The Opportunity

1
The Opportunity
Dakotas Business Center
Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
2
The Principal

• Diverse family of financial services companies
• Life insurance, retirement and investment
  services, health insurance, banking
• Member of the Fortune 500
• More than 270.1 billion in assets under
  management
• 18.2 million customers worldwide businesses,
  individuals and institutional clients
• 13,500 U.S. employees
• NYSE PFGFinancial data as of 3/31/2007

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
3
You might have the following questions

• Who are my clients?
• How do I sell?
• What do I sell?
• How am I trained?
• How am I compensated?
• What does it take to succeed?
• How do I get started?

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
4
Our Commitment to Producers

• Attractive benefits
• Excellent recognition
• Competitive compensation
• Top-tier broker dealer
• Technology package
• Professional development
• Access to specialists
• Case design and sales support

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
5
Who are my clients?
Your Client Base

• Small- to medium-sized growing businesses
• Owners and key employees
• Individuals and families

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
6
You will find your clients by
Building Alliances

• Alliances help in expanding your access to the
  growing business market while helping alliance
  partners expand theirs.
• Developing relationships with companies and
  individuals serving the growing business market
  will make a major impact on the long-term growth
  of your business.
• Conducting Seminars
• Seminars can be used to educate potential clients
  about your expertise and their need for the
  financial solutions you can provide.
• Principal Life provides you with access to
  seminars on topics pertinent to our chosen
  markets.

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
7
Excellent Recognition

• Our primary measurement is the initial commission
  credit (ICC) a weighted credit also use
  first-year commissions (FYCs)
• Qualifying Club Levels (four tiers)
• Premier Club 50K-75K recognition ICCs or
  100K-135K recognition FYCs depends on years of
  service
• Honor Council 130K recognition ICCs or 235K
  recognition FYCs
• Executive Cabinet 190K recognition ICCs or 345K
  recognition FYCs
• Presidents Circle 275K recognition ICCs or
  440K recognition FYCs
• FYC qualification also has minimum ICC requirement

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
8
Premier Club-level producer63,811

• Retirement (11,850)
• Defined Benefit (cash balance) 4,950
• 401(k) (6 match) 6,900
• AEA (40) 30,000
• Flex spending 2,133(typical tax savings)

• Insurance (12,188)
• Health 8,320
• Dental 662
• Life and ADD 920
• LTD 2,286
• Taxes (FICA, Medicare) 7,640

75,000 ICCs, 115,000 total commission ( not
counting Princor) Assumes 45 years old, 10 years
experience
Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
9
Honor Council-level producer110,969

• Flex spending 2,133 (typical tax savings)

• Insurance (14,258)
• Health 8,320
• Dental 662
• Life and ADD 1,500
• LTD 3,776
• Taxes (FICA, Medicare) 8,728

• Retirement (20,850)
• Defined Benefit (cash balance) 9,450
• 401(k) (6 match) 11,400
• AEA (50) 65,000
• PLUS
• Restricted stock
• Deferred Comp plan

130,000 ICCs, 190,000 total commission ( not
counting Princor) Assumes 45 years old, 10 years
experience
Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
10
Presidents Circle-level producer269,272

• Retirement (43,650)
• Defined Benefit (cash balance) 32,025
• 401(k) (6 match) 11,625
• AEA (70) 192,500
• PLUS
• Restricted stock
• Deferred Comp plan

• Insurance (19,506)
• Health 8,320
• Dental 662
• Life and ADD 2,971
• LTD 7,553
• Taxes (FICA, Medicare) 11,483

275,000 ICCs, 380,000 total commission ( not
counting Princor) Assumes 45 years old, 10 years
experience
Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
11
You will find your clients by
Networking

• People want to do business with someone they know
  and trust.
• People you do business with can recommend you to
  other potential clients.

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
12
How do I sell?
Integrity Selling
Principal Lifes needs-focused sales system is
designed to help you

• Learn a systematic method of selling based on
  principles, not techniques
• Learn about needs-focused selling
• Gain more confidence as you approach prospects
  and clients
• Increase your sales and effectiveness

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
13
How do I sell?
Strategic Marketing

• Helps you identify groups of prospective clients,
  determine their potential and develop a strategy
  that positions you as their resource
• Trains you to treat people the way they want to
  be treated and to sell the way people want to buy

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
14
How do I sell?

• Dakotas Business Center Marketing Program
• 401k Monthly Mailer with Talking Points
• Life Disability Insurance Awareness Month
  Marketing
• EFRP Marketing Program
• Niche Marketing Programs
• Agency Leads
• Trade Show Support
• Ad Development
• Alliance Marketing
• CRS Program

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
15
How do I sell?
Client Building

• Provides a system for building and sustaining
  ongoing client relationships for larger and
  easier repeat sales
• Offers tools for managing and tracking
  communications with growing numbers of clients

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
16
How do I sell?
Financial Strategies
Creates a clear path of understanding for
customers by helping them realize their
objectives and goals. This four-step program
serves as a guide as you work with clients in

• Setting and prioritizing goals
• Creating an action plan
• Implementing the action plan
• Monitoring progress

Available in fee-based and no fee versions
Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
17
How do I sell?
Business Priorities

• Helps you focus on the business needs that should
  be addressed first so you can quickly demonstrate
  your commitment and understanding of the business
  market
• Creates customized reports that rate the highest
  priority for businesses among contingency
  planning, employee benefits, qualified retirement
  benefits, owner executive benefits, estate
  planning and personal planning

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
18
What do I sell?

• Business Market
• Qualified Plans (401k, Defined Benefit, SIMPLE,
  SEP, etc.)
• Non-Qualified Plans (Deferred Comp, Executive
  Bonus, Split Dollar, etc.)
• Employee Financial Resources Program
• Business Protection (Buy Sell, Income, Overhead
  Expense,
• Key Person, etc.)
• Group Insurance
• Work Secure Program

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
19
What do I sell?

• Individual Market
• Financial Needs Analysis (Retirement Planning,
  College Funding, Life Protection and Survivor
  Income, Disability Income Protection, Wealth
  Accumulation)
• Estate Planning (Wealth Transfer, Private Split
  Dollar,Trusts)
• Individual Investments (Principal Blueprint)
• Life Insurance
• Fixed Variable Annuities
• Retirement Plans (Roth, SEP, IRA, etc.)
• Preferred Product Network

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
20
Powerful Resources
Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
21
Preferred Product Network, Inc.

• Independent and Objective
• As a trusted advisor, its critical for you to be
  independent and objective when dealing with your
  clients financial situations. With the Preferred
  Product Network, Inc., (PPN) you have access to a
  full range of products from more than 200
  carriers, offering you the objectivity you
  deserve and the choices your clients demand.

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
22
Preferred Product Network, Inc. Carriers

• LIFE INSURANCE CARRIERS
• Variable Life
• American General Life
• GE Life and Annuity
• Hartford Life
• Jefferson Pilot
• John Hancock
• Lincoln Benefit Life
• Manulife Financial
• Mass Mutual
• Metropolitan Life
• MONY
• New York Life
• Phoenix Life
• Prudential/Pruco
• Southland Life
• Sun Life Financial
• United of Omaha

Whole Life American National Empire
General First Colony GE Life and Annuity John
Hancock Manulife Financial Mass
Mutual MONY Security Mutual State Life Sun Life
Financial United of Omaha ANNUITY CARRIERS Fixed
Annuities Allianz AIG American Life
Casualty American Mayflower American
National Businessmans Assurance Canada
Life Canada Life of NY FG First Colony Life GE
Capital Assurance Company Indianapolis Life ING
Life Annuity Jefferson Pilot Lincoln Benefit
Life Metropolitan Life
Level Term Bankers Life Insurance Company of
NY Banner Life/William Penn Life Empire
General First Colony Life/American Mayflower FG
Life First Penn Pacific GE Life
Annuity Jefferson Pilot John Hancock Lincoln
Benefit Lincoln Life Metropolitan Life Manulife
Financial Mass Mutual MONY New York Life North
American Company Old Line Phoenix
Life Prudential Reliastar Security Connecticut
Life Security Mut ual Life Southland Sun Life
Financial United of Omaha US Life of New
York U.S. Financial Valley Forge Life Insurance
Company West Coast Life Zurich Life
North American Company Penn Mutual Physicians
Life ReliaStar Life Insurance Security Mutual
Life State Life Sun America Life United of
Omaha United States Life USG Life
Annuity William Penn Life Zurich Life LONG TERM
CARE Allianz Continental Assurance First Penn
Pacific Life GE Capital Assurance John
Hancock Lincoln Benefit Life Prudential Transameri
ca UNUM
Lincoln Life Manulife Financial Mass
Mutual Metropolitan Life MONY New York
Life National Life of Vermont North American
Company Old Line Phoenix Life Prudential
Reliastar Security Connecticut Life Security
Mutual Life Insurance Company of NY Southland
Life State Life United of Omaha U.S.
Financial William Penn Life Valley Forge
Life West Coast Life Zurich Life Guarantee Issue
Life Gerber Life Guarantee Trust Life
Presidential Life
Universal Life American Mayflower (NY) Bankers
Life (NY) Banner Life Canada Life Empire General
Life First Colony Life First Penn Pacific GE Life
Annuity Indianapolis Life Jefferson Pilot John
Hancock Lincoln Benefit
23
How am I trained?
Principal Lifes professional development program
is designed to position you as a knowledgeable
and skilled producer in the small- to
medium-sized growing business market.
Classroom and Self-Study

• Licensing and Registrations
• State life and health license
• NASD Series 6 or 7,63, 65 or 66 registrations

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
24
How am I trained?
25
How am I trained?
Dakotas Business Center Training Program

• Product Education and Skill Building
• Role Playing
• One Card System
• Illustration Training
• Elevator Talk
• Phoning Skills

• Monthly Client Builders
• Annual Compliance Meeting
• Principal Learning Network
• Integrity Selling (PAID INC)
• Weekly Training Sessions
• Top Gun Training School
• Virtual University

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
26
How am I trained?
Industry and Professional Development

• Achieve industry designations
• (CLU, ChFC, CFP, LUTCF)
• Expense reimbursement upon successful course
  completion

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
27
How am I compensated?
Base Income and Financial Enhancements

• First-year and renewal commissions
• Service fees
• Persistency bonuses
• Mutual funds and general securities
• Wrap and planning fees
• Expense allowance and support
• Recognition
• Stock appreciation rights based on production

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
28
How am I compensated?
Competitive Benefits Package

• Group Universal Life insurance
• Long-term disability income insurance
• Medical, dental and vision coverage
• Flexible reimbursements accounts
• Professional liability insurance
• Social Security taxes
• Benefits at retirement
• 401(k) select savings plan
• Pension plans
• Mutual funds

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
29
How am I compensated?
Incentive Clubs and Recognition Meetings

• We believe its important to recognize and reward
  you for the work you do and the business you
  bring to the company.

Leaders Edge Group
The Principal Leaders Edge Group is a tiered
recognition program offering four levels of
benefits for different levels of production. It
offers the highest quality support possible to
producers reaching these levels.
Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
30
How am I compensated?
31
How am I compensated?
Annual Incentive Meetings

• Qualifying Club Levels (four tiers)
• Premier Club 50K-75K recognition ICCs or
  100K-135K recognition FYCs depends on years of
  service
• Honor Council 130K recognition ICCs or 235K
  recognition FYCs
• Executive Cabinet 190K recognition ICCs or 345K
  recognition FYCs
• Presidents Circle 275K recognition ICCs or
  440K recognition FYCs
• FYC qualification also has minimum ICC
  requirement

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
32
What does it take to succeed?
Our most successful producers exhibit the
following characteristics

• Interpersonal savvy
• Career ambition
• Self-development
• Desire for professional advancement

• Action-oriented
• Integrity and trust
• Drive for results
• Perseverance
• Ethics and values

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
33
Other Field Opportunities
Field Management Opportunities

• Regional Managing Director
• Managing Director
• Recruiting Director
• Development Director
• Part-time management positions

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
34
How do I get started?
Selection Process

• Step 1 Initial interview
• Step 2 Career screening/assessment
• Step 3 In-depth interview
• Step 4 Career presentation
• Step 5 Sales skill evaluation
• Step 6 Licensing and registration
• Step 7 Full-time contract

Home Office Principal Life Insurance Company a
member of the Principal Financial Group, Des
Moines, IA 50392, www.principal.com
35
Questions?
Home Office Principal Life Insurance Company, a
member of the Principal Financial Group, Des
Moines, IA 50392. 4447062009