Principal Select Series AnnuitySM - Fidelity Investments · Principal Select Series AnnuitySM Interest Rate Guarantee* • Your initial interest rate is guaranteed for three, ...

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Principal Select Series AnnuitySM

Interest Rate Guarantee*• Your initial interest rate is guaranteed for

three, four, five, six, seven, or nine years. At the end of the initial guaranteed period you choose, the interest rate will be determined annually, and surrender charges and market value adjustment (MVA) will end. The company will determine renewal rates at its sole discretion. Interest rates credited will change over time but are guaranteed to be not less than the guaranteed minimum interest rate stated in your contract.

Administrat ive Charge• Select Series has no front-end or annual

charges.

Surrender Charges †

There are no surrender charges for amounts used to purchase an income annuity or for single-sum payments made at death. For other surrenders, the charges are as follows:• 3-year guarantee — Years 1–3: 7%• 4-year guarantee — Years 1–3: 7%, Year 4: 6%• 5-year guarantee — Years 1–3: 7%,

Year 4: 6%, Year 5: 5%• 6-year guarantee — Years 1–3: 7%,

Year 4: 6%, Year 5: 5%, Year 6: 4%• 7-year guarantee — Years 1–3: 7%,

Year 4: 6%, Year 5: 5%, Year 6: 4%, Year 7: 3%• 9-year guarantee† — Years 1–3: 7%,

Year 4: 6%, Year 5: 5%, Year 6: 4%, Year 7: 3%, Year 8: 2%, Year 9: 1%

Guaranteed Minimum Surrender Value• At full surrender, you’ll never receive less than

your premium (after prior withdrawals — not including MVA amounts) accumulated at the guaranteed minimum interest rate, less applicable surrender charges.

Premium Limits• The minimum premium payment is $5,000

for a four-, five-, six-, seven-, or nine-year guarantee and $50,000 for a three-year guarantee. The maximum premium without home office approval is $2,000,000.

Maximum Issue Age — 85• The contract matures at the later of age 95 or

10 years after it is issued.

Death Benefit• The accumulated value of the annuity is paid

to the beneficiary at the owner’s death.

Guaranteed Minimum Interest Rate

(National Association of Insurance Com-

missioners [NAIC] Model Index Method)• Principal sets the guaranteed minimum

interest rate determined by a formula, with general parameters established by state law.1

• The guaranteed minimum interest rate is set at contract issue and will not change for the life of the contract. In other words, the guaranteed minimum interest rate, once set, will never change.

• The guaranteed minimum interest rate for all terms is 0.05%.2

*Guarantees are based on the claims-paying ability of Principal Life Insurance Company. † State variations may apply. For New York, the surrender charges are as follows: 3-year: 7%, 6%, 5%; 4-year: 7%, 6%, 5%, 4%; 5-year: 7%, 6%, 5%, 4%, 3%; 6-year: 7%, 6%, 5%, 4%, 3%, 2%; 7-year: 7%, 6%, 5%, 4%, 3%, 2%, 1%; 9-year is not available.

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Market Value Adjustment (MVA)• If you withdraw funds in excess of your free

surrender amount before the end of your guaranteed period, the amount you receive will be adjusted based on interest rate conditions at that time. This is referred to as a market value adjustment (MVA). If interest rates are lower than when you bought your annuity, the MVA could increase the amount you requested. However, if interest rates are higher, the MVA could decrease the amount you requested.

• The MVA applies if you take more than the free surrender amount each year or if you surrender the contract before the end of the guaranteed period.

An MVA doesn’t apply for:• Withdrawals made up to the free surrender

amount• Death benefits• Benefit options• Withdrawals made as a result of exercising

the waiver of surrender charges and MVA rider (may not be available in all states, and state variations may apply)

• Withdrawals made after the surrender charge period is over

• Withdrawals prior to age 59½ may be subject to 10% Internal Revenue Service (IRS) penalty tax.

• This is not a recommendation and is not intended to be taken as a recommendation. This material was prepared for general distribution and is not directed to a specific individual.

• Taxes are paid at ordinary income tax rate at the time of the withdrawal.

Withdrawal Pr iv i leges• Each year, you can take any amount up to the

greater of the minimum distribution required by the IRS for qualified plans or 10% of the contract year’s beginning account value (less any withdrawals made since the contract anniversary). Withdrawals exceeding this free surrender amount are subject to a surrender charge and an MVA.

• For no additional fee, you can schedule partial surrenders on a monthly, quarterly, semiannual, or annual basis. You may take any amount up to your free surrender amount without paying any surrender charges or an MVA.

MVA Rider 2 and Waiver of

Surrender Charge• With this special rider, at no additional cost,

you can receive all or a portion of your accumulated value without a surrender charge or an MVA, if one year or more after the rider’s effective date you:– Are diagnosed as terminally ill with a life

expectancy of less than 12 months– Are under age 65 and become totally and

permanently disabled– Are confined in a medical care facility for

60 consecutive days or longer

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Income Options• At time of annuitization, you can choose

from a full range of income options when you’re ready to take money from your annuity, including:– Life: You receive fixed income for as long as

you live.– Joint Life: You and your spouse can receive

income payments for life.– Fixed Period: You choose how long you’ll

receive your fixed income payments.

This is a Market Value Adjustment (MVA) annuity product. The MVA applies if the client surrenders the contract or withdraws funds in excess of the free surrender amount before the end of the guaranteed period. The amount the client receives will be adjusted based on interest-rate conditions at that time. Typically, if current interest rates upon surrender or withdrawal are:

• Higher than they were at issue, the MVA will result in a lower payment. • Lower than they were at issue, the MVA will result in a higher payment.

The MVA may apply in addition to surrender charge penalties.1 Principal reserves the right to set the actual guaranteed minimum interest rate at a level higher than the NAIC Model Index Method calculation. State variations may apply.

2State variations may apply.Contract rider descriptions are not intended to cover all restrictions, conditions, or limitations. Refer to the rider for full details. Riders are subject to state availability.The subject matter in this communication is provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.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, guaranteed minimum interest rates, and death benefits without surrender charges.Annuity products and services are offered through Principal Life Insurance Company, a member company of the Principal Financial Group®, Des Moines, IA 50392, principal.com.Not all products and services described herein are available in all states of the United States of America.Fidelity Investments is not affiliated with any company of the Principal Financial Group®.

Insurance products are sold through Fidelity Insurance Agency, Inc., a licensed insurance agency, through its appointment with Principal Life Insurance Company. All guarantees are subject to the claims-paying ability of the issuing insurance company.

Not FDIC Insured Not Bank Guaranteed May Lose Value Not a Deposit Not Insured by Any Government Agency

Principal, Principal and symbol design, and Principal Financial Group are registered trademarks and service marks of Principal Financial Services, Inc., a Principal Financial Group company. © 2018 Principal Financial Services, Inc. Contract SF 813, SF 918, ICC13 SF 918 | Rider ICC12 SF 652, SF 652, SF 928, ICC12 SF 787, SF 787

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445329-032018 1.909802.110 547794.11.0 PRIN-SPDA-0318