FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT. We agree to provide the
benefits and other rights of this contract. Payment of benefits is subject to
the provisions, terms, and conditions of this contract. NON-PARTICIPATING.
This contract is a legal contract between You, as Owner, and Us, Principal Life
Insurance Company, a stock company and member of Principal Financial Group(R).
Your contract is issued based on the information You have given Us and payment
of the Initial Premium as shown on the Data Page.
The accumulated value will increase or decrease each Valuation Day depending on
the investment experience of the Separate Account Divisions that You select.
There are no minimum guarantees for the performance of the Divisions.
EXAMINATION OFFER. IT IS IMPORTANT TO US THAT YOU ARE SATISFIED WITH THIS
CONTRACT. IF YOU ARE NOT SATISFIED, YOU MAY RETURN YOUR CONTRACT TO EITHER YOUR
MARKETER OR OUR OFFICE BEFORE THE LATER OF: (1) 10 DAYS AFTER YOU RECEIVE THE
CONTRACT OR (2) SUCH LATER DATE AS SPECIFIED BY APPLICABLE STATE LAW. IF YOU
RETURN THIS CONTRACT, WE WILL REFUND YOUR PREMIUM IN STATES WHERE REQUIRED. IN
STATES WHERE PERMITTED, WE WILL REFUND THE ACCUMULATED VALUE PLUS ANY FEES OR
CHARGES TAKEN, WHICH MAY BE MORE OR LESS THAN PREMIUMS PAID. PLEASE READ YOUR
CONTRACT CAREFULLY SO YOU MAY BETTER USE ITS MANY BENEFITS.
The terms of this contract start on the Contract Date. So long as You satisfy
the requirements set out in this contract, the contract will remain in force
until the earliest of the payment of the death benefit, payment of the surrender
value, or election of a benefit option.
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TABLE OF CONTENTS
SUBJECT PAGE
CONTRACT DEFINITIONS..................................5
PREMIUMS..............................................5
CONTRACT VALUES.......................................6
SEPARATE ACCOUNT......................................7
TRANSFERS.............................................8
FULL AND PARTIAL SURRENDERS...........................9
DEATH BENEFITS........................................9
BENEFIT PROVISIONS...................................10
FEES AND CHARGES.....................................13
GENERAL INFORMATION..................................15
Any additional benefits provided by rider or endorsement follow the last page of
this contract.
DATA PAGE
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Flexible Premium Deferred Variable Annuity
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CONTRACT DATA
Contract Number: [Sample]
Annuitant/Age: [Xxxx Xxx/35]
Owner: [Xxxx Xxx]
Joint Annuitant/Age: [Xxxx Xxx/35]
Joint Owner: [Xxxx Xxx]
Contract Date: [November 1, 2004]
Maximum Annuitization Date: [October 31, 2054]
Initial Premium: [$10,000.00]
BENEFITS
Fixed Account Guaranteed Minimum Interest Rate:
Contract Years 1-10: [2.00%-3.00%]
Contract Years 11 and thereafter: 3.00%
Fixed Account Initial Interest Rate: [3.50%]
The Fixed Account Initial Interest Rate may reflect an adjustment for the
Premium Payment Credit Rider.
Fixed Dollar Cost Averaging (DCA) Account
Guaranteed Minimum Interest Rate:
Contract Years 1-10: [2.00%-3.00%]
Contract Years 11 and thereafter: 3.00%
Fixed DCA Account 6-Month DCA Term
Initial Interest Rate: [4.50%]
Fixed DCA Account 12-Month DCA Term
Initial Interest Rate: [5.50%]
CONTRACT CHARGES AND LIMITS
Separate Account Administration Charge: Currently [ 0.00% ], not to exceed 0.15% annually
Mortality & Expense Risks Charge: 1.25% annually
Annual Fee: Lesser of $30.00 or 2.00% of accumulated value
Transaction Fee: Currently [ $00.00 ], or, for unscheduled Division
transfers after the first, such larger amount as is
required by law or by the underlying mutual fund of
the Division.
Minimum Additional Premium: $500.00
Maximum Total Premium Contributions: $2,000,000.00
Minimum Unscheduled Partial Surrender: $100.00
Minimum Accumulated Value After
A Partial Surrender: $5,000.00
Minimum Accumulated Value To Initiate A
Scheduled Partial Surrender: $5,000.00
Minimum Transfer Amount: $100.00
Free Surrender Amount: The greater of (A.) and (B.) where: (A.) is 10% of
remaining premium payments still subject to a
Surrender Charge, decreased by any partial surrenders
made since the last Contract Anniversary; and (B.)
is the accumulated value minus remaining premium
payments as of the surrender date.
[ Minimum Fixed DCA Account Premium Payment: $1,000.00 ]
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SURRENDER CHARGES
Completed Contract Years Since
Each Premium Payment Was Made Surrender Charge Percentage
0 6.00%
1 6.00%
2 6.00%
3 5.00%
4 4.00%
5 3.00%
6 2.00%
7 and after 0.00%
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SURRENDER CHARGES
Completed Contract Years Since
Each Premium Payment Was Made Surrender Charge Percentage
0 8.00%
1 8.00%
2 7.00%
3 6.00%
4 5.00%
5 4.00%
6 3.00%
7 2.00%
8 1.00%
9 and after 0.00%
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RIDER DATA
Enhanced Death Benefit Rider
Effective Date: [ September 1, 2004 ]
Quarterly Rider Charge: Currently [ 0.0625% ] of average quarterly accumulated value, not to exceed
0.0750%.
Guaranteed Minimum Withdrawal Benefit Rider
Effective Date: [ September 1, 2004 ]
Quarterly Rider Charge: Currently [ 0.1500% ] of average quarterly Investment Back Remaining
Withdrawal Benefit Base, not to exceed 0.2125%.
Premium Payment Credit Rider
Effective Date: [ September 1, 2004 ]
Annual Rider Charge: 0.60% of the Division Value for the first eight Contract Years.
[ Also, the Fixed Account Initial Interest Rate may reflect an adjustment for this
rider. ]
CONTRACT DEFINITIONS
All capitalized terms used in this contract are either defined here or are shown
on the Data Page.
ANNUITANT means the person, including any Joint Annuitant, whose life determines
the annuity benefit. The Annuitant is named on the Data Page, unless
subsequently changed. This person may or may not be the Owner.
ANNUITIZATION DATE is the date the accumulated value is applied, under a benefit
option, to make income payments.
CONTRACT ANNIVERSARY is the same day and month as the Contract Date in each
Contract Year.
CONTRACT DATE is the date shown on the Data Page.
CONTRACT YEAR means 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.
DIVISION is the part of the Separate Account that invests in shares of a
corresponding underlying Mutual Fund. The value of an investment in a Division
is variable and is not guaranteed.
FREE SURRENDER AMOUNT is the amount defined on the Data Page that may be
withdrawn from the contract without a Surrender Charge.
INVESTMENT OPTION is a Division to which premium payments may be allocated or
amounts may be transferred.
JOINT ANNUITANT(s) is the person named as the Joint Annuitant on the Data Page,
unless subsequently changed.
JOINT OWNER(s) means the Owners who have an undivided interest in this contract.
In this contract, any reference to the Owner's death means the death of the
first Owner to die.
MUTUAL FUND means a registered open-end investment company, or a separate
investment account or portfolio thereof, in which a Division invests.
NOTICE means any communication either in writing or another manner that We
approve in advance that: 1. We receive either in Our office or at such other
address as We notify You in writing; and 2. provides the information We need
including any information required by any applicable law.
OWNER means the person, including any Joint Owner, who owns all rights and
privileges of this contract. If the Owner is not a natural person, the Owner
must be an entity with its own taxpayer identification number.
SEPARATE ACCOUNT means Principal Life Insurance Company Separate Account B, a
registered unit investment trust under the Investment Company Act of 1940, as
amended, with Divisions to which premium payments may be allocated under this
contract.
UNIT is the accounting measure used to calculate the Division values.
VALUATION DAY is any day that the New York Stock Exchange (NYSE) is open for
trading, and trading is not restricted.
VALUATION PERIOD means the period beginning at the close of normal trading in
the NYSE, generally 4:00 p.m. E.T. on each Valuation Day, and ending at the
close of normal trading of the NYSE on the next Valuation Day.
WE, OUR, US means Principal Life Insurance Company.
YOU, YOUR means the Owner(s) of this contract.
PREMIUMS
PREMIUM PAYMENTS
Your Initial Premium is due on the Contract Date. After that, You may send Us
additional premiums at any time while this contract is in force and before the
Annuitization Date. The Minimum Additional Premium allowed at any one time is
shown on the Data Page. We will confirm Our receipt of premiums paid.
The total premium payments You make during the lifetime of this contract may not
exceed the Maximum Total Premium Contributions shown on the Data Page, except
with Our prior written approval.
PREMIUM PAYMENT ALLOCATIONS
You may allocate premiums to any of the Investment Options. We will allocate the
Initial Premium as of the Contract Date based upon the allocation instructions
You have given Us, unless otherwise required by state law. However, We reserve
the right to allocate the initial premium payment entirely to the Money Market
Division during the Examination Offer period. The sum of the percentages for all
allocations must equal 100%.
You may change the allocation percentages by providing Us Notice.
CONTRACT VALUES
Any annuity benefit, surrender value or death benefit available under this
contract will not be less than the minimum benefit required by state law.
ACCUMULATED VALUE
The accumulated value equals the sum of the values in all of the Investment
Options under this contract.
DIVISION VALUE
The value for each Division under this contract is equal to the number of Units
in that Division multiplied by that Division's Unit value. The number of Units
in a Division at any time equals 1 minus 2, where: 1. is the number of Units
credited to the Division because of:
a. premiums and credits allocated to it; b. amounts transferred to it; and
2. is the number of Units redeemed from the Division because of: a. amounts
deducted from it; b. amounts transferred from it; and c. amounts surrendered
from it.
UNITS AND UNIT VALUES
We will determine the Unit value for each Division at the end of each Valuation
Day.
The Unit value for each Division is obtained by multiplying the Unit value for
the immediately preceding Valuation Day by the particular Division's net
investment factor for the current Valuation Period.
NET INVESTMENT FACTOR
On any Valuation Day, the net investment factor for a Division is:
1. the net asset value of the underlying Mutual Fund shares held by that
Division at the end of such Valuation Day before any contract
transactions are made on that day plus the per share amount of any
dividend or other distribution made by such Mutual Fund during such
Valuation Day; divided by
2. the net asset value of the underlying Mutual Fund shares held by that
Division at the end of the immediately preceding Valuation Day after
all contract transactions were made for that day; minus
3. a separate account administration charge; minus 4. a mortality and
expense risks charge.
The charges in 3. and 4. above accrue daily and will be deducted from the
Separate Account at Our discretion.
We reserve the right to change the separate account administration charge as
shown on the Data Page.
We reserve the right to adjust the above formula for any taxes determined by Us
to be attributable to the operations of the Division.
SEPARATE ACCOUNT
SEPARATE ACCOUNT ASSETS
Assets are put into the Separate Account Divisions to support this contract and
to support other variable annuity contracts We may offer. We own the assets of
the Separate Account. These assets are not part of Our general account. Income,
gains and losses of the Separate Account Divisions, whether or not realized, are
credited to or charged against the Separate Account Divisions' assets, without
regard to Our other income, gains or losses. The assets of the Separate Account
will be available to cover the liabilities of Our general account only to the
extent that the Separate Account assets exceed its liabilities.
SEPARATE ACCOUNT DIVISIONS
We reserve the right to add other Divisions, eliminate or combine existing
Divisions, or transfer assets in one Division to another. If shares of a Mutual
Fund are no longer available for investment, or in Our judgment investment in a
Mutual Fund becomes inappropriate considering the purpose of the Separate
Account, We may eliminate the shares of a Mutual Fund or a class of shares of a
Mutual Fund and substitute shares of another Mutual Fund or another class of a
Mutual Fund. Substitution may be made with respect to both existing investments
and the investment of future premium payments. However, no such changes will be
made without notifying You and getting any required approval from the
appropriate state and/or federal regulatory authorities.
If We eliminate or combine existing Divisions, or transfer assets in one
Division to another, You may change Your allocation percentages and transfer any
value in the eliminated or combined Divisions to other Divisions. You may
exercise this right until the later of 60 days after:
1. the effective date of such change; or 2. the date You receive notice of this
right.
You may exercise this right at no charge only if You have an interest in the
affected Divisions.
TRANSFERS
TRANSFERS ALLOWED
You may transfer amounts between the Investment Options as provided below. To
request a transfer, You must provide Us Notice. If We receive Your request prior
to the close of the NYSE, the transfer is made and Division Values will be
determined as of that day. Requests received after the close of the NYSE will be
processed and Division Values will be determined as of the next Valuation Day.
RESERVATION OF RIGHTS - We reserve the right to not accept transfer requests
from someone requesting them for multiple contracts for which they are not the
Owner. We reserve the right to reject transfers if We deem that the transfers
would disrupt the management of the Separate Account, any Division, or any
underlying Mutual Fund. Excessive transfers can disrupt management strategy of
the underlying Mutual Funds and increase expenses, which are borne by all
Owners. In addition, We may suspend or modify transfer privileges at Our sole
discretion, at any time, to prevent transfers that could disadvantage other
Owners. These modifications could include, but are not limited to:
1. Requiring a minimum time period between each transfer;
2. Not accepting transfer requests from someone providing them for
multiple contracts for which he or she is not the Owner;
3. Limiting the dollar amount that an Owner may transfer at any one time;
or
4. Imposing a Transaction Fee as shown on the Data Page.
You may transfer amounts from one Investment Option to another by making
scheduled or unscheduled transfers, as follows:
1. You may make unscheduled transfers as follows:
a. You must specify the dollar amount or percentage to transfer to and
from each Investment Option. The amount must equal or exceed the
lesser of the Investment Option value, or the Minimum Transfer Amount
shown on the Data Page;
b. a transfer will occur within 1 Valuation Day after the date We receive
Your Notice;
2. You may make scheduled transfers (Dollar Cost Averaging) as follows:
a. You must specify the dollar amount or percentage to transfer to and
from each Investment Option. The amount must equal or exceed the
lesser of the Investment Option value or the Minimum Transfer Amount
shown on the Data Page;
b. You must specify how often the transfers will occur (annually,
semi-annually, quarterly or monthly);
c. transfers will occur on the date You specify other than the 29th, 30th
or 31st of any month;
d. the value of each Investment Option from which transfers are made must
equal or exceed the Minimum Transfer Amount shown on the Data Page;
e. the transfers will continue until Your interest in the Investment
Option is zero or We receive Notice to stop the transfers; and
f. We reserve the right to limit the number of Investment Options from
which scheduled transfers will be made at the same time. In no event
will it ever be less than two.
AUTOMATIC PORTFOLIO REBALANCING
Automatic portfolio rebalancing (APR) allows You to maintain the specific
Division allocation percentages You have elected.
APR transfers:
1. do not begin until the expiration of the Examination Offer period
described on the contract cover;
2. may be made on the frequency You specify: quarterly (on a calendar
year or Contract Year basis) or semi-annually or annually (on a
Contract Year basis); and
3. do not begin until We receive Your Notice.
Transfers are effective at the end of the Valuation Period during which We
receive Your Notice. APR is not available if You have elected scheduled
transfers.
FULL AND PARTIAL SURRENDERS
You may surrender this contract at any time prior to the Annuitization Date
provided that the Owner is living. Notice to surrender this contract must be
provided to Us at Our office.
FULL SURRENDER
You may surrender this contract in full for the surrender value. The surrender
value at any time is equal to the accumulated value on the date We receive Your
Notice, less any applicable Surrender Charge, Transaction Fees and/or Annual
Fees.
PARTIAL SURRENDERS
You may make scheduled and unscheduled partial surrenders of this contract by
providing Us Notice. Partial surrenders reduce the accumulated value of the
contract, and are deducted from the Investment Options in the same proportion as
Your current premium payment allocations unless You direct otherwise.
If the partial surrender amount is less than the remaining Free Surrender Amount
for that Contract Year, no Surrender Charge applies. Partial surrenders that
exceed the remaining Free Surrender Amount for that Contract Year are subject to
any applicable Surrender Charge.
Any partial surrender that would reduce the accumulated value to less than the
Minimum Accumulated Value After A Partial Surrender amount shown on the Data
Page will be treated as a request for full surrender of this contract.
The Minimum Unscheduled Partial Surrender amount is shown on the Data Page.
The Minimum Accumulated Value To Initiate A Scheduled Partial Surrender is shown
on the Data Page.
Scheduled partial surrenders will:
1. occur on a date and in an amount You specify in the Notice, other than the
29th, 30th or 31st of any month;
2. occur either annually, semi-annually, quarterly or monthly, as specified in
Your Notice; and
3. continue until the accumulated value is zero or We receive Notice to stop
scheduled partial surrenders.
DEATH BENEFITS
Prior to the Annuitization Date, You may file benefit instructions for the
payment of the death benefit under a benefit option. Such benefit instructions,
or a change of benefit instructions, must be in a written Notice. A change of
beneficiary will revoke any prior benefit instructions.
If benefit instructions are in effect, the death benefit will be paid according
to those instructions. If no benefit instructions are in effect, We will pay the
death benefit as described in the Death of Owner(s) provision.
DEATH BENEFIT
If the Owner dies prior to the Annuitization Date, We will pay the death benefit
upon Our receipt of all documents (including due proof of death) that We require
to process the claim. No Surrender Charge applies when We pay a death benefit.
The death benefit is equal to the greatest of:
a. the accumulated value as of the Valuation Date on which We receive the
required documents (including due proof of death);
b. the total premium payments minus an adjustment for each partial
surrender made on or before the Valuation Date on which We receive the
required documents (including due proof of death); or
c. the death benefit that was in effect on any prior Contract Anniversary
that is divisible equally by 7, plus any premium payments and minus an
adjustment of each partial surrender made after that Contract
Anniversary.
The adjustment for partial surrenders as described in b. and c. above will
reduce the death benefit in the same proportion that the accumulated value was
reduced on the date of the partial surrender. The adjustment for partial
surrenders is computed as follows:
1. the partial surrender amount plus any applicable charges; divided by
2. the accumulated value immediately prior to the partial surrender;
multiplied by
3. the amounts determined in b. or c. above, immediately prior to the partial
surrender.
The accumulated value will remain invested in the Investment Options until the
Valuation Date on which We receive the required documents (including due proof
of death). If more than one beneficiary is named, a beneficiary's portion of the
death benefit will remain invested in the Investment Options until the Valuation
Date on which We receive the required documents (including due proof of death).
We will pay interest on the death benefit from the date on which We received the
required documents (including due proof of death) to the earlier of:
1. the date of payment; or
2. one year from the date on which We received the required documents
(including due proof of death), unless otherwise required by law.
We will determine the rate of interest, which will not be less than the interest
rate required by law.
DEATH OF OWNER(S)
Unless benefit instructions are in place, the following provisions apply upon an
Owner's death if a contract is not jointly owned:
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.
2. If the primary beneficiary(ies) is someone other than the surviving spouse,
the primary beneficiary(ies) will receive the death benefit.
Unless benefit instructions are in place, the following provisions apply upon
the death of the first Owner to die when a contract is jointly owned:
1. The surviving Owner will be treated as the sole primary beneficiary. Any
other beneficiary designation on record at the time of an Owner's death
will be treated as a contingent beneficiary.
2. If the surviving Owner is the spouse of the deceased Owner and no benefit
instructions are in place, the surviving spouse may elect to continue the
contract, elect to receive the death benefit in a lump sum payment, or
elect a benefit option.
3. If the surviving Owner is not the spouse of the deceased Owner, the
surviving Owner will 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.
BENEFIT PROVISIONS
ANNUITY BENEFIT
An annuity benefit is a periodic income payable to You. If this contract is in
force and the Annuitant is living, an annuity benefit becomes payable upon the
earlier of the date You request payments begin or the Maximum Annuitization
Date. No Surrender Charge applies when We pay annuity benefits.
You may request commencement of an annuity benefit anytime after the first
Contract Anniversary and prior to the Maximum Annuitization Date by sending Us
Notice at Our office. The accumulated value will be applied to an annuity
benefit as of the date We receive the Notice.
At the time an annuity benefit begins, We will issue a supplementary contract
which provides for payment of the annuity benefit.
MAXIMUM ANNUITIZATION DATE
The Maximum Annuitization Date shown on the Data Page is the date on which an
annuity benefit will commence, unless You request an earlier Annuitization Date.
ELECTION OF BENEFIT OPTIONS
Prior to the Maximum Annuitization Date, You may elect a benefit option
described in the Description of Benefit Options provision below. If You do not
elect a benefit option prior to the Maximum Annuitization Date, We will make
payments on the following basis:
1. for contracts with one Annuitant, annuity payments will be based on a life
income with 10-year guaranteed period; and
2. for contracts with joint Annuitants, annuity payments will be based on a
joint and 100% survivor life income with 10-year guaranteed period.
CONDITIONS
Election of any benefit option is subject to the following conditions:
1. no changes may be made to the benefit option once a supplementary contract
is issued;
2. the amount applied must be at least $2,000.00;
3. if a benefit option is chosen for the payment of the death benefit, the
benefit options available are limited if the beneficiary is not a natural
person; and
4. We reserve the right to require evidence of age, gender if applicable, and
continuing survival.
DESCRIPTION OF BENEFIT OPTIONS
OPTION A, CUSTOM BENEFIT ARRANGEMENT: A customized benefit option can be
designed with Our written approval.
OPTION B, LIFE INCOME: We will pay an income during a person's lifetime. You may
elect a minimum guaranteed period. Payments will be in an amount We determine
but not less than guaranteed by this section. The guaranteed minimum monthly
life income for an elected 10-year guaranteed period is shown in Option B Tables
below. If the person dies after payments begin but before the end of any minimum
guaranteed period, the remaining payments will be paid to named beneficiary(ies)
under the benefit option until the end of the guaranteed period.
OPTION C, JOINT AND SURVIVOR LIFE INCOME: We will pay an income during the
lifetime of two people. Payments will continue until the deaths of both people.
You may elect a minimum guaranteed period. Payments will be in an amount We
determine but not less than guaranteed by this section. The minimum monthly
joint and 100% survivor life income for an elected 10-year guaranteed period is
shown in Option C Tables below. If both persons die after payments begin but
before the end of any minimum guaranteed period, the remaining payments will be
paid to named beneficiary(ies) under the benefit option until the end of the
guaranteed period.
Benefit Options B and C are based on the Annuity 2000 Mortality Table with
mortality projected 20 years by projection Scale G and 3.0% interest. Benefit
options are also based on the gender of the Annuitant or Joint Annuitant, if
applicable, except for contracts issued in states that require unisex tables or
in connection with employment related annuities and benefit plans not based on
the gender of the Annuitant.
OPTION B TABLES
These tables show the minimum monthly life income with 10-year guaranteed period
for each $1,000 of proceeds applied. We will make the first payment on the
effective date of the supplementary contract.
------------------------ -------------------------- --------------------- --------------------------
Age
Age Last Birthday
Last Birthday 10-Year Guaranteed of Female/ 10-Year Guaranteed
of Male Annuitant Period Unisex Annuitant Period
------------------------ -------------------------- --------------------- --------------------------
------------------------ -------------------------- --------------------- --------------------------
55 4.19 55 3.93
56 4.27 56 4.00
57 4.35 57 4.06
58 4.43 58 4.13
59 4.52 59 4.21
60 4.61 60 4.29
61 4.71 61 4.37
62 4.81 62 4.46
63 4.92 63 4.55
64 5.03 64 4.65
65 5.15 65 4.75
66 5.27 66 4.86
67 5.40 67 4.98
68 5.53 68 5.10
69 5.67 69 5.23
70 5.82 70 5.37
71 5.97 71 5.52
72 6.12 72 5.67
73 6.28 73 5.83
74 6.44 74 5.99
75 6.61 75 6.17
85 8.30 85 8.06
95 9.37 95 9.29
------------------------ -------------------------- --------------------- --------------------------
OPTION C TABLES
These tables show the minimum monthly joint and 100% survivor life income with
10-year guaranteed period for each $1,000 of proceeds applied. We will make the
first payment on the effective date of the supplementary contract.
-------------------------- --------------------------------------------------------------------------------------
Age Last Birthday of Age Last Birthday of Female Annuitant
Male Annuitant
-------------------------- --------------------------------------------------------------------------------------
-------------------------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
55 60 62 65 70 75 85 95
-------------------------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
-------------------------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
60 3.72 3.91 3.98 4.09 4.26 4.39 4.55 4.60
62 3.75 3.96 4.04 4.17 4.37 4.53 4.73 4.80
65 3.79 4.03 4.13 4.28 4.53 4.75 5.04 5.13
70 3.85 4.13 4.25 4.44 4.79 5.12 5.61 5.79
75 3.88 4.19 4.34 4.57 5.00 5.46 6.23 6.55
85 3.92 4.26 4.43 4.71 5.27 5.95 7.37 8.13
95 3.93 4.28 4.45 4.75 5.36 6.14 7.95 9.08
-------------------------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
-------------------------- --------------------------------------------------------------------------------------
Age Last Birthday Age Last Birthday of Younger Unisex Annuitant
of Older Unisex Annuitant
-------------------------- --------------------------------------------------------------------------------------
-------------------------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
55 60 62 65 70 75 85 95
-------------------------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
-------------------------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
60 3.67 3.82
62 3.71 3.88 3.95
65 3.76 3.96 4.05 4.17
70 3.82 4.08 4.19 4.36 4.65
75 3.87 4.17 4.30 4.52 4.91 5.30
85 3.92 4.26 4.42 4.69 5.25 5.90 7.22
95 3.93 4.28 4.45 4.75 5.35 6.13 7.91 9.01
-------------------------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
FEES AND CHARGES
ANNUAL FEE
The Annual Fee is shown on the Data Page.
The Annual Fee will be deducted on the last day of each Contract Year prior to
the Annuitization Date. If You surrender this contract in full, the Annual Fee
will be deducted at that time. The fee will be deducted from the Investment
Option that has the greatest value.
TRANSACTION FEE
The Transaction Fee is shown on the Data Page.
We reserve the right to charge the Transaction Fee for each unscheduled
transfer.
We also reserve the right to charge the Transaction Fee for each unscheduled
partial surrender after the 12th unscheduled partial surrender in each Contract
Year.
The Transaction Fee will be deducted pro-rata from the Investment Options from
which the amount is surrendered or transferred.
SURRENDER CHARGE
The Surrender Charge percentages are shown on the Data Page. The Surrender
Charge equals:
1. the amount of the accumulated value surrendered, less any remaining
Free Surrender Amount, less any remaining premium payments no longer
subject to a Surrender Charge; multiplied by
2. the applicable Surrender Charge.
For a full surrender, any Surrender Charge will be deducted from the accumulated
value.
For a partial surrender, the Surrender Charge will be deducted pro-rata from the
Investment Options from which the amount is surrendered. The Surrender Charge is
a percentage of the premium payments surrendered. The Surrender Charges shown on
the Data Page reflect the percentage, if any, to be applied to the sum of the
premium payments made during each of the Contract Years noted in the Surrender
Charges table. The percentage is based on the number of completed Contract Years
between the Contract Year of the premium payment and the Contract Year of the
surrender.
For purposes of calculating any Surrender Charge, amounts are considered as
surrendered in the following order:
1. premium payments made in Contract Years that are no longer subject to a
Surrender Charge;
2. the accumulated value minus remaining premium payments as of the surrender
date;
3. premium payments made in Contract Years that are still subject to a
Surrender Charge, first-in, first out.
The Surrender Charge is not assessed when:
1. the accumulated value is applied under a benefit option;
2. the death benefit is paid;
3. You make a partial surrender up to the Free Surrender Amount shown on the
Data Page.
In addition, the Surrender Charge will not be assessed when You make a partial
surrender up to the required minimum distribution amount as stated in the U.S.
Internal Revenue Code.
We reserve the right to reduce the Surrender Charge for any amounts surrendered
from this contract that are attributable to a conversion from existing products
issued by Us and our subsidiaries, and as otherwise permitted by the Investment
Company Act of 1940, as amended.
PREMIUM TAXES
We reserve the right to deduct amounts to cover any premium taxes related to
this contract required by federal, state or local law. Any amounts will be
deducted from the accumulated value on a pro-rata basis if such tax is incurred
by Us.
GENERAL INFORMATION
TERMINATION
This contract will terminate when one of the following occurs:
1. the accumulated value is applied under a benefit option;
2. the contract is surrendered in full; or
3. the death benefit is paid to the beneficiary(ies).
If premium payments are not paid during two consecutive calendar years and the
accumulated value or total premium payments (less partial surrender and
applicable surrender charges) is less than $2,000, We reserve the right to
terminate this contract and pay You the accumulated value, less any applicable
charges, in one lump sum payment.
This right will not be exercised in an unfairly discriminatory manner.
We will notify You and give You 60 days to increase the accumulated value to
$2,000 before We exercise this right.
ANNUITANT
The Annuitant on the Contract Date is shown on the Data Page. The Annuitant may
be changed after the Contract Date.
OWNERSHIP
The Owner on the Contract Date is shown on the Data Page. As Owner You may
exercise every right and enjoy every privilege provided by Your contract,
subject to the rights of any irrevocable beneficiary(ies). These rights and
privileges continue while Your contract is in force. We will accept directions
from any Owner. Directions from any Owner are binding on all Owners.
CHANGE OF ANNUITANT OR OWNER
While this contract is in force, You may change the Owner and Annuitant of this
contract by sending Us Notice. Our approval is needed and no change is effective
until We approve it. Once approved, the change is effective as of the date You
signed the request. We may require that You send Us this contract so We can
record the change.
BENEFICIARY
The beneficiary(ies) named and recorded at Our office will receive the death
benefit in accordance with the Death of Owner(s) provision. You can change the
beneficiary designation as provided below. If the only primary beneficiary is
the Owner's spouse, the contract may be continued upon the death of the Owner
with the spouse as the new Owner.
Unless otherwise specified, when the death benefit becomes payable and a
beneficiary has not survived the Owner, We will pay the death benefit to any
surviving beneficiary(ies) according to the percentages You designated. If no
beneficiary(ies) survives the Owner, the death benefit will be paid to the
Owner's estate unless otherwise specified.
CHANGE OF BENEFICIARY
While this contract is in force, You may change the beneficiary(ies) of this
contract by sending Us Notice. The change will be effective as of the date We
receive the Notice. We may require that You send Us this contract so We can
record the change.
THE ENTIRE CONTRACT
The entire contract includes this document, any endorsements and riders, and the
Data Page.
ALTERATIONS
This contract may be altered by mutual agreement or as necessary to comply with
applicable law. Any alterations must be in writing and signed by one of Our
corporate officers. No one else, including the agent, may change the contract or
waive any provisions.
INCONTESTABILITY
The validity of this contract will not be contested.
MISSTATEMENT OF AGE OR GENDER
If the Annuitant's age or gender, if applicable, is not correct when given to Us
at the time Benefit Options become payable, We will adjust the periodic income
payable under the supplementary contract. Any adjustment will be based on the
amount of periodic income that would have been purchased at the correct age and
gender, if applicable.
TAXES
Distributions from this contract and any changes of Owner or Annuitant may have
tax consequences to You. You may want to seek the advice of Your tax advisor
before making any changes to this contract.
DEFERMENT OF PAYMENTS AND TRANSFERS
We pay amounts from the Divisions within seven days after We receive Your
Notice. We reserve the right to defer payments and transfers as permitted by the
Investment Company Act of 1940 or other laws in effect at the time payments are
to be made.
ANNUAL REPORT
We will send You an annual report of the accumulated value at no charge. The
report will include a current statement of the number of Units credited to a
Division and the dollar value of a Unit.
FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT. We agree to provide the
benefits and other rights of this contract. Payment of benefits is subject to
the provisions, terms, and conditions of this contract. NON-PARTICIPATING.
ENHANCED DEATH BENEFIT RIDER
This rider is part of Your contract. All definitions, provisions, and exceptions
of the contract apply to this rider unless specifically changed by this rider.
The rider effective date is shown on the Data Page. In the case of a conflict
with any provision in the contract, the provisions of this rider will control.
The charge for this rider is shown on the Data Page.
RIDER BENEFIT
This rider provides you with the greater of the enhanced death benefit amount or
the death benefit described in the contract.
DEFINITION
LOCK-IN DATE is the Contract Anniversary following the oldest Owner's 75th
birthday or five years after this rider's effective date, whichever is later.
ENHANCED DEATH BENEFIT
Prior to the Annuitization Date, this rider provides an enhanced death benefit
equal to the greater of a. or b. where:
a. is:
1. the total premium payments made since the rider effective date
increased at a 5% effective annual interest rate; minus
2. an adjustment for each partial surrender made since the rider
effective date increased at a 5% effective annual interest rate; and
b. is:
1. the highest accumulated value on any Contract Anniversary since the
rider effective date; plus
2. premium payments received since that Contract Anniversary; minus
3. an adjustment for each partial surrender made since that Contract
Anniversary.
On and after the Lock-In Date, the amounts determined in a. and b. above will
only be increased by any premium payments made since the Lock-In Date, and
decreased by an adjustment for each partial surrender made since the Lock-In
Date.
The lock-in does not prevent the death benefit from increasing in accordance
with the Death Benefit provision of the contract.
ADJUSTMENT FOR PARTIAL SURRENDERS
The adjustment for partial surrenders as described in a. and b. above will
reduce the death benefit. The adjustment for partial surrenders is computed as
follows:
1. the partial surrender amount plus any applicable charges; divided by
2. the accumulated value immediately prior to the partial surrender;
multiplied by
3. the amounts determined in a. or b. above immediately prior to the
partial surrender.
RIDER CHARGE
The charge for this rider is shown on the Data Page and is deducted from the
accumulated value at the end of each calendar quarter. If this rider is
purchased after the beginning of a quarter, then the charge is pro-rated
according to the number of days it is in effect during the quarter. The charge
is deducted from the accumulated value through the redemption of Units in the
same proportion as the surrender allocation percentages.
If the rider is terminated, a pro-rated rider charge is deducted for the period
of time the rider was in effect until the date the rider terminates.
TERMINATION
This rider terminates on the earliest of the following:
1. the date the contract Owner is changed; or
2. the death of the Owner; or
3. the date the contract terminates; or
4. after the Lock-In Date, the date the death benefit described in the
contract equals the enhanced death benefit under this rider; or
5. the date We receive your request to cancel it in Our office.
REINSTATEMENT
If this rider terminates, it may not be reinstated.
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Principal Life Insurance Company
Des Moines, Iowa 50392-0001
FIXED ACCOUNT ENDORSEMENT
This endorsement is part of Your contract. All definitions, provisions, and
exceptions of the contract apply to this endorsement unless changed by this
endorsement. The effective date is the same as the Contract Date unless another
date is shown on the Data Page. There is no charge for this endorsement.
ENDORSEMENT BENEFIT
This endorsement expands Your Investment Options to include a Fixed Account,
subject to the terms and conditions of this endorsement.
DEFINITIONS
FIXED ACCOUNT is an account to which premium payments may be allocated or
amounts may be transferred under the contract. The Fixed Account earns interest
at rates determined by Us.
FIXED ACCOUNT VALUE at any time equals:
1. premiums payments and credits allocated to it; plus
2. amounts transferred to it; plus
3. interest credited to it; less
4. amounts deducted from it; less
5. amounts transferred from it; less
6. amounts surrendered from it.
TRANSFERS TO THE FIXED ACCOUNT
Transfers to the Fixed Account are allowed only if:
1. You have not transferred any amount from the Fixed Account for at least six
months; and
2. the Fixed Account Value immediately after the transfer does not exceed
$1,000,000 except with Our prior written approval.
TRANSFERS FROM THE FIXED ACCOUNT
You may make unscheduled and scheduled Fixed Account transfers to the Divisions
as follows:
1. Either unscheduled Fixed Account transfers or scheduled Fixed Account
transfers (not both) may occur during any contract year.
2. You must provide Us Notice of a Fixed Account transfer within 30 days after
the Contract Date or any Contract Anniversary.
3. You must specify the dollar amount or percentage to be transferred and the
Division to which the transfer will be made.
You may make one unscheduled Fixed Account transfer each Contract Year as
follows:
1. the amount of an unscheduled Fixed Account transfer must not exceed 25% of
the Fixed Account Value as of the later of the Contract Date or the last
Contract Anniversary; however,
2. You may transfer up to 100% of the Fixed Account Value within 30 days after
the first and following Contract Anniversaries if:
a. the Fixed Account Value is less than $1,000; or
b. the renewal interest rate declared for the Fixed Account Value for the
current Contract Year is more than 1 percentage point lower than an
average of the total Fixed Account earnings for the preceding Contract
Year (in that event, We will notify You.)
You may make scheduled Fixed Account transfers on a monthly basis as follows:
1. the monthly amount transferred may not exceed 2% of the Fixed Account
Value as of the later of the Contract Date or the last Contract
Anniversary;
2. the transfers will continue until the Fixed Account Value is zero or
We receive Notice to stop the transfers; and 3. if You stop the
transfers, You may not start transfers again without Our prior
approval.
RESERVATION OF RIGHT TO REFUSE PREMIUM PAYMENT ALLOCATIONS AND TRANSFERS
We reserve the right to refuse premium payment allocations and transfers from
other Investment Options to the Fixed Account. We will send You written notice
at least 30 days prior to the date We exercise this right. We will also notify
You when We revoke, in whole or in part, any restriction of premium payment
allocations or transfers.
DEFERMENT OF PAYMENTS
We reserve the right to defer payment of a surrender from the Fixed Account for
up to six months after the date We receive Your Notice at Our office. If
required, We will see regulatory approval to defer payment.
INTEREST
Interest rates credited to the Fixed Account will never be less than the Fixed
Account Guaranteed Minimum Interest Rate shown on the Data Page.
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Principal Life Insurance Company
Des Moines, Iowa 50392-0001
FIXED DOLLAR COST AVERAGING ACCOUNT ENDORSEMENT
This endorsement is part of Your contract. All definitions, provisions, and
exceptions of the contract apply to this endorsement unless changed by this
endorsement. The effective date is the same as the Contract Date unless another
date is shown on the Data Page. There is no cost for this endorsement.
ENDORSEMENT BENEFITS
This endorsement expands Your Investment Options to include Fixed DCA Accounts,
subject to the terms and conditions of this endorsement. Fixed DCA Accounts
allow You to spread out the allocation of Your premiums to Investment Options
You elect over time.
DEFINITIONS
FIXED DOLLAR COST AVERAGING ACCOUNT (Fixed DCA Account) means an account to
which premium payments may be allocated, and from which a portion of the
accumulated value is transferred to other Investment Options.
DCA TERM means the period of time over which the entire Fixed DCA Account Value
will be transferred to other Investment Options You elect. The DCA Term is shown
on the Data Page.
FIXED DCA ACCOUNT VALUE for any one Fixed DCA Account at any time is equal to:
1. premium payments and credits allocated to it; plus
2. interest credited to it; less
3. amounts deducted from it; less
4. amounts transferred from it; less
5. amounts surrendered from it.
PREMIUM PAYMENT ALLOCATIONS
You may allocate premium payments to the Fixed DCA Accounts We make available.
Premium payments allocated to a Fixed DCA Account:
1. must equal or exceed the Minimum Fixed DCA Account Premium Payment shown on
the Data Page; and
2. will receive the interest rate in effect on the Valuation Date the premium
payment is received.
Additional premium payments may be applied to an existing Fixed DCA Account You
designate for the remainder of that DCA Term.
At the end of any DCA Term or when Your entire Fixed DCA Account Value has been
transferred, You may allocate premium payments to begin a new DCA Term of the
same time period.
FIXED DCA ACCOUNT TRANSFERS
The Fixed DCA Account Values will be transferred to the Investment Options You
elect on a monthly basis, on a date We determine, over the DCA Term. The amount
of the transfer will be determined by dividing the Fixed DCA Account Value by
the number of months remaining in the DCA Term. Any credit will be transferred
immediately to the Investment Options You elect.
You may transfer the Fixed DCA Account Value in fewer months than are remaining
in the DCA Term, or change Your premium payment allocations by providing Us
Notice.
You may not transfer values from any other Investment Option to a Fixed DCA
Account.
RESERVATION OF RIGHT TO REFUSE PREMIUM PAYMENT ALLOCATIONS
We reserve the right to refuse premium payment allocations to the Fixed DCA
Accounts. We will send You written notice at least 30 days prior to the date We
exercise this right. We will also notify You when We revoke, in whole or in
part, any restriction of premium payment allocations.
DEFERMENT OF PAYMENTS
We reserve the right to defer payment of a surrender from a Fixed DCA Account
for up to six months after We receive Your Notice at Our office. If required, We
will seek regulatory approval to defer payment.
INTEREST
Interest rates credited to the Fixed DCA Accounts will never be less than the
Fixed DCA Account Guaranteed Minimum Interest Rate shown on the Data Page.
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Principal Life Insurance Company
Des Moines, Iowa 50392-0001
GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER
This rider is part of Your contract. All definitions, provisions, and exceptions
of the contract apply to this rider unless specifically changed by this rider.
The rider effective date is shown on the Data Page. In the case of a conflict
with any provision in the contract, the provisions of this rider will control.
The charge for this rider is shown on the Data Page.
RIDER BENEFITS
We guarantee that You may surrender a specified amount (the Withdrawal Benefit
Payment) each Contract Year regardless of the accumulated value, subject to the
terms and conditions of this rider. The charge for this rider is shown on the
Data Page.
DEFINITIONS
WITHDRAWAL BENEFIT PAYMENT is the amount guaranteed to be available for partial
surrender each Contract Year.
EXCESS WITHDRAWAL is the portion of a partial surrender and Surrender Charges,
if any, that exceeds the Withdrawal Benefit Payment.
WITHDRAWAL BENEFIT BASE is premium payments adjusted for Excess Withdrawals. It
is the amount on which the Withdrawal Benefit Payment is based.
REMAINING WITHDRAWAL BENEFIT BASE is the total amount that is available for
future Withdrawal Benefit Payments. It is premium payments adjusted for partial
surrenders and Surrender Charges, if any.
GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)
This rider provides a guaranteed minimum withdrawal benefit. You may withdraw a
"For Life" Withdrawal Benefit Payment or "Investment Back" Withdrawal Benefit
Payment.
1. We guarantee a "For Life" Withdrawal Benefit Payment, which guarantees up
to 5% annually of the Withdrawal Benefit Base on and after the Contract
Anniversary following the oldest Owner's age 59 1/2. All surrenders prior
to the Contract Anniversary following the oldest Owner's age 59 1/2 are
treated as Excess Withdrawals when calculating the For Life withdrawal
option. The For Life withdrawal option continues until the Owner's death,
or until the Withdrawal Benefit Base associated with it is zero.
2. We guarantee an "Investment Back" Withdrawal Benefit Payment, which
guarantees up to 7% annually of the Withdrawal Benefit Base. The Investment
Back withdrawal option continues until the Remaining Withdrawal Benefit
Base associated with it is zero.
You do not elect the For Life withdrawal option or the Investment Back
withdrawal option. Instead, You make a partial surrender for the amount You
desire, and We adjust the Withdrawal Benefit Payment, Withdrawal Benefit Base,
and the Remaining Withdrawal Benefit Base associated with each withdrawal
option, as described in the calculation provisions below.
The amount and timing of partial surrenders affect the For Life withdrawal
option and the Investment Back withdrawal option in different ways.
This rider does not restrict or change Your partial surrender rights under the
contract. However, Excess Withdrawals will affect the benefits of this rider.
If the accumulated value is zero, the following will occur:
1. The Remaining Withdrawal Benefit Base will be paid to You or your
beneficiary(ies) over time. You must elect an amount and frequency for
the payments that is acceptable to Us.
2. The rights under this rider will continue, but all other rights and
benefits under the contract, including death benefits, will terminate.
3. Additional premium payments will not be accepted.
WITHDRAWAL BENEFIT PAYMENT CALCULATION
The Withdrawal Benefit Payment amount for the For Life withdrawal option and the
Investment Back withdrawal option is calculated on the Contract Date and on each
Contract Anniversary thereafter.
The Withdrawal Benefit Payment amount is a percentage of the Withdrawal Benefit
Base. The percentage for the For Life withdrawal option is 5%. The percentage
for the Investment Back withdrawal option is 7%.
You are not required to make a partial surrender of the entire Withdrawal
Benefit Payment amount in a Contract Year. However, if You do not surrender the
entire Withdrawal Benefit Payment available in a Contract Year, any remaining
amount does not carry over to the next Contract Year.
Excess Withdrawals reduce Your Withdrawal Benefit Payments.
WITHDRAWAL BENEFIT BASE CALCULATION
The Withdrawal Benefit Base is calculated on the Contract Date and on each
Contract Anniversary thereafter. On the Contract Date, the Withdrawal Benefit
Base equals premium payments made. Premium payments made during any Contract
Year increase the Withdrawal Benefit Base.
If no Excess Withdrawals are made during a Contract Year, the Withdrawal Benefit
Base will not decrease because of partial surrenders.
If Excess Withdrawals are made during a Contract Year, the Withdrawal Benefit
Base is reduced by the greater of:
1. the Excess Withdrawals; and
2. the result of (a. divided by b.), multiplied by x., where:
a. is the amount surrendered (including Surrender Charges, if any) in
excess of the Withdrawal Benefit Payment remaining prior to the
surrender;
b. is the accumulated value after the Withdrawal Benefit Payment is
deducted, but prior to the surrender of the excess amount; and
c. is the Withdrawal Benefit Base prior to the adjustment for the excess
amount.
REMAINING WITHDRAWAL BENEFIT BASE CALCULATION
The Remaining Withdrawal Benefit Base is adjusted when premium payments and
partial surrenders are made. Premium payments increase the Remaining Withdrawal
Benefit Base, and partial surrenders and Surrender Charges, if any, decrease the
Remaining Withdrawal Benefit Base.
The amount of a partial surrender and Surrender Charges, if any, that does not
exceed the Withdrawal Benefit Payment will be deducted from the Remaining
Withdrawal Benefit Base. Excess Withdrawals will reduce the Remaining Withdrawal
Benefit Base by the greater of:
1. the Excess Withdrawals; and
2. the result of (a. divided by b.), multiplied by x., where:
a. is the amount surrendered (including Surrender Charges, if any) in
excess of the Withdrawal Benefit Payment remaining prior to the
surrender;
b. is the accumulated value after the Withdrawal Benefit Payment is
deducted, but prior to the surrender of the excess amount; and
c. is the Remaining Withdrawal Benefit Base after the Withdrawal Benefit
Payment is deducted, but prior to the adjustment for the excess
amount.
GMWB BONUS
If no partial surrenders are made in a given Contract Year, a 5% GMWB bonus on
the premium payments will be credited to the Withdrawal Benefit Base and the
Remaining Withdrawal Benefit Base on the next Contract Anniversary.
The GMWB bonus will end at the earlier of:
1. the 5th Contract Anniversary, or
2. the date You make a partial surrender.
The GMWB bonus is used only for purposes of calculating the Withdrawal Benefit
Base and the Remaining Withdrawal Benefit Base. It will not be included in Your
accumulated value.
GMWB STEP-UP
After the 5th Contract Anniversary of the rider effective date and before the
Annuitization Date, You may elect to increase ("Step-Up") the Remaining
Withdrawal Benefit Base.
If You elect the GMWB Step-Up, the following conditions will apply:
1. Your request for the GMWB Step-Up must be received, in a form satisfactory
to Us, at Our office within 30 days after the Contract Anniversary on which
the GMWB Step-Up is effective;
2. the GMWB Step-Up may only be requested if the accumulated value on the
Step-Up date is more than the Remaining Withdrawal Benefit Base;
3. the Remaining Withdrawal Benefit Base and Withdrawal Benefit Base will
reset to be the accumulated value on the Contract Anniversary;
4. the Withdrawal Benefit Payment will be reset on the Contract Anniversary;
5. You may not request another GMWB Step-Up until the 5th Contract Anniversary
following the last GMWB Step-Up; and
6. the then current Investment Option restrictions and rider charge for newly
issued GMWB riders will apply.
INVESTMENT OPTION RESTRICTIONS
While this rider is attached to Your contract, We reserve the right to restrict
Your Investment Options.
These restrictions may include:
1. requiring certain Investment Options;
2. limiting the percentages allocated to certain Investment Options;
3. limiting transfers among Investment Options;
4. rebalancing the Investment Options; and
5. prohibiting the use of certain Investment Options.
RIDER CHARGE
The rider charge is shown on the Data Page. This charge is based on the
Investment Back Remaining Withdrawal Benefit Base and is deducted from the
accumulated value at the end of each calendar quarter. If this rider is
purchased after the beginning of a quarter, then the charge is pro-rated
according to the number of days it is in effect during the quarter. The charge
is deducted from the accumulated value through the redemption of Units in the
same proportion as the surrender allocation percentages.
If the rider is terminated, a pro-rated rider charge is deducted for the period
of time the rider was in effect until the date the rider terminates.
DEATH PROVISION
If the Owner dies and there is an Investment Back Remaining Withdrawal Benefit
Base, and the accumulated value is greater than zero, the beneficiary(ies) may
elect to receive the Investment Back Remaining Withdrawal Benefit Base or death
benefit under the contract. If Your beneficiary(ies) elect to receive the
Investment Back Remaining Withdrawal Benefit Base, We will make payments in an
amount and frequency acceptable to Us.
TERMINATION
We will terminate this rider when one of the following occurs:
1. We receive Your request to terminate the rider (after the 5th Contract
Anniversary); 2. the contract terminates;
3. the Investment Back Remaining Withdrawal Benefit Base is zero and the For
Life Withdrawal Benefit Base is zero; or 4. the contract Owner is changed.
REINSTATEMENT
If this rider terminates, it may not be reinstated.
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Principal Life Insurance Company
Des Moines, Iowa 50392-0001
PREMIUM PAYMENT CREDIT RIDER
This rider is part of your contract. All definitions, provisions, and exceptions
of the contract apply to this rider unless changed by this rider. In the case of
a conflict with any provision in the contract, the provisions of this rider will
control. This rider must be elected prior to the Contract Date and is effective
on the Contract Date. This rider cannot be terminated unless the contract
terminates. The charge for this rider is shown on the Data Page.
PREMIUM PAYMENT CREDIT
During the first Contract Year only, We will credit the accumulated value with
an amount equal to 5 percent of the amount of each premium payment on the date
each premium payment is applied to the contract. For example, if the premium
payment applied to the contract is $10,000, the premium payment credit amount
will be .05 x $10,000, or $500.
No premium payment credit is given after the first Contract Anniversary.
Premium payment credits are allocated in the same proportion as the premium
payments are allocated.
If You return the contract during the Examination Offer period described on the
contract cover, We will recover all premium payment credits. If the value of the
premium payment credit has declined during the Examination Offer period, We
still recover the full amount of the premium payment credits.
Additionally, We will recover the premium payment credits if, prior to the third
Contract Anniversary, You request commencement of annuity benefits.
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Principal Life Insurance Company
Des Moines, Iowa 50392-0001
