 is the greater of 1 or 2 below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. $98,000
 = $101,000 - $3,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. $100,000
 = Premium Payment

The Death Benefit on November 3 is $100,000.

<u>Death Benefit Example 2</u>

This example is intended to demonstrate that when the Accumulated Value is less than the Premium Payment, the Bond Adjustment could increase the Death Benefit to greater than the Premium Payment. Assuming the age of the oldest owner on the date the application was signed was less than 80, the Death Benefit would equal the Accumulated Value adjusted for the Bond Adjustment since that is greater than the Premium Payment.

Contract Issue date = August 31

Age of the oldest Owner on the date the application was signed = 65

Premium Payment = $100,000

On November 3 of the same calendar year, assume the Accumulated Value is $99,000 and the Bond Adjustment is $2,000.

The Death Benefit on November 3 is the greater of 1 or 2 below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. $101,000
 = $99,000 + $2,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. $100,000
 = Premium Payment

The Death Benefit on November 3 is $101,000.

<u>Death Benefit Example 3</u>

This example is intended to demonstrate where the Accumulated Value is less than the Premium Payment and where the Bond Adjustment reduces the Death Benefit. Assuming the age of the oldest owner on the date the application was signed was less than 80, the Death Benefit would equal the Premium Payment since the Accumulated Value adjusted for the Bond Adjustment is less than the Premium Payment.

Contract Issue date = August 31

Age of the oldest Owner on the date the application was signed = 65

Premium Payment = $100,000

On November 3 of the same calendar year, assume the Accumulated Value is $90,000 and the Bond Adjustment is -$4,000.

The Death Benefit on November 3 is the greater of 1 or 2 below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. $86,000
 = $90,000 - $4,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. $100,000
 = Premium Payment

The Death Benefit on November 3 is $100,000.

<u>Death Benefit Example 4</u>

This example is intended to demonstrate how a partial withdrawal impacts the Premium Payment portion of the Death Benefit calculation. Assuming the age of the oldest owner on the date the application was signed was less than 80, the Death Benefit would equal the Premium Payment proportionally adjusted for the partial withdrawal since the Accumulated Value adjusted for the Bond Adjustment is less than the Premium Payment proportionally adjusted for the partial withdrawal.

The proportional adjustment for the partial withdrawal will reduce the death benefit in the same proportion that the Accumulated Value was reduced on the date of the partial withdrawal. The proportional adjustment for partial withdrawal is equal to (1 divided by 2) multiplied by 3, where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Is the amount
 of the partial withdrawal; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Is the Accumulated
 Value immediately prior to the partial withdrawal; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Is the Premium
 Payment.

Contract Issue date = August 31

Age of the oldest Owner on the date the application was signed = 65

Premium Payment = $100,000

On November 3 of the same calendar year, assume the Accumulated Value is $90,000 and the Bond Adjustment is -$4,000 and a partial withdrawal of $5,000

The Death Benefit on November 3 is the greater of 1 or 2 below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. $81,000
 = ($90,000 - $5,000) - $4,000

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. $94,444.44
 = Premium Payment proportionately adjusted for the partial withdrawal is the Premium Payment
 ($100,000) reduced by the proportional adjustment ($5,555.56)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o The
 proportional adjustment ($5,555.56) is the partial withdrawal amount

o ($5,000) divided by the Accumulated Value immediately
 prior to the partial withdrawal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o ($90,000)
 multiplied by the Premium Payment ($100,000)

The Death Benefit on November 3 is $94,444.44.

 <u>Death Benefit Example 5</u> 

This example is intended to demonstrate that when the Accumulated Value is greater than the Premium Payment, the Bond Adjustment could reduce the Death Benefit to lower than the Premium Payment. Assuming the age of the oldest owner on the date the application was signed was 80 or older, the Death Benefit would equal the Accumulated Value adjusted for the Bond Adjustment since the Premium Payment is not part of the Death Benefit calculation in this scenario.

Contract Issue date = August 31

Age of the oldest Owner on the date the application was signed = 81

Premium Payment = $100,000

On November 3 of the same calendar year, assume the Accumulated Value is $101,000 and the Bond Adjustment is -$3,000.

The Death Benefit on November 3 is the Accumulated Value adjusted for the Bond Adjustment.

The Death Benefit on November 3 is $98,000 = $101,000 - $3,000.

 <u>Death Benefit Example 6</u> 

This example is intended to demonstrate that when the Accumulated Value is less than the Premium Payment, the Bond Adjustment could increase the Death Benefit to greater than the Premium Payment. Assuming the age of the oldest owner on the date the application was signed was 80 or older, the Death Benefit would equal the Accumulated Value adjusted for the Bond Adjustment since the Premium Payment is not part of the Death Benefit calculation in this scenario.

Contract Issue date = August 31

Age of the oldest Owner on the date the application was signed = 81

Premium Payment = $100,000

On November 3 of the same calendar year, assume the Accumulated Value is $99,000 and the Bond Adjustment is $2,000.

The Death Benefit on November 3 is the Accumulated Value adjusted for the Bond Adjustment.

The Death Benefit on November 3 is $101,000 = $99,000 + $2,000.

**13. STATEMENTS**

We will mail to you a statement, along with any reports required by state law, of your current Accumulated Value at least once per year prior to the Annuitization Date. After the Annuitization Date, any reports will be mailed to the person receiving the annuity benefit payments.

**14. ANNUITIZATION**

**Annuitization Date**

You may specify an Annuitization Date in your application. If you do not specify an Annuitization Date, the Annuitization Date is the Maximum Annuitization Date shown on the Data Page. You may change the Annuitization Date with our prior approval. The request must be in writing. You may not select an Annuitization Date that falls prior to the second Contract Anniversary or after the Maximum Annuitization Date. Generally, the Maximum Annuitization Date is the Contract Anniversary following the Annuitant's attainment of age 95. The Maximum Annuitization Date can be found on the Data Page. Annuitizations are subject to the Segment Interim Value (which includes an Equity Adjustment) and a Bond Adjustment. An Equity Adjustment does not apply if the Annuitization occurs on a Segment End Date for the particular Segment Option. A Bond Adjustment applies regardless of when the Annuitization occurs, including on the Segment End Date. See **3. RISK FACTORS – Segment Interim Value** and **9. CONTRACT VALUES - Bond Adjustment.**

If Joint Annuitants are named in the application, the Maximum Annuitization Date will be set based on the age of the older Joint Annuitant.

**Full Annuitization**

Any time after the second Contract Year, you may Annuitize your Contract by electing to receive payments under an annuity benefit payment option. If the Accumulated Value on the Annuitization Date is less than $2,000, we may pay out the entire amount in a single payment. The Contract would then be canceled. You may select when you want the payments to begin (within the period that begins the Valuation Day following our receipt of your instruction and ends one year after our receipt of your instructions).

Once payments begin under the annuity benefit payment option you choose, the option may not be changed. In addition, once payments begin, you may not surrender, withdraw or otherwise liquidate or commute any of the portion of your Accumulated Value that has been Annuitized.

Depending on the type of annuity benefit payment option selected, payments that are initiated either before or after the Annuitization Date may be subject to penalty taxes (see **15. TAXES**). You should consider this carefully when you select or change the annuity benefit payment commencement date.

**Partial Annuitization**

You have the right to Annuitize a portion of your Accumulated Value. After the second Contract Year and prior to the Annuitization Date, you may Annuitize a portion of your Accumulated Value by sending us a Notice in Good Order.

If you specify annuitization allocation percentages as part of a partial annuitization request, the amount annuitized is deducted from the Segment Options according to the annuitization allocation percentages you provide to us. If you do not provide us with specific annuitization allocation percentages, the amount annuitized is deducted in the same proportion as the Accumulated Value is spread throughout the Segment Options at that point in time.

The minimum partial Annuitization amount is $2,000. Any partial Annuitization request that reduces the Accumulated Value to less than $5,000 will be treated as a request for full Annuitization. We reserve the right to limit the number of partial Annuitizations that may be requested in a Contract Year, but it will never be less than one per Contract Year.

**Annuity Benefit Payment Options**

You may select one of the annuity benefit payment options listed below. Once payments begin under the option you select, the option may not be changed. In addition, once payments begin you may not surrender or otherwise liquidate or commute any portion of your Accumulated Value that has been Annuitized.

We offer fixed annuity benefit payments only. No surrender charge is imposed on any portion of your Accumulated Value that has been Annuitized.

You may choose from several fixed annuity benefit payment options. Payments will be made on the frequency you choose. You may elect to have your annuity benefit payments made on a monthly, quarterly, semiannual or annual basis. The dollar amount of the payments is specified for the entire payment period according to the option selected. There is no right to take any full or partial withdrawals after the Annuitization Date. The fixed annuity benefit payment must begin within one year of the annuity benefit election.

The amount of the fixed annuity benefit payment depends on the:

&nbsp;&nbsp;&nbsp;&nbsp;· amount
 of Accumulated Value (adjusted by the Bond Adjustment) applied to the annuity benefit payment
 option;

&nbsp;&nbsp;&nbsp;&nbsp;· annuity
 benefit payment option selected;

&nbsp;&nbsp;&nbsp;&nbsp;· age
 and gender of the Annuitant (unless fixed period income option is selected);

&nbsp;&nbsp;&nbsp;&nbsp;· frequency
 of the annuity benefit payments; and

&nbsp;&nbsp;&nbsp;&nbsp;· duration
 of the annuity benefit payments.

The amount of the initial payment is determined by applying all or a portion of the Accumulated Value, plus or minus the Bond Adjustment (as applicable), less any applicable premium tax and other expenses, as of the date of the application to the annuity table for the Annuitant's annuity benefit payment option, gender, and age. Minimum annuity benefit payment amounts will be based on the Annuity 2012 Individual Annuity Mortality Period Life Table as stated in the Contract. This basis is guaranteed for the life of the Contract for the following fixed annuity benefit payment options: Life Income, Life Income with Period Certain, Joint and Survivor Life Income, and Joint and Survivor Life Income Period Certain. With our written approval, other annuity benefit payment options may be available without this guaranteed basis.

Annuity benefit payments generally are higher for male annuitants than for female annuitants with an otherwise identical Contract. This is because statistically females have longer life expectancies than males. In certain states, this difference may not be taken into consideration in determining the payment amount. Additionally, Contracts with no gender distinctions are made available for certain employer-sponsored plans because, under most such plans, gender discrimination is prohibited by law.

The frequency and duration of the annuity benefit payments affect the income amount received. The annuity benefit payments generally are lower if you receive payments more frequently. For example, monthly payments generally will be lower than quarterly payments. Generally, all other factors being equal, the longer the duration of annuity benefit payments, the lower the annuity benefit payment amounts and the shorter the duration, the higher the annuity benefit payment amounts.

You may select an annuity benefit payment option by written request only. Your selection of an annuity benefit payment option for a partial Annuitization must be in writing and may not be changed after payments begin. Your selection of an annuity benefit payment option for any portion not previously Annuitized may be changed by written request prior to the Annuitization Date.

If an annuity benefit payment option is not selected, we will automatically apply:

&nbsp;&nbsp;&nbsp;&nbsp;· for
 Contracts with one Annuitant - Life Income with payments guaranteed for a period of 10 years.

&nbsp;&nbsp;&nbsp;&nbsp;· for
 Contracts with Joint Annuitants - Joint and Full Survivor Life Income with payments guaranteed
 for a period of 10 years.

The available annuity benefit payment options for both full and partial Annuitizations include:

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Life Income</u> - Level payments continue for the Annuitant's lifetime. If you defer the
 first payment date, it is possible that you will receive no payments if the Annuitant dies
 before the first payment date **. NOTE: There is no death benefit value remaining and there are no further payments when the Annuitant dies.** 

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Life Income with Period Certain</u> - Level payments continue during the Annuitant's lifetime
 with a guaranteed payment period of 5 to 30 years. If the Annuitant dies before all of the
 guaranteed payments have been made, the guaranteed payments continue to you or the person(s)
 you designate until the end of the guaranteed payment period. If
 a shorter period is required by law, we will pay a commuted value at the end of that shorter
 period.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Joint and Survivor</u> - Payments continue as long as either the Annuitant or the Joint Annuitant
 is alive. You may also choose an option that lowers the amount of income after the death
 of a Joint Annuitant. It is possible that you will only receive one payment under this option
 if both Annuitants die before the second payment is due. If you defer the first payment date,
 it is possible that you will receive no payments if both Annuitants die before the first
 payment date. **NOTE: There is no death benefit value remaining and there are no further payments after both Annuitants die.** 

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Joint and Survivor with Period Certain</u> - Payments continue as long as either the Annuitant
 or the Joint Annuitant is alive with a guaranteed payment period of 5 to 30 years. You may
 choose an option that lowers the amount of income after the death of a Joint Annuitant. If
 both Annuitants die before all guaranteed payments have been made, the guaranteed payments
 continue to you or the person(s) you designate until the end of the guaranteed payment period. If a shorter period is required by law, we will pay a commuted
 value at the end of that shorter period.

With our written approval, other annuity benefit payment options may be available without the minimum annuity benefit payment amount guarantees described in the Contract. The annuity benefit payment for these other options will be based on the then-current interest rates and mortality table. These options may include:

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Fixed Period Income</u> - Level payments continue for a fixed period. You may select a range from
 5 to 30 years (state variations may apply). If the Annuitant dies before the selected period
 expires, payments continue to you or the person(s) you designate until the end of the fixed
 period. Payments stop after all guaranteed payments are received. If
 a shorter period is required by law, we will pay a commuted value at the end of that shorter
 period.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Life with Cash Refund</u> - Level payments continue for the Annuitant's lifetime. If the
 Annuitant dies and the total of all payments received is less than the amount of the Accumulated
 Value applied, the balance is paid to you or the person(s) you designate.

&nbsp;&nbsp;&nbsp;&nbsp;· <u>Life with Installment Refund</u> - Level payments continue for the Annuitant's lifetime.
 If the Annuitant dies and the total of all payments received is less than the amount of the
 Accumulated Value applied, payments continue to you or the person(s) you designate until
 they equal the amount of the Accumulated Value applied. If the
 period required to make these payments is longer than allowed by law, we will pay a commuted
 value at the end of that shorter period.

**Tax Considerations Regarding Annuity Benefit Payment Options**

If you own one or more tax qualified annuity contracts, you may avoid tax penalties if payments from at least one of your tax qualified contracts begin no later than April 1 following the calendar year in which you turn age 72. The required minimum distribution payment must be in equal (or substantially equal) amounts over your life or over the joint lives of you and your designated beneficiary. These required minimum distribution payments must be made at least once a year. Tax penalties may apply at your death on certain excess accumulations. You should confer with your tax advisor about any potential tax penalties before you select an annuity benefit payment option or take other distributions from the Contract. Additional rules apply to distributions under Non-qualified Contracts (see **15. TAXES**).

**Death of Annuitant (During the Annuitization Period)**

If the Annuitant dies during the annuity benefit payment period, remaining payments are made to the Owner throughout the guaranteed payment period, if any, or for the life of any Joint Annuitant, if any. If the Owner is the Annuitant, remaining payments are made to the Joint Owner, if any, or the named beneficiaries. In all cases the person entitled to receive payments also receives any rights and privileges under the annuity benefit payment option.

**15. TAXES**

The following description is a general summary of the tax rules, primarily related to federal income taxes, which in our opinion are currently in effect. These rules are based on laws, regulations and interpretations which are subject to change at any time. This summary is not comprehensive and is not intended as tax advice. Federal estate and gift tax considerations, as well as state and local taxes, may also be material. You should consult a tax advisor about the tax implications of taking action under a Contract or related retirement plan.

**Taxation of Non-Qualified Contracts**

<u>Non-Qualified Contracts</u>

Section 72 of the Internal Revenue Code (Code) governs the income taxation of annuities in general.

&nbsp;&nbsp;&nbsp;&nbsp;· Premium
 Payment made under Non-qualified Contracts are not excludable or deductible from your gross
 income or any other person's gross income.

&nbsp;&nbsp;&nbsp;&nbsp;· An
 increase in the Accumulated Value of a Non-qualified Contract owned by a natural person is
 generally not taxable until paid out as Surrender proceeds, death benefit proceeds, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;· Generally,
 owners who are non-natural persons (such as a trust, partnership or corporation) are immediately
 taxed on any increase in the Accumulated Value unless the non-natural person is acting as
 an agent for a natural person.

The following discussion applies generally to Contracts owned by natural persons.

&nbsp;&nbsp;&nbsp;&nbsp;· Full
 or partial withdrawals are taxed as ordinary income to the extent of the accumulated income
 or gain under the Contract.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 value of the Contract pledged or assigned is taxed as ordinary income to the same extent
 as a partial Surrender.

&nbsp;&nbsp;&nbsp;&nbsp;· Annuity
 benefit payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ The
 basic rule for taxing annuity benefit payments is that part of each annuity benefit payment
 is considered a nontaxable return of the investment in the Contract and part is considered
 taxable income. An "exclusion ratio" is applied to each annuity benefit payment
 to determine how much of the payment is excludable from gross income. The remainder of the
 annuity benefit payment is includable in gross income for the year received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ The
 "investment in the Contract" is generally the total of the premium payments made
 less any tax-free return of premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ After
 the investment in the Contract is paid out, the full amount of any annuity benefit payment
 is taxable.

For purposes of determining the amount of taxable income resulting from distributions, all Contracts and other annuity contracts issued by us or our affiliates to the same owner within the same calendar year are treated as if they are a single contract.

Transfer of ownership may have tax consequences to the Owner. For Owners who are non-natural persons changing the Annuitant may have tax consequences to the Owner. Please consult with your tax advisor before changing the Owner or Annuitant on your Contract.

<u>Required Distributions for Non-Qualified Contracts</u>

In order for a Non-qualified Contract to be treated as an annuity contract for federal income tax purposes, the Code requires:

&nbsp;&nbsp;&nbsp;&nbsp;· If
 the person receiving payments dies on or after the Annuitization Date but prior to the time
 the entire interest in the Contract has been distributed, the remaining portion of the interest
 is distributed at least as rapidly as under the method of distribution being used as of the
 date of that person's death.

&nbsp;&nbsp;&nbsp;&nbsp;· If
 you die prior to the Annuitization Date, the entire interest in the Contract will be distributed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ within
 five years after the date of your death; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ as
 annuity benefit payments (or similar periodic payments) which begin within one year of your
 death and which are made over the life of your designated beneficiary or over a period not
 extending beyond the life expectancy of that beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;· If
 the Contract is owned by a trust, corporation or other non-natural person, then the death
 of the Annuitant will be treated as the death of the Owner.

Generally, unless the beneficiary elects otherwise, the above requirements are satisfied prior to the Annuitization Date by paying the death benefit in a single payment, subject to proof of your death. The beneficiary may elect, by written request, to receive an annuity benefit payment option instead of a single payment.

If your designated beneficiary is your surviving spouse, the Contract may be continued with your spouse deemed to be the new Owner for purposes of the Code. When the Owner receiving payments is not a natural person, the required distributions provided for in the Code apply upon the death of the Annuitant.

<u>Early Distribution Penalty</u>

If you take a premature distribution from the Contract, you may incur a 10% income tax penalty on the taxable portion of the distribution, unless the distribution is:

&nbsp;&nbsp;&nbsp;&nbsp;· made
 on or after you reach age 59½;

&nbsp;&nbsp;&nbsp;&nbsp;· made
 to a beneficiary on or after your death;

&nbsp;&nbsp;&nbsp;&nbsp;· made
 upon your disability as defined in the Internal Revenue Code;

&nbsp;&nbsp;&nbsp;&nbsp;· part
 of a series of substantially equal periodic payments for the life or life expectancy of you
 or you and your designated beneficiary;

&nbsp;&nbsp;&nbsp;&nbsp;· made
 under an immediate annuity contract; or

&nbsp;&nbsp;&nbsp;&nbsp;· allocable
 to contributions made prior to August 14, 1982.

Tax reporting distributions from an annuity contract that is owned by a trust: The Internal Revenue Service (IRS) determined in Private Letter Ruling 202031008 that a non-grantor trust cannot attain age 59 ½, become disabled, or have a life expectancy. Thus, the IRS held that those three exceptions to the 10% penalty are not applicable to distributions from a deferred annuity contract that is owned by a non-grantor trust. Alternatively, the IRS held that a deferred annuity contract owned by a grantor trust can utilize those three exceptions if the grantor qualifies for the exception (for example, the grantor attained age 59 ½ at the time of the distribution). Consult a tax advisor for further information.

<u>Tax-Free Exchanges</u>

Under Section 1035 of the Code, the exchange of one annuity contract for another is not a taxable transaction if the same owner is on each contract in the exchange, but may be reportable to the IRS.

<u>Net Investment Income Tax</u>

The Net Investment Income Tax is imposed at a rate of 3.8% on net investment income for higher tax bracket individuals.

This tax may apply to an individual's net investment income if the individual's modified Adjustable Gross Income exceeds $200,000 for a single filer or $250,000 for a married filing jointly filer. The tax applies to income from interest, dividends, annuities, royalties and rents not obtained in a normal trade of business. The tax may also apply to certain trusts and estates with net investment income.

Income from annuities that are part of a qualified retirement plan (as described in the following section) are not treated as investment income for the purpose of this new tax and thus are not subject to the new 3.8% rate but may be includible for purposes of determining whether the applicable Net Investment Income Tax income limits are exceeded.

**Taxation of Qualified Contracts**

<u>Tax-Qualified Contracts: IRA, SEP, and SIMPLE-IRA</u>

The Contract may be used to fund IRAs, SEPs, and SIMPLE-IRAs.

· IRA
 – An Individual Retirement Annuity (IRA) is a retirement savings annuity. Contributions
 grow tax deferred.

· SEP-IRA
 – SEP stands for Simplified Employee Pension and is a form of IRA. A SEP allows you,
 as an employer, to provide retirement benefits for your employees by contributing to their
 IRAs.

· SIMPLE-IRA
 – SIMPLE stands for Savings Incentive Match Plan for Employees. A SIMPLE-IRA allows
 employees to save for retirement by deferring salary on a pre-tax basis and receiving predetermined
 company contributions.

The tax rules applicable to owners, annuitants and other payees vary according to the type of plan and the terms and conditions of the plan itself. In general, premium payments made under a retirement program recognized under the Code are excluded from the participant's gross income for tax purposes prior to the annuity benefit payment date (subject to applicable state law). The portion, if any, of any premium payment made that is not excluded from their gross income is their investment in the Contract. Aggregate deferrals under all plans at the employee's option may be subject to limitations.

**Tax-qualified retirement arrangements, such as IRAs, SEPs, and SIMPLE-IRAs, are tax-deferred. You derive no additional benefit from the tax deferral feature of the annuity.** Consequently, an annuity should be used to fund an IRA, or other tax qualified retirement arrangement to benefit from the annuity's features other than tax deferral. These features may include guaranteed lifetime income, death benefits without Surrender Charges, guaranteed caps on fees, and the ability to Transfer among investment options without sales or withdrawal charges. Check with your tax advisor for the rules which apply to your specific situation.

<u>Premature Distributions</u>

There is a 10% additional penalty tax under the Code on the taxable portion of a "premature distribution" from IRAs, IRA rollovers, SEP-IRAs and SIMPLE-IRAs. The tax penalty is increased to 25% in the case of distributions from SIMPLE-IRAs during the first two years of participation in the SIMPLE IRA. Generally, an amount is a "premature distribution" unless the distribution is:

· made
 on or after you reach age 59½;

· made
 to a beneficiary on or after your death;

· made
 upon your disability as defined in the Internal Revenue Code;

· part
 of a series of substantially equal periodic payments for the life or life expectancy of you
 or you and your designated beneficiary;

· made
 to pay certain deductible medical expenses;

· for
 health insurance premiums while unemployed;

· for
 first home purchases (up to $10,000);

· for
 qualified higher education expenses;

· for
 qualified disaster tax relief distributions;

· for
 qualified reservist distributions;

· for
 amounts levied by the IRS directly against your IRA; or

· a
 qualified birth or adoption distribution (up to $5,000).

For more information regarding premature distributions, please reference IRS Publication 590-B and consult your tax advisor.

<u>Rollover IRAs</u>

If you receive a lump-sum distribution from a qualified retirement plan, tax-sheltered annuity or governmental 457(b) plan, you may maintain the tax-deferred status of the distribution by rolling it over into an eligible retirement plan or IRA. You can accomplish this by electing a direct rollover from the plan, or you can receive the distribution and roll it over into an eligible retirement plan or IRA within 60 days. However, if you do not elect a direct rollover from the plan, the plan is required to withhold 20% of the taxable portion of the distribution. This amount is sent to the IRS as income tax withholding to be credited against your taxes. Amounts received prior to age 59½ and not rolled over may be subject to an additional 10% penalty tax. You may roll over amounts from a Qualified Plan directly to a Roth IRA. As part of this rollover, previously taxed deferred funds from the Qualified Plan are converted to after-tax funds under a Roth IRA. Generally, the entire rollover is taxable (unless it includes after-tax dollars) and is included in gross income in the year of the rollover/conversion. For more information, please consult your tax advisor.

In addition, not more frequently than once every twelve months, an Owner may execute one tax-free indirect rollover from one IRA to another, subject to the 60-day limitation. The once-per-year limitation on rollovers does not apply to direct transfers of funds between IRA providers or to Roth IRA conversions. For more information, please consult your tax advisor.

<u>Roth IRAs</u>

The Contract may be purchased to fund a Roth IRA. Contributions to a Roth IRA are not deductible from taxable income. Subject to certain limitations, a traditional IRA, SEP-IRA or SIMPLE-IRA may be converted into a Roth IRA or a distribution from such an arrangement may be rolled over to a Roth IRA. However, a conversion or a rollover to a Roth IRA is not excludable from gross income. If certain conditions are met, qualified distributions from a Roth IRA are tax-free. For more information, please contact your tax advisor.

<u>Required Minimum Distributions for IRAs</u>

The Required Minimum Distribution (RMD) regulations dictate when individuals must start taking payments from their IRA. Generally speaking, RMDs for IRAs must begin no later than April 1 following the close of the calendar year in which you turn 72. Thereafter, the RMD is required no later than December 31 of each calendar year.

The RMD rules apply to traditional IRAs, as well as SEP-IRAs and SIMPLE-IRAs, during the lifetime and after the death of IRA owners. They do not, however, apply to Roth IRAs during the lifetime of the Roth IRA Owner. If an individual owns more than one IRA, the RMD amount must be determined for each, but the actual distribution can be satisfied from a combination of one or more of the owner's IRAs. Roth IRAs may not be aggregated with other IRAs, but may be aggregated with other Roth IRAs.

---

| | |
|:---|:---|
| **NOTE:** | **Contractual limitations exist that may limit the ability to satisfy an individual's multiple RMD obligations via this annuity.** |

---

Failure to comply with the RMD rules can result in tax penalty of 50% on the amount by which the RMD in any year exceeds the amount actually distributed in that year.

**Withholding**

Annuity benefit payments and other amounts received under the Contract are subject to income tax withholding unless the recipient elects not to have taxes withheld. The amounts withheld vary among recipients depending on the tax status of the individual and the type of payments from which taxes are withheld.

Notwithstanding the recipient's election, withholding may be required on payments delivered outside the United States. Moreover, special withholding rules may require us to disregard the recipient's election if the recipient fails to supply us with a taxpayer identification number (social security number for individuals), or if the Internal Revenue Service notifies us that the taxpayer identification number provided by the recipient is incorrect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.** **ADDITIONAL INFORMATION ABOUT THE CONTRACT** 

**The Contract**

The entire Contract is made up of the Contract, amendments, riders and endorsements and Data Page. Only our corporate officers can agree to change or waive any provisions of a Contract. Any change or waiver must be in writing and signed by an officer of the Company.

**Reliance on Rule 12h-7**

The Company relies on the exemption provided by Rule 12h-7 under the Securities Exchange Act of 1934 from the requirement to file reports pursuant to Section 15(d) of that Act.

**The Separate Account**

Most assets supporting the Contract are held in an insulated, non-unitized Separate Account established under Iowa law. These assets are not subject to the claims of the creditors of Principal Life Insurance Company. Any guarantees provided under the Contract are subject to the claims paying ability of Principal Life Insurance Company.

An Owner does not have any interest in or claim on the assets in the Separate Account. In addition, neither an Owner nor amounts allocated to the Segment Options participate in the performance of the assets held in the Separate Account. We are not obligated to invest assets in the Separate Account according to specific guidelines or strategies except as may be required by Iowa or other state insurance laws.

The Separate Account is not registered under the Investment Company Act of 1940.

**The General Account**

Our general obligations and any guaranteed benefits under this Contract are supported by our General Account and are subject to Principal Life Insurance Company's creditworthiness and claims paying ability. In the Annuitization phase, assets supporting annuity payments are held in the General Account. Assets in the General Account are not segregated for the exclusive benefit of any particular contract or obligation. General Account assets are also available to our general creditors and for conducting routine business activities, such as the payment of salaries, rent and other ordinary business expenses. The General Account is subject to regulation and supervision by the Iowa Insurance Division and to the insurance laws and regulations of all jurisdictions where we are authorized to do business.

**Delay of Payments and Other Transactions**

In general, we make payment of any amount due under the Contract within seven (7) days from the date we receive a request for payment in Good Order (or earlier if required by law). We generally process other transaction requests as of the close of the Valuation Day on which we receive them in Good Order. We reserve the right to delay payments for up to six months, as permitted by state law.

We also reserve the right to suspend or delay payment or processing of transactions under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the NYSE is closed (other than customary weekend and holiday closings);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) trading on the NYSE is restricted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an emergency exists such that we cannot calculate the Accumulated Value; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) during any other period when a regulator by order, so permits.

In addition, we reserve the right to defer payment of that portion of your Accumulated Value that is attributable to a Premium Payment made by check for a reasonable period of time (not to exceed 15 business days) to allow the check to clear the banking system.

**Setting Cap Rates, Participation Rates and Annual Interest Rates**

The Company retains the right to change the Cap Rate, Participation Rate, and Annual Interest Rate for each applicable Segment Option for each new Segment Term at its discretion, subject to the minimum Cap Rate, minimum Participation Rate, and minimum crediting rate for each applicable Segment Option. The Company considers a number of factors when determining whether to make these changes.

We manage the market risk associated with our obligation to provide Segment Credits for Index-Linked<br> Segment Options in part by trading call and put options and other derivative instruments on the available indices.

The costs of the call and put options and other derivative instruments vary based on market conditions, and we may adjust future Cap Rates and Participation Rates based on these changes. You bear the risk that we may reduce the Cap Rates and Participation Rates for future Segment Terms, which will reduce the amount of positive Segment Credit that you may receive. We determine the applicable Cap Rate and Participation Rate for each Segment Option at our sole discretion. Rates offered on Segment Option renewals may be different from those offered to new investors or offered to you at Contract issuance.

We also consider various factors in determining the Buffer Rates and Floor Rates, including available investment returns, the cost of our risk management techniques, sales commissions, administrative expenses, regulatory and tax requirements, general economic trends, and competitive factors. We determine the Buffer Rates and Floor Rates at our sole discretion, and the Buffer Rate or Floor Rate is guaranteed to never change on a particular Segment Option as long as the Segment Option is available.

**Misstatement of Age or Gender**

If the age or, where applicable, gender of the Annuitant has been misstated, we adjust the annuity benefit payment under your Contract to reflect the amount that would have been payable at the correct age and gender. If we make any overpayment because of incorrect information about age or gender, or any error or miscalculation, we deduct the overpayment from the next annuity benefit payment(s) due. Underpayments are added to the annuity benefit payment.

With regard to the Accumulation Phase of the Contract, we reserve the right to correct the Contract features to what they would have been based on the correct age and gender. We also reserve the right to take corrective action with respect to benefits that were paid out that shouldn't have been.

Such a correction could include a change to the calculation of the death benefit or the Required Minimum Distribution amount for your Contract based on the correct age. If an overpayment of death benefits has already occurred based on the incorrect age, we may request return of the overpayment. If an underpayment of death benefits has already occurred based on the incorrect age, we will correct the underpayment. If a partial withdrawal to satisfy the Required Minimum Distribution amount of your Contract has already been taken, we will correct Contract values based on the partial withdrawal being taken based on the correct age.

**Assignment**

If your Contract is part of your qualified plan, IRA, SEP, or SIMPLE-IRA, you may not assign ownership.

You may assign ownership of your Non-qualified Contract. Each assignment is subject to any payments made or action taken by the Company prior to our notification of the assignment. We assume no responsibility for the validity of any assignment. An assignment or pledge of a Contract may have adverse tax consequences.

An assignment must be made in writing and filed with us at our Home Office. The irrevocable beneficiary(ies), if any, must authorize any assignment in writing. Your rights, as well as those of the Annuitant and beneficiary, are subject to any assignment on file with us. Any amount paid to an assignee is treated as a partial Surrender and is paid in a single payment.

The Company may refuse any assignment or transfer at any time on a non-discriminatory basis.

**Contract Termination**

We reserve the right to terminate the Contract and make a single payment (without imposing any charges) to you if your Accumulated Value at the end of the accumulation period is less than $2,000. Termination of the Contract will not unfairly discriminate against the Owner.

**Reinstatement**

Reinstatement is only available for full withdrawal of your Contract. You cannot reinstate a partial withdrawal or partial Annuitization.

If you have requested to replace this Contract with an annuity contract from another company and want to reinstate this Contract, the following apply:

&nbsp;&nbsp;&nbsp;&nbsp;· we
 reinstate the Contract effective on the original Surrender date;

&nbsp;&nbsp;&nbsp;&nbsp;· we
 apply the amount received from the other company ("reinstatement amount") and
 the amount of the Surrender Charge you paid when you Surrendered the Contract;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 reinstatement amount is placed into an account with a fixed interest rate on the Valuation
 Day;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 reinstatement amount and any interest credited to it will be held in the fixed interest rate
 account until the next Segment Anniversary, at which point you can elect to transfer the
 amount to any available Segment Option(s), subject to any restrictions that were applicable
 under your original Contract;

&nbsp;&nbsp;&nbsp;&nbsp;· commissions
 are not paid on the reinstated amounts; and

&nbsp;&nbsp;&nbsp;&nbsp;· a
 new Data Page is sent to your address of record.

**Telephone and Internet Services**

If you elect telephone services or you elect internet services and satisfy our internet service requirements (which are designed to ensure compliance with federal UETA and E-SIGN laws), instructions for the following transactions may be given to us via the telephone or internet:

&nbsp;&nbsp;&nbsp;&nbsp;· make
 Segment Option allocation changes prior to the initial Segment Start Date;

&nbsp;&nbsp;&nbsp;&nbsp;· make
 Segment Option transfers;

&nbsp;&nbsp;&nbsp;&nbsp;· address
 changes; and

&nbsp;&nbsp;&nbsp;&nbsp;· Segment
 lock-ins.

Neither the Company nor the Separate Account is responsible for the authenticity of telephone service or internet transaction requests. We reserve the right to refuse telephone service or internet transaction requests. You are liable for a loss resulting from a fraudulent telephone or internet order that we reasonably believe is genuine. We follow procedures in an attempt to assure genuine telephone service and internet transactions. If these procedures are not followed, we may be liable for loss caused by unauthorized or fraudulent transactions. The procedures may include recording telephone service transactions, requesting personal identification (for example, name, address, security phrase, password, daytime telephone number, or birth date) and sending written confirmation to your address of record.

Instructions received via our telephone services and/or the internet are binding on both Owners if the Contract is jointly owned.

If the Contract is owned by a business entity or a trust, an authorized individual (with the proper password) may use telephone and/or internet services. Instructions provided by the authorized individual are binding on the Owner.

We reserve the right to modify or terminate telephone service or internet transaction procedures at any time. Whenever reasonably feasible, we will provide you with prior notice (by mail or by email, if previously authorized by you) if we modify or terminate telephone service or internet transaction procedures. In some instances, it may not be reasonably feasible to provide prior notice if we modify or terminate telephone service or internet transaction procedures; however, any modification or termination will apply to all contract owners in a non-discriminatory fashion.

<u>Telephone Services</u>

Telephone services are available to you. Telephone services may be declined on the application or at any later date by providing us with written Notice. You may also elect telephone authorization for your registered representative by providing us written Notice.

If you elect telephone privileges, instructions

&nbsp;&nbsp;&nbsp;&nbsp;· may
 be given by calling us at 1-800-852-4450 while we are open for business (generally, between
 8 a.m. and 6 p.m. Eastern Time on any day that the NYSE is open).

&nbsp;&nbsp;&nbsp;&nbsp;· that
 are in Good Order and received by us before the close of a Valuation Day will be effective
 as of the close of that Valuation Day.

&nbsp;&nbsp;&nbsp;&nbsp;· that
 are in Good Order and received by us after the close of a Valuation Day will be effective
 as of the close of the next Valuation Day.

&nbsp;&nbsp;&nbsp;&nbsp;· that
 are not in Good Order when received by us will not be effective until we receive Good Order
 instructions.

<u>Internet</u>

Internet services are available to you if you register for a secure login on the Principal Financial Group web site, www.principal.com. You may also elect internet authorization for your registered representative by providing us written Notice.

If you register for internet privileges, instructions

&nbsp;&nbsp;&nbsp;&nbsp;· that
 are in Good Order and received by us before the close of a Valuation Day will be effective
 as of the close of that Valuation Day.

&nbsp;&nbsp;&nbsp;&nbsp;· that
 are in Good Order and received by us after the close of a Valuation Day will be effective
 as of the close of the next Valuation Day.

&nbsp;&nbsp;&nbsp;&nbsp;· that
 are not in Good Order when received by us will not be effective until we receive Good Order
 instructions.

**Important Information About Customer Identification Procedures**

To help the government fight the funding of terrorism and money laundering activities, Federal law requires financial institutions to obtain, verify, and record information that identifies each person who applies for a Contract. When you apply for a Contract, we will ask for your name, address, date of birth, and other information that will allow us to verify your identity. We may also ask to see your driver's license or other identifying documents.

If concerns arise with verification of your identification, no transactions will be permitted while we attempt to reconcile the concerns. If we are unable to verify your identity within 30 days of our receipt of your Premium Payment, the Contract will be terminated and any value surrendered in accordance with normal procedures.

We do not knowingly sell annuities that are for the benefit of a business/organization that is illegal under Federal and/or State law (such as a marijuana clinic), or a person who owns or receives income from such an entity or whose source of funds is illegal.

**State Regulation**

The Company is subject to the laws of the State of Iowa governing insurance companies and to regulation by the Iowa Insurance Division. An annual statement in a prescribed form must be filed by March 1 in each year covering our operations for the preceding year and our financial condition on December 31 of the prior Contract Year. Our books and assets are subject to examination by the Commissioner of Insurance of the State of Iowa, or the Commissioner's representatives, at all times. A full examination of our operations is conducted periodically by the National Association of Insurance Commissioners. Iowa law and regulations also prescribe permissible investments, but this does not involve supervision of the investment management or policy of the Company.

In addition, we are subject to the insurance laws and regulations of other states and jurisdictions where we are licensed to operate. Generally, the insurance departments of these states and jurisdictions apply the laws of the state of domicile in determining the field of permissible investments.

**Financial Statements and Independent Registered Public Accounting Firm**

The consolidated financial statements of Principal Life Insurance Company are included in this prospectus. See **19. FINANCIAL STATEMENTS**. The audited financial statements included herein have been audited by Ernst & Young LLP, independent registered public accounting firm, 801 Grand Avenue, Suite 3100, Des Moines, Iowa 50309, for the periods indicated in their reports. The financial statements should be considered only as they relate to our ability to meet our obligations under the Contract. They do not relate to the performance of the Segment Options.

**Legal Proceedings**

There are no legal proceedings pending for which the Company or the principal underwriter would be adversely affected in a material way.

**Householding**

To avoid sending duplicate copies of materials to Owners, only one copy of the applicable prospectus will be mailed to Owners having the same name and address on our records. The consolidation of these mailings, called householding, benefits us through reduced mailing expense. If you want to receive multiple copies of these materials, you may call us at 1-800-852-4450. You may also notify us in writing. Individual copies of prospectuses and reports will be sent to you within thirty (30) days after we receive your request to stop householding.

 **Disclosure of Commission Position on Indemnification**

Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the "1933 Act") may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, the Company has been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the 1933 Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** **STATE VARIATIONS** 

**APPENDIX C** describes modifications to the information in this prospectus based on specific requirements by one or more state insurance departments as of the date of this prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.** **INFORMATION ABOUT THE COMPANY** 

**Information about the Company's Business and Property**

[To be added by amendment]

**Legal Proceedings**

We are regularly a party to litigation, arbitration proceedings and governmental examinations in the ordinary course of our business. While we cannot predict the outcome of any pending or future litigation or examination, we do not believe that any pending matter, individually or in the aggregate, will have a material adverse effect on our business.

 **Use of Proceeds**

The Company will use proceeds for any permissible corporate purpose.

**Directors and Executive Officers**

 **Directors of the Company**

 **<u>Jonathan S. Auerbach, 60, Independent Director</u>**

 **Committee:** Nominating and Governance

Jonathan Auerbach serves as PayPal's Executive Vice President, Chief Strategy, Growth and Data Officer. In this capacity, Jonathan leads PayPal's Global Strategy, Acquisitions, Partnerships, Advanced Analytics and Data Science, Growth Marketing, and Corporate Affairs teams. In addition, Jonathan serves as strategic advisor to PayPal's operations in China and is responsible for the company's Blockchain, Crypto and Digital Currencies business unit. He also chairs PayPal's Operating Group. He is on the Board of Principal Financial Group and serves on the Finance, and Nominating and Governance Committees. He is also on the Board of the National Committee of US-China Relations and a member of the Council of Foreign Relations.

 **Skills and Qualifications:** Mr. Auerbach has executive level experience in consumer, executive compensation, financial services, human resources and talent management, international, marketing, mergers & acquisitions, retail consumer, strategic planning, sustainability/ESG and technology.

 **Education:** Bachelor's degree from Dartmouth College, and a B.A. and M.A. from Oxford University.

 **<u>Mary E. Beams, 67, Independent Director</u>**

 **Committee:** Audit

 **Public Directorships/Past 5 Years:** Principal Financial Group (Member of Audit and Finance Committees), FNZ Trust U.S. Board (Chair of the Board), The Long Term Stock Exchange Group (Board member), Salesforce (Strategic Advisory Board Member for America's), Mount Auburn Hospital – the Beth Israel Lahey System (Board Member and Member of Finance Committee)

 **Former Public Directorships/Past 5 Years:** Ms. Beams is the current CEO of the Long Term Stock Exchange, BrightSphere Investment Group (Audit and Compensation Committees), Aretec (Parent of Cetera Advisors) (Chair of Audit Committee, Member of Risk and Compensation Committees)

She served as the CEO of Retirement Solutions at Voya Financial Inc. from 2011 until 2015. She also served as Counselor at the Department of State from June to December 2017. Prior to joining Voya, she served as President and CEO of TIAA CREF Individual & Institutional Services, LLC from 2004 to 2010; Partner and President, Global Business Development, Head of Scudder Offshore Business, President, Scudder U.S. Brokerage Services, and Head of U.S. Direct Retail Businessfrom 1997 to 2003, Senior Managing Director of Fleet Investment Advisors, Inc. from 1993 to 1997; Director of the Consumer Card Group of American Express Company from 1988 to 1993; and Senior Vice President of Retail Banking of Citibank from 1984 to 1988.

 **Skills and Qualifications:** Ms. Beams has executive level experience in accounting and finance, asset and investment management, retail consumer, institutional, executive compensation, financial services, human resources and talent management, international, marketing, distribution, mergers and acquisitions, product development, risk management, strategic planning, sustainability/ESG, and technology.

 **Education:** Bachelor's degree in English from Boston College, a Certificate of Special Studies in Strategic Planning from Harvard University, and an M.B.A. in Marketing and Finance from Columbia University.

 **<u>Jocelyn Carter-Miller, 65, Independent Director</u>**

 **Committees:** Human Resources (Chair), Nominating and Governance, and Executive

 **Public Directorships:** Principal Financial Group (Member of Human Resources (Chair), Nominating and Governance, and Executive Committees), Arlo Technologies, Inc. (Audit Committee, Chair of Compensation Committee); Interpublic Group of Companies, Inc. (Audit and Executive Committees, Corporate Governance and Social Responsibility Chair), Backblaze, Inc. (Compensation Committee Chair, Audit Committee member, and Nomination and Governance Committee member)

 **Former Public Directorships/Past 5 Years:** Netgear, Inc. (Audit and Compensation Committees)

Ms. Carter-Miller has been President of TechEd Ventures since 2005, which specializes in the development and marketing of high performance educational and personal empowerment programming. She was Executive Vice President and Chief Marketing Officer of Office Depot, Inc. from February 2002 until March 2004, with responsibility for the company's marketing for its 846 superstores, contract, catalog and e commerce businesses in the United States and Canada and operations in 15 other countries. Before joining Office Depot, she was Corporate Vice President and Chief Marketing Officer of Motorola, Inc. with overall responsibility for marketing across its $30 billion revenue base and diverse businesses. She also had general management responsibility while at Motorola for network operations in Latin America, Europe, the Middle East, and Africa. Prior to joining Motorola, she was Vice President, Marketing and Product Development at Mattel, Inc. She serves on nonprofit boards and is a NACD National Board Member and a former President of the League of Women Voters of Broward County. Ms. Carter Miller was a 2013 NACD Directorship 100 Honoree, a Savoy Power 300: 2016/2021 Most Influential Black Corporate Directors, a 2017 Directors & Boards Director to Watch, and a 2018 Most Influential Corporate Directors by Womens Inc. Jocelyn also leads Jocelyn Carter-Miller, LLC, a business consulting firm.

 **Skills and Qualifications:** In addition to her marketing leadership background, Ms. Carter-Miller has executive level experience in accounting and finance, brand management, retail consumer, executive compensation, advertising, sales, multinational companies, international operations, human resources and talent management, marketing, mergers and acquisitions, product development, project management, strategic planning, sustainability/ESG, technology and leadership development and training. She also has passed the certified public accountant exam.

 **Education:** Bachelor's degree in Accounting from the University of Illinois and an M.B.A. in Finance and Marketing from the University of Chicago.

 **<u>Michael T. Dan, 72, Independent Director</u>**

 **Committees:** Human Resources, and Nominating and Governance

Mr. Dan was Chairman, President and Chief Executive Officer of The Brink's Company, a global provider of secure transportation and cash management services, from 1999 until 2011. The Brink's Company had 70,000 employees worldwide, operations in over 100 countries and $3.8 billion in revenue in 2011. Prior to joining Brink's, Mr. Dan served as President of Armored Vehicle Builder, Inc. He is on the Board of Principal Financial Group and serves on the Human Resources, and Nominating and Governance Committees.

 **Skills and Qualifications:** In addition to leading and being responsible for financial management of Brink's, Mr. Dan has executive level experience in accounting and finance, executive compensation, financial services, human resources and talent management, international operations, marketing, mergers and acquisitions, product development, risk management, and strategic planning.

 **Education:** Studied business and accounting at Morton College in Cicero, Illinois, and completed the advanced management program at Harvard Business School.

 **<u>Roger C. Hochschild, 58, Independent Director</u>**

 **Committee:** Nominating and Governance (Chair)

 **Public Directorships:** Discover Financial Services

Mr. Hochschild has been Chief Executive Officer and President of Discover Financial Services since October 1, 2018. Prior to that, he was President and Chief Operating Officer of Discover Financial Services since 2004. He served as the Chief Administrative Officer, Executive Vice President and Chief Strategy Officer of Morgan Stanley from 2001 to 2004, Chief Marketing Officer of Discover Financial Services from 1998 to 2001 and a Senior Executive Vice President of MBNA America Bank from 1994 to 1998. He has been a Director for Chicago Public Media since October of 2016. He is on the Board of Principal Financial Group and serves on the Finance, and Nominating and Governance (Chair) Committees.

 **Skills and Qualifications:** Mr. Hochschild has executive level experience in asset and investment management, retail consumer services, executive compensation, financial services, human resources and talent management, marketing, mergers & acquisitions, product development, risk management, strategic planning. and Sustainability/ESG.

 **Education:** Bachelor's degree in economics from Georgetown University, and an M.B.A. from the Amos Tuck School at Dartmouth College.

 **<u>Daniel J. Houston, 61, Chairman, President and Chief Executive Officer – Principal Life Insurance Company and Principal Financial Group</u>**

 **Committee:** Executive (Chair)

Mr. Houston has been Chairman, President and Chief Executive Officer of the Company and Principal Life Insurance Company ("Principal Life") since 2016. Prior to that, he was President and Chief Executive Officer from August 2015—May 2016. He served as President and Chief Operating Officer from November 25, 2014—August 17, 2015. He joined Principal Life in 1984 and had several management positions, being named Senior Vice President in 2006 and President of Retirement and Income Solutions in 2008. He is on the Board of Principal Financial Group and serves on the Executive Committee (Chair). He is past Chairman of the board of directors of the American Council of Life Insurers and also serves on the boards of the Iowa Business Council, Greater Des Moines Partnership, Employee Benefits Research Institute, Iowa State University Business School Dean's Advisory Council, Partnership for a Healthier America and Community Foundation of Greater Des Moines.

 **Skills and Qualifications:** Mr. Houston has operational expertise, global awareness, and deep talent leadership skills. During his career with the Company, he has worked in sales, managed numerous businesses, and helped lead the transformation of the Company to a global investment management leader. He has extensive operational experience, as well as expertise in risk management, executive compensation, talent management marketing and sales, and mergers and acquisitions.

 **Education:** Bachelor's of Science degree from Iowa State University.

 **<u>Scott M. Mills, 54, Lead Independent Director</u>**

 **Committees:** Audit, Human Resources, and Executive

Mr. Mills has been Lead Director since January 2020.

Mr. Mills has been President and Chief Executive Officer of BET Networks since September 2021. Prior to that, he was President of BET Networks from 2018 through September 2021, Executive Vice President and Chief Administrative Officer of Viacom, Inc. from 2015 through 2017 and Executive Vice President of Human Resources and Administration from 2012 to 2015. Prior to that, he was President and Chief Operating Officer of Viacom's BET Networks unit, where he previously served as Chief Financial Officer and President of Digital Media. He worked in investment banking and served as Deputy Treasurer for the City of Philadelphia before joining BET. He is on the Board of Principal Financial Group and serves on the Audit, Human Resources, and Executive Committees.

 **Skills and Qualifications:** Mr. Mills has executive level experience in accounting and finance, asset and investment management, executive compensation, financial services, human resources and talent management marketing, product development, strategic planning and technology.

 **Education:** Bachelor's degree in economics from the Wharton School of the University of Pennsylvania.

 **<u>H. Elizabeth Mitchell, 61, Independent Director</u>**

 **Committee:** Audit

Ms. Mitchell was CEO of Renaissance Reinsurance U.S. Inc and its predecessor Platinum Underwriters Reinsurance Inc from 2007, and president from 2005, until her retirement in 2016. Prior to that role, she held various other executive positions at the firm and its penultimate predecessor St. Paul Re, Inc, beginning in 1993. Prior to Renaissance Re/Platinum/St. Paul, she was an actuary at English & American Insurance Group and Tillinghast/Towers Watson (now Willis Towers Watson). She is on the Board of Principal Financial Group and serves on the Audit and Finance Committees.

She is a Fellow of the Casualty Actuarial Society and a Member of the American Academy of Actuaries. Also a National Association of Corporate Directors (NACD) Certified Director.

 **<u>Claudio N. Muruzabal, 62, Independent Director</u>**

 **Committees:** Human Resources, and Nominating and Governance

Mr. Muruzabal is President of SAP, Cloud Success Services. With over 25 years of experience heading large technology organizations, he joined SAP in August 2015 and was previously President of SAP EMEA South and Chairman of SAP Latin America & Caribbean. Prior to this date he was CEO of NEORIS for ten years and evolved the Latin American born company into a global management and IT consulting business. Previously, he was Vice President of Teradata Corporation in Latin America and the Caribbean and worked at NCR Corporation for over 20 years, where he held various senior executive positions.

A strong advocate of education and an entrepreneurial mindset as a means to advance social wellbeing and economic growth, Muruzabal serves as Americas Co-Chair of nonprofit Junior Achievement. He is on the Board of Principal Financial Group and serves on the Human Resources, and Nominating and Governance Committees. He is also a Board Member of the Council of the Americas, and has been recognized consecutively from 2016-2020 with the HITEC 50 Award, as one of the top 50 most influential and notable Hispanic Professionals in IT Industry. In 2019, he was recognized by the Council of the Americas organization with the "Technology Leader of the Year" Bravo Award.

 **Skills and Qualifications:** Mr. Muruzabal has executive level experience in accounting & finance, retail consumer, executive compensation, human resources and talent management, international, marketing, mergers & acquisitions, product development, strategic planning, sustainability/ESG and technology.

 **Education:** Bachelor's degree from the Catholic University of Argentina with double major in Business Administration and Accounting and Global Executive M.B.A. from The Fuqua School of Business at Duke University.

 **<u>Diane C. Nordin, 64, Independent Director</u>**

 **Committee:** Audit (Chair)

 **Public Directorships:** Principal Financial Group (Member of Audit (Chair) and Finance Committees), Fannie Mae (Vice Chair of the Board, member Audit, Risk Policy and Executive Committees, Chair of the Compensation Committee)

Ms. Nordin was a partner of Wellington Management Company, LLP, a private asset management company, from December 1995 to December 2011, having originally joined Wellington in 1991. Throughout her tenure, Ms. Nordin's responsibilities spanned product management, client relationship management and ultimately the oversight of Wellington's Fixed Income group where she was responsible for approximately 20 investment approaches and 130 investors globally. During her time at Wellington, Ms. Nordin served as Vice Chair of the Compensation Committee and Audit Chair of the Wellington Management Trust Company in addition to other committee service throughout her tenure. Prior to joining Wellington, she worked at Fidelity Investments and Putnam Advisory. She was a governor of the CFA Institute from 2016-2022 where she was also past Chair of the Board of Governors as well as the Audit, Risk and Nominations Committee and served as a member of the Risk, Executive and People and Culture Committees and as Chair of the Governance Committee.

Ms. Nordin is a Director of Fannie Mae (since 2013) where she serves as Vice Chair of the Board, member of the Executive, Audit and Risk Policy Committees and chairs the Compensation Committee. Also, she is a director of Antares Capital, where she is Chair of the Compensation Committee (since 2016). Ms. Nordin is an Emeritus Trustee of Wheaton College (2010 present) where she chaired the Investment Committee and served on the Audit Committee and was appointed Trustee of Financial Analysts Foundation (2022). She formerly served as a Board member, Executive and Compensation Committee member and Investment Committee Chair of the Appalachian Mountain Club, the oldest conservation organization in the United States. Ms. Nordin also serves on the NY State Common Fund Investment Advisory Committee in a pro bono capacity.

 **Skills and Qualifications:** In addition to her extensive experience in the asset management business, Ms. Nordin has executive level experience in accounting and finance, asset and investment management, executive compensation, financial services, human resources and talent management, international operations, marketing, product development, risk management and strategic planning.

 **Education:** Bachelor's degree from Wheaton College (MA). Ms. Nordin is a Chartered Financial Analyst.

 **<u>Blair C. Pickerell, 66, Independent Director</u>**

 **Committee:** Nominating and Governance

 **Public Directorships:** Principal Financial Group (Member of Finance, and Nominating and Governance Committees), Link Real Estate Investment Trust (Nomination Committee and Chair of the Remuneration Committee); Dah Sing Banking Group Limited (Chair of the Risk Management, Compliance, and Audit Committee); First Pacific Company Limited (Finance and Corporate Governance Committees)

 **Former Public Directorships/Past 5 Years:** Dah Sing Financial Holdings Limited

Mr. Pickerell served as Head of Asia of Nikko Asset Management from 2010 to 2014 and Chairman Asia from 2014 to 2015. From 2007 to 2010, he was CEO, Asia, at Morgan Stanley Investment Management. He has also served as Chief Executive, Asia Pacific, of HSBC Asset Management and as Chairman of Jardine Fleming Funds.

Mr. Pickerell's current international service includes memberships on the Supervisory Committee for the Tracker Fund of Hong Kong; on the International Advisory Council of the Faculty of Business and Economics of The University of Hong Kong; and Chairman of the Harvard Business School Association of Hong Kong.

 **Skills and Qualifications:** In addition to his extensive leadership record in the investment and asset management and financial services industries, Mr. Pickerell has executive level experience in accounting and finance, asset and investment management, retail consumer, executive compensation, financial services, human resources and talent management, international, marketing, mergers & acquisitions, product development, risk management, strategic planning and sustainability/ESG. He is fluent in Mandarin Chinese.

 **Education:** Bachelor's and master's degrees from Stanford University and an M.B.A. from Harvard Business School.

 **<u>Clare S. Richer, 64, Independent Director</u>**

 **Committees:** Audit, and Executive

 **Public Directorships:** Principal Financial Group (Member of Audit, Finance (Chair), and Executive Committees), Bain Capital Specialty Finance Co. (member of the Audit, Compensation and Nominating/Governance Committees), State Street Global Advisors SPDR ETF Mutual Funds (member of the Audit Committee), Trustee of the University of Notre Dame (member of the Compensation, Investment, Finance and Executive Committee), and the Alzheimer's Association, MA/NH.

Ms. Richer was Chief Financial Officer of Putnam Investments from 2008-2017 and has more than 25 years of investment management experience. Prior to joining Putnam, Ms. Richer held several roles at Fidelity Investments from 1983-2008.

 **Skills and Qualifications:** In addition to having deep experience in governance, compliance and risk in highly volatile, heavily scrutinized environments, Ms. Richer has executive level experience in accounting and finance, asset and investment management, executive compensation, financial services, human resources and talent management, product development, risk management, strategic planning and technology.

 **Education:** B.B.A. from University of Notre Dame.

 **<u>Alfredo Rivera, 62, Independent Director</u>**

 **Committees:** Audit and Human Resources

Mr. Rivera is currently a Senior Advisor at the Coca-Cola Company (until he will retire on March 31, 2023) after serving as President of the North America Operating Unit of The Coca Cola Company from 2020 until December 31, 2022. In his previous role, he helped lead the company's transformation to emerge stronger as a total beverage company, enabled by a globally networked organization. Mr. Rivera has been a veteran of the global Coca Cola system for 38 years and joined The Coca Cola Company in 1997. Prior to his current role he served as President, Latin America from 2016-2020, President, Latin Center Business Unit from 2013-2016, Vice President of Operations Mexico from 2006-2012 and prior to 2006 held other global positions with Coca Cola. He is on the Board of Principal Financial Group and serves on the Audit and Human Resources Committees.

 **Skills and Qualifications:** Mr. Rivera has executive level experience in accounting and finance, retail consumer, executive compensation, human resources and talent management, international, marketing, strategic planning, sustainability/ESG, and technology.

 **Education:** Bachelor's degree and MBA from the University of Southern Mississippi and completed the Advanced Management Program at Harvard Business School.

 **Director Compensation**

The Company does not pay any compensation to its directors specific to their services as directors of the Company.

 **Executive Officers and Other Key Members of Senior Management**

The following information is furnished with respect to the Company's executive officers, each of whom is elected by and serves at the pleasure of the Board of Directors, as well as other members of senior management.

 ***Thomas W. Y. Cheong, 55,*** has been Executive Vice President of the Company since January 2021 and President, Principal Asia of the Company since March 2019. Thomas is from Singapore and is located in the Company's Hong Kong office. Previously, he was Senior Vice President of the Company from March 2019 to December 2020 and served as Vice President, Head of North Asia of the Company from January 2015 to February 2019. Prior to that time, he held several leadership roles in various Asia markets at Manulife Financial Corporation from October 2009 to December 2014 and Prudential UK from October 2000 to September 2009.

 ***Amy C. Friedrich, 52,*** has been President of U.S. Insurance Solutions since May 2017. Prior to that time, she was Senior Vice President of the Specialty Benefits insurance division of U.S. Insurance Solutions since 2015, and Vice President of Specialty Benefits since 2008.

 ***Patrick G. Halter, 64,*** has been the president of Asset Management for the Company since 2018 since September 2018. Prior to that time, he served as Chief Operating Officer of Principal Global Investors, since 2016 and was Chief Executive Officer for Principal Real Estate Investors, the dedicated real estate unit of Principal Global Investors, since 2003.

 ***Daniel J. Houston, 61,*** has been a director of the Company and President and Chief Executive Officer of the Company since August 2015. Prior to that date, he held the same positions except was Chief Operating Officer (and not Chief Executive Officer) since November 2014. Previously, he served as President, Retirement, Insurance and Financial Services of the Company since 2010. He was President, Retirement and Income Solutions of the Company from 2008 until 2010, and was Executive Vice President, Retirement and Income Solutions of the Company from 2006 to 2008.

 ***Kathy B. Kay, 61,*** has been Senior Vice President and Chief Information Officer of the Company since May 2020. Prior to that date, she was Senior Vice President and Chief Information Officer of Pacific Gas & Electric Company from 2015 to 2020. Previously, she served as Enterprise Chief Technology Officer at SunTrust from 2012 to 2015, Senior Vice President, Business Technology Services of Comerica Bank from 2007 to 2012 and Director, Application Development and Support, OnStar of General Motors from 1984 to 2007.

 ***Christopher J. Littlefield, 56,*** has been President, Retirement and Income Solutions of the Company since April 1, 2022. Prior to that date, he was Executive Vice President and General Counsel of the Company since January 2020. Prior to that date, he was President and Chief Executive Officer of Fidelity & Guaranty Life Insurance Holdings from October 2014 to December 2018. Previously, he served as President and Chief Executive Officer of Aviva USA Corporation from February 2009 to October 2013 and served as Chief Operating Officer of Aviva USA Corporation from February 2008 to September 2009. Prior to that, he served as Executive Vice President, General Counsel and Secretary of AmerUS Group Co. from January 2006 to February 2008.

 ***Kenneth A. McCullum, 58,*** has been Senior Vice President and Chief Risk Officer of the Company since September 2020. Prior to that date, he was Vice President and Chief Actuary since April 2015. Prior to that time, he served as Executive Vice President responsible for business development and in force management at Delaware Life Insurance Company from August 2013 to April 2015 and Senior Vice President responsible for managing the life and annuity businesses at Sun Life Financial from April 2010 to August 2013. Previously, he held several positions at the Hartford from August 1994 to April 2010, including leading its institutional investment products division and serving as Chief Actuary of its legacy holdings division.

 ***Deanna D. Strable-Soethout, 54,*** has been Executive Vice President and Chief Financial Officer of the Company since February 2017. Prior to that date, she was Executive Vice President of the Company and Principal Life since September 2016 and President, U.S. Insurance Solutions of the Company since March 2015. Prior to that, she served as Senior Vice President of the Company since 2006.

 ***Roberto A. Walker, 57,*** has been Executive Vice President of the Company since January 2021 and President, Principal Latin America since January 2011. Prior to his current position, he held several leadership roles within the Company including Chief Operating Officer of Principal International Latin America from October 2007 to February 2011, Head of Fund Management overseeing Latin America and Asia mutual funds and asset management from January 2005 to September 2007, Country Head for Principal Mexico from November 1998 to December 2004 and Chief Information Officer and Chief Financial Officer of Principal Chile from September 1996 to October 1998.

 ***Jon N. Couture, [age to be added by amendment],*** has been Executive Vice President and Chief Human Resources Officer (CHRO) of the Company since **[month to be added by amendment]**, 2018. He oversees all aspects of human resources for more than 18,500 employees worldwide. Couture has more than 25 years of experience in human resources. Previously, he was the Executive Vice President–human resources for consumer lending, payments, virtual channels, operations, and innovation at Wells Fargo. Prior to Wells Fargo, Couture was Senior Executive Vice President of human resources for HSBC North America Holdings, Inc. He's held various CHRO and senior human resources leadership roles in a variety of industries and is a veteran of the U.S. Air Force.

 ***Natalie Lamarque, 46,*** has been Executive Vice President, General Counsel and Secretary of the Company since **[month to be added by amendment]**, 2022. Prior to this role, she was employed by New York Life Insurance Company, where she held various positions, including senior vice president and general counsel. Prior to that she served as an Assistant U.S. Attorney for the Southern District of New York in the Criminal Division. She was also an associate at Debevoise and Plimpton, LLP in the white collar group. She started her career as a federal district court and court of appeals law clerk.

 ***Bethany A. Wood, [age to be added by amendment],*** has been Executive Vice President and Chief Marketing Officer of the Company since July 2019. In her role, she also serves as Chair of the Company's ESG (Environmental, Social and Governance) Task Force and Chair of the Principal<sup>®</sup> Foundation. Prior to joining the Company, she was Vice President and Chief Marketing Officer of the individual businesses for Guardian Life Insurance in New York City. Her responsibilities included leading digital marketing transformation across the life, disability, annuity, and wealth management businesses in support of the company's general agency system, its 3,000 financial representatives and their respective clients. She held this role since 2016. Before that, she served as Second Vice President, life, and agency marketing at Guardian since 2010.

 ***Noreen M. Fierro, [age to be added by amendment],*** has been Senior Vice President and Chief Compliance Officer of the Company since **[year to be added by amendment]**. Prior to joining the Company, she was Chief Compliance Officer for BetMGM. Before serving in that role Fierro spent five years as Chief Ethics and Compliance Officer at Guardian Life from 2016 to 2021, where she also served as co-executive sponsor of Guardian's Women's Leadership Network and was an advisory member of their Enterprise Inclusion and Diversity Council. Prior to Guardian, she held a number of different compliance leadership roles at Prudential from 2006 to 2016, including Chief Compliance Officer, retirement solutions, group benefits; Global Anti-corruption Compliance Officer; and Corporate Anti-money Laundering and OFAC Sanctions Compliance Officer.

 ***Teresa Hassara, [age to be added by amendment],*** has been Senior Vice President - Workplace Savings and Retirement Solutions for the Company since **[year to be added by amendment]**. Prior to joining the Company she held significant leadership roles in the retirement industry, most recently as President of FuturePlan by Ascensus from **[years to be added by amendment]**. Prior to that, she was head of Workplace Solutions for MassMutual from **[years to be added by amendment]**, Executive Vice President of Institutional Retirement for TIAA from **[years to be added by amendment]**.

 ***Kara M. Hoogensen, [age to be added by amendment],*** has been Senior Vice President – Specialty Benefits for the Company since March 2020, where she is in charge of Specialty Benefits for U.S. Insurance Solutions (USIS). Prior to that role she was Vice President of Group Benefits in USIS since August 2017. From 2015 to 2017 she was president and CEO of Principal Securities, Inc., the Company's retail broker-dealer. Prior to that she was chairman, president, and CEO of Principal Bank<sup>®</sup> and Principal Trust Company® from 2014 until 2015.

In 2018, she was named to the board of directors for Limelight Health, Inc., a quoting, underwriting, and proposal platform for the employee benefits industry, and served from 2018 until the company was acquired in August 2020.

 ***Dennis J. Menken, [age to be added by amendment],*** has been Senior Vice President and Chief Investment Officer of the Company's general account since **[year to be added by amendment]**. He joined the Company in 1994. Prior to his current role, he held a variety of portfolio management and credit underwriting positions at Principal Global Investors<sup>®</sup>, the asset management arm of Principal. His background also includes a position as an auditor at Deloitte & Touche.

 ***Srinivas D. (Sri) Reddy, [age to be added by amendment] ,*** has been Senior Vice President – Retirement and Income Solutions since **[year to be added by amendment]**. He is responsible for the Income Solutions businesses, which includes Pension Risk Transfer, Retail Annuities, Principal Bank<sup>®</sup> and Principal<sup>®</sup> Custody Solutions.

Prior to joining Principal<sup>®</sup>, he was the head of the investments and retirement income businesses for Prudential Retirement from. Before that, he led all the product lines for USAA's investment management and life insurance companies and held several roles at ING where his experience ranged from managing wholesale and direct distribution groups to product development in both the defined contribution business as well as the rollover & retirement income business. Previously, he served as a consultant with Ernst & Young.

He has served on various industry and regulatory groups including as the chair, vice-chair and council member of the Employee Retirement Income Security Act (ERISA) Advisory Council at the United States Department of Labor from 2017 to 2019 and currently is on the board of directors of the Insured Retirement Institute.

 ***Nate Schelhaas, [age to be added by amendment],*** has been Senior Vice President and Actuary – Head of Life Protection Solutions at the Company since [**year to be added by amendment]**. He has been with Principal for 25 years and has held multiple roles. Prior to his current role he had served as the Life Chief Financial Officer for the Company since **[year to be added by amendment]**. His designations include FSA and MAAA.

 ***Anthony Shea Treadway, [age to be added by amendment],*** has been Senior Vice President of the distributions for U.S. Insurance Solutions Distribution at the Company since November 2022. He is a 20-year veteran of the insurance industry, with significant experience as a strategic distribution leader focused on technology solutions, small business, and key client management. Prior to joining the Company, he spent his career with Unum serving in various distribution and leadership roles, including most recently as Senior Vice President of Field and Market Development at Colonial Life, Vice President of Unum small business, and Regional Vice President of sales and client management.

 **Executive Compensation**

Principal Life Insurance Company (the "Company") does not have any employees of its own, but rather is provided its executive officers and other personnel by an affiliate, Principal Workforce, LLC ("Principal Workforce"), pursuant to the Personnel Utilization and Administrative Services Agreement, dated December 17, 2021, between the Company and Principal Workforce (the "Personnel Agreement"). All personnel providing services to the Company, including executive officers, are employees of Principal Workforce (or, in very limited cases, affiliates that are not subsidiaries of the Company) and Principal Workforce has legal responsibility for paying compensation earned by, or otherwise paid to, its executive officers. See "Transactions with Related Persons" for more information about the Personnel Agreement. The Human Resources Committee of the Company's parent, Principal Financial Group, has primary responsibility for determining all compensation for the Company's executive officers, and all other compensation.

**Securities Ownership of Certain Beneficial Owners and Management**

The Company is a wholly-owned subsidiary of Principal Financial Services, Inc. and an indirect wholly-owned subsidiary of Principal Financial Group, Inc. None of our directors or executive officers beneficially owns shares of the Company's stock.

 **Transactions with Related Persons**

[To be updated by amendment]

Pursuant to a Personnel Utilization and Administrative Services Agreement dated December 17, 2021, between Principal Life Insurance Company (the Company) and Principal Workforce, LLC (Principal Workforce), Principal Workforce furnishes the Company with personnel as requested by the Company. As is the case with other affiliates of the Company and Principal Workforce, the Company is allocated a certain amount of the costs associated with Principal Workforce's employees, including the Company's executive officers, and the Company is responsible for funding the employee costs allocated to the Company. For 2022, the amount the Company funded in connection with the allocation attributed to the Company was approximately [to be added by Amendment].

The Company maintains robust policies and procedures for the identification and monitoring of arrangements with related parties. The Nominating and Governance Committee or its Chair must approve or ratify all transactions with related parties that are not preapproved by or exempted from the Company's Related Party Transaction Policy (the "Policy"). At each quarterly meeting, the Committee reviews transactions with related parties and ratifies any transaction that is subject to the Policy if it determines it is appropriate and may attach conditions to that approval. Transactions involving employment of a relative of an executive officer or Director must be approved by the Human Resources Committee. The Company's Related Party Transaction Policy is publicly available at www.principal.com.

**Company Related Risk Factors**

[To be added by amendment]

**Corporate Governance**

 **Director Independence**

The Board determines at a Director's initial appointment, and thereafter at least annually, whether each Director is independent, using its independence standards in these determinations. These independence standards include the Nasdaq standards for independence, which are on the Company's website, www.principal.com. The Board considers all commercial, banking, consulting, legal, accounting, charitable, family and other relationships (either individually or as a partner, shareholder or officer of an organization) a Director (or Director candidate) may have with the Company and its subsidiaries. The Board most recently made these determinations for each Director in February 2023, based on:

&nbsp;&nbsp;&nbsp;&nbsp;· A
 review of relationships and transactions between Directors, their immediate family members
 and other organizations with which a Director is affiliated and the Company, its subsidiaries
 or executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;· Questionnaires
 completed by each Director regarding any relationships or transactions that could affect
 the Director's independence;

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company's review of its purchasing, investment, charitable giving and other records;
 and

&nbsp;&nbsp;&nbsp;&nbsp;· Recommendations
 of the Nominating and Governance Committee.

The Board affirmatively determined that the following Directors have no material relationship with the Company and are independent: [to be added by amendment]. The Board also determined that all current members of the Audit, Human Resources and Nominating and Governance Committees are independent. No Director other than Mr. Houston has been employed by the Company or an affiliate of the Company at any time.

Some Directors have categorically immaterial relationships and transactions with Principal:

&nbsp;&nbsp;&nbsp;&nbsp;· [To
 be added by amendment] are customers of the Company or the Company's subsidiaries/affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;· [To
 be added by amendment] are directors, and [to be added by amendment] are executives of for-profit
 entities with which the Company and its affiliates conduct ordinary commercial transactions.

**Note Regarding Forward Looking Statements**

[To be added by amendment]

**Management's Discussion and Analysis**

[To be added by amendment]

**Quantitative and Qualitative Disclosures about Market Risk**

[To be added by amendment]

**Selected Financial Data**

[To be added by amendment]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.** **FINANCIAL STATEMENTS** 

[To be added by amendment]

**Dealer Prospectus Delivery Obligations**

**All dealers that effect transactions in these securities are required to deliver a prospectus.**

**APPENDIX A**

**INDEX DISCLOSURES**

**S&P 500® PRICE RETURN INDEX (SPX)**

The **S&P 500® Price Return Index ("INDEX")** is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by **Principal Life Insurance Company ("Principal Life")**. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx® and CDX® are trademarks of S&P Global, Inc. or its affiliates ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by **Principal Life**. It is not possible to invest directly in an index. **Principal Life's** are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, "S&P Dow Jones Indices"). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the **Principal Life's Product(s)** or any member of the public regarding the advisability of investing in securities generally or in **Principal Life's Product(s)** particularly or the ability of the **INDEX** to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices' only relationship to **Principal Life** with respect to the **INDEX** is the licensing of the **INDEX** and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The **INDEX** is determined, composed and calculated by S&P Dow Jones Indices without regard to **Principal Life** or **Principal Life's Product(s).** S&P Dow Jones Indices have no obligation to take the needs of **Principal Life** or the owners of **Principal Life's Product(s)** into consideration in determining, composing or calculating the **INDEX**. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing or trading of **Principal Life's Product(s).** There is no assurance that investment products based on the **INDEX** will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment adviser, commodity trading advisory, commodity pool operator, broker dealer, fiduciary, promoter" (as defined in the Investment Company Act of 1940, as amended), "expert" as enumerated within 15 U.S.C. § 77k(a) or tax advisor. Inclusion of a security, commodity, crypto currency or other asset within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, commodity, crypto currency or other asset, nor is it considered to be investment advice or commodity trading advice.

S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE **INDEX** OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY **Principal Life**, OWNERS OF THE **PRINCIPAL LIFE'S PRODUCT(S),** OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE **INDEX** OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. S&P DOW JONES INDICES HAS NOT REVIEWED, PREPARED AND/OR CERTIFIED ANY PORTION OF, NOR DOES S&P DOW JONES INDICES HAVE ANY CONTROL OVER, THE LICENSEE PRODUCT REGISTRATION STATEMENT, PROSPECTUS OR OTHER OFFERING MATERIALS. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND **PRINCIPAL LIFE,** OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

**RUSSELL 2000® PRICE RETURN INDEX (RTY)**

Principal® Strategic Outcomes has been developed solely by Principal Life Insurance Company. Principal® Strategic Outcomes is not in any way connected to or sponsored, endorsed, sold, or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies.

All rights in the Russell 2000® (the "Index") vest in the relevant LSE Group company which owns the Index. Russell® is a trademark of the relevant LSE Group company and is used by any other LSE Group company under license.

The Index is calculated by or on behalf of Frank Russell Company or its affiliate, agent, or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of reliance on or any error in the Index or (b) investment in or operation of Principal® Strategic Outcomes. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from the Principal® Strategic Outcomes or the suitability of the Index for the purpose to which it is being put by Principal Life Insurance Company.

**MSCI EAFE PRICE RETURN INDEX (MXEA)**

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**APPENDIX B**

**SEGMENT INTERIM VALUE EXAMPLES**

 **FOR FULL SURRENDERS**

The examples below will show how different values impact the amount available to you (Surrender Value) in a variety of market conditions. For purposes of the examples, in arriving at the Surrender Value, the Bond Adjustment and Surrender Charge assume a full Surrender. For examples on how partial withdrawals impact the values, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS** – Negative Adjustments to Crediting Base. Each scenario below has an assumption for market conditions. The increase or decrease in the Index Value indicates changes based on Index performance, and the increase or decrease in the Bond Adjustment Index Value indicates the change in interest rate levels.

There are 3 Segment Options used in the 3 market condition scenarios. This is to show how the combinations of market conditions affect different Segment Options. These examples also show how the amount of time remaining until the Segment End Date impacts the Equity Adjustment and Bond Adjustment. By including an Equity Adjustment, we are able to show how the increase or decrease of the Index Value impacts the Accumulated Value. Similarly, by including the Bond Adjustment, we are able to show how the increase or decrease of the Bond Adjustment Index Value impacts the Surrender Value.

The following also apply to the examples:

&nbsp;&nbsp;&nbsp;&nbsp;· An
 Equity Adjustment applies in these scenarios because the Surrenders occur in the middle of
 the Segment Term.

&nbsp;&nbsp;&nbsp;&nbsp;· A
 Bond Adjustment also applies due to the need for the Company to have the underlying investments
 backing up the Contract closely match up with the Company's obligations under the Contract.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Bond Adjustment is applied to the entire Crediting Base because a full Surrender is assumed
 when calculating the Surrender Value. For examples on how partial withdrawals impact the
 values, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS** – Negative Adjustments
 to Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;· For
 these examples, the Accumulated Value equals the Segment Interim Value because the examples
 occur in the middle of the Segment Term, and there is only one Segment Option for each example.

&nbsp;&nbsp;&nbsp;&nbsp;· For purposes of simplifying the examples, the Equity Adjustment
percentage and the Bond Adjustment percentage are displayed to two decimal places in the example tables. However, the actual, non-rounded
percentages were used to calculate the Equity Adjustment amount and Bond Adjustment amount throughout the examples.

For the scenarios in this Appendix, assume the following:

---

| | | | |
|:---|:---|:---|:---|
|  **Segment Option** | **1-year 10% Buffer** | **6-year 10% Buffer** | **1-year 0% Floor** |
|  Segment Term (in months) | 12 | 72 | 12 |
|  Buffer or Floor Rate | 10% | 10% | 0% |
|  Participation Rate | 100% | 110% | 35% |
|  Cap Rate | 15% | Uncapped | Uncapped |
|  Months to Segment End Date | 3 | 63 | 3 |

---

**Scenario 1 – Index Value decreased 20% and Bond Adjustment Index Value increased 25%**

These examples are intended to demonstrate how 1-year 10% Buffer, 6-year 10% Buffer, and 1-year 0% Floor Segment Options are impacted by a 20% decrease in the performance of the reference Index and a 25% increase in the Bond Adjustment Index. These examples demonstrate how the Buffer or Floor Rate and the Segment Term have a significant impact on the Equity Adjustment, which then impacts the Segment Interim Value and Accumulated Value. The 1-year 0% Floor example demonstrates how the Equity Adjustment can be negative even though the Segment Option has a 0% Floor Rate, which will be reflected in a decrease to the Segment Interim Value and Accumulated Value. These examples also demonstrate how an increase in the Bond Adjustment Index results in a negative adjustment to the Accumulated Value. For these examples, the Accumulated Value equals the Segment Interim Value because the examples occur in the middle of the Segment Term, and there is only one Segment Option for each example.

---

| | | | |
|:---|:---|:---|:---|
|  **Segment Option** | **1-year 10% Buffer** | **6-year 10% Buffer** | **1-year 0% Floor** |
|  Premium Payment | $10000.00 | $10000.00 | $10000.00 |
|  Crediting Base | $10000.00 | $10000.00 | $10000.00 |
|  Equity Adjustment percentage<sup>1</sup> | -12.01% | -18.54% | -2.89% |
|  Equity Adjustment Amount<sup>2</sup> | -$1201.29<sup>2a</sup> | -$1853.69<sup>2b</sup> | -$289.28<sup>2c</sup> |
|  Accumulated Value (also Segment Interim Value)<sup>3</sup> | $8798.71<sup>3a</sup> | $8146.31<sup>3b</sup> | $9710.72<sup>3c</sup> |
|  Bond Adjustment percentage<sup>4</sup> | -2.53% | -2.53% | -2.53% |
|  Bond Adjustment Amount<sup>5</sup> | -$253.46 | -$253.46 | -$253.46 |
|  Accumulated Value (also Segment Interim Value) adjusted for Bond Adjustment<sup>6</sup> | $8545.25<sup>6a</sup> | $7892.85<sup>6b</sup> | $9457.26<sup>6c</sup> |
|  Free Surrender Amount<sup>7</sup> | $1000.00 | $1000.00 | $1000.00 |
|  Amount after Free Surrender Amount<sup>8</sup> | $7545.25<sup>8a</sup> | $6892.85<sup>8b</sup> | $8457.26<sup>8c</sup> |
|  Surrender Charge percentage | 8.00% | 8.00% | 8.00% |
|  Surrender Charge<sup>9</sup> | $603.62<sup>9a</sup> | $551.43<sup>9b</sup> | $676.58<sup>9c</sup> |
|  Surrender Value<sup>10</sup> | $7941.63<sup>10a</sup> | $7341.43<sup>10b</sup> | $8780.68<sup>10c</sup> |

---

1) For more on the Equity Adjustment, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Calculation of Equity Adjustment.** For purposes of simplifying the examples, the Equity Adjustment percentage has been rounded to two decimal places.

2) The Equity Adjustment Amount is the Equity Adjustment percentage multiplied by the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is negative 12.01%
 multiplied by $10,000.00, which equals negative $1,201.29.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is negative 18.54%
 multiplied by $10,000.00, which equals negative $1,853.69.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is negative 2.89% multiplied
 by $10,000.00, which equals negative $289.28.

3) The Accumulated Value (also Segment Interim Value) is the Crediting Base minus the Equity Adjustment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is $10,000.00 minus
 $1,201.29, which equals $8,798.71. If the Equity Adjustment Amount is positive, it would
 be added to the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is $10,000.00 minus
 $1,853.69, which equals $8,146.31. If the Equity Adjustment Amount is positive, it would
 be added to the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is $10,000.00 minus
 $289.89, which equals $9,710.72. If the Equity Adjustment Amount is positive, it would be
 added to the Crediting Base.

4) For more on the Bond Adjustment, see **10. CONTRACT VALUES – Bond Adjustment.** For purposes of simplifying the examples, the Bond Adjustment percentage has been rounded to two decimal places.

5) The Bond Adjustment Amount is the Bond Adjustment percentage multiplied by the Crediting Base. For all three of these examples, it is negative 2.53% multiplied by $10,000.00, which equals negative $253.46.

6) The Accumulated Value (also Segment Interim Value) adjusted for the Bond Adjustment is the Accumulated Value (also Segment Interim Value) minus the Bond Adjustment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is $8,798.71 minus
 $253.46, which equals $8,545.25. If the Bond Adjustment is positive, it would be added to
 the Accumulated Value (also Segment Interim Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is $8,146.31 minus
 $253.46, which equals $7,892.85. If the Bond Adjustment is positive, it would be added to
 the Accumulated Value (also Segment Interim Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is $9,710.72 minus
 $253.46, which equals $9,457.26. If the Bond Adjustment is positive, it would be added to
 the Accumulated Value (also Segment Interim Value).

7) The Free Surrender Amount is the Premium Payment multiplied by the allowed Free Surrender percentage. For all three of these examples, it is $10,000.00 multiplied by 10%, which equals $1,000.00.

8) Amount after Free Surrender Amount is the Accumulated Value (also Segment Interim Value) adjusted for Bond Adjustment minus the Free Surrender Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is $8,545.25 minus
 $1,000.00, which equals $7,545.25.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is $7,892.85 minus
 $1,000.00, which equals $6,892.85.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is $9,457.26 minus
 $1,000.00, which equals $8,457.26.

9) The Surrender Charge is the Surrender Charge percentage multiplied by the Amount after Free Surrender Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is 8.00% multiplied
 by $7,545.25, which equals $603.62.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is 8.00% multiplied
 by $6,892.85, which equals $551.43.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is 8.00% multiplied
 by $8,457.26, which equals $676.58.

10) The Surrender Value is the Accumulated Value (also Segment Interim Value) minus the Bond Adjustment minus the Surrender Charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is $8,798.71 minus
 $253.46 minus $603.62, which equals $7,941.63. If the Bond Adjustment is positive, it would
 be added to the Accumulated Value (also Segment Interim Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is $8,146.31 minus
 $253.46 minus $551.43, which equals $7,341.43. If the Bond Adjustment is positive, it would
 be added to the Accumulated Value (also Segment Interim Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For
 the 1-year 0% Floor example, it is $9,710.72 minus $253.46 minus $676.58, which equals
 $8,780.68. If the Bond Adjustment is positive, it would be added to the Accumulated Value
 (also Segment Interim Value).

 **Scenario 2 – no change in Index Value or Bond Adjustment Index Value**

These examples are intended to demonstrate how 1-year 10% Buffer, 6-year 10% Buffer, and 1-year 0% Floor Segment Options are impacted by no change in the performance of the reference Index or the Bond Adjustment Index. These examples demonstrate how the Buffer or Floor Rate and the Segment Term have a significant impact on the Equity Adjustment, which then impacts the Segment Interim Value and Accumulated Value. The 1-year 0% Floor example demonstrates how the Equity Adjustment can be negative even though the Segment Option has a 0% Floor Rate, which will be reflected in a decrease to the Segment Interim Value and Accumulated Value. These examples also demonstrate how when the reference Index is unchanged, the Equity Adjustment can be positive or negative depending on the Buffer or Floor Rate and Segment Term. Another piece that is demonstrated in these examples is that when the Bond Adjustment Index is unchanged, the Bond Adjustment will be $0.00. For these examples, the Accumulated Value equals the Segment Interim Value because the examples occur in the middle of the Segment Term, and there is only one Segment Option for each example.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Segment Option** | **1-year 10% Buffer** | **6-year 10% Buffer** | **1-year 0% Floor** | **1-year 0% Floor** |
|  Premium Payment |  | $10000.00 | $10000.00 | $10000.00 |
|  Crediting Base |  | $10000.00 | $10000.00 | $10000.00 |
|  Equity Adjustment percentage<sup>1</sup> | 1.21% | -0.68% |  | -1.47% |
|  Equity Adjustment Amount<sup>2</sup> | $120.77<sup>2a</sup> | -$68.22<sup>2b</sup> |  | -$147.50<sup>2c</sup> |
|  Accumulated Value (also Segment Interim Value)<sup>3</sup> | $10120.77<sup>3a</sup> | $9931.78<sup>3b</sup> |  | $9852.50<sup>3c</sup> |
|  Bond Adjustment percentage<sup>4</sup> | 0.00% | 0.00% |  | 0.00% |
|  Bond Adjustment Amount<sup>5</sup> | $0.00 | $0.00 |  | $0.00 |
|  Accumulated Value (also Segment Interim Value) adjusted for Bond Adjustment<sup>6</sup> | $10120.77<sup>6a</sup> | $9931.78<sup>6b</sup> |  | $9852.50<sup>6c</sup> |
|  Free Surrender Amount<sup>7</sup> | $1000.00 | $1000.00 |  | $1000.00 |
|  Amount after Free Surrender Amount<sup>8</sup> | $9120.77<sup>8a</sup> | $8931.78<sup>8b</sup> |  | $8852.50<sup>8c</sup> |
|  Surrender Charge percentage |  | 8.00% | 8.00% | 8.00% |
|  Surrender Charge<sup>9</sup> |  | $729.66<sup>9a</sup> | $714.54<sup>9b</sup> | $708.20<sup>9c</sup> |
|  Surrender Value<sup>10</sup> |  | $9391.11<sup>10a</sup> | $9217.23<sup>10b</sup> | $9144.30<sup>10c</sup> |

---

1) For more on the Equity Adjustment, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Calculation of Equity Adjustment.** For purposes of simplifying the examples, the Equity Adjustment percentage has been rounded to two decimal places.

2) The Equity Adjustment Amount is the Equity Adjustment percentage multiplied by the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is 1.21% multiplied
 by $10,000.00, which equals $120.77.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is negative 0.68%
 multiplied by $10,000.00, which equals negative $68.22.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is negative 1.47% multiplied
 by $10,000.00, which equals negative $147.50.

3) The Accumulated Value (also Segment Interim Value) is the Crediting Base minus the Equity Adjustment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is $10,000.00 plus
 $120.77, which equals $10,120.77. If the Equity Adjustment Amount is negative, it would be
 subtracted from the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is $10,000.00 minus
 $68.22, which equals $9,931.78. If the Equity Adjustment Amount is positive, it would be
 added to the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is $10,000.00 minus
 $147.50, which equals $9,852.50. If the Equity Adjustment Amount is positive, it would be
 added to the Crediting Base.

4) For more on the Bond Adjustment, see **10. CONTRACT VALUES – Bond Adjustment.** For purposes of simplifying the examples, the Bond Adjustment percentage has been rounded to two decimal places.

5) The Bond Adjustment Amount is the Bond Adjustment percentage multiplied by the Crediting Base. For all three of these examples, it is 0.00% multiplied by $10,000.00, which equals $0.00.

6) The Accumulated Value (also Segment Interim Value) adjusted for the Bond Adjustment is the Accumulated Value (also Segment Interim Value) minus the Bond Adjustment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is $10,120.77 minus
 $0.00, which equals $10,120.77.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is $9,931.78 minus
 $0.00, which equals $9,931.78.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is $9,852.50 minus
 $0.00, which equals $9,852.50.

7) The Free Surrender Amount is the Premium Payment multiplied by the allowed Free Surrender percentage. For all three of these examples, it is $10,000.00 multiplied by 10%, which equals $1,000.00.

8) Amount after Free Surrender Amount is the Accumulated Value (also Segment Interim Value) adjusted for Bond Adjustment minus the Free Surrender Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is $10,120.77 minus
 $1,000.00, which equals $9,120.77.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is $9,931.78 minus
 $1,000.00, which equals $8,931.78.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is $9,852.50 minus
 $1,000.00, which equals $8,852.50.

9) The Surrender Charge is the Surrender Charge percentage multiplied by the Amount after Free Surrender Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is 8.00% multiplied
 by $9,120.77, which equals $729.66.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is 8.00% multiplied
 by $8,931.78, which equals $714.54.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For the 1-year 0% Floor example, it is 8.00% multiplied
 by $8,852.50, which equals $708.20.

10) The Surrender Value is the Accumulated Value (also Segment Interim Value) minus the Bond Adjustment minus the Surrender Charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For the 1-year 10% Buffer example, it is $10,120.77 minus
 $0.00 minus $729.66, which equals $9,391.11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For the 6-year 10% Buffer example, it is $9,931.78 minus
 $0.00 minus $714.54, which equals $9,217.23.

c. For
 the 1-year 0% Floor example, it is $9,852.50 minus $0.00 minus $708.20, which equals
 $9,144.30.

 **Scenario 3 – Index Value increased 20% and Bond Adjustment Index Value decreased 25%**

These examples are intended to demonstrate how 1-year 10% Buffer, 6-year 10% Buffer, and 1-year 0% Floor Segment Options are impacted by a 20% increase in the performance of the reference Index and a 25% decrease in the Bond Adjustment Index. These examples demonstrate how the Buffer or Floor Rate and the Segment Term have a significant impact on the Equity Adjustment, which then impacts the Segment Interim Value and Accumulated Value. The 1-year 0% Floor example demonstrates how the Equity Adjustment can be negative even though the Segment Option has a 0% Floor Rate, which will be reflected in a decrease to the Segment Interim Value and Accumulated Value. These examples also demonstrate how a decrease in the Bond Adjustment Index results in a positive adjustment to the Accumulated Value. For these examples, the Accumulated Value equals the Segment Interim Value because the examples occur in the middle of the Segment Term, and there is only one Segment Option for each example.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Segment Option** | **1-year 10% Buffer** | **1-year 10% Buffer** | **6-year 10% Buffer** | **1-year 0% Floor** |
|  Premium Payment |  | $10000.00 | $10000.00 | $10000.00 |
|  Crediting Base |  | $10000.00 | $10000.00 | $10000.00 |
|  Equity Adjustment percentage<sup>1</sup> |  | 10.75% | 17.76% | 4.20% |
|  Equity Adjustment Amount<sup>2</sup> | $1074.92<sup>2a</sup> | $1775.67<sup>2b</sup> |  | $420.13<sup>2c</sup> |
|  Accumulated Value (also Segment Interim Value)<sup>3</sup> | $11074.92<sup>3a</sup> | $11775.67<sup>3b</sup> |  | $10420.13<sup>3c</sup> |
|  Bond Adjustment percentage<sup>4</sup> |  | 2.61% | 2.61% | 2.61% |
|  Bond Adjustment Amount<sup>5</sup> | $261.34 |  | $261.34 | $261.34 |
|  Accumulated Value (also Segment Interim Value) adjusted for Bond Adjustment<sup>6</sup> | $11336.27<sup>6a</sup> |  | $12037.01<sup>6b</sup> | $10681.47<sup>6c</sup> |
|  Free Surrender Amount<sup>7</sup> | $1000.00 |  | $1000.00 | $1000.00 |
|  Amount after Free Surrender Amount<sup>8</sup> | $10336.27<sup>8a</sup> |  | $11037.01<sup>8b</sup> | $9681.47<sup>8c</sup> |
|  Surrender Charge percentage |  | 8.00% | 8.00% | 8.00% |
|  Surrender Charge<sup>9</sup> |  | $826.90<sup>9a</sup> | $882.96<sup>9b</sup> | $774.52<sup>9c</sup> |
|  Surrender Value<sup>10</sup> |  | $10509.36<sup>10a</sup> | $11154.05<sup>10b</sup> | $9906.95<sup>10c</sup> |

---

1) For more on the Equity Adjustment, see **8. INDEX-LINKED SEGMENT OPTION MECHANICS - Calculation of Equity Adjustment.** For purposes of simplifying the examples, the Equity Adjustment percentage has been rounded to two decimal places.

2) The Equity Adjustment Amount is the Equity Adjustment percentage multiplied by the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For
 the 1-year 10% Buffer example, it is 10.75% multiplied by $10,000.00, which equals $1,074.92.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
 the 6-year 10% Buffer example, it is 17.76% multiplied by $10,000.00, which equals $1,775.67.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For
 the 1-year 0% Floor example, it is 4.20% multiplied by $10,000.00, which equals $420.13.

3) The Accumulated Value (also Segment Interim Value) is the Crediting Base minus the Equity Adjustment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For
 the 1-year 10% Buffer example, it is $10,000.00 plus $1,074.92, which equals $11,074.92.
 If the Equity Adjustment Amount is negative, it would be subtracted from the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
 the 6-year 10% Buffer example, it is $10,000.00 plus $1,775.67, which equals $11,775.67.
 If the Equity Adjustment Amount is negative, it would be subtracted from the Crediting Base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For
 the 1-year 0% Floor example, it is $10,000.00 plus $420.13, which equals $10,420.13. If the
 Equity Adjustment Amount is negative, it would be subtracted from the Crediting Base.

4) For more on the Bond Adjustment, see **10. CONTRACT VALUES – Bond Adjustment.** For purposes of simplifying the examples, the Bond Adjustment percentage has been rounded to two decimal places.

5) The Bond Adjustment Amount is the Bond Adjustment percentage multiplied by the Crediting Base. For all three of these examples, it is 2.61% multiplied by $10,000.00, which equals $261.34.

6) The Accumulated Value (also Segment Interim Value) adjusted for the Bond Adjustment is the Accumulated Value (also Segment Interim Value) minus the Bond Adjustment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For
 the 1-year 10% Buffer example, it is $11,074.92 plus $261.34, which equals $11,336.27. If
 the Bond Adjustment is negative, it would be subtracted from the Accumulated Value (also
 Segment Interim Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
 the 6-year 10% Buffer example, it is $11,775.67 plus $261.34, which equals $12,037.01. If
 the Bond Adjustment is negative, it would be subtracted from the Accumulated Value (also
 Segment Interim Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For
 the 1-year 0% Floor example, it is $10,420.13 plus $261.34, which equals $10,681.47. If the
 Bond Adjustment is negative, it would be subtracted from the Accumulated Value (also Segment
 Interim Value).

7) The Free Surrender Amount is the Premium Payment multiplied by the allowed Free Surrender percentage. For all three of these examples, it is $10,000.00 multiplied by 10%, which equals $1,000.00.

8) Amount after Free Surrender Amount is the Accumulated Value (also Segment Interim Value) adjusted for Bond Adjustment minus the Free Surrender Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For
 the 1-year 10% Buffer example, it is $11,336.27 minus $1,000.00, which equals $10,336.27.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
 the 6-year 10% Buffer example, it is $12,037.01 minus $1,000.00, which equals $11,037.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For
 the 1-year 0% Floor example, it is $10,681.47 minus $1,000.00, which equals $9,681.47.

9) The Surrender Charge is the Surrender Charge percentage multiplied by the Amount after Free Surrender Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For
 the 1-year 10% Buffer example, it is 8.00% multiplied by $10,336.27, which equals $826.90.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
 the 6-year 10% Buffer example, it is 8.00% multiplied by $11,037.01, which equals $882.96.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For
 the 1-year 0% Floor example, it is 8.00% multiplied by $9,681.47, which equals $774.52.

10) The Surrender Value is the Accumulated Value (also Segment Interim Value) minus the Bond Adjustment minus the Surrender Charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. For
 the 1-year 10% Buffer example, it is $11,074.92 plus $261.34 minus $826.90, which equals
 $10,509.36. If the Bond Adjustment is negative, it would be subtracted from the Accumulated
 Value (also Segment Interim Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. For
 the 6-year 10% Buffer example, it is $11,775.67 plus $261.34 minus $882.96, which equals
 $11,154.05. If the Bond Adjustment is negative, it would be subtracted from the Accumulated
 Value (also Segment Interim Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. For
 the 1-year 0% Floor example, it is $10,420.13 plus $261.34 minus $774.52, which equals $9,906.95.
 If the Bond Adjustment is negative, it would be subtracted from the Accumulated Value (also
 Segment Interim Value).

**APPENDIX C**

**STATE VARIATIONS**

[Will be updated by amendment]

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp; **State** | &nbsp;&nbsp; **Benefit** | &nbsp;&nbsp; **Variation** |
| &nbsp;&nbsp; Alaska | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; California | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If the Owner is age 60 or above, the right to cancel period is 30 days. <br> Upon exercising the Right to Cancel, the company will refund the Contract value, including any Contract fees, if applicable.  |
| &nbsp;&nbsp; Florida | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; Your right to cancel period is 21 days and we will refund the cash surrender value. |
| &nbsp;&nbsp; Hawaii | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; Idaho | &nbsp;&nbsp; Free Look  | &nbsp;&nbsp; Your right to cancel period is 20 days and we refund the premium payment. |
|  | &nbsp;&nbsp; Surrender | &nbsp;&nbsp; Surrender payments will be delayed no longer than six months from the date we receive your notice to surrender. |
| &nbsp;&nbsp; Kentucky | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; Your right to cancel period is 20 days. |
| &nbsp;&nbsp; Louisiana | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; Maryland | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; Massachusetts | &nbsp;&nbsp; Free Look <br>| &nbsp;&nbsp; Your right to cancel period is 20 days and we refund the premium payment. |
| &nbsp;&nbsp; Minnesota | &nbsp;&nbsp; Free Look  | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. <br> Notice of cancellation and return of the Contract are effective on the date received by us or our agent. <br> Will refund premium payment or accumulated value within 10 days of receiving cancellation notice.  |
|  | &nbsp;&nbsp; Death Benefit | &nbsp;&nbsp; We will pay death benefit within two months. |
| &nbsp;&nbsp; Montana | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; Nebraska | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; Nevada | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; New Hampshire | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; North Carolina | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; North Dakota | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; Your right to cancel period is 20 days. |
| &nbsp;&nbsp; Ohio | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; Pennsylvania | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; We will refund the Accumulated Value or Premium payment, whichever is greater. <br> If the Contract is a replacement for an existing contract which was issued to you by Principal Life Insurance Company, the 15 day period is extended to 45 days.  |
| &nbsp;&nbsp; Rhode Island | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; Your right to cancel period is 20 days and we will refund the premium paid. |
| &nbsp;&nbsp; Texas | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; Your right to cancel period is 20 days. |
|  | &nbsp;&nbsp; Separate Account | &nbsp;&nbsp; The description of the Separate Account is modified for contracts issued in Texas. The Separate Account is a segregated account, established by Principal, in which we hold reserves for the Index-Linked Segment Option under the Contract. The portion of the assets of the Separate Account equal to the reserves and other liabilities arising out of any other business we may conduct. |
| &nbsp;&nbsp; Utah | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; We will refund the Accumulated Value or premium payment, whichever is greater. <br> If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days.  |
| &nbsp;&nbsp; Vermont | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |
| &nbsp;&nbsp; Washington | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; We will refund the market value of the assets purchased by its premium, less taxes and investment brokerage commissions (if any). <br> An additional 10% penalty shall be added to any premium refund due which is not paid within 30 days of return of the policy. <br> If your Contract is the result of a replacement of an existing contract, your right to cancel period is 20 days.  |
| &nbsp;&nbsp; Wisconsin | &nbsp;&nbsp; Free Look | &nbsp;&nbsp; If your Contract is the result of a replacement of an existing contract, your right to cancel period is 30 days. |

---

 **PART II**

 **INFORMATION NOT REQUIRED IN PROSPECTUS**

 **Item 13. Other Expenses of Issuance and Distribution**

The Company's expenses in connection with the issuance and distribution of the contracts, other than any underwriting commissions, are as follows (except for the SEC filing fee, all amounts shown are estimates):

---

| | |
|:---|:---|
| SEC Registration Fee | $|
| Legal Fees and Expenses | $|
| Accounting Fees and Expenses | $|
| Cost of Independent Registered Public Accounting Firm Audit Of Company's Financial Statements | $|
| Printing Costs: | $|
| **Total Expenses** | **$** |

---

 **Item 14. Indemnification of Directors and Officers**

Sections 490.851 through 490.859 of the Iowa Business Corporation Act permit corporations to indemnify directors and officers where (A) all of the following apply: the director or officer (i) acted in good faith; (ii) reasonably believed that (a) in the case of conduct in the individual's official capacity, that the individual's conduct was in the best interests of the corporation or (b) in all other cases, that the individual's conduct was at least not opposed to the best interests of the corporation; and (iii) in the case of any criminal proceeding, the individual had no reasonable cause to believe the individual's conduct was unlawful; and (B) the individual engaged in conduct for which broader indemnification has been made permissible or obligatory under a provision of the corporation's articles of incorporation.

Unless ordered by a court pursuant to the Iowa Business Corporation Act, a corporation shall not indemnify a director or officer in either of the following circumstances: (A) in connection with a proceeding by or in the right of the corporation, except for reasonable expenses incurred in connection with the proceeding if it is determined that the director has met the relevant standard of conduct (above) or (B) in connection with any proceeding with respect to conduct for which the director was adjudged liable on the basis that the director receive a financial benefit to which he or she was not entitled, whether or not involving action in the director's official capacity.

The Company's Bylaws provide that the Board of Directors shall have the Company indemnify, or authorize the officers of the Company to have the Company indemnify, directly and through insurance coverage, each person now or hereafter a director, officer, employee or other representative of the corporation, and that person's heirs and legal representatives, against all damages, awards, costs and expenses, including counsel fees, reasonably incurred or imposed in connection with or resulting from any action, suit or proceeding, or the settlement thereof prior to final adjudication, to which such person is or may be made a party by reason of being or having been a director, officer, employee or other representative of the corporation or by reason of service at the request of the corporation in any capacity with another entity or organization. Such rights or indemnification shall be in addition to any rights to which any director, officer, employee or other representative of the corporation, former, present or future, may otherwise be entitled as a matter of law and subject to such limitations permitted by law as may be established by the Board of Directors.

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

 **Item 15. Recent Sales of Unregistered Securities**

Not applicable.

**Item 16. Exhibits and Financial Statement Schedules**

(a) Exhibits

Distribution Agreement \*\*

Selling Agreement \*\*

[Amended and Restated Articles of Incorporation of Principal Life Insurance Company dated 12/30/2009 (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/plic-articlesofincorporati.htm)

[Amended and Restated By-laws of Principal Life Insurance Company dated 02/24/2009 (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/plic-bylaws.htm)

[Form of Contract (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/rilacontract.htm)

[Rate Enhancement Rider (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/rateenhancementrider.htm)

[Segment Lock-In Rider (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/segmentlock-inrider.htm)

[Contract Data Page (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/rilacontract.htm)

[Form of Application (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/application.htm)

Opinion of Legal Counsel \*\*

[Subsidiaries of Registrant (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/subsidiaries.htm)

Consent of Ernst & Young, LLP \*\*

Consent of Legal Counsel \*\*

[Powers of Attorney (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/poa-principaloutcomeprotec.htm)

[Registration Fee Table (filed with the Commission on 10/20/2022 Accession No. 0000009712-22-000015)](http://www.sec.gov/Archives/edgar/data/9712/000000971222000015/ex-filingfees.htm)

(b) Financial Statement Schedules \*\*

\* Filed Herein

\*\* To be filed by amendment

 **Item 17. Undertakings**

The undersigned Company hereby undertakes:

(A) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5) That, for the purpose of determining liability of the Company under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned Company undertakes that in a primary offering of securities of the undersigned Company pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Company will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Any preliminary prospectus or prospectus of the undersigned Company relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Company or used or referred to by the undersigned Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned Company or its securities provided by or on behalf of the undersigned Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) Any other communication that is an offer in the offering made by the undersigned Company to the purchaser.

(B) Insofar as indemnification for liabilities arising under the Securities Act of 1933 ("Act") may be permitted to directors, officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officers or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant, Principal Life Insurance Company, has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereto duly authorized in the City of Des Moines, State of Iowa, on the 2nd day of March, 2023.

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| | |
|:---|:---|
| PRINCIPAL LIFE INSURANCE COMPANY | PRINCIPAL LIFE INSURANCE COMPANY |
| (Registrant) | (Registrant) |
| By : | /s/ D. J. Houston |
|  | D. J. Houston |
|  | Director, Chairman, President and Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the date indicated.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ D. J. Houston | Director, Chairman, President, and | March 2, 2023 |
| D. J. Houston | Chief Executive Officer |  |
| /s/ J. M. Pitz | Senior Vice President and Controller | March 2, 2023 |
| J. M. Pitz | (Principal Accounting Officer) |  |
| /s/ D. D. Strable-Soethout | Executive Vice President and Chief Financial Officer | March 2, 2023 |
| D. D. Strable-Soethout | (Principal Financial Officer) |  |
| /s/ J. S. Auerbach | Director | March 2, 2023 |
| J. S. Auerbach |  |  |
| /s/ M. E. Beams | Director | March 2, 2023 |
| M. E. Beams |  |  |
| /s/ J. Carter-Miller | Director | March 2, 2023 |
| J. Carter-Miller |  |  |
| /s/ M. T. Dan | Director | March 2, 2023 |
| M. T. Dan |  |  |
| /s/ R. C. Hochschild | Director | March 2, 2023 |
| R. C. Hochschild |  |  |
| /s/ S. M. Mills | Director | March 2, 2023 |
| S. M. Mills |  |  |
| /s/ H. E. Mitchell | Director | March 2, 2023 |
| H. E. Mitchell |  |  |
| /s/ C. N. Muruzabal | Director | March 2, 2023 |
| C. N. Muruzabal |  |  |
| /s/ D. C. Nordin | Director | March 2, 2023 |
| D. C. Nordin |  |  |
| /s/ B. C. Pickerell | Director | March 2, 2023 |
| B. C. Pickerell |  |  |
| /s/ C. S. Richer | Director | March 2, 2023 |
| C. S. Richer |  |  |
| /s/ A. Rivera | Director | March 2, 2023 |
| A. Rivera |  |  |

---

---

| | |
|:---|:---|
| **\***By | /s/ D. J. Houston |
|  | D. J. Houston |
|  | Director, Chairman, President and Chief Executive Officer |
| \* | Pursuant to Powers of Attorney filed with the Commission on 10/20/2022 (Accession No. 0000009712-22-000015) |

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## Cover

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| | |
|:---|:---|
| Principal Life Insurance Company<br> 711 High Street, Des Moines, IA 50392<br> 515 247 5111 tel | ![](tm2233088d1_correspimg002.jpg) |

---

March 2, 2023

Via EDGAR

Securities and Exchange Commission

Division of Investment Management

Office of Insurance Products

100 F Street, NE

Washington D.C. 20549

---

| | |
|:---|:---|
| RE: | Principal Life Insurance Company |
|  | Principal<sup>®</sup> Strategic Outcomes Index-Linked Deferred Annuity |
|  | File No.: 333-267959 |
|  | Second Pre-Effective Amendment to the Registration Statement on Form S-1 |

---

Dear Sir or Madam:

Enclosed is pre-effective amendment no. 2 to registration statement on Form S-1 for Principal<sup>®</sup> Strategic Outcomes Index-Linked Deferred Annuity. This filing is being made on behalf of Principal Life Insurance Company (the "Registrant") to incorporate changes made by Registrant to address comments by the Staff of the Securities and Exchange Commission ("Commission"). The Staff's comments were communicated to Registrant by telephone on February 13-14, 2023.

Please direct all comments and questions regarding this filing to the undersigned. In advance, thank you for your assistance with this filing.

Sincerely,

/s/ Doug Hodgson

Doug Hodgson

Counsel, Registrant

711 High Street

Des Moines, IA 50392-0300

(515) 362-2384

Hodgson.Doug@principal.com