8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) December 15, 2004

Principal Life Insurance Company
on behalf of Principal Life Income Fundings Trust 2004-23

(Exact name of registrant as specified in its charter)

Iowa
(State or other jurisdiction
of incorporation) 333-110499-29
(Commission
File Number) 42-0127290
(IRS Employer
Identification No.)

711 High Street, Des Moines, Iowa
(Address of principal executive offices) 50392-0001
(Zip Code)

Registrant’s telephone number, including area code: (515) 247-1111

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 8.01 Other Events.
	Item 9.01 Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
Indenture Trustee's Report

Item 8.01 Other Events.

On December 15, 2004, a payment was made to the holders of the notes issued by the Principal Life Income Fundings Trust 2004-23 (the “Trust”). Specific information with respect to the payment is filed as Exhibit 99.1 hereto. No other reportable transactions or matters have occurred during the current reporting period.

The Trust’s assets consist of a Funding Agreement issued by Principal Life Insurance Company (“Principal Life”) and a Guarantee issued by Principal Financial Group, Inc. (“PFG”) which fully and unconditionally guarantees the payment obligations of Principal Life under the Funding Agreement. PFG is subject to the informational requirements of the Securities Act of 1934, and in accordance with those requirements files periodic and current reports and other information (including financial information) with the Securities and Exchange Commission (“SEC”). You can read and copy any reports or other information PFG files at the SEC public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. You can also request copies of PFG’s documents upon payment of a duplicating fee, by writing the SEC’s public reference room. You can obtain information regarding the public reference room by calling the SEC at 1-800-SEC-0330. PFG’s filings are available to the public from commercial document retrieval services or over the internet at http://www/sec/gov.

Item 9.01 Financial Statements and Exhibits.

(c)	Exhibits
	Exhibit 99.1	Indenture Trustee’s report in respect of the December 15, 2004 payment to holders of the notes issued by the Principal Life Income Fundings Trust 2004-23.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PRINCIPAL LIFE INSURANCE COMPANY (Registrant)
Date: December 29, 2004	By:	/s/ KAREN A. PEARSTON
	Name:	Karen A. Pearston
	Title:	Second Vice President and Counsel

EXHIBIT INDEX

Exhibit
Number	Description
Exhibit 99.1	Indenture Trustee’s report in respect of the December 15, 2004 payment to holders of the notes issued by the Principal Life Income Fundings Trust 2004-23.

EX-99.1

Exhibit 99.1

Indenture Trustee Report
for
Principal Life Income Fundings Trust 2004-23 (the “Trust”)

Payment Date
December 15, 2004
CUSIP Number 74254PBE1

(i) the amount received by the Indenture Trustee as of the last statement in respect of the principal, interest and premium, if any, on Funding Agreement No. 5-16308 (the “Funding Agreement”) issued by Principal Life Insurance Company (“Principal Life”) or the Guarantee issued by Principal Financial Group, Inc. which fully and unconditionally guarantees the payment obligations of Principal Life under the Funding Agreement.

Interest: 82,179.17

Principal: -0-

Premium, if any: -0-

(ii) the amounts of compensation received by the Indenture Trustee during the period relating to such Payment Date.

Paid by the Trust: -0-
Paid by Principal Life:	$6,750.00 and $6,750.00 in program fees were paid to the Indenture Trustee respectively on August 9, 2004 and November 15, 2004.

(iii) the amount of payment on such Payment Date to holders allocable to principal of and premium, if any, and interest on the notes of the Trust and the amount of aggregate unpaid interest accrued on such notes as of such Payment Date.

Interest: $82,179.17

Principal: -0-

Unpaid Interest Accrued: -0-

(iv) the aggregate stated principal amount of the Funding Agreement, the current interest rate or rates thereon at the close of business on such Payment Date, and the current rating assigned to the Funding Agreement.

Principal Amount: $3,260,000.00

Interest Rate: 5.50%

Ratings:

Moody’s Investor Service: Aa2

Standard & Poors’ Rating Service: AA

(v) the aggregate principal balance of the notes at the close of business on such Payment Date and the current rating assigned to the notes.

Initial Principal Amount: $3,260,000.00

Reduction: -0-

Principal Amount on the Payment Date: $3,260,000.00

Ratings:

Moody’s Investor Service: Aa2

Standard & Poors’ Rating Service: AA

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