N-4/A 1 plis-preeff2.htm PLIS PRE EFFECTIVE 2 plis-partccoverpage.htm - Generated by SEC Publisher for SEC Filing
As filed with the Securities and Exchange Commission April 27, 2011. 

 

Registration No. 333-171650 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 
FORM N-4 
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 
Pre-Effective Amendment No. 2 
Post-Effective Amendment No. __ 
and/or 
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 
Amendment No. 146 
(Check appropriate box or boxes) 

 

Principal Life Insurance Company Separate Account B 
-------------------------------------------------------------------------------- 
(Exact Name of Registrant)
 
Principal Life Insurance Company
-------------------------------------------------------------------------------- 
(Name of Depositor)
 
The Principal Financial Group, Des Moines, Iowa 50392 
-------------------------------------------------------------------------------- 
(Address of Depositor's Principal Executive Offices) (Zip Code) 
 
(515) 248-3842
------------------------------------------------------------------------------- 
Depositor's Telephone Number, including Area Code 
 
M. D. Roughton,
The Principal Financial Group, Des Moines, Iowa 50392 
-------------------------------------------------------------------------------- 
(Name and Address of Agent for Service)

 

Title of Securities Being Registered: Principal Lifetime Income SolutionsSM 

 

Approximate Date of Proposed Public Offering: As soon as practicable after the effective date of the 
Registration Statement. 
 
The registrant hereby amends this registration statement on such date or dates as may be necessary to delay 
its effective date until the registrant shall file a further amendment which specifically states that this 
registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 
1933 or until the registration shall become effective on such date as the Commission, acting pursuant to Section 
8(a), shall determine. 

 



PRINCIPAL LIFETIME INCOME SOLUTIONSSM 
VARIABLE ANNUITY
Prospectus dated May 2, 2011

 

This prospectus describes Principal Lifetime Income SolutionsSM, an individual, flexible premium, deferred variable 
annuity (the “Contract”), issued by Principal Life Insurance Company (“the Company”, “we”, “our” or “us”) through 
Principal Life Insurance Company Separate Account B (“Separate Account”). 
 
This prospectus provides information about the Contract and the Separate Account that you, as owner, should know 
before investing. The prospectus should be read and retained for future reference. Additional information about the 
Contract and the Separate Account is included in the Statement of Additional Information (“SAI”), dated May 2, 2011, 
which has been filed with the Securities and Exchange Commission (the “SEC”) and is considered a part of this 
prospectus. The table of contents of the SAI is at the end of this prospectus. You may obtain a free copy of the SAI 
by writing or calling: Principal Lifetime Income SolutionsSM, Principal Financial Group, P. O. Box 9382, Des Moines, 
Iowa 50306-9382, Telephone: 1-800-852-4450. You can also visit the SEC’s website at www.sec.gov, which contains 
the SAI, material incorporated into this prospectus by reference, and other information about registrants that file 
electronically with the SEC. 
 
These securities have not been approved or disapproved by the 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. 
 
You generally may allocate your investment in the Contract in the Fixed Account and the divisions of the Separate 
Account. The Fixed Account is a part of our General Account. Each division of the Separate Account invests in 
shares of a corresponding mutual fund (the “underlying mutual funds”). A list of the underlying mutual funds available 
under the Contract is shown below. 
 
Guarantees are based on the claims-paying ability of Principal Life Insurance Company and its General Account. 
 
Your accumulated value will vary according to the investment performance of the underlying mutual funds in which 
your selected division(s) are invested. We do not guarantee the investment performance of the underlying 
mutual funds. 
 
The following underlying mutual funds are available under the Contract(1) : 
 
Principal Variable Contracts Funds - Class 2 
• Diversified Balanced Account(2) 
• Diversified Growth Account(2) 
(1)  In California, we allocate initial premium payments to the Money Market Division during the examination offer period unless you elect to 
  immediately invest in the allocations you selected. This Division is not available under the Contract at any other time or in any other state. 
(2)  This underlying mutual fund is a fund of funds and expenses may be higher due to the tiered level of expenses. 
 
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 Contract, certain Contract features, and/or some of the investment options may not be available in all states or 
through all broker dealers. 
 
This prospectus is valid only when accompanied by the current prospectuses for the underlying mutual funds. These 
prospectuses should be kept for future reference. This prospectus is not an offer to sell, or solicitation of an offer to 
buy, the Contract in states in which the offer or solicitation may not be lawfully made. 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   
 
Glossary  4 
Summary of Expense Information  6 
Example  7 
Summary  8 
Corporate Organization and Operation  10 
The Contract  12 
How To Buy a Contract  12 
Premium Payments  13 
Right to Examine the Contract (free look)  13 
The Accumulation Period  14 
Automatic Portfolio Rebalancing (APR)  16 
Telephone and Internet Services  16 
Surrenders  17 
Death Benefit  19 
The Annuitization Period  21 
Charges and Deductions  23 
Surrender Charge  23 
Transaction Fee  25 
Premium Taxes  25 
Annual Fee  25 
GMWB Charge  25 
Separate Account Annual Expenses  26 
Special Provisions for Group or Sponsored Arrangements  26 
Rider Benefits  27 
Waiver of Surrender Charge Rider  27 
Guaranteed Minimum Withdrawal Benefit (GMWB)  28 
Fixed Account  41 
General Provisions  43 
The Contract  43 
Delay of Payments  43 
Misstatement of Age or Gender  44 
Assignment  44 
Change of Owner or Annuitant  44 
Beneficiary  44 
Contract Termination  44 
Reinstatement  45 
Reports  45 
Important Information about Customer Identification Procedures  45 
Rights Reserved by the Company  45 
Frequent Trading and Market-timing (Abusive Trading Practices)  46 
Distribution of the Contract  47 
Performance Calculation  47 
Federal Tax Matters  48 
Mutual Fund Diversification  51 
State Regulation  51 

 



General Information  51 
Reservation of Rights  51 
Legal Opinions  51 
Legal Proceedings  51 
Other Variable Annuity Contracts  52 
Payments to Financial Intermediaries  52 
Service Arrangements and Compensation  52 
Independent Registered Public Accounting Firm  53 
Financial Statements  53 
Table of Separate Account Divisions  54 
Registration Statement  55 
Customer Inquiries  55 
Table of Contents of the SAI  55 
Appendix A — GMWB Investment Options  56 
Appendix B — GMWB Examples  58 
Appendix C — Condensed Financial Information  62 

 



GLOSSARY 
accumulated value – the sum of the amounts invested in the Fixed Account and the Separate Account divisions. 
anniversary – the same date and month of each year following the contract date. 
annuitant – the person, including any joint annuitant, on whose life the annuity benefit payment is based. This 
person may or may not be the owner. 
annuitization – application of a portion or all of the accumulated value to an annuity benefit payment option to make 
income payments. 
annuitization date – the date all of the owner’s accumulated value is applied to an annuity benefit payment option. 
contract date – the date that the Contract is issued and which 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 any subsequent one-year period beginning on a contract anniversary (for example, if the contract 
date is June 5, 2011, the first contract year ends on June 4, 2012, and the first contract anniversary falls on June 5, 
2012). 
data page – that portion of the Contract which contains the following: owner and annuitant data (names, gender, 
annuitant age); the contract issue date; maximum annuitization date; contract charges and limits; benefits; and a 
summary of any optional benefits chosen by the contract owner. 
Fixed Account – an account which earns guaranteed interest. 
Fixed Account accumulated value – the amount of your accumulated value which is in the Fixed Account. 
good order – an instruction or request is in good order when it is received in our home office, or other place we may 
specify, and 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. 
investment options – the Fixed Account and Separate Account divisions. 
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 – 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. 
non-qualified contract – a Contract which 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 received by us, at the home office, either in writing or in another form approved 
by us in advance. 
Your notices may be mailed to us at: 
Principal Life Insurance Company 
P O Box 9382 
Des Moines, Iowa 50306-9382 
owner – the person, including joint owner, who owns all the rights and privileges of this Contract. 
premium payments – the gross amount you contributed to the Contract. 
qualified plans – retirement plans which receive favorable tax treatment under Section 401 or 403(a) of the Internal 
Revenue Code. 

 



Separate Account Division (division(s)) – a part of the Separate Account which invests in shares of an underlying 
mutual fund. (Referred to in the marketing materials as “sub-accounts.”) 
Separate Account division accumulated value – the amount of your accumulated value in all divisions. 
surrender charge – the charge deducted upon certain partial surrenders or total surrender of the Contract before the 
annuitization date. 
surrender value – accumulated value less any applicable surrender charge, rider fees, annual fee, transaction fees 
and any premium tax or other taxes. 
transfer – moving all or a portion of your accumulated value to or from one investment option or among several 
investment options. All transfers initiated during the same valuation period are considered to be one transfer for 
purposes of calculating the transaction fee, if any. 
underlying mutual fund – a registered open-end investment company, or a series or portfolio thereof, in which a 
division invests. 
unit – the accounting measure used to determine your proportionate interest in a division. 
unit value – a measure used to determine the value of an investment in a division. 
valuation date – each day the New York Stock Exchange (“NYSE”) is open for trading and trading is not restricted. 
valuation period – the period of time from one determination of the value of a unit of a division to the next. Each 
valuation period begins at the close of normal trading on the NYSE, generally 4:00 p.m. Eastern Time, on each 
valuation date and ends at the close of normal trading of the NYSE on the next valuation date. 
we, our, us – Principal Life Insurance Company. We are also referred to throughout this prospectus as the 
Company. 
you, your – the owner of this Contract, including any joint owner. 

 



SUMMARY OF EXPENSE INFORMATION 
 
The tables below describe the fees and expenses that you will pay when buying, owning and surrendering the 
Contract. 
 
The following table describes the fees and expenses you will pay at the time you buy the Contract, surrender the 
Contract or transfer cash value between investment options. 

 

Contract owner transaction expenses(1)
  Maximum  Current 
Highest deferred surrender charge (as a   
percentage of amount surrendered)(2)  · 6%  · 6%
Transaction Fees for each unscheduled  · the lesser of $25 or 2%  · $0
partial surrender  of each unscheduled 
  partial surrender after 
  the 12th unscheduled 
  partial surrender in a 
  contract year 
Transaction Fee(3) for each unscheduled  · the lesser of $30 or 2%  · $0
transfer  of each unscheduled 
  transfer after the first 
  unscheduled transfer in 
  a contract year 
State Premium Taxes (vary by state)  · 3.5% of premium  · 0%
NOTE: We do not currently assess premium taxes for  payments made 
any Contract issued, but reserve the right in the future   
to assess up to 3.5% of premium payments made for   
Contract owners in those states where a premium tax   
is assessed.   

 

The following table describes the fees and expenses that are deducted periodically during the time that you own the 
Contract, not including underlying mutual fund fees and expenses. 

 

Periodic Expenses
Annual Fee (waived for Contracts with     
accumulated value of $30,000 or more)  The lesser of $30 or 2.00% of the accumulated value 
  Maximum  Current 
Separate Account Annual Expenses (as a     
percentage of average daily separate     
account accumulated value)     
 
Mortality and Expense Risks Charge  1.25%  1.25% 
Administration Charge  0.15%  0.00% 
Total Separate Account Annual Expense  1.40%  1.25% 
GMWB Charge (as a percentage of the     
average quarterly withdrawal benefit     
base)(4)     
NOTE: Contract must be issued with this rider.     
You may not terminate this rider prior to the 5th     
contract anniversary.  · 1.65%  · 0.73% 

 



This table shows the minimum and maximum total operating expenses charged by the underlying mutual funds that 
you may pay periodically during the time that you own the Contract. More detail concerning the fees and expenses of 
each underlying mutual fund is contained in its prospectus. 

 

Minimum and Maximum Annual Underlying Mutual Fund Operating Expenses 
as of December 31, 2010
  Minimum  Maximum 
Total annual underlying mutual fund operating expenses     
(expenses that are deducted from underlying mutual fund     
assets, including management fees, distribution and/or     
service (12b-1) fees and other expenses)*  0.58%  0.58% 

 

* The funds available are structured as a “fund of funds”. A fund of funds is a mutual fund that invests primarily in a 
portfolio of other mutual funds. The expenses shown include the total fees and expenses of the fund of funds, 
including the acquired fund fees and expenses of such fund of funds. 
 
(1) For additional information about the fees and expenses described in the table, see CHARGES AND DEDUCTIONS. 
(2) Surrender Charge, as a percentage of the amount surrendered: 

 

Table of Surrender Charges
 
Number of completed contract years  Surrender charge applied to all premium 
since each premium payment was made  payments received in that contract year 
0 (year of premium payment)  6% 
1  6% 
2  6% 
3  5% 
4  4% 
5  3% 
6  2% 
7 and later  0% 

 

(3)  Please note that in addition to the fees shown, the Separate Account and/or sponsors of the underlying mutual funds may adopt requirements 
  pursuant to rules and/or regulations adopted by federal and/or state regulators which require us to collect additional transfer fees and/or 
  impose restrictions on transfers. 
(4)  At the end of each calendar quarter, one-fourth of the annual charge is multiplied by the average quarterly withdrawal benefit base. The 
  average quarterly withdrawal benefit base is equal to the withdrawal benefit base at the beginning of the calendar quarter plus the withdrawal 
  benefit base at the end of the calendar quarter and the sum is divided by two. There may be times when the sum of the four quarterly fee 
  amounts is higher than the fee amount if we calculated it annually. For example, if your withdrawal benefit base is changed on your contract 
  anniversary, the fee for that calendar quarter will vary from the other quarters. 
 
EXAMPLE 
 
This example is intended to help you compare the cost of investing in the Contract with the cost of investing in other 
variable annuity contracts. These costs include contract owner transaction expenses, contract fees, Separate 
Account annual expenses, and underlying mutual fund fees and expenses. 
 
The example reflects the maximum charges imposed in purchasing the Contract. The amounts below are calculated 
using the maximum GMWB fee and not the current GMWB fee. 
 
The example assumes: 
·  a $10,000 investment in the Contract for the time periods indicated; 
·  a 5% return each year; 
·  an annual contract fee of $30 (expressed as a percentage of the average accumulated value); 
·  the minimum and maximum annual underlying mutual fund operating expenses as of December 31, 2010 
  (without voluntary waivers of fees by the underlying funds, if any); and 
·  no premium taxes are deducted. 

 



Although your actual costs may be higher or lower, based on these assumptions, your costs would be as shown 
below: 

 

  If you surrender your          If you fully annuitize your 
  contract at the end of the  If you do not contract at the end of the 
  applicable time period  surrender your contract  applicable time period 
  1 Yr.  3 Yrs.  5 Yrs.  10 Yrs.  1 Yr.  3 Yrs.  5 Yrs.  10 Yrs.  1 Yr.  3 Yrs.  5 Yrs.  10 Yrs. 
Maximum/Minimum                         
Total Underlying                         
Mutual Fund Operating                         
Expenses (0.58%)  1,314  2,425  3,461  5,889  603  1,821  3,044  5,889  603  1,821  3,044  5,889 

 

SUMMARY 
 
This prospectus describes an individual flexible premium deferred variable annuity offered by the Company. The 
Contract is designed to provide individuals with retirement benefits, including: 
 
·  non-qualified retirement programs; and 
·  Individual Retirement Annuities (“IRA”), Simplified Employee Pension plans (“SEPs”) and Savings Incentive 
  Match Plan for Employees (“SIMPLE”) IRAs adopted according to Section 408 of the Internal Revenue Code 
  (see FEDERAL TAX MATTERS — Tax Qualified Contracts: IRA, SEP, and SIMPLE-IRA). The Contract does 
  not provide any additional tax deferral if you purchase it to fund an IRA or other investment vehicle that 
  already provides tax deferral. 
For information on how to purchase the Contract, please see THE CONTRACT — How to Buy a Contract. 
This is a brief summary of the Contract’s features. More detailed information follows later in this prospectus. 
 
Issue Age 
You and any joint owner must be at least age 60 and younger than age 81 to purchase this Contract. If the owner is 
not a natural person, the annuitant(s) must meet these age requirements. 
 
Investment Limitations 
 
·  Initial premium payment must be at least $15,000 for non-qualified contracts. 
·  Initial premium payment must be at least $5,000 for all other contracts. 
·  Each subsequent premium payment must be at least $2,000. 
·  If you are a member of a retirement plan covering three or more persons and premium payments are made 
  through an automatic investment program, the initial and subsequent premium payments for the Contract must 
  average at least $100 and not be less than $50. 
·  The total sum of all premium payments may not be greater than $2,000,000 without prior home office approval. 
 
You may allocate your net premium payments to the investment options. 
·  A complete list of the divisions may be found in TABLE OF SEPARATE ACCOUNT DIVISIONS. Each division 
  invests in shares of an underlying mutual fund. More detailed information about the underlying mutual funds may 
  be found in the current prospectus for each underlying mutual fund. 
·  The investment options also include the Fixed Account. 
 
Guaranteed Minimum Withdrawal Benefit (GMWB) 
 
This Contract must be issued with a Guaranteed Minimum Withdrawal Benefit (“GMWB”) rider which is designed to 
help protect you against the risk of a decrease in the Contract accumulated value due to market declines. This 
benefit is also intended to help you avoid the risk of outliving your money. The GMWB rider allows you to take certain 
guaranteed annual withdrawals during the Contract accumulation phase, regardless of your Contract accumulated 
value. You may not terminate this rider prior to the 5th contract anniversary following the rider effective date. 
 
If you take withdrawals in an amount that exceeds an available withdrawal benefit payment (excess withdrawal), you 
will shorten the life of the rider, lower the withdrawal benefit payments and/or cause the rider to terminate for lack of 
value unless you make additional premium payments or a GMWB Step-Up is applied. 

 



Transfers 
During the accumulation period: 
·  a dollar amount or percentage of transfer must be specified; 
·  a transfer may occur on a scheduled or unscheduled basis; and 
·  transfers to the Fixed Account are not permitted if a transfer has been made from the Fixed Account to a division 
  within six months. 
 
During the annuitization period, transfers are not permitted (no transfers once payments have begun). 
 
See THE CONTRACT — The Accumulation Period, Division Transfers and FIXED ACCOUNT — Fixed Account 
Transfers, and Total and Partial Surrenders for additional restrictions. 
 
Surrenders 
 
During the accumulation period: 
·  a dollar amount must be specified; 
·  surrendered amounts may be subject to surrender charges: 
  · the maximum surrender charge is 6% of the amount(s) surrendered. 
·  total surrenders may be subject to an annual Contract fee; and 
·  during a contract year, partial surrenders that are less than the free surrender privilege amount are not subject to 
  a surrender charge. 
 
NOTE: The free surrender privilege is an amount normally subject to a surrender charge that may be surrendered 
without a charge. See CHARGES AND DEDUCTIONS — Surrender Charge — Free Surrender Privilege. 
 
See THE CONTRACT — Surrenders and FIXED ACCOUNT — Fixed Account Transfers, and Total and Partial 
Surrenders for additional information. 
 
Charges and Deductions 
 
·  There is no sales charge on premium payments. 
·  A contingent deferred surrender charge is imposed on certain total or partial surrenders. 
·  An annual mortality and expense risks charge equal to 1.25% of amounts in the Separate Account divisions is 
  imposed daily. 
·  The current annual charge for the GMWB rider is 0.73% of the average quarterly withdrawal benefit base. 
·  The daily Separate Account administration charge currently is zero but we reserve the right to assess a charge 
  not to exceed 0.15% of Separate Account division value(s) annually. 
·  Contracts with an accumulated value of less than $30,000 are subject to an annual fee of the lesser of $30 or 2% 
  of the accumulated value. Currently we do not charge the annual fee if your accumulated value is $30,000 or 
  more. If you own more than one variable annuity contract with us, then all the contracts you own or jointly own 
  are aggregated on each contract’s anniversary to determine if the $30,000 minimum has been met and whether 
  that contract will be charged. 
·  Certain states and local governments impose a premium tax. We reserve the right to deduct the amount of the 
  tax from premium payments or the accumulated value. 
 
See CHARGES AND DEDUCTIONS for additional information. 

 



Annuity Benefit Payments 
 
·  You may choose from several fixed annuity benefit payment options which are described in THE CONTRACT — 
  The Annuitization Period, Annuity Benefit Payment Options. 
·  Payments are made to the owner (or beneficiary depending on the annuity benefit payment option selected). You 
  should carefully consider the tax implications of each annuity benefit payment option (see THE CONTRACT — 
  The Annuitization Period, Annuity Benefit Payment Options and FEDERAL TAX MATTERS). 
 
Death Benefit 
 
·  If the owner dies before the annuitization date, a death benefit is payable (see Death Benefit). 
·  The death benefit may be paid as either a single payment or under an annuity benefit payment option (see Death 
  Benefit). 
·  If the annuitant dies after the annuitization date, payments will continue only as provided by the annuity benefit 
  payment option in effect. 
 
Examination Offer Period (free look) 
 
You may return the Contract during the examination offer period, which is generally 10 days from the date you 
receive the Contract. The examination offer period may be longer in certain states. 
·  The amount refunded will be a full refund of your accumulated value plus any contract charges and premium 
  taxes you paid unless state law requires otherwise. The underlying fund fees and charges are not refunded to 
  you as they are already factored into the Separate Account division accumulated value. 
·  The amount refunded may be more or less than the premium payments made. 
 
See THE CONTRACT — Right to Examine the Contract (free look) for additional information. 
 
CORPORATE ORGANIZATION AND OPERATION 
 
Principal Life Insurance Company 
 
Principal Life Insurance Company is a stock life insurance company with authority to transact life and annuity 
business in all states of the United States and the District of Columbia. Our home office is located at: Principal 
Financial Group, Des Moines, Iowa 50392. We are a wholly owned subsidiary of Principal Financial Services, Inc., 
which in turn, is a wholly owned direct subsidiary of Principal Financial Group, Inc., a publicly-traded company. 
 
On June 24, 1879, we were incorporated under Iowa law as a mutual assessment life insurance company named 
Bankers Life Association. We became a legal reserve life insurance company and changed our name to Bankers Life 
Company in 1911. In 1986, we changed our name to Principal Mutual Life Insurance Company. In 1998, we became 
Principal Life Insurance Company, a subsidiary stock life insurance company of Principal Mutual Holding Company, 
as part of a reorganization into a mutual insurance holding company structure. In 2001, Principal Mutual Holding 
Company converted to a stock company through a process called demutualization, resulting in our current 
organizational structure. 
 
Principal Life Insurance Company Separate Account B 
 
The Separate Account was established under Iowa law on January 12, 1970 and was registered as a unit investment 
trust with the SEC on July 17, 1970. This registration does not involve SEC supervision of the investments or 
investment policies of the Separate Account. We do not guarantee the investment results of the Separate Account. 
There is no assurance that the value of your Contract will equal the total of the payments you make to us. 
 
The Separate Account is not affected by the rate of return of our general account or by the investment performance 
of any of our other assets. Any income, gain, or loss (whether or not realized) from the assets of the Separate 
Account are credited to or charged against the Separate Account without regard to our other income, gains, or 
losses. Obligations arising from the Contract, including the promise to make annuity benefit payments, are general 
corporate obligations of the Company. Assets of the Separate Account attributed to the reserves and other liabilities 
under the Contract may not be charged with liabilities arising from any of our other businesses. 

 



The Separate Account is divided into divisions. The assets of each division invest in a corresponding underlying 
mutual fund. New divisions may be added and made available. Divisions may also be eliminated. These changes will 
be made in a manner that is consistent with applicable laws and regulations. 
 
The Underlying Mutual Funds 
 
The underlying mutual funds are registered under the Investment Company Act of 1940 as open-end investment 
management companies. The underlying mutual funds provide the investment vehicles for the Separate Account. A 
full description of the underlying mutual funds, the investment objectives, policies and restrictions, charges and 
expenses and other operational information are contained in the accompanying prospectuses (which should be read 
carefully before investing) and the Statement of Additional Information (“SAI”). You may request additional copies 
of these documents without charge from your registered representative or by calling us at 1-800-852-4450. 
 
We purchase and sell shares of the underlying mutual fund for the Separate Account at their net asset value. Shares 
represent interests in the underlying mutual fund available for investment by the Separate Account. Each underlying 
mutual fund corresponds to one of the divisions. The assets of each division are separate from the others. A 
division’s performance has no effect on the investment performance of any other division. 
 
The underlying mutual funds are NOT available to the general public directly. The underlying mutual funds are 
available only as investment options in variable life insurance policies or variable annuity contracts issued by life 
insurance companies and qualified plans. Some of the underlying mutual funds have been established by investment 
advisers that manage publicly traded mutual funds having similar names and investment objectives. While some of 
the underlying mutual funds may be similar to, and may in fact be modeled after publicly traded mutual funds, you 
should understand that the underlying mutual funds are not otherwise directly related to any publicly traded mutual 
fund. Consequently, the investment performance of any underlying mutual fund may differ substantially from the 
investment performance of a publicly traded mutual fund. 
 
The Table of Separate Account Divisions included later in this prospectus contains a brief summary of the investment 
objectives and a listing of the advisor and, if applicable, sub-advisor for each division. 
 
You should note that the GMWB investment options are series of Principal Variable Contracts Funds, Inc., which is 
managed by Principal Management Corporation ("PMC"), an affiliate of ours. If you wish to invest your Contract 
accumulated value predominantly in underlying funds that are not managed by an affiliate of ours, this Contract may 
not be appropriate for you. 
 
To the extent that an underlying fund managed by PMC may be included as a GMWB investment option, PMC will 
receive additional compensation from the management fee of the underlying fund. However, we do not take such 
potential financial benefit into account in selecting the underlying fund to be a GMWB investment option. 
 
Deletion or Substitution of Separate Account Divisions 
 
We reserve the right, within the law, to make additions, deletions and substitutions for the divisions. We will make no 
such substitution or deletion without first notifying you and obtaining approval of the appropriate insurance regulatory 
authorities and the SEC (to the extent required by 1940 Act). 
 
If the shares of a division are no longer available for investment or if, in the judgment of our management, investment 
in a division becomes inappropriate for the purposes of our contract, we may eliminate the shares of a division and 
substitute shares of another division of the Trust or another open-end registered investment company. Substitution 
may be made with respect to both existing investments and the investment of future premium payments. 
 
If we eliminate divisions, you may change allocation percentages and transfer any value in an affected division to 
another division(s) without charge. You may exercise this exchange privilege until the later of 60 days after a) the 
effective date of the additions, deletions and/or substitutions of the change, or b) the date you receive notice of the 
options available. You may only exercise this right if you have any value in the affected division(s). 
 
We also reserve the right to establish additional divisions, each of which would invest in a separate underlying mutual 
fund with a specified investment objective. 

 



Voting Rights 
 
We vote shares of the underlying mutual funds owned by the Separate Account according to the instructions of 
Contract owners. 
 
We will notify you of shareholder meetings of the mutual funds underlying the divisions in which you hold units. We 
will send you proxy materials and instructions for you to provide voting instructions to us. We will arrange for the 
handling and tallying of proxies received from you and other owners. If you give no voting instructions, we will vote 
those shares in the same proportion as shares for which we received instructions. Because there is no required 
minimum number of votes, a small number of votes can have a disproportionate effect. 
 
We determine the number of fund shares that you may instruct us to vote by allocating one vote for each $100 of 
accumulated value in the division. Fractional votes are allocated for amounts less than $100. We determine the 
number of underlying fund shares you may instruct us to vote as of the record date established by the underlying 
mutual fund for its shareholder meeting. In the event that applicable law changes or we are required by regulators to 
disregard voting instructions, we may decide to vote the shares of the underlying mutual funds in our own right. 
 
THE CONTRACT 
 
Principal Lifetime Income Solutions, a variable annuity, is significantly different from a fixed annuity. As the owner of 
a variable annuity, you assume the risk of investment gain or loss (as to amounts in the Separate Account divisions) 
rather than the Company. The Separate Account division accumulated value under a variable annuity is not 
guaranteed and varies with the investment performance of the underlying mutual funds. 
 
Based on your investment objectives, you direct the allocation of premium payments and accumulated values. There 
can be no assurance that your investment objectives will be achieved. 
 
You should refer to the terms and limitations of any qualified plan which is to be funded by the Contract. Qualified 
plans are subject to several requirements and limitations which may affect the terms of any particular Contract or the 
advisability of taking certain action permitted by the Contract. 
 
How to Buy a Contract 
 
If you want to buy a Contract, you must submit an application and make an initial premium payment. If you are 
buying the Contract to fund a SIMPLE-IRA or SEP, an initial premium payment is not required at the time you send in 
the application. If the application is complete and the Contract applied for is suitable, the Contract is issued. If the 
completed application is received in good order, the initial premium payment is credited within two valuation days 
after the later of receipt of the application or receipt of the initial premium payment at our home office. If the initial 
premium payment is not credited within five valuation days, it is refunded unless we have received your permission to 
retain the premium payment until we receive the information necessary to issue the Contract. 
 
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. 
 
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. 

 



Premium Payments 
 
·  The initial premium payment must be at least $15,000 for non-qualified contracts. 
·  The initial premium payment must be at least $5,000 for all other contracts. 
·  If you are making premium payments through a payroll deduction plan or through a bank (or similar financial 
  institution) account under an automated investment program, your initial and subsequent premium payments 
  must be at least $100. 
·  All premium payments are subject to a surrender charge period that begins in the contract year each premium 
  payment is received. 
·  Subsequent premium payments must be at least $2,000 and can be made until the annuitization date. 
·  Premium payments are to be made by personal or financial institution check (for example, a bank or cashier’s 
  check). We reserve the right to refuse any 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. 
·  If you are a member of a retirement plan covering three or more persons, the initial and subsequent premium 
  payments for the Contract must average at least $100 and cannot be less than $50. 
·  The total sum of all premium payments may not be greater than $2,000,000 without our prior approval. For 
  further information, please call 1-800-852-4450. 
 
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”). The examination offer period is 
the later of 10 days after the Contract is delivered to you, or such later date as specified by applicable state law. 
 
Although we currently allocate your initial premium payments to the investment options you have selected, during 
times of economic uncertainty and with prior notice to you, we may activate our right to allocate initial premium 
payments to the Money Market Division during the examination offer period. If your initial premium payments are 
allocated to the Money Market Division and the free look is exercised, you will receive the greater of premium 
payments or the accumulated value without a surrender charge. 
 
In California, we allocate initial premium payments to the Money Market Division during the examination offer period 
unless you elect to immediately invest in the allocations you selected. If your premium payments were allocated to 
the Money Market Division, after the free look period ends, your accumulated value will be converted into units of the 
division(s) according to your allocation instructions. The units allocated will be based on the unit value next 
determined for each division. 
 
To exercise your free look, you must send the Contract and a written request to us before the close of business on 
the last day of the examination offer period. 
 
If you properly exercise your free look, we will cancel the Contract. In all states we will return at least your 
accumulated value plus any premium tax charge deducted, and minus any applicable federal and state income tax 
withholding. The amount returned may be higher or lower than the premium payment(s) applied during the 
examination offer period. In the states that require us to return your premium payments, we will return the greater of 
your premium payments or accumulated value. 
 
If you are purchasing this Contract to fund an IRA, SIMPLE-IRA, or SEP-IRA and you return it on or before the 
seventh day of the examination offer period, we will return the greater of: 
·  the total premium payment(s) made; or 
·  your accumulated value plus any premium tax charge deducted, less any applicable federal and state income tax 
  withholding and depending upon the state in which the Contract was issued, any applicable fees and charges. 
 
You may obtain more specific information regarding the free look from your registered representative or by calling us 
at 1-800-852-4450. 

 



The Accumulation Period 
 
The Value of Your Contract 
The accumulated value of your Contract is the total of the Separate Account division accumulated value plus the 
Fixed Account accumulated value. The Fixed Account is described in the section titled FIXED ACCOUNT. 
 
There is no guaranteed minimum Separate Account division accumulated value. The value reflects the investment 
experience of the divisions that you choose and also reflects your premium payments, partial surrenders, surrender 
charges, partial annuitizations and the Contract expenses deducted from the Separate Account. 
 
The Separate Account division accumulated value changes from day to day. To the extent the accumulated value is 
allocated to the Separate Account divisions, you bear the investment risk. At the end of any valuation period, your 
Contract’s value in a division is: 
·  the number of units you have in a division multiplied by 
·  the value of a unit in the division. 
 
The number of units is equal to the total units purchased by allocations to the division from: 
·  your initial premium payment; 
·  subsequent premium payments; 
·  your exchange credit; and 
·  transfers from another investment option 
 
minus units sold: 
·  for partial surrenders and/or partial annuitizations from the division; 
·  as part of a transfer to another division or the Fixed Account; and 
·  to pay contract charges and fees. 
 
Unit values are calculated each valuation date at the close of normal trading of the NYSE. To calculate the unit value 
of a division, the unit value from the previous valuation date is multiplied by the division’s net investment factor for the 
current valuation period. The number of units does not change due to a change in unit value. 
 
The net investment factor measures the performance of each division. The net investment factor for a valuation 
period is [(a plus b) divided by (c)] minus d where: 
a = the share price (net asset value) of the underlying mutual fund at the end of the valuation period; 
b = the per share amount of any dividend* (or other distribution) made by the mutual fund during the valuation period; 
c = the share price (net asset value) of the underlying mutual fund at the end of the previous valuation period; and 
d = the total Separate Account annual expenses. 
  *  When an investment owned by an underlying mutual fund pays a dividend, the dividend increases the net 
    asset value of a share of the underlying mutual fund as of the date the dividend is recorded. As the net asset 
    value of a share of an underlying mutual fund increases, the unit value of the corresponding division also 
    reflects an increase. Payment of a dividend under these circumstances does not increase the number of 
    units you own in the division. 
 
The Separate Account charges are calculated by dividing the annual amount of the charge by 365 and multiplying by 
the number of days in the valuation period. 
 
Premium Payments 
 
·  On your application, you direct how your premium payments will be allocated to the investment options. 
·  Allocations must be in percentages. 
·  Percentages must be in whole numbers and total 100%. 
·  Subsequent premium payments are allocated according to your then current allocation instructions. 
·  Changes to the allocation instructions are made without charge. 
  ·  A change is effective on the next valuation period after we receive your new instructions in good order. 
  ·  You can change the current allocations and future allocation instructions by: 

 



    · mailing your instructions to us; 
    · calling us at 1-800-852-4450 (if telephone privileges apply); 
    · faxing your instructions to us at 1-866-894-2087; or 
    · visiting www.principal.com. 
·  Changes to premium payment allocations do not result in the transfer of any existing investment option 
  accumulated values. You must provide specific instructions to transfer existing accumulated values. 
·  Premium payments are credited on the basis of the unit value next determined after we receive a premium 
  payment. 
·  If no premium payments are made during two consecutive calendar years and the accumulated value is less than 
  $2,000, we reserve the right to terminate the Contract (see GENERAL INFORMATION — Reservation of Rights). 
 
Division Transfers 
 
·  You may request an unscheduled transfer or set up a scheduled transfer by 
  ·  mailing your instructions to us; 
  ·  calling us at 1-800-852-4450 (if telephone privileges apply); 
  ·  faxing your instructions to us at 1-866-894-2087; or 
  ·  visiting www.principal.com. 
·  You must specify the dollar amount or percentage to transfer from each division. 
·  The minimum transfer amount is the lesser of $100 or the value of your division. 
·  In states where allowed, we reserve the right to reject transfer instructions from someone providing them for 
  multiple contracts for which he or she is not the owner. 
 
You may not make a transfer to the Fixed Account if: 
·  a transfer has been made from the Fixed Account to a division within six months; or 
·  following the transfer, the Fixed Account value would be greater than $1,000,000. 
 
Unscheduled Transfers 
 
You may make unscheduled division transfers from one division to another division or to the Fixed Account. 
·  Transfer values are calculated using the price next determined after we receive your request. 
·  We reserve the right to impose a fee of the lesser of $30 or 2% of the amount transferred on each unscheduled 
  transfer after the first unscheduled transfer in a contract year. 
 
Limitations on Unscheduled Transfers. We reserve the right to reject excessive exchanges or purchases if the 
trade would disrupt the management of the Separate Account, any division of the Separate Account or any 
underlying mutual fund. In addition, we may suspend or modify transfer privileges in our sole discretion at any time to 
prevent market timing efforts that could disadvantage other owners. These modifications could include, but not be 
limited to: 
·  requiring a minimum time period between each transfer; 
·  imposing the transaction fee; 
·  limiting the dollar amount that an owner may transfer at any one time; or 
·  not accepting transfer requests from someone providing requests for multiple Contracts for which he or she is not 
  the owner. 
 
Scheduled Transfers (Dollar Cost Averaging) 
 
·  You may elect to have transfers made on a scheduled basis. 
·  There is no charge for scheduled transfers and no charge for participating in the scheduled transfer program. 
·  You must specify the dollar amount of the transfer. 
·  You select the transfer date (other than the 29th, 30th or 31st) and the transfer period (monthly, quarterly, semi- 
  annually or annually). 
·  If the selected date is not a valuation date, the transfer is completed on the next valuation date. 
·  If you want to stop a scheduled transfer, you must provide us notice prior to the date of the scheduled transfer. 
·  Transfers continue until your value in the division is zero or we receive notice to stop the transfers. 
·  We reserve the right to limit the number of divisions from which simultaneous transfers are made. 

 



Scheduled transfers are designed to reduce the risks that result from market fluctuations. They do this by spreading 
out the allocation of your money to investment options over a longer period of time. This allows you to reduce the risk 
of investing most of your money at a time when market prices are high. The results of this strategy depend on market 
trends and are not guaranteed. 

 

Example:       
 
Month  Amount Invested  Share Price  Shares Purchased 
January  $100  $25.00  4 
February  $100  $20.00  5 
March  $100  $20.00  5 
April  $100  $10.00  10 
May  $100  $25.00  4 
June  $100  $20.00  5 
Total  $600  $120.00  33 

 

In the example above, the average share price is $20.00 [total of share prices ($120.00) divided by number of 
purchases (6)]. The average share cost is $18.18 [amount invested ($600.00) divided by number of shares 
purchased (33)]. 
 
Automatic Portfolio Rebalancing (APR) 
 
APR allows you to maintain a specific percentage of your Separate Account division accumulated value in specified 
divisions over time. APR is available only if you have the option to invest in more than one Separate Account 
division; therefore, APR is currently not available with the GMWB rider. If the GMWB rider is terminated, APR is 
available. APR is not available for values in the Fixed Account. 
 
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: 
·  make premium payment allocation changes; 
·  set up Dollar Cost Averaging (DCA) scheduled transfers; 
·  make transfers; and 
·  make changes to APR. 
 
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 or 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. 
 
Telephone Services 
 
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 
·  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). 
·  that are in good order and received by us before the close of a valuation period will receive the price next 
  determined (the value as of the close of that valuation period). 
·  that are in good order and received by us after the close of a valuation period will receive the price next 
  determined (the value as of the close of the next valuation period). 
·  that are not in good order when received by us will be effective the next valuation date that we receive good 
  order instructions. 
 
Internet 
 
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 
·  that are in good order and received by us before the close of a valuation period will receive the price next 
  determined (the value as of the close of that valuation period). 
·  that are in good order and received by us after the close of a valuation period will receive the price next 
  determined (the value as of the close of the next valuation period). 
·  that are not in good order when received by us will be effective the next valuation day that we receive good order 
  instructions. 
 
Surrenders 
 
You may surrender your Contract by providing us notice. Surrender requests may be sent to us at: 
  Principal Life Insurance Company 
  P.O. Box 9382 
  Des Moines, Iowa 50306-9382 
 
Surrenders result in the redemption of units and your receipt of the value of the redeemed units minus any applicable 
surrender charge and fees. Surrender values are calculated using the price next determined after we receive your 
request. Surrenders from the Separate Account 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 Delay of 
Payments). 
 
You may specify surrender allocation percentages with each partial surrender request. If you do not provide us with 
specific percentages, we will use your premium payment allocation percentages for the partial surrender. Surrenders 
may be subject to a surrender charge (see CHARGES AND DEDUCTIONS — Surrender Charge). 

 



Total Surrender 
 
· You may surrender the Contract at any time before the annuitization date. 
· Surrender values are calculated using the price next determined after we receive your request. 
· The cash surrender value is your accumulated value minus any applicable fees and surrender charges. 
· We reserve the right to require you to return the Contract. 
· The written consent of all collateral assignees and irrevocable beneficiaries must be obtained prior to surrender. 
 
Unscheduled Partial Surrender 
 
· You may surrender a part of your accumulated value at any time before the annuitization date. 
· You must specify the dollar amount of the surrender (which must be at least $100). 
· The surrender is effective at the end of the valuation period during which we receive your written request for 
surrender. 
· The surrender is deducted from your investment options according to your surrender allocation percentages. 
· If surrender allocation percentages are not specified, we use your premium payment allocation percentages. 
· We surrender units from your investment options to equal the dollar amount of the surrender request plus any 
applicable surrender charge and transaction fee, if any. 
· Your accumulated value after the unscheduled partial surrender must be equal to or greater than $5,000; we 
reserve the right to increase this amount up to and including $10,000. 
· The written consent of all collateral assignees and irrevocable beneficiaries must be obtained prior to surrender. 
 
Scheduled Partial Surrender 
 
· You may elect partial surrenders from any of your investment options on a scheduled basis. 
· Your accumulated value must be at least $5,000 when the scheduled partial surrenders begin. 
· You may specify monthly, quarterly, semi-annually or annually and choose a surrender date (other than the 29th, 
30th or 31st). 
· If the selected date is not a valuation date, the partial surrender is completed on the next valuation date. 
· We surrender units from your investment options to equal the dollar amount of the partial surrender request plus 
any applicable partial surrender charge. 
· The partial surrenders continue until your value in the investment option is zero or we receive written notice to 
stop the partial surrenders. 
· The written consent of all collateral assignees and irrevocable beneficiaries must be obtained prior to partial 
surrender. 

 



Death Benefit 
 
This Contract provides a death benefit upon the death of the owner. The Contract will not provide death benefits 
upon the death of an annuitant unless the annuitant is also an owner or the owner is not a natural person. 
 
The following tables illustrate the various situations and the resulting death benefit payment if death occurs before 
the annuitization date. 

 

If you die and...  And...  Then... 
You are the sole  Your spouse is not  The beneficiary(ies) receives the death benefit under 
owner  named as a primary  the Contract. 
  beneficiary   
    If a beneficiary dies before you, on your death we will 
    make equal payments to the surviving beneficiaries 
    unless you provided us with other written instructions. If 
    no beneficiary(ies) survives you, the death benefit is 
    paid to your estate in a single payment. 
 
    Upon your death, only your beneficiary’s(ies’) right to 
    the death benefit will continue; all other rights and 
    benefits under the Contract will terminate. 
You are the sole  Your spouse is named  Your spouse may either 
owner  as a primary beneficiary  a. continue the Contract; or 
    b. receive the death benefit under the Contract. 
 
    All other beneficiaries receive the death benefit under 
    the Contract. 
 
    If a beneficiary dies before you, on your death we will 
    make equal payments to the surviving beneficiaries 
    unless you provided us with other written instructions. If 
    no beneficiary(ies) survives you, the death benefit is 
    paid to your estate in a single payment. 
 
    Unless your spouse elects to continue the Contract, 
    only your spouse’s and any other beneficiary’s(ies’) 
    right to the death benefit will continue; all other rights 
    and benefits under the Contract will terminate. 
You are a joint  The surviving joint  The surviving owner receives the death benefit under 
owner  owner is not your  the Contract. 
  spouse   
    Upon your death, only the surviving owner’s right to the 
    death benefit will continue; all other rights and benefits 
    under the Contract will terminate. 
You are a joint  The surviving joint  Your spouse may either 
owner  owner is your spouse  a. continue the Contract; or 
    b. receive the death benefit under the Contract. 
 
    Unless your surviving spouse owner elects to continue 
    the Contract, upon your death, only your spouse’s right 
    to the death benefit will continue; all other rights and 
    benefits under the Contract will terminate. 

 



If...  And...  Then... 
The annuitant dies  The owner is not a  The beneficiary(ies) receives the death benefit under 
  natural person  the Contract. 
 
    If a beneficiary dies before the annuitant, on the 
    annuitant’s death we will make equal payments to the 
    surviving beneficiaries unless the owner provided us 
    with other written instructions. 
 
    Upon the annuitant’s death, only the beneficiary’s(ies’) 
    right to the death benefit will continue; all other rights 
    and benefits under the Contract will terminate. 

 

Before the annuitization date, you may give us written instructions for payment under a death benefit option. If we do 
not receive your instructions, the death benefit is paid according to instructions from the beneficiary(ies). The 
beneficiary(ies) may elect to apply the death benefit under an annuity benefit payment option or receive the death 
benefit as a single payment. Generally, unless the beneficiary(ies) elects otherwise, we pay the death benefit in a 
single payment, subject to proof of your death. 
 
No surrender charge applies when a death benefit is paid. 
 
Standard Death Benefit Formula 
 
The amount of the standard death benefit is the greatest of a, b or c, where: 
a = the accumulated value on the date we receive proof of death and all required documents; 
b = the total of premium payments minus an adjustment for each partial surrender (and any applicable surrender 
    charges and fees) and minus an adjustment for each partial annuitization made prior to the date we receive proof 
    of death and all required documents; and 
c = the highest accumulated value on any contract anniversary that is wholly divisible by seven (for example, 
    contract anniversaries 7, 14, 21, 28, etc.) plus any premium payments since that contract anniversary and minus 
    an adjustment for each partial surrender (and any applicable surrender charges and fees) and minus an 
    adjustment for each partial annuitization made after that contract anniversary. 
 
The adjustment for each partial surrender (and any applicable surrender charges and fees) and for each partial 
annuitization made prior to the date we receive proof of death and all required documents is equal to (x divided by y) 
multiplied by z, where: 
x = the amount of the partial surrender (and any applicable surrender charges and fees) or the amount of the partial 
    annuitization; and 
y = the accumulated value immediately prior to the partial surrender or partial annuitization; and 
z = the amounts determined in b or c above immediately prior to the partial surrender or partial annuitization. 
Example: Your accumulated value is $10,000 and you take a partial surrender of $2,000 (20% of your 
                accumulated value). For purposes of calculating the death benefit, we reduce the amounts 
                determined in b or c above by 20%. 
 
Payment of Death Benefit 
 
The death benefit is usually paid within five business days of our receiving all required documents (including proof of 
death) to process the claim. Payment is made according to benefit instructions provided by you. Some states require 
this payment to be made in less than five business days. Under certain circumstances, this payment may be delayed 
(see GENERAL PROVISIONS — Delay of Payments). We pay interest (as required by state law) on the death 
benefit from the date we receive all required documents until payment is made or until the death benefit is applied 
under an annuity benefit payment option. 
 
NOTE: Proof of death includes: a certified 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 remains invested in the divisions until the valuation period during which we receive the 
required documents. If more than one beneficiary is named, each beneficiary’s portion of the death benefit remains 
invested in the divisions until the valuation period during which we receive the required documents for that 
beneficiary. After payment of all of the death benefit, the Contract is terminated. 
 
The Annuitization Period 
 
Annuitization Date 
 
You may specify an annuitization date in your application. You may change the annuitization date with our prior 
approval. The request must be in writing. You may not select an annuitization date prior to the first contract 
anniversary or after the maximum annuitization date (the later of age 85 or ten years after contract issue; state 
variations may apply) found on the data pages. If you do not specify an annuitization date, the annuitization date is 
the maximum annuitization date shown on the data pages. 
 
Full Annuitization 
 
Any time after the first 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 or if the 
amount applied under an annuity benefit payment option is less than the minimum requirement, 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 business 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 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 FEDERAL TAX MATTERS). You should consider this 
carefully when you select or change the annuity benefit payment commencement date. 
 
Partial Annuitization 
 
After the first contract year and prior to the annuitization date, you may annuitize a portion of your accumulated value 
by sending us a notice. 
 
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. 
 
You may select one of the annuity benefit payment options listed below. Once payments begin under the option you 
selected, 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. 
 
Annuity Benefit Payment Options 
 
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 total or partial surrenders after the annuitization date. The fixed annuity benefit payment 
must be made within one year of the annuity benefit election. 

 



The amount of the fixed annuity benefit payment depends on the: 
·  amount of accumulated value applied to the annuity benefit payment option; 
·  annuity benefit payment option selected; and 
·  age and gender of the annuitant (unless fixed period income option is selected). 
 
The amount of the initial payment is determined by applying all or a portion of the accumulated value as of the date 
of the application to the annuity table for the annuitant’s annuity benefit payment option, gender, and age. The 
annuity benefit payment tables contained in the Contract are based on the Annuity 2000 Mortality Table. These 
tables are guaranteed for the life of the Contract. 
 
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. 
 
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: 
·  for Contracts with one annuitant — Life Income with payments guaranteed for a period of 10 years. 
·  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: 
 
·  Fixed Period Income – 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. 
 
·  Life Income – Level payments continue for the annuitant’s lifetime. If you defer the first payment date, it is 
  possible that you would 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. 
 
·  Life Income with Period Certain – 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. 
 
·  Joint and Survivor – 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 
  would 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 would receive no payments if both the 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. 
 
·  Joint and Survivor with Period Certain – 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. 
 
Other annuity benefit payment options may be available. 

 



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 70½. 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 FEDERAL TAX MATTERS — Required 
Distributions for Non-Qualified Contracts). 
 
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 contingent owner. In all cases the person entitled to receive 
payments also receives any rights and privileges under the annuity benefit payment option. 
 
CHARGES AND DEDUCTIONS 
 
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 the Annual Fee, Transaction Fee and Premium Tax. For a summary, see SUMMARY 
EXPENSE INFORMATION. 
 
In addition to the charges under the Contract, there are also deductions from and expenses paid out of the assets of 
the underlying mutual funds which are described in the underlying mutual funds’ prospectuses. 
 
Surrender Charge 
 
No sales charge is collected or deducted when premium payments are applied under the Contract. A surrender 
charge is assessed on certain total or partial surrenders. 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 which include profit, if any, from the mortality and 
expense risks charge. 
 
NOTE: If you plan to make multiple premium payments, you need to be aware that each premium payment has its 
        own surrender charge period (shown below). The surrender charge for any total or partial surrender is a 
        percentage of all the premium payments surrendered which were received by us during the contract years 
        prior to the surrender. The applicable percentage which is applied to the premium payments surrendered is 
        determined by the following tables. 

 



Surrender Charge for Contracts (as a percentage of amounts surrendered): 

 

Number of completed contract years  Surrender charge applied to all 
since each premium payment  premium payments received in 
was made  that contract year 
0 (year of premium payment)  6% 
1  6% 
2  6% 
3  5% 
4  4% 
5  3% 
6  2% 
7 and later  0% 

 

Each premium payment begins in year 0 for purposes of calculating the percentage applied to that premium 
payment. However, premium payments are added together by contract year for purposes of determining the 
applicable surrender charge. If your contract year begins April 1 and ends March 31 the following year, all premium 
payments received during that period are considered to have been made in that contract year. 
 
NOTE: For Contracts written in the states of Alabama, Massachusetts, and Washington, the surrender charges are 
        applicable only to premium payments made in the first three contract years. 
 
For purpose of calculating surrender charges, we assume that surrenders and transfers are made in the following 
order: 
·  first from premium payments no longer subject to a surrender charge; 
·  then from the free surrender privilege (first from the earnings, then from the oldest premium payments (i.e., on a 
  first-in, first-out basis)) described below; and 
·  then from premium payments subject to a surrender charge on a first-in, first-out basis. 
 
NOTE: Partial surrenders may be subject to both a surrender charge and a transaction fee. 
 
Free Surrender Privilege 
 
The free surrender privilege is an amount normally subject to a surrender charge that may be surrendered without a 
charge. The free surrender privilege is the greater of: 
 
·  earnings in the Contract (earnings equal accumulated value less unsurrendered premium payments as of the 
  date of the surrender); or 
·  10% of the premium payments, decreased by any partial surrenders and partial annuitizations since the last 
  contract anniversary. 
 
Any amount not taken under the free surrender privilege in a contract year is not added to the amount available 
under the free surrender privilege for any following contract year(s). 
 
Unscheduled partial surrenders of the free surrender privilege may be subject to the transaction fee described below. 
 
Waiver of Surrender Charge 
 
The surrender charge does not apply to: 
·  amounts applied under an annuity benefit payment option; or 
·  payment of any death benefit, however, the surrender charge does apply to premium payments made by a 
  surviving spouse after an owner’s death; or 
·  amounts distributed to satisfy the minimum distribution requirement of Section 401(a)9 of the Internal Revenue 
  Code, provided that the amount surrendered does not exceed the minimum distribution amount which would 
  have been calculated based on the value of this Contract alone; or 
·  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. 

 



In addition, the Waiver of Surrender Charge Rider is automatically added to your Contract at issue. This rider waives 
the surrender charge on surrenders made after the first Contract anniversary if the original owner or original 
annuitant has a critical need. See RIDER BENEFITS — Waiver of Surrender Charge Rider for more information. 
 
Transaction Fee 
 
To assist in covering our administration costs, we reserve the right to charge a transaction fee of the lesser of $25 or 
2% of each unscheduled partial surrender after the 12th unscheduled partial surrender in a contract year. The 
transaction fee would be deducted from the accumulated value remaining in the investment option(s) from which the 
amount is surrendered, on a pro rata basis. 
 
To assist in covering our administration costs or to discourage market timing, we also reserve the right to charge a 
transaction fee of the lesser of $30 or 2% of each unscheduled transfer after the first unscheduled transfer in a 
contract year. The transaction fee would be deducted from the investment option(s) from which the amount is 
transferred, on a pro rata basis. 
 
Premium Taxes 
 
We reserve the right to deduct an amount to cover any premium taxes imposed by states or other jurisdictions. Any 
deduction is made from either a premium payment when we receive it, or the accumulated value when you request a 
surrender (total or partial) or you request application of the accumulated value (full or partial) to an annuity benefit 
payment option. Premium taxes range from 0% in most states to as high as 3.50%. 
 
Annual Fee 
 
Contracts with an accumulated value of less than $30,000 are subject to an annual Contract fee of the lesser of $30 
or 2% of the accumulated value. Currently, we do not charge the annual fee if your accumulated value is $30,000 or 
more. If you own more than one variable annuity contract with us, all the Contracts you own or jointly own are 
aggregated, on each Contract’s anniversary, to determine if the $30,000 minimum has been met and whether that 
Contract will be charged. The fee is deducted from the investment option that has the greatest value. The fee is 
deducted on each Contract anniversary and upon total surrender of the Contract. The fee assists in covering 
administration costs, primarily costs to establish and maintain the records which relate to the Contract. 
 
GMWB Charge 
 
The current annual charge for the rider is 0.73% of the average quarterly withdrawal benefit base. The charge is 
taken at the end of the calendar quarter at a quarterly rate of 0.1825%, based on the average quarterly withdrawal 
benefit base during the calendar quarter. The average quarterly withdrawal benefit base is equal to the withdrawal 
benefit base at the beginning of the calendar quarter plus the withdrawal benefit base at the end of the calendar 
quarter and the sum is divided by two. There may be times when the sum of the four quarterly fee amounts is 
different than the fee amount if we calculated it annually. For example, if your withdrawal benefit base is changed on 
your contract anniversary, the fee for that calendar quarter will vary from the other quarters. 
 
If we increase the rider charge, you will be notified in advance. Before the effective date of the rider charge increase, 
you have the following options: 
·  Accept the increased rider charge and continue to be eligible to receive a GMWB Step-Up at each rider 
  anniversary; or 
·  Decline the increased rider charge by sending us notice that you are opting out of the GMWB Step-Up and 
  electing to remain at your current rider charge. Once you opt out of the GMWB Step-Up, you will no longer be 
  eligible for any future GMWB Step-Ups and the feature cannot be added back to this rider. 
 
At the end of each calendar quarter, the rider charge is deducted through the redemption of units from your 
accumulated value in the same proportion as the surrender allocation percentages. If this rider is purchased after the 
beginning of a calendar quarter, the rider charge is prorated according to the number of days this rider is in effect 
during the calendar quarter. Upon termination of this rider, the rider charge will be based on the number of days this 
rider is in effect during the calendar quarter. 

 



We reserve the right to increase the rider charge up to the maximum annual charge. The maximum annual charge is 
1.65% (0.4125% quarterly) of the average quarterly withdrawal benefit base. 
 
The rider charge is intended to reimburse us for the cost of the protection provided by this rider. 
 
Separate Account Annual Expenses 
 
Mortality and Expense Risks Charge 
 
We assess each division with a daily charge for mortality and expense risks. The annual rate of the charge is 1.25% 
of the average daily net assets of the Separate Account divisions. We agree not to increase this charge for the 
duration of the Contract. This charge is assessed only prior to the annuitization date. This charge is assessed daily 
when the value of a unit is calculated. 
 
This charge is intended to compensate us for the mortality risk on the Contract. We have a mortality risk in that we 
guarantee payment of a death benefit in a single payment or under an annuity benefit payment option. We do not 
impose a surrender charge on a death benefit payment, which is an additional mortality risk. 
 
This charge is also intended to cover our expenses, primarily related to operation of the Contract, including 
·  furnishing periodic Contract statements, confirmations and other customer communications; 
·  preparation and filing of regulatory documents (such as this prospectus); 
·  preparing, distributing and tabulating proxy voting materials related to the underlying mutual funds; and 
·  providing computer, actuarial and accounting services. 
 
If the mortality and expense risks charge is not enough to cover our costs, we bear the loss. If the mortality and 
expense risks charge is more than our costs, the excess is profit to the Company. 
 
Administration Charge 
 
Currently, we do not impose a Separate Account administration charge. We reserve the right to assess each 
Separate Account division with a daily administration charge that is guaranteed not to exceed the annual rate of 
0.15% of the average daily net asset value of the divisions. We will provide prior written notice in the event that we 
exercise our right to assess the administration charge. 
 
In the event that we assess the administration charge, it would be imposed in order to cover our costs for 
administration of the Contract that are not covered in the mortality and expense risk charge, above. In the event that 
we assess an administration charge, it would not be imposed after the annuitization date of the Contract. In the event 
that we assess an administration charge, it would be assessed daily against the Separate Account division values in 
the same manner as the mortality and expense risks charge, above. 
 
Special Provisions for Group or Sponsored Arrangements 
 
Where permitted by state law, Contracts may be purchased under group or sponsored arrangements as well as on 
an individual basis. 
  Group Arrangement – program under which a trustee, employer or similar entity purchases Contracts 
  covering a group of individuals on a group basis. 
  Sponsored Arrangement – program under which an employer permits group solicitation of its employees or 
  an association permits group solicitation of its members for the purchase of Contracts on an individual basis. 
 
The charges and deductions described above may be reduced or eliminated for Contracts issued in connection with 
group or sponsored arrangements. The rules in effect at the time the application is approved will determine if 
reductions apply. Reductions may include but are not limited to sales of Contracts without, or with reduced, mortality 
and expense risks charges, annual fees or surrender charges. 

 



Eligibility for and the amount of these reductions are determined by a number of factors, including the number of 
individuals in the group, the amount of expected premium payments, total assets under management for the owner, 
the relationship among the group’s members, the purpose for which the Contract is being purchased, the expected 
persistency of the Contract, and any other circumstances which, in our opinion, are rationally related to the expected 
reduction in expenses. Reductions reflect the reduced sales efforts and administration costs resulting from these 
arrangements. We may modify the criteria for and the amount of the reduction in the future. Modifications will not 
unfairly discriminate against any person, including affected owners and other owners with contracts funded by the 
Separate Account. 
 
RIDER BENEFITS 
 
Not all riders are available in all states or through all broker dealers and may be subject to additional 
restrictions. Some rider provisions may vary from state to state. We may withdraw or prospectively restrict the 
availability of any rider at any time. For information regarding availability of any rider, you may contact your registered 
representative or call us at 1-800-852-4450. 
 
See CHARGES AND DEDUCTIONS for current and maximum rider charges. 
 
Waiver of Surrender Charge Rider 
 
The Waiver of Surrender Charge Rider waives the surrender charge on surrenders made after the first Contract 
anniversary if the original owner or original annuitant has a critical need. This rider is automatically made a part of the 
Contract at issue. There is no charge for this rider. 
 
The benefits under the Waiver of Surrender Charge Rider are available for a critical need if the following conditions 
are met: 
·  the original owner or original annuitant has a critical need (NOTE: A change of ownership will terminate this rider; 
  once terminated the rider may not be reinstated.); and 
·  the critical need did not exist before the contract date. 
 
For the purposes of this rider, the following definitions apply: 
 
·  critical need — owner’s or annuitant’s confinement to a health care facility, terminal illness diagnosis or total and 
  permanent disability. 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. 
·  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 primarily providing drug or alcohol treatment, or a facility owned or operated by the 
  owner, annuitant or a member of their immediate families. 
·  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. In Texas and 
  New Jersey, terminal illness is not included in the criteria for critical need. 
·  total and permanent disability — a disability that occurs after the contract date but before the original owner or 
  annuitant reaches age 65 and qualifies to receive social security disability benefits. In New York, a different 
  definition of total and permanent disability applies. In Oregon, total and permanent disability is not included in the 
  criteria for critical need. 
 
NOTE: The Waiver of Surrender Charge Rider is not available in Massachusetts. 
 
You may obtain more specific information regarding the Waiver of Surrender Charge Rider from your registered 
representative or by calling us at 1-800-852-4450. 

 



Guaranteed Minimum Withdrawal Benefit (GMWB) 
 
This Contract is issued with a Guaranteed Minimum Withdrawal Benefit (“GMWB”) rider which is designed to help 
protect you against the risk of a decrease in the Contract accumulated value due to market declines. This benefit is 
also intended to help you avoid the risk of outliving your money. The GMWB rider allows you to take certain 
guaranteed annual withdrawals during the Contract accumulation phase, regardless of your Contract accumulated 
value. 
 
We use certain defined terms in our description of the rider. For your convenience, we have included definitions of 
those terms in GMWB Terms. 
 
GMWB Overview 
 
For Life withdrawal benefit payment percentages. This rider permits an election of “Joint Life” For Life withdrawal 
benefit payments or “Single Life” For Life withdrawal benefit payments. 
 
Bonus feature. This rider has a Bonus feature (described below) which rewards you for not taking a withdrawal in 
certain early years of the rider. The GMWB Bonus does not increase your Contract accumulated value. 
 
Step-Up feature. This rider has a Step-Up feature (described below) which can increase your rider withdrawal 
benefit payments if your Contract accumulated value increases. The Contract accumulated value increases 
whenever additional premium payments are made, the division values rise with market growth, or exchange credits 
are applied. 
 
Maximum annual rider charge. This rider has a maximum annual rider charge of 1.65% of the For Life withdrawal 
benefit base. 
 
Spousal continuation. This rider provides that the For Life withdrawal benefit may be available to an eligible spouse 
who continues the Contract with the rider. 
 
GMWB Rider Restrictions/Limitations 
This rider may not be terminated for five contract years following the rider effective date. 
 
This rider does not restrict or change your right to take — or not take — withdrawals under the Contract. All 
withdrawals reduce the Contract accumulated value by the amount withdrawn and are subject to the same 
conditions, limitations, fees, charges and deductions as withdrawals otherwise taken under the provisions of the 
Contract; for example, withdrawals will be subject to surrender charges if they exceed the free surrender amount 
(see CHARGES AND DEDUCTIONS — Surrender Charge, Free Surrender Privilege). However, any withdrawals 
may have an impact on the value of your rider’s benefits. If you take withdrawals in an amount that exceeds an 
available withdrawal benefit payment (excess withdrawal), you will shorten the life of the rider, lower the withdrawal 
benefit payments and/or cause the rider to terminate for lack of value unless you make additional premium payments 
or a GMWB Step-Up is applied. 
 
There is a charge for this rider which can increase up to the guaranteed maximum charge for the rider (see 
SUMMARY OF EXPENSE INFORMATION — Periodic Expenses). 
 
This rider restricts your Contract investment options (see Investment Options below). 
 
Any ownership change, change of beneficiary or other change before the annuitization date which would cause a 
change in a covered life may result in termination of this rider (see Covered Life Change). 

 



GMWB Terms 
We use the following definitions to describe the features of this rider: 
 
·  Excess Withdrawal — the portion of a withdrawal that exceeds the available withdrawal benefit payment. 
·  GMWB Bonus — a bonus credited to the withdrawal benefit base, provided certain conditions are met. 
·  GMWB Step-Up — an increase to the withdrawal benefit base to an amount equal to your Contract’s 
  accumulated value on the most recent Contract anniversary, provided certain conditions are met. 
·  Required minimum distribution (“RMD”) amount — 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 of 1986, as amended, 
  and related Code provisions in effect as of the rider effective date. 
·  Rider effective date — the date the rider is issued. 
·  Withdrawal — any partial surrender (including surrender charges, if any) and/or any partial annuitization of your 
  Contract’s accumulated value. 
·  Withdrawal benefit base (also referred to as For Life withdrawal benefit base) — the basis for determining the 
  withdrawal benefit payment available each year. 
·  Withdrawal benefit payment (also referred to as For Life withdrawal benefit payment) — the amount that we 
  guarantee you may withdraw each contract year. 
 
Investment Options 
 
The investment options you may select are restricted. The investment options (the “investment options”) reflect a 
balanced investment objective and if your investment goal is aggressive growth, these investment options may not 
support your investment objective. With investment options that reflect a balanced investment objective, there is 
potentially a reduced likelihood that we will have to make benefit payments when the Contract value goes to zero, 
when the Contact reaches the maximum annuitization date, or if there is a death claim. 
 
You must allocate 100% of your Separate Account division accumulated value and premium payments to one of the 
available investment options while the GMWB rider is in effect. Any future premium payments are allocated to the 
investment option your Separate Account division accumulated value is invested in at the time of the new premium 
payments. 
 
The available investment options are: 
·  Diversified Growth Account; or 
·  Diversified Balanced Account. 
 
For more information about the Diversified Growth and Diversified Balanced Account, please see the prospectus 
sections titled THE CONTRACT - The Underlying Mutual Funds, TABLE OF SEPARATE ACCOUNT DIVISIONS and 
the underlying fund’s prospectus provided with this prospectus. 
 
You may allocate premium payments and transfer Contract accumulated value to the Fixed Account. Such 
allocations and transfers are subject to the provisions of your Contract. See FIXED ACCOUNT. 
 
We reserve the right to modify the list of available of available investment options, subject to compliance with 
applicable regulations. Changes or restrictions will apply only to new purchasers of the Contract or to you if you 
transfer out of an investment option and wish to transfer back to that investment option. 
 
The rider may not be terminated for five contract years following the rider effective date. 
 
Please see Appendix A for information regarding transfers between GMWB Investment Options and GMWB 
Investment Options Underlying Funds. 

 



Withdrawal Benefit Base 
 
The withdrawal benefit base is used to calculate the annual withdrawal benefit payment. We calculate the withdrawal 
benefit base on the rider effective date and each contract anniversary. 
 
The initial withdrawal benefit base is equal to the initial premium payment. 
 
On each contract anniversary, the withdrawal benefit base is 
·  increased dollar-for-dollar by any additional premium payments made since the previous contract anniversary, 
  any GMWB Bonus credited since the previous contract anniversary, and any GMWB Step-Up; and 
·  decreased to reflect any excess withdrawals taken since the previous contract anniversary (the reduction will be 
  greater than dollar-for-dollar, if the Contract accumulated value is less than the withdrawal benefit base at the 
  time of the excess withdrawal). See Excess Withdrawals, below, for information about the negative effect of 
  excess withdrawals. 
 
If the adjustment for any withdrawals causes the withdrawal benefit base to reduce to zero, the rider will terminate 
(unless you make additional premium payments or a GMWB Step-Up is applied). 
 
Withdrawal Benefit Payment 
 
The For Life withdrawal benefit payments are automatically calculated as “Single Life” unless you provide notice and 
good order instructions to select “Joint Life” For Life withdrawal benefit payments. If eligible, you may elect “Joint 
Life” For Life withdrawal benefit payments anytime on or before your first withdrawal following the rider effective date. 
Once you take this first withdrawal, you cannot change your election of “Single Life” or “Joint Life” For Life withdrawal 
benefit payments, regardless of any change in life events. 
 
“Single Life” For Life withdrawal benefit payments. “Single Life” For Life withdrawal benefit payments are based 
on one covered life. The covered life for “Single Life” is the 
  a.owner if there is only one owner; 
  b.annuitant if the owner is not a natural person; 
  c. youngest joint owner if there are joint owners; or 
  d.youngest annuitant if there are joint annuitants and the owner is not a natural person. 
 
In addition, the covered life must satisfy this rider’s issue age requirements on the date the covered life is designated 
in accordance with the terms of this rider. 
 
As long as the Contract is in effect, “Single Life” For Life withdrawal benefit payments may be taken until the earlier 
of the date of the death of the first owner to die (first annuitant, if applicable) or the date the For Life withdrawal 
benefit base reduces to zero. 
 
“Joint Life” For Life withdrawal benefit payments. “Joint Life” For Life withdrawal benefit payments are based on 
two covered lives. You may only elect “Joint Life” For Life withdrawal benefit payments if there are two covered lives 
that meet the eligibility requirements. There can be no more than two covered lives. The “Joint Life” election is not 
available if the owner is not a natural person. 
 
To be eligible for “Joint Life” the covered lives must be 
  a. the owner and the owner’s spouse, provided there is only one owner and the spouse is named as a primary ben- 
  eficiary; or 
  b. the joint owners, provided the joint owners are each other’s spouse. 
 
NOTE: For purposes of this rider, “spouse” means the person who is recognized as the owner’s spouse and is 
  eligible to make a spousal election under federal tax laws. 
 
NOTE: At the time a covered life is designated, that covered life must satisfy the issue age requirements. 
 
As long as the Contract is in effect, “Joint Life” For Life withdrawal benefit payments will continue until the earlier of 
the date of the death of the last covered life or the date the “For Life” withdrawal benefit base reduces to zero. 

 



Calculating the For Life Withdrawal Benefit Payment 
 
The For Life withdrawal benefit payment is an amount equal to a percentage multiplied by the For Life withdrawal 
benefit base. 
 
The For Life withdrawal benefit payment percentage depends on whether you have elected “Single Life” or “Joint 
Life” and the age of the covered life on the date of the first withdrawal following the rider effective date: 

 

·  “Single Life”:   
 
  Age of Covered Life at First  For Life Withdrawal Benefit 
  Withdrawal  Payment Percentage 
  60-64  5.00% 
  65-69  5.25% 
  70-74  5.50% 
  75-79  6.00% 
  80+  6.50% 

 

·  “Joint Life”:   
 
  Age of Younger Covered Life at  For Life Withdrawal Benefit 
  First Withdrawal  Payment Percentage 
  60-64  4.50% 
  65-69  4.75% 
  70-74  5.00% 
  75-79  5.50% 
  80+  6.00% 

 

Because the For Life withdrawal benefit payments are tiered based on the age of the younger covered life at the time 
of the first withdrawal, you should carefully choose when you take the first withdrawal following the rider effective 
date. Once a withdrawal is taken, the For Life withdrawal benefit payment percentage is locked in for the life of this 
rider. In addition, when you take your first withdrawal, your election of “Single Life” or “Joint Life” remains locked in 
and cannot be changed. For example, if you have elected “Joint Life” For Life withdrawal benefit payments and take 
the first withdrawal when the younger covered life is age 61, your For Life withdrawal benefit payment percentage will 
be locked in at 4.50% for the remaining life of this rider and cannot be changed. 
 
Covered Life Change. Any ownership change, change of beneficiary or other change before the annuitization date 
which would cause a change in a covered life (a “Change”) will result in termination of this rider, except for the 
following permissible Changes: 
 
1.  Spousal continuation of this rider as described below in Spousal Continuation. 
 
2.  If withdrawals have not been taken and you have not previously elected to continue this rider as provided in 
  Spousal Continuation, then 
 
  a.  you may add a joint owner or primary beneficiary to your Contract as a covered life, provided that the new 
    joint owner or primary beneficiary is an eligible covered life as set forth above. 
 
  b.  you may remove a joint owner or primary beneficiary as a covered life. 
  c.  the For Life withdrawal benefit payment percentage will be based on the age of the covered lives and will 
    lock in at the percentage applicable on the date of your first withdrawal. 

 



3.  If withdrawals have been taken and you have locked in “Single Life” For Life withdrawal benefit payments, then 
 
  a.  you may remove a joint owner as a covered life. 
  b.  you may add a primary beneficiary to your Contract, however, you may not add a primary beneficiary as a 
    covered life for purposes of this rider. 
 
  c.  the For Life withdrawal benefit payment percentage will remain locked in at the percentage applicable on the 
    date of your first withdrawal and will not be reset to reflect the removal of the covered life. For Life withdrawal 
    benefit payments will cease upon your death. 
 
4.  If withdrawals have been taken and you have locked in “Joint Life” For Life withdrawal benefit payments, then 
  a.  you may remove a joint owner or primary beneficiary as a covered life. 
 
  b.  you may add a primary beneficiary to your Contract; however, you may not add a primary beneficiary as a 
    covered life for purposes of this rider. 
 
  c.  the For Life withdrawal benefit payment percentage will remain locked in at the percentage applicable on the 
    date of your first withdrawal and will not be reset to reflect the removal of the covered life. For Life withdrawal 
    benefit payments will cease upon your death. 
 
5.  If you have previously elected to continue this rider as provided in Spousal Continuation, then you may add a pri- 
  mary beneficiary to your Contract; however, you may not add a primary beneficiary as a covered life for purposes 
  of this rider. If the primary beneficiary that you add is your spouse, upon your death the spouse can continue the 
  contract, but the rider will terminate. 
 
No Change is effective until approved by us in writing. Upon our approval, the Change is effective as of the date you 
signed the notice requesting the Change. 
 
An assignment of the Contract or this rider shall be deemed a request for a Change. If the Change is not one of the 
above permissible Changes, this rider will be terminated as of the date of the assignment. 
 
Effect of Withdrawals 
 
This rider does not require you to take an available withdrawal benefit payment. If you want to take advantage of this 
rider’s GMWB Bonus feature, withdrawals cannot be taken during the period the GMWB Bonus is available. Please 
see GMWB Bonus below. 
 
If you elect not to take an available withdrawal benefit payment, that amount will not be carried forward to the next 
contract year. 
 
If you take excess withdrawals, the withdrawal benefit base for each withdrawal option will be reduced on the next 
contract anniversary. See Excess Withdrawals for information about the negative effect of excess withdrawals. 
 
To help you better understand the various features of this rider and to demonstrate how premium payments made 
and withdrawals taken from the Contract affect the values and benefits under this rider, we have provided several 
examples in Appendix B. 
 
Excess Withdrawals 
 
Any withdrawals that exceed the available withdrawal benefit payments are excess withdrawals. Excess withdrawals 
decrease the withdrawal benefit base, which will reduce future withdrawal benefit payments. 
 
Excess withdrawals reduce withdrawal benefit payments and the withdrawal benefit base. The reductions can be 
greater than dollar-for-dollar when the Contract accumulated value is less than the withdrawal benefit base at the 
time of the excess withdrawal, as shown below. 

 



Effect on withdrawal benefit base. Excess withdrawals will reduce the withdrawal benefit base in an amount 
equal to the greater of: 
·  the excess withdrawal, or 
·  the result of (a divided by b) multiplied by c, where: 
 
  a = the amount withdrawn that exceeds the available withdrawal benefit payment prior to the withdrawal; 
  b = the Contract accumulated value after the withdrawal benefit payment is deducted, but prior to deducting 
         the amount of the excess withdrawal; and 
  c = the withdrawal benefit base prior to the adjustment for the excess withdrawal. 
 
Required Minimum Distributions (RMD) 
 
Tax-qualified Contracts are subject to certain federal tax rules requiring that RMD be taken on a calendar year basis 
(i.e., compared to a contract year basis), usually beginning after age 70½. 
 
If you are eligible for and enroll in our RMD Program for GMWB, as discussed below, a withdrawal taken to satisfy 
RMD for the Contract (an “RMD amount”) that exceeds a withdrawal benefit payment for that contract year will not be 
deemed an excess withdrawal. 
 
RMD Program. Eligibility in the RMD Program for GMWB is determined by satisfaction of the following requirements: 
 
·  the amount required to be distributed each calendar year for purposes of satisfying the RMD rules of the Internal 
  Revenue Code is based only on this Contract (the “RMD amount”); and 
·  you have elected scheduled withdrawal payments. 
 
NOTE: Although enrollment in the RMD Program for GMWB does not prevent you from taking an unscheduled 
  withdrawal, an unscheduled withdrawal will cause you to lose the RMD Program protections for the 
  remainder of the contract year. This means that any withdrawals (scheduled or unscheduled) during the 
  remainder of the contract year that exceed applicable withdrawal benefit payments will be treated as excess 
  withdrawals, even if the purpose is to take the RMD amount. You will automatically be re-enrolled in the 
  RMD Program for GMWB on your next contract anniversary. 
 
We reserve the right to modify or eliminate the RMD Program for GMWB; for example, if there is a change to the 
Internal Revenue Code or Internal Revenue Service rules or interpretations relating to RMD, including the issuance 
of relevant IRS guidance. We will send you at least 30 days advance notice of any change in or elimination of the 
RMD Program for GMWB. Any modifications or elimination of the RMD Program for GMWB will take effect after 
notice. If we exercise our right to modify or eliminate the RMD Program for GMWB, then any scheduled or 
unscheduled withdrawal in excess of a withdrawal benefit payment after the effective date of the program’s 
modification or elimination will be deemed an excess withdrawal. 
 
You may obtain more information regarding our RMD Program for GMWB by contacting your registered 
representative or by calling us at 1-800-852-4450. 
 
GMWB Bonus 
 
Under the GMWB Bonus, on each of the first two contract anniversaries following the rider effective date, we will 
credit a bonus (“GMWB Bonus”) to the withdrawal benefit base, provided you have not taken any withdrawals since 
the rider effective date. 
 
The GMWB Bonus is equal to the total of all premium payments made prior to the applicable contract anniversary 
multiplied by the applicable percentage shown in the chart below. 

 

Contract Anniversary (following  GMWB Bonus Percentage 
the rider effective date)   
1  5.00% 
2  5.00% 

 



The GMWB Bonus is no longer available after the earlier of 
·  The second contract anniversary following the rider effective date; or 
·  The date you take a withdrawal following the rider effective date. 
 
NOTE: The GMWB Bonus is used only for the purposes of calculating the withdrawal benefit base. The GMWB 
        Bonus is not added to your Contract accumulated value. 
 
GMWB Step-Up 
 
The GMWB Step-Up is automatic and applies annually. Under this rider, unless an owner opts out of the automatic 
GMWB Step-Up, the rider charge will increase if our then current rider charge is higher than when the rider was pur- 
chased. The rider charge will never be greater than the maximum GMWB rider charge. See SUMMARY OF 
EXPENSE INFORMATION section. 
 
If you satisfy the eligibility requirements on a contract anniversary and your Contract accumulated value is greater 
than the withdrawal benefit base, we will step-up the withdrawal benefit base to your Contract accumulated value on 
that contract anniversary. We will not reduce your withdrawal benefit base if your Contract accumulated value on a 
contract anniversary is less than the withdrawal benefit base. 
 
If you are eligible for a GMWB Step-Up of the withdrawal benefit base, you will be charged the then current rider 
charge. You may choose to opt out of the GMWB Step-Up feature if the charge for your rider will increase. We will 
send you advance notice if the charge for your rider will increase in order to give you the opportunity to opt out of the 
GMWB Step-Up feature. Once you opt out, you will no longer be eligible for future GMWB Step-Ups. 
 
The GMWB Step-Up operates as follows: 
 
  On each contract anniversary following the rider effective date, you are eligible for a GMWB Step-Up of the 
  withdrawal benefit base if you satisfy all of the following requirements: 
 
  1. the contract anniversary occurs before the later of 
     a. the contract anniversary following the date the oldest owner (oldest annuitant if the owner is not a natural 
       person) attains age 80; or 
    b. ten years after the rider effective date; 
  2. you have not declined any increases in the rider charge; and 
  3. you have not fully annuitized the Contract. 
 
Effect of Reaching the Maximum Annuitization Date Under the Rider 
 
On or before the maximum annuitization date, you must elect one of the Contract or GMWB rider payment options 
described below. 
 
1. Contract payment options: 
·  Payments resulting from applying the Contract accumulated value to an annuity benefit payment option. 
·  Payment of the Contract accumulated value as a single payment. 
 
2. GMWB rider payment option: 
·  Fixed scheduled payments each year in the amount of the For Life withdrawal benefit payment, until the date of 
  death of the last covered life. 
 
Please see Effect of Withdrawals for information on how withdrawals prior to the maximum annuitization date affect 
the GMWB values. 
 
We will send you written notice at least 30 days prior to the maximum annuitization date and ask you to select one of 
the available payment options listed above. If we have not received your election as of the maximum annuitization 
date, we will automatically apply your Contract accumulated value to an annuity benefit payment option as described 
in THE CONTRACT — The Annuitization Period, Annuity Benefit Payment Options. 

 



Effect of the Contract Accumulated Value Reaching Zero under the Rider 
 
In the event the Contract accumulated value reduces to zero, we will pay the withdrawal benefit payments to you as 
follows:   
 
·  If you have taken withdrawal benefit payments prior to the Contract accumulated value reaching zero, your For 
  Life withdrawal option is either “Joint Life” or “Single Life” depending on your election at the time of your first 
  withdrawal. 
·  If you have not taken withdrawal benefit payments prior to the Contract accumulated value reaching zero, you 
  must elect either 
  ·  the “Single Life” For Life withdrawal option: you will receive fixed scheduled payments each year in the 
    amount of the “Single Life” For Life withdrawal benefit payment, until the date of your death (annuitant’s 
    death if the owner is not a natural person). 
  ·  the “Joint Life” For Life withdrawal option: you will receive fixed scheduled payments each year in the amount 
    of the “Joint Life” For Life withdrawal benefit payment, until the date of the death of the last covered life. 
 
NOTE: In the event that the Contract accumulated value reduces to zero, the withdrawal benefit payments elected
    above will continue, but all other rights and benefits under this rider and the Contract (including the death 
    benefits) will terminate, and no additional premium payments will be accepted. 
 
We will send you prior written notice whenever reasonably feasible if your Contract accumulated value is 
approaching zero. 

 



GMWB At Death 
 
If the Contract Accumulated Value is Greater than Zero. The following table illustrates the various situations and 
the resulting outcomes if your Contract accumulated value is greater than zero at your death. 

 

If you die and...  And...  Then... 
You are the sole  Your spouse is  The primary beneficiary(ies) will receive the death 
owner  not named as a  benefit under the Contract*. 
  primary   
  beneficiary  All other rights and benefits under the rider and 
    Contract will terminate. 
You are the sole  Your spouse is  Your spouse may 
owner  named as a   
  primary  a. continue the contract with or without this rider as set 
  beneficiary      forth below in GMWB Spousal Continuation; or 
    b. receive the death benefit under the Contract*. 
 
    All other primary beneficiaries will receive the death 
    benefit under the contract. 
 
    Unless your spouse elects to continue the contract 
    with this rider, only your spouse’s and 
    beneficiary(ies)’s right to the above-selected payments 
    will continue; all other rights and benefits under the 
    rider and Contract will terminate. 
You are a joint  The surviving  Your surviving owner will receive the death benefit 
owner  joint owner is not  under the Contract*. 
  your spouse   
    All other rights and benefits under the rider and 
    Contract will terminate. 
You are a joint  The surviving  Your spouse may 
owner  joint owner is   
  your spouse  a. continue the contract with or without this rider as set 
        forth below in GWMB Spousal Continuation; or 
    b. receive the death benefit under the Contract*. 
 
    Unless the surviving spouse owner elects to continue 
    the contract with this rider, upon your death, only your 
    spouse’s right to the above-selected payments will 
    continue; all other rights and benefits under the rider 
    and Contract will terminate. 

 

* Please see THE CONTRACT — Death Benefit for an explanation of the Contract’s death benefit and payment 
options available for the Contract’s death benefit. 

 



If...  And...  Then... 
The annuitant dies  The owner is not  The beneficiary(ies) receive the death benefit under 
  a natural person  the Contract. 
 
    If a beneficiary dies before the annuitant, on the 
    annuitant’s death we will make equal payments to the 
    surviving beneficiaries unless the owner provided us 
    with other written instructions. If no beneficiary(ies) 
    survive the annuitant, the death benefit is paid to the 
    owner. 
 
    Upon the annuitant’s death, only the beneficiary(ies) 
    right to the death benefit will continue; all other rights 
    and benefits under the Contract will terminate. 

 

NOTE: The “Joint Life” For Life withdrawal option is not available if the owner is not a natural person. 
 
If the Contract Accumulated Value is Zero. The following table illustrates the various situations and the resulting 
outcomes if the Contract accumulated value is zero at your death. 

 

If you die and...  And...  Then... 
You are the sole  You elected the  All payments stop and all rights and benefits under the 
owner  “Single Life” For  Contract terminate. 
  Life withdrawal   
  option*   
You are the sole  You elected the  We will continue payments to the surviving covered 
owner  “Joint Life” For  life according to the schedule established when you 
  Life withdrawal  made your election until the date of the surviving 
  option*  covered life’s death. 
 
    Upon the surviving covered life’s death, all payments 
    stop and all rights and benefits under the Contract 
You are a joint  You elected the  All payments stop and all rights and benefits under the 
owner  “Single Life” For  Contract terminate. 
  Life withdrawal   
  option*   
You are a joint  You elected the  We will continue payments to the surviving covered 
owner  “Joint Life” For  life according to the schedule established when you 
  Life withdrawal  made your election until the date of the surviving 
  option*  covered life’s death. 
 
    Upon the surviving joint owner’s death, all payments 
    stop and all rights and benefits under the Contract 
terminate.

 

* Please see Effect of the Contract Accumulated Value Reaching Zero under the Rider for details regarding election 
of the For Life withdrawal option. 

 



If...  And...  Then... 
The annuitant dies  The owner is not  The beneficiary(ies) receive the death benefit under 
  a natural person  the Contract. 
 
  The owner  All payments stop and all rights and benefits under the 
  elected the  Contract terminate. 
  "Single Life" For   
  Life Withdrawal   
  option*   

 

NOTE: The “Joint Life” For Life withdrawal option is not available if the owner is not a natural person. 
 
Termination and Reinstatement of the Rider 
 
You may not terminate this rider prior to the 5th contract anniversary following the rider effective date. 
 
We will terminate this rider upon the earliest to occur: 
·  The date you send us notice to terminate the rider (after the 5th contract anniversary following the rider effective 
  date). This will terminate the rider, not the Contract. 
·  The date you fully annuitize, fully surrender or otherwise terminate the Contract. 
·  The For Life withdrawal benefit base is zero. 
·  The date the contract owner is changed (annuitant is changed if the owner is not a natural person), except a 
  change in owner due to a spousal continuation of the rider as described in GMWB Spousal Continuation or the 
  removal/ addition of a joint life as described in Covered Life Change. 
·  The date your surviving spouse elects to continue the Contract without this rider (even if prior to the fifth Contract 
  anniversary following the rider effective date). 
·  The date you make an impermissible change in a covered life. 
 
If this rider terminates for any reason other than full surrender of the Contract, this rider may not be reinstated. 
 
If you surrender the Contract with this rider attached and the Contract is later reinstated, this rider also must be rein- 
stated. At the time this rider is reinstated, we will deduct rider charges scheduled during the period of termination and 
make any other adjustments necessary to reflect any changes in the amount reinstated and the contract 
accumulated value as of the date of termination. 
 
GMWB Spousal Continuation 
 
This rider provides that the For Life withdrawal benefit may be available to an eligible spouse who continues the Con- 
tract with the rider. 
 
If you die while this rider is in effect and if your surviving spouse elects to continue the Contract in accordance with its 
terms, the surviving spouse may also elect to continue this rider if 
 
1.  the Contract accumulated value is greater than zero; 
2.  there has not been a previous spousal continuation of the Contract and this rider; and 
3.  your spouse is either 
  a.  your primary beneficiary, if you were the sole owner; or 
  b.  the surviving joint owner, if there were joint owners. 

 



If your spouse elects to continue the Contract without this rider, this rider and all rights, benefits and charges under 
this rider will terminate and cannot be reinstated. 
 
NOTE: Although spousal continuation may be available under federal tax laws for a subsequent spouse, this rider 
          may be continued one time only. 
 
The following table illustrates the various changes and the resulting outcomes associated with continuation of this 
rider by an eligible surviving spouse. 

 

If you die and...  And...  Then if your spouse continues this rider... 
No withdrawals  Your spouse  Your spouse may take withdrawals until the earlier of 
have been taken  meets the  the death of your spouse or the For Life withdrawal 
since the rider  minimum issue  benefit base reduces to zero. 
effective date  age requirement   
    For Life withdrawal benefits will automatically be 
    calculated as “Single Life” and your spouse will be the 
    sole covered life. Your spouse may not add a new 
    covered life or elect “Joint Life”. 
 
    The For Life withdrawal benefit percentage will be 
    based on your spouse’s age and will lock in at the 
    “Single Life” percentage applicable on the date of your 
    spouse’s first withdrawal. 
 
    All other provisions of this rider will continue as in 
    effect on the date of your death. 
No withdrawals  Your spouse  The GMWB rider terminates upon your death. 
have been taken  does not meet   
since the rider  the minimum  All other provisions of the Contract will continue as in 
effective date  issue age  effect on the date of your death. 
  requirement   

 



If you die and...  And...  And...  Then if your spouse continues this rider 
Withdrawals have  You have  ----  The GMWB rider terminates upon your death. 
been taken since  locked in     
the rider effective  “Single Life”    All other provisions of the Contract will continue as 
date  For Life    in effect on the date of your death. 
  withdrawal     
  benefits     
Withdrawals have  You have  Your spouse  Your spouse may continue to take For Life 
been taken since  locked in  is the  withdrawal benefit payments until the earlier of the 
the rider effective  “Joint Life” For  surviving  death of your spouse or the For Life withdrawal 
date  Life  covered life  benefit base reduces to zero. 
  withdrawal     
  benefits    For Life withdrawal benefits will continue to be 
      calculated as “Joint Life”. 
 
      The For Life withdrawal benefit percentage will 
      remain locked in at the “Joint Life” percentage 
      applicable on the date of your first withdrawal and 
      will not be reset to reflect your death. 
 
      All other provisions of this rider will continue as in 
      effect on the date of your death. 
Withdrawals have  You have  There is no  The GMWB rider terminates upon your death. 
been taken since  locked in  surviving   
the rider effective  “Joint Life” For  covered life  All other provisions of the Contract will continue as 
date  Life    in effect on the date of your death. 
  withdrawal     
  benefits     

 

Effect of Divorce on the Rider 
 
Generally, in the event of a divorce, the spouse who retains ownership of the Contract will continue to be entitled to 
all rights and benefits of this rider while the former spouse will no longer have any such rights or be entitled to any 
benefits under this rider. If you take a withdrawal to satisfy a court order to pay a portion of the Contract to your 
former spouse, any portion of such withdrawal that exceeds the available withdrawal benefit payments will be 
deemed an excess withdrawal under this rider. 

 



GMWB Summary   
Issue Age    60-80 
Rider Charge  · Maximum annual charge is 1.65%. 
(as a percentage of average  · Current annual charge is 0.73%. 
quarterly For Life withdrawal   
benefit base)   
Annual Withdrawal Limits  · “Single Life” — tiered percentages based on age 
  at first withdrawal, beginning at 5.00% and capping 
  at a maximum of 6.50% of the For Life withdrawal 
  benefit base 
  · “Joint Life” — tiered percentages based on age at 
  first withdrawal, beginning at 4.50% and capping at 
  a maximum of 6.00% of the For Life withdrawal 
  benefit base 
For Life Withdrawal Benefit  · “Single Life” or “Joint Life” (your life and the lifetime 
Payments  of your eligible spouse) 
  · For Life withdrawal benefit payments default to 
  “Single Life” unless “Joint Life” is elected 
Termination  · You may terminate this rider anytime after the 5th 
  contract anniversary following the rider effective 
  date 
GMWB Step-Up  · Automatic annual GMWB Step-Up available until 
  the later of (a) the Contract Anniversary prior to age 
  80 or (b) 10 years after the rider effective date. 
GMWB Bonus  · If no withdrawals are taken, a GMWB Bonus is 
  applied to the withdrawal benefit base on each 
  contract anniversary as shown below. 
  · Year 1 — 5.00% of premium payments 
  · Year 2 — 5.00% of premium payments 
Investment Restrictions  You must select either: 
  · Diversified Growth; or 
  · Diversified Balanced. 
 
  There are no additional restrictions on allocations to 
  the Fixed Account. 
Spousal Continuation  · At the death of the first owner to die, a spouse who 
  is a joint owner or primary beneficiary may have the 
  option to continue the contract with this rider. 

 

FIXED ACCOUNT 
 
This prospectus is intended to serve as a disclosure document only for the Contract as it relates to the Separate 
Account and contains only selected information regarding the fixed account. The Fixed Account is a part of our 
general account. Because of exemptions and exclusions contained in the Securities Act of 1933 and the Investment 
Company Act of 1940, the Fixed Account, and any interest in it, are not subject to the provisions of these acts. As a 
result the SEC has not reviewed the disclosures in this prospectus relating to the Fixed Account. However, 
disclosures relating to them are subject to generally applicable provisions of the federal securities laws relating to the 
accuracy and completeness of statements made in prospectuses. 
 
Our obligations with respect to the Fixed Account are supported by our general account. The general account is the 
assets of the Company other than those assets allocated to any of our Separate Accounts. Subject to applicable law, 
we have sole discretion over the assets in the general account. Separate Account expenses are not assessed 
against any Fixed Account values. You can obtain more information concerning the Fixed Account from your 
registered representative or by calling us at 1-800-852-4450. 

 



We reserve the right to refuse premium payment allocations and transfers from the other investment options to the 
Fixed Account. We will send you a written notice at least 30 days prior to the date we exercise this right. We will also 
notify you if we lift such restrictions. 
 
The guaranteed minimum interest rate (“GMIR”) is determined by a formula, with the general parameters established 
by state law. The GMIR will never be less than one percent and no greater than three percent. The GMIR is set at 
Contract issue and will not change for the life of the contract. 
 
The Company guarantees that premium payments allocated and amounts transferred to the Fixed Account earn 
interest at the interest rate in effect on the date premium payments are received or amounts are transferred. This 
rate, which will never be less than the GMIR, applies to each premium payment or amount transferred through the 
end of the Contract year. 
 
Each contract anniversary, we declare a renewal interest rate that applies to the Fixed Account value in existence at 
that time. This rate, which will never be less than the GMIR applies until the end of the contract year. Interest is 
earned daily and compounded annually at the end of each contract year. Once credited, the interest is guaranteed 
and becomes part of the Fixed Account accumulated value from which deductions for fees and charges may be 
made.     
 
NOTE 1:  Transfers and surrenders from the Fixed Account are subject to certain limitations as to frequency and 
amount. See FIXED ACCOUNT - Fixed Account Transfers, Total and Partial Surrenders.
 
NOTE 2:  We may defer payment of surrender proceeds payable out of the Fixed Account for up to six months. See 
GENERAL PROVISIONS - Delay of Payments.
 
Fixed Account Accumulated Value 
 
Your Fixed Account accumulated value on any valuation date is equal to: 
·  premium payments or credits allocated to the Fixed Account; 
·  plus any transfers to the Fixed Account from the other investment options; 
·  plus interest credited to the Fixed Account; 
·  minus any surrenders or applicable surrender charges or partial annuitizations from the Fixed Account; 
·  minus any transfers to the Separate Account. 
 
Fixed Account Transfers, Total and Partial Surrenders 
 
Transfers and surrenders from the Fixed Account are subject to certain limitations. In addition, surrenders from the 
Fixed Account may be subject to a charge (see GLOSSARY — Surrender Charge). 
 
You may transfer amounts from the Fixed Account to the Separate Account divisions before the annuitization date 
and as provided below. The transfer is effective on the valuation date following our receipt of your instructions. You 
may transfer amounts on either a scheduled or unscheduled basis. You may not make both scheduled and 
unscheduled Fixed Account transfers in the same contract year. 
 
  Unscheduled Fixed Account Transfers. The minimum transfer amount is $100 (or entire Fixed Account 
  accumulated value if less than $100). Once per contract year, within the 30 days following the contract anniversary 
  date, you can: 
 
  ·  transfer an amount not to exceed 25% of your Fixed Account accumulated value; or 
  ·  transfer up to 100% of your Fixed Account accumulated value if: 
    ·  your Fixed Account accumulated value is less than $1,000; or 
    ·  a minus b is greater than 1% where: 
      ·  a = the weighted average of your Fixed Account interest rates for the preceding contract year; and 
      ·  b = the renewal interest rate for the Fixed Account. 

 



  Scheduled Fixed Account Transfers (Fixed Account Dollar Cost Averaging). You may make scheduled 
  transfers on a monthly basis from the Fixed Account to the Separate Account as follows: 
 
  · You may establish scheduled transfers by sending a written request or by telephoning the home office at 1- 
    800-852-4450. 
  · Transfers occur on a date you specify (other than the 29th, 30th or 31st of any month). 
  · If the selected date is not a valuation date, the transfer is completed on the next valuation date. 
  · Scheduled transfers are only available if the Fixed Account accumulated value is $5,000 or more at the time 
    the scheduled transfers begin. 
  · Scheduled monthly transfers of a specified dollar amount will continue until the Fixed Account accumulated 
    value is zero or until you notify us to discontinue the transfers. This specified dollar amount cannot exceed 2% 
    of your Fixed Account accumulated value. 
  · The minimum transfer amount is $100. 
  · If the Fixed Account accumulated value is less than $100 at the time of transfer, the entire Fixed Account 
    accumulated value will be transferred. 
  · If you stop the transfers, you may not start transfers again without our prior approval. 
 
GENERAL PROVISIONS 
 
The Contract 
 
The entire Contract is made up of the Contract, amendments, riders and endorsements and data pages. 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. 
 
Delay of Payments 
 
Surrendered amounts are generally disbursed within seven calendar days after we receive your instruction for a 
surrender in a form acceptable to us. This period may be shorter where required by law. However, payment of any 
amount upon total or partial surrender, death, annuitization of the accumulated value or the transfer to or from a 
division may be deferred during any period when the right to sell mutual fund shares is suspended as permitted 
under provisions of the Investment Company Act of 1940 (as amended). 
 
The right to sell shares may be suspended during any period when: 
 
·  trading on the NYSE is restricted as determined by the SEC or when the NYSE is closed for other than 
  weekends and holidays; or 
·  an emergency exists, as determined by the SEC, as a result of which: 
  ·  disposal by a mutual fund of securities owned by it is not reasonably practicable; 
  ·  it is not reasonably practicable for a mutual fund to fairly determine the value of its net assets; or 
  ·  the SEC permits suspension for the protection of security holders. 
 
If payments are delayed the transfer will be processed on the first valuation date following the expiration of the 
permitted delay unless we receive your written instructions to cancel your surrender, annuitization, or transfer. Your 
written instruction must be received in the home office prior to the expiration of the permitted delay. The transaction 
will be completed within seven business days following the expiration of a permitted delay. 
 
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. 
 
We may also defer payment of surrender proceeds payable out of the Fixed Account for a period of up to six months. 

 



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 payment or payments due. Underpayments are added to the next payment. 
 
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. 
 
Change of Owner or Annuitant 
 
If your Contract is part of your 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 ownership is changed, the benefits under certain riders may be affected. We reserve the right to require that you 
send us the Contract so that we can record the 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. 
 
Beneficiary 
 
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. 
 
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, unless you have the GMWB rider. 
Before the Contract is terminated, we will send you a notice to increase the accumulated value to $2,000 within 
60 days. Termination of the Contracts will not unfairly discriminate against any owner. 

 



Reinstatement 
 
Reinstatement is only available if you have surrendered your Contract for your full accumulated value. Any premium 
payments you make after a partial surrender or partial annuitization will be deemed new premium payments. 
 
If you have requested to replace this Contract with an annuity contract from another company and want to reinstate 
this Contract, the following apply: 
·  we reinstate the Contract effective on the original surrender date; 
·  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; 
·  these amounts are priced on the valuation date the money from the other company is received by us; 
·  commissions are not paid on the reinstatement amounts; and 
·  new data pages are sent to your address of record. 
 
If you have the GMWB rider, rider fees will apply for the period between the date you requested termination and the 
date your contract was reinstated. Rider benefits will be adjusted when the amount originally surrendered differs from 
the reinstatement amount. 
 
Reports 
 
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. 
 
Quarterly statements reflect purchases and redemptions occurring during the quarter as well as the balance of units 
owned and accumulated values. 
 
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 original premium payment, 
the Contract will be terminated and any value surrendered in accordance with normal redemption procedures. 
 
Rights Reserved by the Company 
 
We reserve the right, within the law, to make additions, deletions and substitutions for the divisions. We will make no 
such substitution or deletion without first notifying you and obtaining approval of the appropriate insurance regulatory 
authorities and the SEC (to the extent required by 1940 Act). 
 
If the shares of a division are no longer available for investment or if, in the judgment of our management, investment 
in a division becomes inappropriate for the purposes of our contract, we may eliminate the shares of a division and 
substitute shares of another division of the Trust or another open-end registered investment company. Substitution 
may be made with respect to both existing investments and the investment of future premium payments. 
 
If we eliminate divisions, you may change allocation percentages and transfer any value in an affected division to 
another division(s) without charge. You may exercise this exchange privilege until the later of 60 days after a) the 
effective date of the additions, deletions and/or substitutions of the change, or b) the date you receive notice of the 
options available. You may only exercise this right if you have any value in the affected division(s). 
 
We also reserve the right to establish additional divisions, each of which would invest in a separate underlying mutual 
fund with a specified investment objective. 

 



Frequent Trading and Market-Timing (Abusive Trading Practices) 
 
This Contract is not designed for frequent trading or market timing activity of the investment options. If you intend to 
trade frequently and/or use market timing investment strategies, you should not purchase this Contract. The 
Company does not accommodate market timing. 
 
We consider frequent trading and market timing activities to be abusive trading practices because they: 
 
·  Disrupt the management of the underlying mutual funds by: 
  ·  forcing the fund to hold short-term (liquid) assets rather than investing for long term growth, which results in 
    lost investment opportunities for the fund; and 
  ·  causing unplanned portfolio turnover; 
·  Hurt the portfolio performance of the underlying mutual funds; and 
·  Increase expenses of the underlying mutual fund and separate account due to: 
  ·  increased broker-dealer commissions; and 
  ·  increased record keeping and related costs. 
 
If we are not able to identify such abusive trading practices, the abuses described above will negatively impact the 
Contract and cause investors to suffer the harms described. 
 
We have adopted policies and procedures to help us identify and prevent abusive trading practices. In addition, the 
underlying mutual funds monitor trading activity to identify and take action against abuses. While our policies and 
procedures are designed to identify and protect against abusive trading practices, there can be no certainty that we 
will identify and prevent abusive trading in all instances. When we do identify abusive trading, we will apply our 
policies and procedures in a fair and uniform manner. 
 
If we, or an underlying mutual fund that is an investment option with the Contract, deem abusive trading practices to 
be occurring, we will take action that may include, but is not limited to: 
 
·  Rejecting transfer instructions from a Contract owner or other person authorized by the owner to direct transfers; 
·  Restricting submission of transfer requests by, for example, allowing transfer requests to be submitted by 
  1st class U.S. mail only and disallowing requests made via the internet, by facsimile, by overnight courier or by 
  telephone; 
·  Limiting the number of unscheduled transfers during a Contract year to no more than 12; 
·  Prohibiting you from requesting a transfer among the divisions for a minimum of thirty days where there is 
  evidence of at least one round-trip transaction (exchange or redemption of shares that were purchased within 
  30 days of the exchange/redemption) by you; and 
·  Taking such other action as directed by the underlying mutual fund. 
 
We support the underlying mutual funds right to accept, reject or restrict, without prior written notice, any transfer 
requests into a fund. 
 
In some instances, a transfer may be completed prior to a determination of abusive trading. In those instances, we 
will reverse the transfer (within two business days of the transfer) and return the Contract to the investment option 
holdings it had prior to the transfer. We will give you notice in writing in this instance. 

 



Distribution of the Contract 
 
The Company has appointed Princor Financial Services Corporation (“Princor”) (Des Moines, Iowa 50392-0200), a 
broker-dealer registered under the Securities Exchange Act of 1934, a member of the Financial Industry Regulatory 
Authority and affiliate of the Company, as the distributor and principal underwriter of the Contract. Princor is paid 
6.5% of premium payments by the Company for the distribution of the Contract. Princor also may receive 12b-1 fees 
in connection with purchases and sales of mutual funds underlying the Contracts. 
Applications for the Contracts are solicited by registered representatives of Princor or such other broker-dealers as 
have entered into selling agreements with Princor. Such registered representatives act as appointed agents of the 
Company under applicable state insurance law and must be licensed to sell variable insurance products. The 
Company intends to offer the Contract in all jurisdictions where it is licensed to do business and where the Contract 
is approved. 
 
Performance Calculation 
 
The Separate Account may publish advertisements containing information (including graphs, charts, tables and 
examples) about the hypothetical performance of its divisions for this Contract as if the Contract had been issued on 
or after the date the underlying mutual fund in which the division invests was first offered. The hypothetical 
performance from the date of the inception of the underlying mutual fund in which the division invests is calculated by 
reducing the actual performance of the underlying mutual fund by the fees and charges of this Contract as if it had 
been in existence. 
 
The yield and total return figures described below vary depending upon market conditions, composition of the 
underlying mutual fund’s portfolios and operating expenses. These factors and possible differences in the methods 
used in calculating yield and total return should be considered when comparing the Separate Account performance 
figures to performance figures published for other investment vehicles. The Separate Account may also quote 
rankings, yields or returns as published by independent statistical services or publishers and information regarding 
performance of certain market indices. Any performance data quoted for the Separate Account represents only 
historical performance and is not intended to indicate future performance. For further information on how the 
Separate Account calculates yield and total return figures, see the SAI. 
 
From time to time the Separate Account advertises its Money Market Division’s “yield” and “effective yield” for these 
Contracts. Both yield figures are based on historical earnings and are not intended to indicate future performance. 
The “yield” of the division refers to the income generated by an investment in the division over a 7-day period (which 
period is stated in the advertisement). This income is then “annualized.” That is, the amount of income generated by 
the investment during that week is assumed to be generated each week over a 52-week period and is shown as a 
percentage of the investment. The “effective yield” is calculated similarly but, when annualized, the income earned by 
an investment in the division is assumed to be reinvested. The “effective yield” is slightly higher than the “yield” 
because of the compounding effect of the assumed reinvestment. 
 
The Separate Account also advertises the average annual total return of its various divisions. The average annual 
total return for any of the divisions is computed by calculating the average annual compounded rate of return over the 
stated period that would equate an initial $1,000 investment to the ending redeemable accumulated value. 

 



FEDERAL TAX MATTERS 
 
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 qualified tax adviser 
about the tax implications of taking action under a Contract or related retirement plan. 
 
Non-Qualified Contracts 
 
Section 72 of the Internal Revenue Code governs the income taxation of annuities in general. 
·  Premium payments made under non-qualified Contracts are not excludable or deductible from your gross income 
  or any other person’s gross income. 
·  An increase in the accumulated value of a non-qualified Contract owned by a natural person resulting from the 
  investment performance of the Separate Account or interest credited to the DCA Plus Accounts and the Fixed 
  Account is generally not taxable until paid out as surrender proceeds, death benefit proceeds, or otherwise. 
·  Generally, owners who are not natural persons are immediately taxed on any increase in the accumulated value. 
 
The following discussion applies generally to Contracts owned by natural persons. 
·  Surrenders or partial surrenders are taxed as ordinary income to the extent of the accumulated income or gain 
  under the Contract. 
·  The value of the Contract pledged or assigned is taxed as ordinary income to the same extent as a partial 
  surrender. 
·  Annuity benefit payments: 
  ·  The “investment in the contract” is generally the total of the premium payments made. 
  ·  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. 
  ·  After the premium payment(s) 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. Please consult with your tax advisor before 
changing ownership of your Contract. 
 
Required Distributions for Non-Qualified Contracts 
 
In order for a non-qualified Contract to be treated as an annuity contract for federal income tax purposes, the Internal 
Revenue Code requires: 
·  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. 
·  If you die prior to the annuitization date, the entire interest in the Contract will be distributed: 
  ·  within five years after the date of your death; or 
  ·  as annuity benefit 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. 
·  If you take a distribution from the Contract before you are 59 ½, you may incur an income tax penalty. 
 
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 Internal Revenue Code. Where the owner or other person receiving payments 
is not a natural person, the required distributions provided for in the Internal Revenue Code apply upon the death of 
the annuitant. 
 
TAX-QUALIFIED CONTRACTS: IRA, SEP, and SIMPLE-IRA 
 
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 – A SEP 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 Employers. 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 
Internal Revenue 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. 
 
The tax implications of these plans are further discussed in the SAI under the heading Taxation Under Certain 
Retirement Plans. Check with your tax advisor for the rules which apply to your specific situation. 
 
Premature Distributions: There is a 10% penalty under the Internal Revenue Code on the taxable portion of a 
“premature distribution” from IRAs, IRA rollovers 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. Generally, an amount is a “premature 
distribution” unless the distribution is: 
 
·  made on or after you reach age 59 ½; 
·  made to a beneficiary on or after your death; 
·  made upon your disability; 
·  part of a series of substantially equal periodic payments for the life or life expectancy of you or you and the 
  beneficiary; 
·  made to pay certain 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 (up to $100,000); 
·  for qualified reservist distributions; 
·  for amounts levied by the IRS directly against your IRA; 
·  for earnings associated with refunds of excess IRA contributions paid prior to your tax filing deadline; 
·  for Roth IRA conversions (assuming the conversion remains in the Roth IRA for 5 years); or 
·  for transfer of IRA incident to divorce. 
 
For more information regarding premature distributions, please reference IRS Publication 590 and consult your tax 
advisor. 

 



Rollover IRAs 
 
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 distribution. This amount is sent to the IRS as income tax withholding to 
be credited against your taxes. Amounts received prior to age 59 ½ and not rolled over may be subject to an 
additional 10% excise 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 see your tax advisor. 
 
Roth IRAs 
 
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, SIMPLE-IRA or SEP 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. 
 
Required Minimum Distributions for IRAs 
 
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 70 ½. 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 NOTE: Contractual limitations exist that may limit 
the ability to satisfy an individual's multiple RMD obligations via this annuity. Please see GMWB Rider - Required 
Minimum Distribution (RMD) for details. 
 
Failure to comply with the RMD rules can result in an excise tax penalty. This penalty equals 50% of the amount of 
the RMD that exceeds the actual distribution amount (if any) that occurred during the calendar year in question. 
 
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 “backup withholding” rules may require us to disregard the recipient’s election if the 
recipient fails to supply us with a “TIN” or taxpayer identification number (social security number for individuals), or if 
the Internal Revenue Service notifies us that the TIN provided by the recipient is incorrect. 

 



MUTUAL FUND DIVERSIFICATION 
 
The United States Treasury Department has adopted regulations under Section 817(h) of the Internal Revenue Code 
which establishes standards of diversification for the investments underlying the Contracts. Under this Internal 
Revenue Code Section, Separate Account investments must be adequately diversified in order for the increase in the 
value of non-qualified Contracts to receive tax-deferred treatment. In order to be adequately diversified, the portfolio 
of each underlying mutual fund must, as of the end of each calendar quarter or within 30 days thereafter, have no 
more than 55% of its assets invested in any one investment, 70% in any two investments, 80% in any three 
investments and 90% in any four investments. Failure of an underlying mutual fund to meet the diversification 
requirements could result in tax liability to non-qualified Contract holders. 
 
The investment opportunities of the underlying mutual funds could conceivably be limited by adhering to the above 
diversification requirements. This would affect all owners, including owners of Contracts for whom diversification is 
not a requirement for tax-deferred treatment. 
 
STATE REGULATION 
 
The Company is subject to the laws of the State of Iowa governing insurance companies and to regulation by the 
Insurance Department of the State of Iowa. 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 
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. 
 
GENERAL INFORMATION 
 
Reservation of Rights 
 
The Company reserves the right to: 
 
·  increase the minimum amount for each premium payment; and 
·  terminate a Contract and send you the accumulated value if no premiums are paid during two consecutive 
  calendar years and the accumulated value (or total premium payments less partial surrenders and applicable 
  surrender charges) is less than $2,000 unless you have a GMWB rider. The Company will first notify you of its 
  intent to exercise this right and give you 60 days to increase the accumulated value to at least $2,000. 
 
Legal Opinions 
 
Legal matters applicable to the issue and sale of the Contracts, including our right to issue Contracts under Iowa 
Insurance Law, have been passed upon by Karen Shaff, General Counsel and Executive Vice President. 
 
Legal Proceedings 
 
There are no legal proceedings pending to which Separate Account B is a party or which would materially affect 
Separate Account B. 
 
12h-7 Representation 
 
The company is relying on the exemption provided by Rule 12h-7 under the Securities Exchange Act of 1934 
regarding the periodic reporting requirements of the Act. 

 



Other Variable Annuity Contracts 
 
The Company currently offers other variable annuity contracts that participate in Separate Account B. In the future, 
we may designate additional group or individual variable annuity contracts as participating in Separate Account B. 
 
Householding 
 
To avoid sending duplicate copies of materials to owners, only one copy of the prospectus and annual and semi- 
annual reports for the funds 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. 
 
Payments to Financial Intermediaries 
 
The Company pays compensation to broker-dealers, financial institutions, and other parties 
(“Financial Intermediaries”) for the sale of the Contract according to schedules in the sales agreements and other 
agreements reached between the Company and the Financial Intermediaries. Such compensation generally consists 
of commissions on premiums paid on the Contract. The Company and/or its affiliates may also pay other amounts 
(“Additional Payments”) that include, but are not limited to, marketing allowances, expense reimbursements, and 
educational payments. These Additional Payments are designed to provide incentives for the sale of the Contracts as 
well as other products sold by the Company and may influence the Financial Intermediaries or their registered 
representatives to recommend the purchase of this Contract over competing annuity contracts or other investment 
products. You may ask your registered representative about these differing and divergent interests, how your 
registered representative is personally compensated, and how your registered representative’s broker-dealer is 
compensated for soliciting applications for the Contract. 
 
We and/or our affiliates provide services to and/or funding vehicles for welfare benefit plans, retirement plans and 
employer sponsored benefits. We and our affiliates may pay a bonus or other consideration or incentive to brokers or 
dealers: 
 
·  if a participant in such a welfare benefit or retirement plan or an employee covered under an employer sponsored 
  benefit purchases an individual product with the assistance of a registered representative of an affiliate of ours; 
 
·  if a participant in such a retirement plan establishes a rollover individual retirement account with the assistance of 
  a registered representative of an affiliate of ours; 
 
·  if the broker or dealer sold the funding vehicle the welfare benefit or retirement plan or employer sponsored 
  benefit utilizes; or 
 
·  based on the broker's or dealer's relationship to the welfare benefit or retirement plan or employer sponsored 
  benefit. 
 
The broker or dealer may pay to its financial professionals some or all of the amounts we pay to the broker or dealer. 
 
Service Arrangements and Compensation 
 
The Company has entered into agreements with the distributors, advisers, and/or the affiliates of some of the mutual 
funds underlying the Contract and receives compensation for providing certain services including, but not limited to, 
distribution and operational support services, to the underlying mutual fund. Fees for these services are paid 
periodically (typically, quarterly or monthly) based on the average daily net asset value of shares of each fund held 
by the Separate Account and purchased at the Contract owners’ instructions. Because the Company receives such 
fees, it may be subject to competing interests in making these funds available as investment options under the 
Contract. The Company takes into consideration the anticipated payments from underlying mutual funds when it 
determines the charges assessed under the Contract. Without these payments, charges under the Contract are 
expected to be higher. 

 



Independent Registered Public Accounting Firm 
 
The financial statements of Principal Life Insurance Company Separate Account B and the consolidated financial 
statements of Principal Life Insurance Company are included in the SAI. Those statements have been audited by 
Ernst & Young LLP, independent registered public accounting firm, 801 Grand Avenue, Des Moines, Iowa 50309, for 
the periods indicated in their reports which also appear in the SAI. 
 
Financial Statements 
 
The consolidated financial statements of Principal Life Insurance Company which are included in the SAI should be 
considered only as they relate to our ability to meet our obligations under the Contract. They do not relate to 
investment performance of the assets held in the Separate Account. 

 



TABLE OF SEPARATE ACCOUNT DIVISIONS 
 
 
 
Diversified Balanced Division 
 
Invests in:  Principal Variable Contracts Funds Diversified Balanced Account - Class 2 
Investment Advisor:  Principal Management Corporation 
Investment Objective:  seeks to provide as high a level of total return (consisting of reinvested income 
  and capital appreciation) as is consistent with reasonable risk. 
 
 
Diversified Growth Division 
 
Invests in:  Principal Variable Contracts Funds Diversified Growth Account - Class 2 
Investment Advisor:  Principal Management Corporation 
Investment Objective:  seeks to provide long-term capital appreciation. 
 
 
Money Market Division   
 
Invests in:  Principal Variable Contracts Funds Money Market Account – Class 1 
Investment Advisor:  Principal Global Investors, LLC through a sub-advisory agreement with 
  Principal Management Corporation 
Investment Objective:  seeks as high a level of current income as is considered consistent with 
  preservation of principal and maintenance of liquidity. 

 



REGISTRATION STATEMENT 
 
This prospectus (Part A of the registration statement) omits some information contained in the Statement of 
Additional Information (Part B of the registration statement) and Part C of the registration statement which the 
Company has filed with the SEC. The SAI is hereby incorporated by reference into this prospectus. You may request 
a free copy of the SAI by contacting your registered representative or calling us at 1-800-852-4450. 
 
Information about the Contract (including the Statement of Additional Information and Part C of the registration 
statement) can be reviewed and copied at the Securities and Exchange Commission’s Public Reference Room in 
Washington, D.C. Information on the operation of the public reference room may be obtained by calling the 
Commission at 202-551-8090. Reports and other information about the Contract are available on the Commission’s 
internet site at http://www.sec.gov. Copies of this information may be obtained, upon payment of a duplicating fee, by 
writing the Public Reference Section of the Commission, 100 F Street NE, Washington, D.C. 20549-0102. 
 
The registration numbers for the Contract are 333-116220 and 811-02091. 
 
CUSTOMER INQUIRIES 
 
Your questions should be directed to: Principal Lifetime Income Solutions, Principal Financial Group, P.O. Box 9382, 
Des Moines, Iowa 50306-9382, 1-800-852-4450. You may also contact us through our internet site: 
www.principal.com. 

 

TABLE OF CONTENTS OF THE SAI   
 
General Information and History  3 
Independent Registered Public Accounting Firm  3 
Principal Underwriter  3 
Calculation of Performance Data  3 
Taxation Under Certain Retirement Plans  5 
Principal Life Insurance Company Separate Account B   
Report of Independent Registered Public Accounting Firm   9
Financial Statements   10
Principal Life Insurance Company   
Report of Independent Registered Public Accounting Firm   150
Consolidated Financial Statements   151

 

To obtain a copy of the Statement of Additional Information, free of charge, write or telephone: 
 
Princor Financial Services Corporation 
a company of 
the Principal Financial Group 
Des Moines, IA 50392-2080 
Telephone: 1-800-852-4450 

 



APPENDIX A — GMWB INVESTMENT OPTIONS 
 
GMWB Investment Options 
While a GMWB rider is in effect, the investment options you may select are restricted. The investment options 
available under a GMWB rider (the “GMWB investment options”) reflect a balanced investment objective and if your 
investment goal is aggressive growth, a GMWB rider may not support your investment objective. With GMWB 
investment options that reflect a balanced investment objective, there is potentially a reduced likelihood that we will 
have to make GMWB benefit payments when the Contract value goes to zero, reaches the maximum annuitization 
date, or if there is a death claim. 
 
When you purchase a GMWB rider, you must allocate 100% of your Separate Account division accumulated value 
and premium payments to one of the available GMWB investment options. Any future premium payments are 
allocated to the GMWB investment option your Separate Account division accumulated value is invested in at the 
time of the new premium payments. 
 
The available GMWB investment options are: 
·  Diversified Growth Account; or 
·  Diversified Balanced Account. 
 
For more information about the Diversified Growth and Diversified Balanced Account, please see the prospectus 
sections titled THE CONTRACT - The Underlying Mutual Funds, TABLE OF SEPARATE ACCOUNT DIVISIONS and 
the underlying fund’s prospectus provided with this prospectus. 
 
You may allocate premium payments and transfer Contract accumulated value to the Fixed Account. Such 
allocations and transfers are subject to the provisions of your Contract. See FIXED ACCOUNT. 
 
We reserve the right to modify the list of available Separate Account divisions in a GMWB Model or modify the list of 
available GMWB investment options, subject to compliance with applicable regulations. We may make available 
other GMWB Models. We also may make changes to or restrict the availability of GMWB Models or other GMWB 
investment options. Changes or restrictions will apply only to new purchasers of the Contract or to you if you transfer 
out of a GMWB Model or investment option and wish to transfer back to that GMWB Model or investment option. 
 
You must stay invested in the GMWB investment options as long as the GMWB rider is in effect. Note, the rider may 
not be terminated for five contract years following the rider effective date. 
 
Transfers Between GMWB Investment Options 
 
You may transfer 100% of your Separate Account division accumulated value from your current GMWB investment 
option to one other GMWB investment option which is available at the time of the transfer. If you transfer from a 
discontinued GMWB investment option, you will not be able to transfer back to that GMWB investment option. You 
may make a transfer by providing us notice (we will effect the transfer at the price next determined after we receive 
your notice in good order). 
 
If your Separate Account division accumulated value is invested in a GMWB investment option which is no longer 
available with the rider but is still available under the Contract, you may continue to maintain that investment and 
allocate new premium payments to it. If the discontinued GMWB investment option involves more than one Separate 
Account division, we will rebalance your Separate Account division accumulated value each calendar quarter. You 
may not transfer your Separate Account division accumulated value to any other discontinued GMWB investment 
option. You may transfer your Separate Account division accumulated value to another GMWB investment option 
that is available at the time of transfer; in this case, the discontinued GMWB investment option will no longer be 
available to you. 

 



GMWB Investment Options Underlying Funds 
 
You should note that the GMWB investment options are series of Principal Variable Contracts Funds, Inc., which is 
managed by Principal Management Corporation ("PMC"), an affiliate of ours. If you wish to invest your Contract 
accumulated value predominantly in underlying funds that are not managed by an affiliate of ours, this Contract may 
not be appropriate for you. 
 
To the extent that an underlying fund managed by PMC may be included as a GMWB investment option, PMC will 
receive additional compensation from the management fee of the underlying fund. However, we do not take such 
potential financial benefit into account in selecting the underlying fund to be a GMWB investment option. 

 



APPENDIX B — GMWB EXAMPLES 
 
These examples have been provided to assist you in understanding the various features of the GMWB rider and to 
demonstrate how premium payments received and withdrawals taken from the Contract affect the values and 
benefits under the GMWB rider. These examples are based on certain hypothetical assumptions and are for 
illustrative purposes only. These examples are not intended to serve as projections of future investment returns. 
 
NOTE: The owner’s actions determine the benefits received. 
 
NOTE: For the purpose of the following examples, a partial annuitization has the same effect as a partial surrender 
       and both are referred to as a withdrawal in the following examples. 
 
Examples Without Excess Withdrawals (Examples 1-5) 
The examples without excess withdrawals assume the following: 
·  the client is age 62 and the client’s spouse is age 60 on the rider effective date. 
·  initial premium payment = $100,000. 
·  the withdrawal benefit base prior to partial surrender = $100,000. 
·  “Single Life” For Life (5%) withdrawal benefit payment = $5,000, if withdrawals start prior to the client attaining 
  age 65. 
·  “Joint Life” For Life (4.5%) withdrawal benefit payment = $4,500, if withdrawals start prior to the spouse attaining 
  age 65. 
 
Example 1 
In contract year one, no withdrawals are taken and no For Life withdrawal benefit payment election has been 
designated. Because the client has not made a For Life withdrawal benefit payment election, we automatically 
calculate the For Life withdrawal benefit payment as “Single Life”. 
 
On the first contract anniversary: 
·  a 5% GMWB bonus is credited to the withdrawal benefit base. The credit is $100,000 x 0.05 = $5,000. 
·  there is no GMWB Step-Up because the withdrawal benefit base after the bonus is credited is larger than the 
  Contract’s accumulated value. 
·  the new withdrawal benefit base is $100,000 + 5,000 = $105,000; 
·  the new withdrawal benefit is $105,000 x 0.05 = $5,250. 
 
Example 2 
In contract year one: 
·  no withdrawals are taken and no For Life withdrawal benefit payment election has been designated. Because the 
  client has not made a For Life withdrawal benefit payment election, we automatically calculate the For Life 
  withdrawal benefit payment as “Single Life”. 
·  the client makes a premium payment of $50,000. 
 
On the first contract anniversary: 
·  a 5% GMWB bonus is credited to the withdrawal benefit base. The credit is ($100,000 + $50,000) x 0.05 = 
  $7,500. 
·  there is no GMWB Step-Up because the withdrawal benefit base after the bonus is credited is larger than the 
  Contract’s accumulated value. 
·  the new withdrawal benefit base is $100,000 + $50,000 + $7,500 = $157,500; 
·  the new withdrawal benefit is $157,500 x 0.05 = $7,875. 

 



Example 3 
In contract year one, the client elects the “Joint Life” For Life withdrawal benefit payment and takes a withdrawal of 
$4,500. The “Joint Life” For Life withdrawal benefit payment percentage is locked-in at 4.5%. 
 
On the first contract anniversary: 
·  Since a withdrawal was taken in contract year one, no GMWB bonus is credited. 
·  there is no GMWB Step-Up because the withdrawal benefit base is larger than the Contract’s accumulated value. 
·  the withdrawal benefit base remains the same ($100,000); 
·  the withdrawal benefit for the next contract year remains the same ($100,000 x 0.045 = $4,500). 
 
Example 4 
In contract year one, no withdrawals are taken and no For Life withdrawal benefit payment election has been 
designated. Because the client has not made a For Life withdrawal benefit payment election, we automatically 
calculate For Life withdrawal benefit payment as “Single Life”. 
 
On the first contract anniversary: 
·  a 5% GMWB bonus is credited to the withdrawal benefit base. The credit is $100,000 x 0.05 = $5,000. 
·  there is no GMWB Step-Up because the withdrawal benefit base after the bonus is credited is larger than the 
  Contract’s accumulated value. 
·  the new withdrawal benefit base is $100,000 + 5,000 = $105,000; 
·  the new withdrawal benefit is $105,000 x 0.05 = $5,250. 
 
In contract year two, the client elects the “Joint Life” For Life withdrawal benefit payment and takes a withdrawal of 
$4,500. The “Joint Life” For Life withdrawal benefit payment percentage is locked-in at 4.5%. 
 
On the second contract anniversary: 
·  Since a withdrawal was taken in contract year two, no GMWB bonus is credited. 
·  there is no GMWB Step-Up because the withdrawal benefit base is larger than the Contract’s accumulated value. 
·  the withdrawal benefit base remains the same ($105,000); 
·  the withdrawal benefit for the next contract year is $105,000 x 0.045 = $4,725. 
 
In contract year three, no withdrawals are taken. The “Joint Life” For Life withdrawal benefit payment percentage 
remains locked-in at 4.5%. 
 
On the third contract anniversary: 
·  Since a withdrawal was taken in contract year two, no GMWB bonus is credited. 
·  there is no GMWB Step-Up because the withdrawal benefit base is larger than the Contract’s accumulated value. 
·  the withdrawal benefit base remains the same ($105,000); 
·  the withdrawal benefit for the next contract year remains the same ($105,000 x 0.045 = $4,725). 
 
Example 5 
The client elects the “Single Life” For Life withdrawal benefit payment, and in each of the first two contract years, 
takes a withdrawal of $5,000. Assume there is no GMWB Step-Up on the first contract anniversary. On the 
2nd contract anniversary, the client will receive a GMWB Step-Up if the Contract’s accumulated value is greater than 
the withdrawal benefit base. 

 

If the accumulated value on the second     
contract anniversary is:  $95,000  $110,000 
For Life (“Single Life”)     
  Prior to step-up     
    Withdrawal Benefit Base  $100,000  $100,000 
    Withdrawal Benefit Payment  $100,000 x 0.05 = $5,000  $100,000 x 0.05 = $5,000 
  After step-up     
    Withdrawal Benefit Base  $100,000  $110,000 
    Withdrawal Benefit Payment  $100,000 x 0.05 = $5,000  $110,000 x 0.05 = $5,500 

 



Examples With Excess Withdrawals (Examples 6-7) 
The excess withdrawal examples assume the following: 
·  the client is age 62 and elected “Single Life” For Life withdrawal benefit payments at the first withdrawal and 
  therefore, locks-in the “Single Life” For Life withdrawal benefit payment percentage at 5%. 
·  the initial premium payment is $100,000 
·  the withdrawal benefit base prior to partial surrender = $100,000 
·  “Single Life” For Life (5%) withdrawal benefit payment = $5,000 
·  Withdrawal taken = $8,000 
  · excess amount is $3,000 
 
Example 6 
In this example, assume the accumulated value prior to the withdrawal is $90,000. 
 
Withdrawal Benefit Base Calculation 
On the contract anniversary following the withdrawal, the withdrawal benefit base is adjusted for any excess 
withdrawals. 
 
The amount of the adjustment* is $3,529.41. The new For Life withdrawal benefit base is $100,000 - $3,529.41 = 
$96,470.59. 
 
*The amount of the adjustment for the excess withdrawal is the greater of a or b where: 
 
  a = $3,000 (the amount of the excess withdrawal); and 
  b = $3,529.41 (the result of (1 divided by 2) multiplied by 3) where: 
 
  1 = the amount of the withdrawal greater than the “Single Life” For Life withdrawal benefit payment remaining 
  prior to the withdrawal ($3,000); 
 
  2 = the accumulated value after the “Single Life” For Life withdrawal benefit payment is deducted but prior to 
  the withdrawal of the excess amount ($90,000 - $5,000); and 
 
  3 = the For Life withdrawal benefit base prior to the adjustment for the excess amount ($100,000). 
 
Withdrawal Benefit Payment Calculation (for the next contract year) 
The withdrawal benefit payment is the new withdrawal benefit base (calculated on the contract anniversary) 
multiplied by the associated percentage. The “Single Life” For Life withdrawal benefit payment percentage is locked- 
in at 5%. 
 
The new “Single Life” For Life withdrawal benefit payment is $96,470.59 x 0.05 = $4,823.53. 

 



Example 7 
In this example, assume the accumulated value prior to the withdrawal is $110,000. 
 
Withdrawal Benefit Base Calculation 
On the contract anniversary following the withdrawal, the withdrawal benefit base is adjusted for any excess 
withdrawals. 
 
The amount of the adjustment* is $3,000 (the amount of the excess withdrawal). The new For Life withdrawal benefit 
base is $100,000 - $3,000 = $97,000. 
 
*The amount of the adjustment for excess withdrawal is the greater of a or b where: 
 
a = $3,000 (the amount of the excess withdrawal); and 
b = $2,857.14 (the result of (1 divided by 2) multiplied by 3) where: 
 
1 = the amount of the withdrawal greater than the “Single Life” For Life withdrawal benefit payment available 
prior to the withdrawal ($3,000); 
 
2 = the accumulated value after the “Single Life” For Life withdrawal benefit payment is deducted but prior to 
the withdrawal of the excess amount ($110,000 minus $5,000); and 
 
3 = the For Life withdrawal benefit base prior to the adjustment for the excess amount ($100,000). 
 
Withdrawal Benefit Payment Calculation (for the next contract year) 
The withdrawal benefit payment is the new withdrawal benefit base (calculated on the contract anniversary) 
multiplied by the associated percentage. The “Single Life” For Life withdrawal benefit payment percentage is locked- 
in at 5%. 
 
The new “Single Life” For Life withdrawal benefit payment is $97,000 x 0.05 = $4,850. 

 



APPENDIX C - CONDENSED FINANCIAL INFORMATION 
Since the Contract effective date is May 2, 2011, the Condensed Financial Information is not available at this time. 

 



PART B 
PRINCIPAL LIFE INSURANCE COMPANY SEPARATE ACCOUNT B 
PRINCIPAL LIFETIME INCOME SOLUTIONSSM 
Statement of Additional Information 
dated May 2, 2011 

 

This Statement of Additional Information provides information about the Principal Lifetime Income 
Solutions (the “Contract”) in addition to the information that is contained in the Contract’s Prospectus 
dated May 2, 2011. 
 
This Statement of Additional Information is not a prospectus. It should be read in conjunction with the 
Prospectus, a copy of which can be obtained free of charge by writing or telephoning: 

 

  Principal Lifetime Income Solutions
The Principal Financial Group
P.O. Box 9382
Des Moines Iowa 50306-9382
Telephone: 1-800-852-4450



TABLE OF CONTENTS   
 
GENERAL INFORMATION AND HISTORY  3 
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  3 
PRINCIPAL UNDERWRITER  3 
CALCULATION OF PERFORMANCE DATA  3 
TAXATION UNDER CERTAIN RETIREMENT PLANS  5 
Principal Life Insurance Company Separate Account B   
Report of Independent Registered Public Accounting Firm   9
Financial Statements   10
Principal Life Insurance Company   
Report of Independent Registered Public Accounting Firm   150
Consolidated Financial Statements   151

 



GENERAL INFORMATION AND HISTORY 
 
Principal Life Insurance Company (the “Company”) is the issuer of the Principal Lifetime Income Solutions 
(the “Contract”) and serves as custodian of its assets. The Company is a stock life insurance company 
with authority to transact life and annuity business in all states of the United States and the District of 
Columbia. The Company’s home office is located at: Principal Financial Group, Des Moines, Iowa 50392. 
The Company is a wholly owned subsidiary of Principal Financial Services, Inc., which in turn, is a wholly 
owned direct subsidiary of Principal Financial Group, Inc., a publicly-traded company. 
 
On June 24,1879, the Company was incorporated under Iowa law as a mutual assessment life insurance 
company named Bankers Life Association. The Company became a legal reserve life insurance company 
and changed its name to Bankers Life Company in 1911. In 1986, the Company changed its name to 
Principal Mutual Life Insurance Company. In 1998, the Company became Principal Life Insurance 
Company, a subsidiary stock life insurance company of Principal Mutual Holding Company, as part of a 
reorganization into a mutual insurance holding company structure. In 2001, Principal Mutual Holding 
Company converted to a stock company through a process called demutualization, resulting in the current 
organizational structure. 
 
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 
Ernst & Young LLP, 801 Grand Avenue, Suite 3000, Des Moines, Iowa 50309, serves as the independent 
registered public accounting firm for Principal Life Insurance Company Separate Account B and the 
Principal Life Insurance Company. 
 
PRINCIPAL UNDERWRITER 
 
The principal underwriter of the Contract is Princor Financial Services Corporation ("Princor") which is a 
wholly owned subsidiary of Principal Financial Services, Inc. and an affiliate of the Company. The 
address of Princor is the Principal Financial Group, 650 8th Street, Des Moines, Iowa 50392-0200. 
Princor was incorporated in Iowa in 1968 and is a securities broker-dealer registered with the Securities 
Exchange Commission as well as a member of the FINRA. The Contracts may also be sold through other 
broker-dealers authorized by Princor and applicable law to do so. 
 
CALCULATION OF PERFORMANCE DATA 
 
The Separate Account may publish advertisements containing information (including graphs, charts, 
tables and examples) about the performance of one or more of its divisions. 
 
The Contract was not offered prior to May 2, 2011. However, the certain divisions invest in underlying 
mutual funds which were offered prior to the date the Contract was available. Thus, the Separate Account 
may publish advertisements containing information about the hypothetical performance of one or more of 
its divisions for this Contract as the Contract was issued on or after the date the underlying mutual fund 
was first offered. The hypothetical performance from the date of inception of the underlying mutual fund in 
which the division invests is derived by reducing the actual performance of the underlying mutual fund by 
the highest level of fees and charges of the Contract as if it had been in existence. 
 
In addition, as certain of the underlying mutual funds have added classes since the inception of the fund, 
performance may be shown for periods prior to the inception date of the new class which represents the 
historical results of initial class shares adjusted to reflect the fees and expenses of the new class. 
 
The yield and total return figures described below will vary depending upon market conditions, the 
composition of the underlying mutual fund’s portfolios and operating expenses. These factors and 
possible differences in the methods used in calculating yield and total return should be considered when 
comparing the Separate Account performance figures to performance figures published for other 
investment vehicles. 

 



The Separate Account may also quote rankings, yields or returns as published by independent statistical 
services or publishers and information regarding performance of certain market indices. Any performance 
data quoted for the Separate Account represents only historical performance and is not intended to 
indicate future performance. 
 
From time to time the Separate Account advertises its Money Market Division’s “yield” and “effective 
yield” for the Contract. Both yield figures are based on historical earnings and are not intended to indicate 
future performance. The “yield” of the division refers to the income generated by an investment under the 
Contract in the division over a 7-day period (which period will be stated in the advertisement). This 
income is then “annualized.” That is, the amount of income generated by the investment during that week 
is assumed to be generated each week over a 52-week period and is shown as a percentage of the 
investment. The “effective yield” is calculated similarly but, when annualized, the income earned by an 
investment in the division is assumed to be reinvested. The “effective yield” will be slightly higher than the 
“yield” because of the compounding effect of this assumed reinvestment. Neither yield quotation reflects a 
sales load deducted from purchase payments which, if included, would reduce the “yield” and “effective 
yield.” 

 

Yield For the Period Ended December 31, 2010 
For Contracts:  7-Day Annualized Yield  7-Day Effective Yield 
without a surrender charge  -1.28%  -1.28% 
with a surrender charge  -7.28%  -7.28% 

 

Also, from time to time, the Separate Account will advertise the average annual total return of its various 
divisions. The average annual total return for any of the divisions is computed by calculating the average 
annual compounded rate of return over the stated period that would equate an initial $1,000 investment to 
the ending redeemable Contract value. The Separate Account may also advertise total return figures for 
its divisions for a specified period that does not take into account the surrender charge in order to 
illustrate the change in the division’s unit value over time. See “Charges and Deductions” in the 
Prospectus for a discussion of surrender charges. 
 
Following are the hypothetical average annual total returns for the period ending December 31, 2010 
assuming the Contract had been offered as of the effective dates of the underlying mutual funds in which 
the divisions invest: 

 

  For Contracts with Surrender Charge
  Effective      Ten  Since 
Division  Date  One Year  Five Years  Years  Inception 
Diversified Balanced Account  12/30/2009  2.80%      2.97% 
Diversified Growth Account  12/30/2009  4.28%      4.26% 
Money Market  3/18/1983  -7.28%  0.56%  0.85%   
 
    For Contracts without Surrender Charge 
  Effective      Ten  Since 
Division  Date  One Year  Five Years  Years  Inception 
Diversified Balanced Account  12/30/2009  8.80%      8.77% 
Diversified Growth Account  12/30/2009  10.28%      10.25% 
Money Market  3/18/1983  -1.28%  1.14%  0.85%   

 



TAXATION UNDER CERTAIN RETIREMENT PLANS 
 
INDIVIDUAL RETIREMENT ANNUITIES 
Contributions. Individuals may make contributions for individual retirement annuity (IRA) contracts. 
Individuals may make deductible contributions (for any year) up to the lesser of the amount shown in the 
chart or 100% of compensation. 
 
Individuals age 50 or over are also permitted to make additional “catch-up” contributions. The additional 
contribution is $1,000 in 2010 and 2011. 
 
Such individuals may establish a traditional IRA for a non-working spouse. The annual contribution for 
both spouses’ contracts cannot exceed the lesser of the amount shown in the chart or 100% of the 
working spouse’s compensation. No more than the individual IRA limit may be contributed to either 
spouse’s IRA for any year. 

 

IRA- Maximum Annual Contribution
Year  Individual IRA  Individual IRA + Spousal IRA 
2010  $5,000  $10,000 
2011  $5,000  $10,000 

 

Starting in 2012, limits are indexed to inflation. 
 
Contributions may be tax deductible. If an individual and his/her spouse do not participate in a qualified 
retirement plan, the contributions to an IRA are fully tax deductible regardless of income. If an individual is 
an active participant in a qualified retirement plan, his/her ability to deduct the contributions depends upon 
his/her income level. 
 
For individuals who are not active participants but whose spouses are, deductibility of traditional IRA 
contributions is phased out if the couple files a joint return and the Adjusted Gross Income is between 
$169,000 and $179,000 in 2011. 

 

  Deductibility of Traditional IRA Contributions for Active Participants   
  Married Individuals (Filing Jointly)    Single Individual   
  Limited  No    Limited  No 
Year  Deduction  Deduction  Year  Deduction  Deduction 
2010  $89,000  $109,000  2010  $56,000  $66,000 
2011  $90,000  $110,000  2011  $56,000  $66,000 

 

An individual may make non-deductible IRA contributions to the extent of the excess of: 
 
(1) The lesser of maximum annual contribution or 100% of compensation, over 
 
(2) The IRA deductible contributions made with respect to the individual. 
 
An individual may not make any contribution to his/her own IRA for the year in which he/she reaches 
age 70 ½ or for any year thereafter. 
 
Taxation of Distributions. Distributions from IRA Contracts are taxed as ordinary income to the recipient, 
although special rules exist for the tax-free return of non-deductible contributions. In addition, taxable 
distributions received under an IRA Contract prior to age 59 ½ are subject to a 10% penalty tax in 
addition to regular income tax. Certain distributions are exempted from this penalty tax, including 
distributions following the owner’s death or disability if the distribution is paid as part of a series of 
substantially equal periodic payments made for the life (or life expectancy) of the Owner or the joint lives 
(or joint life expectancies) of Owner and the Owner’s designated Beneficiary; distributions to pay medical 
expenses; distributions for certain unemployment expenses; distributions for first home purchases (up to 

 



$10,000) and distributions for higher education expenses and distributions for certain natural disaster 
victims. 
 
Required Distributions. Generally, distributions from IRA Contracts must commence not later than April 1 
of the calendar year following the calendar year in which the owner attains age 70 ½, and such 
distributions must be made over a period that does not exceed the uniform life distribution period 
established by the IRS. A penalty tax of 50% may be imposed on any amount by which the minimum 
required distribution in any year exceeded the amount actually distributed in that year. In addition, in the 
event that the owner dies before his or her entire interest in the Contract has been distributed, the 
owner’s entire interest must be distributed in accordance with rules similar to those applicable upon the 
death of the Contract Owner in the case of a non-qualified Contract, as described in the Prospectus. 
 
Tax-Free Rollovers. The Internal Revenue Code (the “Code”) permits the taxable portion of funds to be 
transferred in a tax-free rollover from a qualified retirement plan, tax-deferred annuity plan or 
governmental 457(b) plan to an IRA Contract if certain conditions are met, and if the rollover of assets is 
completed within 60 days after the distribution from the qualified plan is received. A direct rollover of 
funds may avoid a 20% federal tax withholding generally applicable to qualified plans, tax-deferred 
annuity plan, or governmental 457(b) plan distributions. In addition, not more frequently than once every 
twelve months, amounts may be rolled over tax-free from one IRA to another, subject to the 60-day 
limitation and other requirements. The once-per-year limitation on rollovers does not apply to direct 
transfers of funds between IRA custodians or trustees. 
 
SIMPLIFIED EMPLOYEE PENSION PLANS AND SALARY REDUCTION SIMPLIFIED EMPLOYEE 
PENSION PLANS 
Contributions. Under Section 408(k) of the Code, employers may establish a type of IRA plan referred to 
as a simplified employee pension plan (SEP). Employer contributions to a SEP cannot exceed the lesser 
of 100% of compensation or $49,000 for 2011. 
 
Employees of certain small employers may have contributions made to the salary reduction simplified 
employee pension plan (SAR/SEP) on their behalf on a salary reduction basis. The amount that an 
employee chooses to defer and contribute to the SAR/SEP is referred to as an elective deferral. 
 
These elective deferrals are subject to the same cap as elective deferrals to IRC Section 401(k) plans, 
see table below. In addition to the elective deferrals, SAR/SEP may permit additional elective deferrals by 
individuals age 50 or over, referred to as “catch-up contributions”. 
 
No new SAR/SEP are permitted after 1996 for any employer, but those in effect prior to 1997 may 
continue to operate, receive contributions, and add new employees. 
 
Employees of tax-exempt organizations and state and local government agencies are not eligible for 
SAR/SEPs. 

 

  Salary Reduction Simplified Employee Pension Plan (SAR-SEP) 
Year  Elective Deferral  Catch-up Contribution 
2010  $16,500  $5,500 
2011  $16,500  $5,500 

 

Taxation of Distributions. Generally, distribution payments from SEPs and SAR/SEPs are subject to the 
same distribution rules described above for IRAs. 
 
Required Distributions. SEPs and SAR/SEPs are subject to the same minimum required distribution rules 
described above for IRAs. 
 
Tax-Free Rollovers. Generally, rollovers and direct transfers may be made to and from SEPs and 
SAR/SEPs in the same manner as described above for IRAs, subject to the same conditions and 
limitations. 

 



SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE IRA) 
Contributions. Under Section 408(p) of the Code, employers may establish a type of IRA plan known as a 
SIMPLE IRA. Employees may have contributions made to the SIMPLE IRA on a salary reduction basis. 
The amount that an employee chooses to defer and contribute to the SIMPLE IRA is referred to as an 
elective deferral. 
 
These elective deferrals cannot exceed the amounts shown in the chart. In addition to the elective 
deferrals, SIMPLE IRA may permit additional elective deferrals by individuals age 50 or over, referred to 
as “catch-up contributions”. 
 
Elective contribution amounts made under the salary reduction portions (i.e., those subject to the $11,500 
limit in 2011) of a SIMPLE IRA plan are counted in the overall limit on elective deferrals by any individual. 
For example, an individual under age 50 who defers the maximum of $11,500 to a SIMPLE IRA of (i.e., 
$16,500 for 2011) one employer and participates in a 401(k) plan of another employer would be limited to 
an elective deferral of $5,000 in 2011 ($16,500 – $11,500) to the 401(k) plan. 
 
The employer generally must match either 100% of the employee’s elective deferral, up to 3% of the 
employee’s compensation or fixed nonelective contributions of 2% of compensation. 

 

  Savings Incentive Match Plan for Employees (SIMPLE IRA)   
      401(k) Elective 
Year  Elective Deferral  Catch-up Contribution  Deferral 
2010  $11,500  $2,500  $16,500 
2011  $11,500  $2,500  $16,500 

 

Taxation of Distributions. Generally, distribution payments from SIMPLE IRAs are subject to the same 
distribution rules described above for IRAs, except that distributions made within two years of the date of 
an employee’s first participation in a SIMPLE IRA of an employer are subject to a 25% penalty tax instead 
of the 10% penalty tax discussed previously. 
 
Required Distributions. SIMPLE IRAs are subject to the same minimum required distribution rules 
described above for IRAs. 
 
Tax-Free Rollovers. Direct transfers may be made among SIMPLE IRAs in the same manner as 
described above for IRAs, subject to the same conditions and limitations. Rollovers from SIMPLE IRAs 
are permitted after two years have elapsed from the date of an employee’s first participation in a SIMPLE 
IRA of the employer. Rollovers to SIMPLE IRAs from other plans are not permitted. 
 
ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRA) 
Contribution. Under Section 408A of the Code, individuals may contribute to a Roth IRA on his/her own 
behalf up to the lesser of maximum annual contribution limit as shown in the chart or 100% of 
compensation. In addition, the contribution must be reduced by the amount of any contributions made to 
other IRAs for the benefit of the same individual. 
 
Individuals age 50 or over are also permitted to make additional “catch-up” contributions. The additional 
contribution is $1,000 for 2010 and 2011. 

 

  Roth IRA - Maximum Annual Contribution   
Year  Individual Roth IRA  Catch-up Contribution 
2010  $5,000  $1,000 
2011  $5,000  $1,000 

 

Starting in 2012, individual Roth IRA limits are indexed for cost-of-living. 

 



The maximum contribution is phased out for single taxpayers with adjusted gross income between 
$107,000 and $122,000 and for joint filers with adjusted gross income between $169,000 and $179,000 
(see chart below). 
 
For rollovers/conversion to Roth IRAs done in 2010 only, the taxpayer does have a choice of electing a 
two-year spread option that allows deferral including the taxable amounts in gross income to years 2011 
and 2012. For more information, please see your tax advisor. 

 

Modified Adjusted Gross Income Limits - 2011
Single  Married Filing Joint  ROTH IRA Contribution 
$107,000 or less  $169,000 or less  Full Contribution 
$107,000 – $122,000  $169,000 – $179,000  Partial Contribution* 
$122,000 & over  $179,000 & over  No Contribution 

 

* Those entitled to only a partial contribution should check with a tax advisor to determine the allowable 
contribution. 
 
A person whose filing status is “married, filing separately” may not make a full Roth IRA contribution, 
unless the couple are separated and have been living apart for the entire year. Only a partial contribution 
is allowed if the Modified Adjusted Gross Income is less than $10,000. 
 
Taxation of Distribution. Qualified distributions are received income-tax free by the Roth IRA owner, or 
beneficiary in case of the Roth IRA owner’s death. A qualified distribution is any distribution made after 
five years if the IRA owner is over age 591/2, dies, becomes disabled, or uses the funds for first-time 
home buyer expenses at the time of distribution. The five-year period for converted amounts begins from 
the year of the conversion. 

 



Report of Independent Registered Public Accounting Firm
 
The Board of Directors and Participants 
Principal Life Insurance Company 
 
We have audited the accompanying statements of assets and liabilities of each of the 
divisions of Principal Life Insurance Company Separate Account B (“Separate Account”) 
comprised of the divisions described in Note 1, as of December 31, 2010, and the related 
statements of operations for the year then ended and changes in net assets for each of the 
two years in the period then ended, or for those divisions operating for portions of such 
periods as disclosed in the financial statements. These financial statements are the 
responsibility of the management of the Separate Account. Our responsibility is to 
express an opinion on these financial statements based on our audits. 
 
We conducted our audits in accordance with the standards of the Public Company 
Accounting Oversight Board (United States). Those standards require that we plan and 
perform the audit to obtain reasonable assurance about whether the financial statements 
are free of material misstatement. We were not engaged to perform an audit of the 
Separate Account’s internal control over financial reporting. Our audits included 
consideration of internal control over financial reporting as a basis for designing audit 
procedures that are appropriate in the circumstances, but not for the purpose of 
expressing an opinion on the effectiveness of the Separate Account’s internal control over 
financial reporting. Accordingly, we express no such opinion. An audit also includes 
examining, on a test basis, evidence supporting the amounts and disclosures in the 
financial statements, assessing the accounting principles used and significant estimates 
made by management, and evaluating the overall financial statement presentation. Our 
procedures included confirmation of securities owned as of December 31, 2010 by 
correspondence with the fund companies or their transfer agents, as applicable. We 
believe that our audits provide a reasonable basis for our opinion. 
 
In our opinion, the financial statements referred to above present fairly, in all material 
respects, the financial position of each of the respective divisions of Principal Life 
Insurance Company Separate Account B at December 31, 2010, and the results of their 
operations and the changes in their net assets for the periods described above, in 
conformity with U.S. generally accepted accounting principles. 
 
/s/Ernst & Young LLP 
Des Moines, Iowa 
April 26, 2011 

 



Principal Life Insurance Company
 
Separate Account B
 
 
Statements of Assets and Liabilities
 
 
December 31, 2010
 
 
      American 
  AllianceBernstein  Century VP 
  Small Cap  Income & 
    Growth  Growth 
    Class A  Class I 
    Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 3,666,223  $ 16,652,967 
Liabilities       
Net assets  $ 3,666,223  $ 16,652,967 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity      3,093,498 
Principal Freedom Variable Annuity 2      50,086 
The Principal Variable Annuity      10,194,331 
The Principal Variable Annuity with Purchase Payment Credit Rider      3,315,052 
Principal Investment Plus Variable Annuity    2,658,489   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    1,007,734   
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 3,666,223  $ 16,652,967 
 
Investments in shares of mutual funds, at cost  $ 2,939,832  $ 17,125,671 
Shares of mutual fund owned    224,097  2,752,556 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity      293,401 
Principal Freedom Variable Annuity 2      5,247 
The Principal Variable Annuity      1,000,308 
The Principal Variable Annuity With Purchase Payment Credit Rider      344,633 
Principal Investment Plus Variable Annuity    168,228   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    66,253   
Accumulation unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity      10.54 
Principal Freedom Variable Annuity 2      9.55 
The Principal Variable Annuity      10.19 
The Principal Variable Annuity With Purchase Payment Credit Rider      9.62 
Principal Investment Plus Variable Annuity    15.80   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    15.21   
Annuitized units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Annuitized unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus – Rollover IRA       
 
See accompanying notes.       

 



American  American         
Century VP  Century VP         
Inflation    Mid Cap  American  American  American  American 
Protection  Value  Century VP  Century VP  Century VP  Century VP 
Class II    Class II  Ultra® Class I  Ultra® Class II  Value Class II  VistaSM Class I 
Division    Division  Division  Division  Division  Division 
 
$ 86,143,856  $ 662,767  $ 4,935,390  $ 58,641,195  $ 25,179,723  $ 3,007,448 
             
$ 86,143,856  $ 662,767  $ 4,935,390  $ 58,641,195  $ 25,179,723  $ 3,007,448 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
             
             
             
             
             
             
    339,910  3,771,991    17,898,816   
    43,499  1,163,399    7,280,907   
66,996,343  195,367    44,291,887    2,024,847 
19,147,513  83,991    14,349,308    982,601 
 
             
             
$ 86,143,856  $ 662,767  $ 4,935,390  $ 58,641,195  $ 25,179,723  $ 3,007,448 
 
$ 80,946,151  $ 627,692  $ 4,560,480  $ 56,479,783  $ 30,301,526  $ 3,042,062 
7,767,706  46,872  526,161  6,319,094  4,296,881  184,054 
 
             
             
             
             
             
             
             
    29,358  396,599    1,373,048   
    3,771  129,599    588,216   
5,502,868  16,874    3,932,528    145,379 
1,633,945  7,281    1,323,645    73,296 
 
$ –  $ –  $ –  $ –  $ –  $ – 
             
             
             
             
             
             
    11.58  9.51    13.04   
    11.54  8.98    12.38   
  12.17  11.58    11.26    13.93 
  11.72  11.54    10.84    13.41 
 
             
             
 
$ –  $ –  $ –  $ –  $ –  $ – 
             

 



Principal Life Insurance Company
Separate Account B
Statements of Assets and Liabilities (continued) 
December 31, 2010

 

  Asset     
  Allocation  Balanced 
  Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 49,340,010  $ 42,696,436 
Liabilities       
Net assets  $ 49,340,010  $ 42,696,436 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable      472,734 
Premier Variable    168,323  2,328,604 
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity  32,927,346  34,867,323 
The Principal Variable Annuity With Purchase Payment Credit Rider  3,182,683  5,027,775 
Principal Investment Plus Variable Annuity  9,519,192   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider  3,542,466   
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 49,340,010  $ 42,696,436 
 
Investments in shares of mutual funds, at cost  $ 48,198,839  $ 44,278,900 
Shares of mutual fund owned  4,004,871  3,134,834 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable      223,276 
Premier Variable    117,627  1,061,158 
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity  1,316,949  1,777,769 
The Principal Variable Annuity With Purchase Payment Credit Rider    135,252  272,377 
Principal Investment Plus Variable Annuity    380,713   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    150,536   
Accumulation unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable      2.12 
Premier Variable    1.43  2.19 
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity    25.00  19.61 
The Principal Variable Annuity With Purchase Payment Credit Rider    23.53  18.46 
Principal Investment Plus Variable Annuity    25.00   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    23.53   
Annuitized units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Annuitized unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus – Rollover IRA       
 
See accompanying notes.       

 



Bond &        Dreyfus IP   
Mortgage  Diversified  Diversified  Diversified  Technology Growth  Equity 
Securities  Balanced  Growth  International  Service Shares  Income 
Division  Division  Division  Division  Division  Division 
 
$ 253,668,870  $ 169,722,542  $ 323,912,050  $ 237,655,716  $ 3,834,413  $ 173,784,186 
           
$ 253,668,870  $ 169,722,542  $ 323,912,050  $ 237,655,716  $ 3,834,413  $ 173,784,186 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
           
           
283,393      576,006     
2,833,574      4,305,024    41,418 
7,377,089      3,786,963     
459,035      840,399     
99,606,445      137,370,675    25,459,183 
25,222,501      28,337,544    4,415,467 
91,612,583  158,820,806  302,736,098  47,926,051  3,206,018  113,073,522 
26,274,250  10,901,736  21,175,952  14,513,054  628,395  30,794,596 
 
           
           
$ 253,668,870  $ 169,722,542  $ 323,912,050  $ 237,655,716  $ 3,834,413  $ 173,784,186 
 
$ 268,504,409  $ 159,423,975  $ 300,461,242  $ 244,553,090  $ 3,047,054  $ 199,152,402 
23,908,470  15,401,320  28,998,393  18,951,812  302,399  11,742,174 
 
           
           
           
122,499      223,609     
1,181,780      1,612,838    35,438 
478,859      263,263     
39,773      79,290     
4,781,492      5,832,620    2,765,512 
1,286,457      1,278,421    491,263 
4,397,767  14,593,238  27,443,300  2,034,897  202,169  12,282,553 
1,340,104  1,007,730  1,931,160  654,744  41,169  3,426,169 
 
$ –  $ –  $ –  $ –  $ –  $ – 
           
           
2.31      2.58     
2.40      2.67    1.17 
15.41      14.38     
11.54      10.60     
20.83      23.55    9.21 
19.61      22.17    8.99 
20.83  10.88  11.03  23.55  15.86  9.21 
19.61  10.82  10.97  22.17  15.26  8.99 
 
           
           
 
$ –  $ –  $ –  $ –  $ –  $ – 
           

 



Principal Life Insurance Company
 
Separate Account B
 
 
Statements of Assets and Liabilities (continued)
 
 
December 31, 2010
 
 
 
  Fidelity VIP  Fidelity VIP 
  Equity-Income  Growth 
    Service  Service 
    Class 2  Class 
    Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 44,412,681  $ 18,619,921 
Liabilities       
Net assets  $ 44,412,681  $ 18,619,921 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity    25,199,208  16,057,152 
The Principal Variable Annuity With Purchase Payment Credit Rider    10,957,285  2,562,769 
Principal Investment Plus Variable Annuity    6,402,779   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    1,853,409   
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 44,412,681  $ 18,619,921 
 
Investments in shares of mutual funds, at cost  $ 51,333,942  $ 20,558,346 
Shares of mutual fund owned    2,368,676  503,377 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity    2,196,851  1,810,353 
The Principal Variable Annuity With Purchase Payment Credit Rider    1,006,028  307,010 
Principal Investment Plus Variable Annuity    558,225   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    170,179   
Accumulation unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity    11.47  8.87 
The Principal Variable Annuity With Purchase Payment Credit Rider    10.89  8.35 
Principal Investment Plus Variable Annuity    11.47   
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    10.89   
Annuitized units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Annuitized unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus – Rollover IRA       
See accompanying notes.       

 

6 0707-0846563



Fidelity VIP  Fidelity VIP  Fidelity VIP  Fidelity VIP  Fidelity VIP  Franklin 
Growth Overseas  Contrafund  Contrafund  Mid Cap  Small Cap 
Service Service  Service  Service  Service  Value Securities 
Class 2 Class 2  Class  Class 2  Class 2  Class 2 
Division Division  Division  Division  Division  Division 
 
$ 7,987,849  $ 48,258,753  $ 63,340,887  $ 48,068,758  $ 12,783,816  $ 447,302 
             
$ 7,987,849  $ 48,258,753  $ 63,340,887  $ 48,068,758  $ 12,783,816  $ 447,302 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
             
             
             
             
             
             
      55,175,790       
      8,165,097       
5,656,878  35,687,235    38,994,494  10,362,515  344,084 
2,330,971  12,571,518    9,074,264  2,421,301  103,218 
 
             
             
$ 7,987,849  $ 48,258,753  $ 63,340,887  $ 48,068,758  $ 12,783,816  $ 447,302 
 
$ 7,535,822  $ 51,401,159  $ 67,240,998  $ 50,352,257  $ 11,276,893  $ 380,802 
217,534  2,903,655  2,660,264  2,046,350  397,878  27,526 
 
             
             
             
             
             
             
             
      3,660,877       
      575,624       
466,684  2,507,443    2,671,022  558,019  27,173 
199,792  917,695    645,771  135,463  8,200 
 
$ –  $ –  $ –  $ –  $ –  $ – 
             
             
             
             
             
             
      15.07       
      14.18       
  12.12  14.23    14.60  18.57  12.66 
  11.67  13.70    14.05  17.87  12.59 
 
             
             
 
$ –  $ –  $ –  $ –  $ –  $ – 
             

 

 



Principal Life Insurance Company
 
Separate Account B
 
 
Statements of Assets and Liabilities (continued)
 
 
December 31, 2010
 
      Goldman Sachs 
  Goldman Sachs  VIT Structured 
  VIT Mid Cap  Small Cap 
  Value  Equity Service 
  Institutional  Institutional 
  Class  Class 
  Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 17,385,279  $ 6,006,914 
Liabilities       
Net assets  $ 17,385,279  $ 6,006,914 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity       
The Principal Variable Annuity With Purchase Payment Credit Rider       
Principal Investment Plus Variable Annuity    12,410,921  4,638,934 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    4,974,358  1,367,980 
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 17,385,279  $ 6,006,914 
 
Investments in shares of mutual funds, at cost  $ 18,186,253  $ 5,861,859 
Shares of mutual fund owned    1,232,999  525,999 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity       
The Principal Variable Annuity With Purchase Payment Credit Rider       
Principal Investment Plus Variable Annuity    811,878  395,177 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    338,075  121,073 
Accumulation unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity       
The Principal Variable Annuity With Purchase Payment Credit Rider       
Principal Investment Plus Variable Annuity    15.29  11.74 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    14.71  11.30 
Annuitized units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Annuitized unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus – Rollover IRA       
See accompanying notes.       

 



Government      Invesco V.I.     
& High  International  Invesco V.I.  Capital  Invesco V.I.  Invesco V.I. 
Quality  Emerging  Basic Value  Appreciation  Core Equity  Dynamics 
Bond  Markets  Series I  Series I  Series I  Series I 
Division  Division  Division  Division  Division  Division 
 
$ 216,706,645  $ 108,918,848  $ 4,297,986  $ 6,028,181  $ 27,717,050  $ 2,742,034 
           
$ 216,706,645  $ 108,918,848  $ 4,297,986  $ 6,028,181  $ 27,717,050  $ 2,742,034 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
127,046           
29,984           
128,219           
3,419,204  777,718         
3,709,738           
308,665           
118,677,076  51,067,934    5,647,354  24,996,213  1,660,274 
21,818,227  13,480,047    380,827  2,720,837  1,081,760 
55,536,011  32,720,778  3,528,763       
12,952,475  10,872,371  769,223       
 
           
           
$ 216,706,645  $ 108,918,848  $ 4,297,986  $ 6,028,181  $ 27,717,050  $ 2,742,034 
 
$ 221,805,056  $ 102,400,077  $ 3,681,318  $ 6,590,530  $ 26,091,507  $ 2,311,329 
21,059,926  6,220,380  673,666  258,720  1,025,418  155,621 
 
           
41,593           
8,721           
53,965           
1,385,382  192,829         
331,545           
27,646           
10,696,248  1,395,139    667,447  2,407,576  165,586 
1,991,493  391,287    46,292  278,455  114,308 
5,005,428  893,916  363,485       
1,182,263  315,596  82,322       
 
$ –  $ –  $ –  $ –  $ –  $ – 
3.06           
3.43           
2.37           
2.47  4.03         
11.19           
11.17           
11.10  36.60    8.46  10.38  10.03 
10.96  34.45    8.23  9.77  9.46 
11.10  36.60  9.71       
10.96  34.45  9.34       
 
           
           
 
$ –  $ –  $ –  $ –  $ –  $ – 
           

 

 



Principal Life Insurance Company
 
Separate Account B
 
 
Statements of Assets and Liabilities (continued)
 
 
December 31, 2010
 
 
 
  Invesco V.I.  Invesco V.I. 
  Global  International 
  Health Care  Growth 
  Series I  Series I 
  Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 7,322,711  $ 4,542,215 
Liabilities       
Net assets  $ 7,322,711  $ 4,542,215 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity    5,445,704   
The Principal Variable Annuity With Purchase Payment Credit Rider    1,877,007   
Principal Investment Plus Variable Annuity      4,038,379 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider      503,836 
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 7,322,711  $ 4,542,215 
 
Investments in shares of mutual funds, at cost  $ 6,946,124  $ 3,998,171 
Shares of mutual fund owned    438,223  158,320 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity    486,010   
The Principal Variable Annuity With Purchase Payment Credit Rider    177,480   
Principal Investment Plus Variable Annuity      446,466 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider      56,587 
Accumulation unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity    11.20   
The Principal Variable Annuity With Purchase Payment Credit Rider    10.58   
Principal Investment Plus Variable Annuity      9.05 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider      8.90 
Annuitized units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Annuitized unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus – Rollover IRA       
See accompanying notes.       

 



Invesco V.I.           
Small Cap  Invesco V.I.  Janus Aspen       
Equity  Technology  Enterprise  LargeCap  LargeCap  LargeCap 
Series I  Series I  Service Shares  Blend II  Growth  Growth I 
Division  Division  Division  Division  Division  Division 
 
$ 7,524,206  $ 4,980,784  $ 12,637,981  $ 157,178,665  $ 59,162,639  $ 116,970,484 
           
$ 7,524,206  $ 4,980,784  $ 12,637,981  $ 157,178,665  $ 59,162,639  $ 116,970,484 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
           
           
        671,357   
        3,775,146  243,611 
          1,816,008 
          96,299 
2,572,040  3,385,712  11,099,309  43,715,052  39,905,675  93,712,733 
910,249  1,595,072  1,538,672  17,432,672  1,990,927  10,021,725 
3,332,986      72,713,750  10,149,124  8,290,086 
708,931      23,317,191  2,670,410  2,790,022 
 
           
           
$ 7,524,206  $ 4,980,784  $ 12,637,981  $ 157,178,665  $ 59,162,639  $ 116,970,484 
 
$ 6,223,175  $ 3,412,985  $ 8,872,464  $ 200,603,546  $ 57,426,952  $ 96,626,076 
455,185  311,299  336,743  22,912,342  3,912,873  5,473,584 
 
           
           
           
        343,827   
        1,865,621  198,696 
          169,160 
          9,003 
168,919  514,830  1,215,866  3,598,350  2,158,431  2,785,888 
62,109  256,979  179,098  1,511,222  114,422  316,559 
218,907      5,985,371  548,967  246,445 
48,375      2,021,355  153,477  88,129 
 
$ –  $ –  $ –  $ –  $ –  $ – 
           
           
        1.95   
        2.02  1.23 
          10.74 
          10.70 
15.23  6.58  9.13  12.15  18.49  33.64 
14.66  6.21  8.59  11.54  17.40  31.66 
15.23      12.15  18.49  33.64 
14.66      11.54  17.40  31.66 
 
           
           
 
$ –  $ –  $ –  $ –  $ –  $ – 
           

 

 



Principal Life Insurance Company
Separate Account B
Statements of Assets and Liabilities (continued) 
December 31, 2010

 

  LargeCap  LargeCap 
  S&P 500 Index  Value 
  Division  Division 
Assets     
Investments in shares of mutual funds, at market  $ 96,643,855  $ 97,515,490 
Liabilities     
Net assets  $ 96,643,855  $ 97,515,490 
 
Net assets     
Applicable to accumulation units:     
Bankers Flexible Annuity  $ –  $ 1,173,281 
Pension Builder Plus    1,668,022 
Pension Builder Plus – Rollover IRA    117,289 
Personal Variable    485,533 
Premier Variable  146,316  6,339,559 
Principal Freedom Variable Annuity  8,912,424  2,882,170 
Principal Freedom Variable Annuity 2  630,742  490,577 
The Principal Variable Annuity  46,288,856  63,419,602 
The Principal Variable Annuity With Purchase Payment Credit Rider  10,990,972  6,061,438 
Principal Investment Plus Variable Annuity  23,769,848  10,424,993 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider  5,904,697  4,345,673 
Applicable to contracts in annuitization period:     
Bankers Flexible Annuity    447 
Pension Builder Plus – Rollover IRA    106,906 
Total net assets  $ 96,643,855  $ 97,515,490 
 
Investments in shares of mutual funds, at cost  $ 91,943,520  $ 118,400,646 
Shares of mutual fund owned  10,846,673  4,076,735 
Accumulation units outstanding:     
Bankers Flexible Annuity    32,754 
Pension Builder Plus    281,834 
Pension Builder Plus – Rollover IRA    16,857 
Personal Variable    164,068 
Premier Variable  127,018  2,057,127 
Principal Freedom Variable Annuity  882,871  283,292 
Principal Freedom Variable Annuity 2  61,693  52,489 
The Principal Variable Annuity  4,804,738  2,640,573 
The Principal Variable Annuity With Purchase Payment Credit Rider  1,212,192  268,158 
Principal Investment Plus Variable Annuity  2,467,311  434,082 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider  651,234  192,262 
Accumulation unit value:     
Bankers Flexible Annuity  $ –  $ 35.82 
Pension Builder Plus    5.92 
Pension Builder Plus – Rollover IRA    6.96 
Personal Variable    2.96 
Premier Variable  1.15  3.08 
Principal Freedom Variable Annuity  10.09  10.17 
Principal Freedom Variable Annuity 2  10.22  9.35 
The Principal Variable Annuity  9.63  24.02 
The Principal Variable Annuity With Purchase Payment Credit Rider  9.07  22.60 
Principal Investment Plus Variable Annuity  9.63  24.02 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider  9.07  22.60 
Annuitized units outstanding:     
Bankers Flexible Annuity    12 
Pension Builder Plus – Rollover IRA    15,363 
Annuitized unit value:     
Bankers Flexible Annuity  $ –  $ 35.82 
Pension Builder Plus – Rollover IRA    6.96 
 
See accompanying notes.     

 



            Neuberger 
    MFS® VIT  MFS® VIT      Berman AMT 
LargeCap  Utilities  Value  MidCap  Money  Partners 
Value III  Service Class  Service Class  Blend  Market  I Class 
Division Division  Division  Division  Division  Division 
 
$ 126,522,916  $ 1,619,334  $ 1,459,189  $ 378,975,288  $ 115,063,727  $ 5,295,863 
             
$ 126,522,916  $ 1,619,334  $ 1,459,189  $ 378,975,288  $ 115,063,727  $ 5,295,863 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
          134,718   
          1   
        1,019,010  393,872   
        5,680,179  4,167,695   
        9,248,437  3,629,969   
        875,873  840,573   
31,872,343      204,109,244  55,135,826   
10,981,514      33,566,032  12,486,972   
63,006,949  1,233,347  1,330,958  96,201,696  28,757,389  3,904,503 
20,662,110  385,987  128,231  28,274,817  9,516,712  1,391,360 
 
             
             
$ 126,522,916  $ 1,619,334  $ 1,459,189  $ 378,975,288  $ 115,063,727  $ 5,295,863 
 
$ 144,232,851  $ 1,478,743  $ 1,360,990  $ 337,495,312  $ 115,063,726  $ 5,931,202 
13,179,470  64,903  113,733  10,017,851  115,063,728  469,908 
 
             
          59,589   
             
        214,773  241,168   
        1,155,115  2,448,295   
        393,523  294,969   
        68,474  78,486   
2,957,792      4,652,081  3,899,149   
1,073,265      812,870  938,270   
5,847,162  84,455  99,760  2,192,639  2,033,717  288,400 
2,019,401  26,690  9,706  684,732  715,093  106,774 
 
$ –  $ –  $ –  $ –  $ –  $ – 
          2.26   
          2.50   
        4.74  1.63   
        4.92  1.70   
        23.50  12.31   
        12.79  10.72   
  10.78      43.87  14.14   
  10.23      41.29  13.31   
  10.78  14.60  13.34  43.87  14.14  13.54 
  10.23  14.46  13.21  41.29  13.31  13.03 
 
             
             
 
$ –  $ –  $ –  $ –  $ –  $ – 
             

 



Principal Life Insurance Company
 
Separate Account B
 
 
Statements of Assets and Liabilities (continued)
 
 
December 31, 2010
 
 
      Neuberger 
  Neuberger  Berman AMT 
  Berman AMT  Socially 
  Small-Cap Growth  Responsive 
  S Class  I Class 
  Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 3,211,249  $ 6,359,439 
Liabilities       
Net assets  $ 3,211,249  $ 6,359,439 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity       
The Principal Variable Annuity With Purchase Payment Credit Rider       
Principal Investment Plus Variable Annuity    2,197,822  5,086,948 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    1,013,427  1,272,491 
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 3,211,249  $ 6,359,439 
 
Investments in shares of mutual funds, at cost  $ 3,195,215  $ 5,483,301 
Shares of mutual fund owned    261,929  427,957 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity       
The Principal Variable Annuity With Purchase Payment Credit Rider       
Principal Investment Plus Variable Annuity    223,438  373,281 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    107,041  97,013 
Accumulation unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity       
The Principal Variable Annuity With Purchase Payment Credit Rider       
Principal Investment Plus Variable Annuity    9.84  13.63 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    9.47  13.12 
Annuitized units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Annuitized unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus – Rollover IRA       
See accompanying notes.       

 



PIMCO  PIMCO  PIMCO    Principal   
All Asset  High Yield  Total Return  Principal  LifeTime  Principal 
Administrative  Administrative  Administrative  Capital  Strategic  LifeTime 
Class  Class  Class  Appreciation  Income  2010 
Division  Division  Division  Division  Division  Division 
 
$ 2,993,563  $ 8,052,485  $ 16,609,083  $ 7,466,228  $ 24,279,554  $ 41,054,754 
           
$ 2,993,563  $ 8,052,485  $ 16,609,083  $ 7,466,228  $ 24,279,554  $ 41,054,754 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
           
           
           
           
           
      74,863  826,326  3,437,536 
        2,237,493  1,448,805 
        501,834  172,898 
1,963,168  5,517,868  14,906,274  5,559,498  17,809,424  30,278,116 
1,030,395  2,534,617  1,702,809  1,831,867  2,904,477  5,717,399 
 
           
           
$ 2,993,563  $ 8,052,485  $ 16,609,083  $ 7,466,228  $ 24,279,554  $ 41,054,754 
 
$ 3,016,713  $ 7,898,251  $ 16,822,622  $ 6,520,493  $ 24,421,430  $ 43,220,338 
272,638  1,039,030  1,499,015  347,752  2,375,690  3,913,704 
 
           
           
           
           
           
           
      7,434  77,920  322,108 
        189,025  118,311 
        44,039  14,666 
152,998  488,048  1,308,888  558,195  1,504,537  2,473,044 
81,092  225,532  150,989  188,028  254,883  485,087 
 
$ –  $ –  $ –  $ –  $ –  $ – 
           
           
           
           
           
      10.07  10.61  10.67 
        11.84  12.24 
        11.40  11.79 
12.83  11.31  11.39  9.96  11.84  12.24 
12.71  11.24  11.28  9.74  11.40  11.79 
 
           
           
 
$ –  $ –  $ –  $ –  $ –  $ – 
           

 



Principal Life Insurance Company
 
Separate Account B
 
 
Statements of Assets and Liabilities (continued)
 
 
December 31, 2010
 
 
 
 
  Principal  Principal 
  LifeTime  LifeTime 
  2020  2030 
  Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 176,256,223  $ 63,026,188 
Liabilities       
Net assets  $ 176,256,223  $ 63,026,188 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2    5,280,578  3,111,993 
The Principal Variable Annuity    3,422,424  1,172,660 
The Principal Variable Annuity With Purchase Payment Credit Rider    740,136  44,534 
Principal Investment Plus Variable Annuity    128,423,266  46,688,175 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    38,389,819  12,008,826 
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 176,256,223  $ 63,026,188 
 
Investments in shares of mutual funds, at cost  $ 186,144,336  $ 55,312,060 
Shares of mutual fund owned    15,994,213  5,683,155 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2    490,548  294,592 
The Principal Variable Annuity    268,933  93,927 
The Principal Variable Annuity With Purchase Payment Credit Rider    60,414  3,705 
Principal Investment Plus Variable Annuity    10,091,129  3,739,525 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    3,133,516  999,149 
Accumulation unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2    10.76  10.56 
The Principal Variable Annuity    12.73  12.49 
The Principal Variable Annuity With Purchase Payment Credit Rider    12.25  12.02 
Principal Investment Plus Variable Annuity    12.73  12.49 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    12.25  12.02 
Annuitized units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Annuitized unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus – Rollover IRA       
See accompanying notes.       

 



          SAM  SAM 
Principal  Principal    SAM  Conservative  Conservative 
LifeTime  LifeTime  Real Estate  Balanced  Balanced  Growth 
2040 2050  Securities  Portfolio  Portfolio  Portfolio 
Division  Division  Division  Division  Division  Division 
 
$ 10,823,119  $ 5,829,572  $ 75,754,623  $ 684,067,078  $ 158,219,547  $ 55,154,255 
             
$ 10,823,119  $ 5,829,572  $ 75,754,623  $ 684,067,078  $ 158,219,547  $ 55,154,255 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
             
             
             
      34,757       
             
297,485  109,416  219,209  2,050,781  1,236,191  1,143,983 
  88,179  244,963  43,569,019  30,975,448  19,071,745  11,194,624 
  62,735  50,821  14,015,083  8,475,314  2,909,435  3,734,979 
8,475,965  4,113,980  13,368,602  569,306,104  115,537,655  29,986,714 
1,898,755  1,310,392  4,547,953  73,259,431  19,464,521  9,093,955 
 
             
             
$ 10,823,119  $ 5,829,572  $ 75,754,623  $ 684,067,078  $ 158,219,547  $ 55,154,255 
 
$ 11,563,688  $ 6,091,032  $ 83,541,203  $ 617,605,339  $ 140,139,701  $ 50,123,235 
956,951  518,645  5,734,642  45,543,747  13,546,194  3,590,772 
 
             
             
             
             
      12,411       
             
  28,394  10,500  20,467  196,606  112,749  117,578 
  6,995  19,453  1,405,921  3,002,464  1,758,703  1,163,334 
  5,170  4,192  480,527  839,829  274,274  396,788 
672,400  326,689  431,395  55,182,141  10,654,341  3,116,105 
156,469  108,092  155,935  7,259,238  1,834,935  966,077 
 
$ –  $ –  $ –  $ –  $ –  $ – 
             
             
             
      2.80       
             
  10.48  10.42  10.71  10.43  10.96  9.73 
  12.61  12.59  30.99  10.32  10.84  9.62 
  12.14  12.12  29.17  10.09  10.61  9.41 
  12.61  12.59  30.99  10.32  10.84  9.62 
  12.14  12.12  29.17  10.09  10.61  9.41 
 
             
             
 
$ –  $ –  $ –  $ –  $ –  $ – 
             

 



Principal Life Insurance Company
 
Separate Account B
 
 
Statements of Assets and Liabilities (continued)
 
 
December 31, 2010
 
 
 
    SAM  SAM 
    Flexible  Strategic 
    Income  Growth 
    Portfolio  Portfolio 
    Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 157,634,626  $ 38,640,578 
Liabilities       
Net assets  $ 157,634,626  $ 38,640,578 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2    529,454  714,978 
The Principal Variable Annuity    25,443,333  8,967,284 
The Principal Variable Annuity With Purchase Payment Credit Rider    6,359,547  1,094,692 
Principal Investment Plus Variable Annuity    105,889,878  20,560,786 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    19,412,414  7,302,838 
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 157,634,626  $ 38,640,578 
 
Investments in shares of mutual funds, at cost  $ 144,124,479  $ 33,997,246 
Shares of mutual fund owned    12,610,770  2,297,299 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2    46,524  76,721 
The Principal Variable Annuity    2,260,478  972,914 
The Principal Variable Annuity With Purchase Payment Credit Rider    577,598  121,418 
Principal Investment Plus Variable Annuity    9,407,516  2,230,696 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    1,763,084  809,973 
Accumulation unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity       
Principal Freedom Variable Annuity 2    11.38  9.32 
The Principal Variable Annuity    11.26  9.22 
The Principal Variable Annuity With Purchase Payment Credit Rider    11.01  9.02 
Principal Investment Plus Variable Annuity    11.26  9.22 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider    11.01  9.02 
Annuitized units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Annuitized unit value:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus – Rollover IRA       
See accompanying notes.       

 



          T. Rowe Price  T. Rowe Price 
Short-Term  SmallCap  SmallCap  SmallCap  Blue Chip  Health 
Income Blend  Growth II  Value I  Growth II  Sciences II 
Division  Division  Division  Division  Division  Division 
 
$ 161,858,230  $ 35,312,556  $ 31,721,697  $ 86,698,136  $ 6,703,493  $ 6,428,884 
             
$ 161,858,230  $ 35,312,556  $ 31,721,697  $ 86,698,136  $ 6,703,493  $ 6,428,884 
 
 
 
$ –  $ –  $ –  $ –  $ –  $ – 
             
             
             
    100,797  93,125  220,360     
2,445,934  3,072,705  860,290       
69,760  109,339  132,992  298,035     
28,371,573  26,314,969  19,597,766  31,145,059     
8,685,839  5,714,746  3,176,514  7,740,972     
96,920,358    6,199,578  37,074,428  5,712,112  4,965,363 
25,364,766    1,661,432  10,219,282  991,381  1,463,521 
 
             
             
$ 161,858,230  $ 35,312,556  $ 31,721,697  $ 86,698,136  $ 6,703,493  $ 6,428,884 
 
$ 162,693,862  $ 36,047,176  $ 32,885,913  $ 88,543,990  $ 5,254,443  $ 5,338,479 
64,485,350  4,249,405  2,839,901  6,412,584  608,302  442,152 
 
             
             
             
             
    79,982  115,210  123,391     
217,376  192,638  89,161       
  6,214  11,120  13,431  31,617     
2,542,794  2,114,456  1,853,691  1,394,320     
788,380  487,912  319,257  368,222     
8,686,505    586,411  1,659,745  453,029  303,481 
2,302,274    166,986  486,102  81,689  92,934 
 
$ –  $ –  $ –  $ –  $ –  $ – 
             
             
             
    1.26  0.81  1.79     
  11.25  15.95  9.65       
  11.23  9.83  9.90  9.43     
  11.16  12.45  10.57  22.34     
  11.02  11.71  9.95  21.02     
  11.16    10.57  22.34  12.61  16.36 
  11.02    9.95  21.02  12.14  15.75 
 
             
             
 
$ –  $ –  $ –  $ –  $ –  $ – 
             

 



Principal Life Insurance Company
 
Separate Account B
 
 
Statements of Assets and Liabilities (continued)
 
 
December 31, 2010
 
 
 
      Van Eck 
  Templeton  VIP Global 
  Growth Securities  Hard Assets 
  Class 2  Class 
  Division  Division 
Assets       
Investments in shares of mutual funds, at market  $ 1,200,063  $ 5,397,141 
Liabilities       
Net assets  $ 1,200,063  $ 5,397,141 
 
Net assets       
Applicable to accumulation units:       
Bankers Flexible Annuity  $ –  $ – 
Pension Builder Plus       
Pension Builder Plus – Rollover IRA       
Personal Variable       
Premier Variable       
Principal Freedom Variable Annuity    1,200,063   
Principal Freedom Variable Annuity 2       
The Principal Variable Annuity      1,294,121 
The Principal Variable Annuity With Purchase Payment Credit Rider      99,329 
Principal Investment Plus Variable Annuity      3,179,240 
Principal Investment Plus Variable Annuity with Premium Payment Credit Rider      824,451 
Applicable to contracts in annuitization period:       
Bankers Flexible Annuity       
Pension Builder Plus – Rollover IRA       
Total net assets  $ 1,200,063  $ 5,397,141 
 
Investments in shares of mutual funds, at cost  $ 1,323,935  $ 4,481,497 
Shares of mutual fund owned    108,998  146,066 
Accumulation units outstanding:       
Bankers Flexible Annuity       
Pension Builder Plus       
Pension Builder Plus – Rollover IRA&nbs