e424b2
 

             
Pricing Supplement Dated
  April 13, 2004   Filed pursuant to Rule 424(b)(2)
(To Prospectus dated March 5, 2004, and
  Registration Statement Nos.   333-110499 and 333-110499-01
Prospectus Supplement dated March 5, 2004)
       
 
            
      CUSIP: 74254PAK8
      ISIN: US74254PAK84
       

(PRINCIPAL FINANCIAL GROUP LOGO)

Principal Life Insurance Company
Secured Medium-Term Notes
Issued Through
Principal Life Income Fundings Trust 4 (the “Trust”)

     The description of this pricing supplement of the particular terms of the Secured Medium-Term Notes offered hereby, and the Funding Agreement (specified below) issued by Principal Life Insurance Company (“Principal Life”) to the Trust, the payment obligations of which are fully and unconditionally guaranteed by the Guarantee (specified below) issued by Principal Financial Group, Inc. to the Trust, supplements the description of the general terms and provisions of the notes, the funding agreements and the guarantees set forth in the accompanying prospectus and prospectus supplement, to which reference is hereby made.

1. The Notes

                     
Principal Amount:
  $ 350,000,000     Purchasing Agent(s) Discount:   0.450%    
Issue Price:
    99.830%     Original Issue Date:   April 16, 2004
Net Proceeds to the Trust:
  $ 347,830,000     Stated Maturity Date:   April 15, 2014
                     
Specified Currency:
   U.S. Dollars    
 
                    
Interest Payment Dates:
   April 15th and October 15th in each year    
 
                    
Initial Interest Payment Date:
   October 15, 2004    
 
                    
Regular Record Date:
   15 calendar days prior to the Interest Payment Date    
 
                    
Type of Interest Rate:
   x Fixed Rate   o Floating Rate    
 
                    
Fixed Rate Notes:
  x Yes o No.   If, Yes,        
 
                    
Interest Rate:
   5.100%                
 
                    
Floating Rate Notes:
  o Yes x No.   If, Yes,        
 
                    
Regular Floating Rate Notes:
       o Yes   o No.   If, Yes,
  Interest Rate:            
  Interest Rate Basis(es):            
 
                    
Floating Rate/Fixed Rate Note:
   o Yes   o No.   If, Yes,
  Floating Interest Rate:            
  Interest Rate Basis(es):            
  Fixed Interest Rate:            
  Fixed Rate Commencement Date:        

 

 

                     
Inverse Floating Rate Note:
 o Yes o No.               If, Yes,    
  Fixed Interest Rate:            
  Floating Interest Rate:            
  Interest Rate Basis(es):            
 
                    
Initial Interest Rate, if any:
                
 
                    
Initial Interest Reset Date:
                
 
Interest Rate Basis(es). Check all that apply:
   
  o CD Rate       o Commercial Paper Rate
  o CMT Rate       o Eleventh District Cost of Funds Rate
  o LIBOR       o Federal Funds Rate
  o EURIBOR       o Treasury Rate
  o Prime Rate       o Other (See Attached)
 
            
  If LIBOR:   o LIBOR Reuters Page o LIBOR Moneyline Telerate Page
           LIBOR Currency:  
 
            
  If CMT Rate:        
      Designated CMT Telerate Page:  
      If 7052: o Weekly Average    o Monthly Average
      Designated CMT Maturity Index:  
 
            
Index Maturity:
        
 
            
Spread (+/-):
        
 
            
Spread Multiplier:
        
 
            
Interest Reset Date(s):
    
 
            
Interest Rate Determination Date(s):
    
 
            
Maximum Interest Rate, if any:
    
 
            
Minimum Interest Rate, if any:
    
             
Calculation Agent:
   Not applicable    
 
            
Exchange Rate Agent:
   Not applicable    
 
            
Computation of Interest:
   (not applicable unless different than as specified in the prospectus and prospectus supplement):
 
Day Count Convention:
   (not applicable unless different than as specified in the prospectus and prospectus supplement):
 
 
            
Amortizing Note:
   o Yes   x No.   If, Yes,
Amortizing Schedule:
            
Additional/Other Terms:
            
 
Discount Note:
   o Yes   x No.   If, Yes,
Total Amount of Discount:
            
Initial Accrual Period of Discount:
            
Additional/Other Terms:
            
 
            
Redemption Provisions:
   o Yes   x No.   If, Yes,
Initial Redemption Date:
            
Initial Redemption Percentage:
            
Annual Redemption Percentage Reduction (if any):
            
Redemption:
  o In whole only and not in part    
  o May be in whole or in part    
Additional/Other Terms:
            

 

 

             
Repayment:
  o Yes   x No.   If, Yes,
Repayment Date(s):
            
Repayment Price:
            
Repayment:
  o In whole only and not in part    
  o May be in whole or in part    
Additional/Other Terms:
            
 
            
Sinking Fund (not applicable unless specified):
      
 
            
Additional Amounts to be Paid for Withholding Tax (not applicable unless specified):
 
            
Securities Exchange Listing:
  o Yes   x No.   If, Yes,
 
            
Authorized Denominations:
  $ 1,000      

Ratings:

     The Notes issued under the Program are rated AA by Standard & Poor’s Ratings Services,
     a division of The McGraw-Hill Companies, Inc. (“S&P”).
     Principal Life expects the Notes to be rated Aa3 by Moody’s Investors Service, Inc. (“Moody’s”).
             
Purchasing Agents Purchasing Notes as Principal:
  x Yes   o No.   If Yes:
         
Purchasing Agent(s)
   Principal Amount
Credit Suisse First Boston LLC
   $ 157,500,000  
Morgan Stanley & Co. Incorporated
   $ 157,500,000  
ABN AMRO Incorporated
   $ 8,750,000  
Deutsche Bank Securities Inc.
   $ 8,750,000  
Goldman, Sachs & Co.
   $ 8,750,000  
Lehman Brothers Inc.
   $ 8,750,000  
 
    
 		  
Total:
   $ 350,000,000  
             
Purchasing Agents Purchasing Notes as Principal:
  o Yes   x No.   If Yes:
         
Purchasing Agent(s)
   Principal Amount
 
 
        
Total:
        
           
State of Organization of the Trust:
New York
 
          
Additional/Other Terms:
Not applicable.
 
          
Special Tax Considerations:
Not applicable.
 
          
2. The Funding Agreement
        
 
          
Funding Agreement Issuer:
 Principal Life Insurance Company  
 
          
Funding Agreement No.:
7-06124      
 
          
Deposit:
  $350,000,015      
 
          
Net Deposit:
$347,830,000      
 
          
Effective Date:
April 16, 2004  
 
          
Stated Maturity Date:
April 15, 2014  

 

 

           
Specified Currency:
U.S. Dollars  
 
          
Interest Payment Dates:
April 15th and October 15th in each year  
 
          
Initial Interest Payment Date:
October 15, 2004  
 
          
Type of Interest Rate:
x Fixed Rate o Floating Rate  
 
          
Fixed Rate Funding Agreement:
x Yes o No. If, Yes,
 
          
Interest Rate:
5.100%    
 
          
Floating Rate Funding Agreement:
o Yes x No. If, Yes,
 
        
Regular Floating Rate Funding Agreement: 
o Yes o No. If, Yes,
  Interest Rate:  
  Interest Rate Basis(es):  
 
          
Floating Rate/Fixed Rate Funding Agreement:   
o Yes o No. If, Yes,
  Floating Interest Rate:  
  Interest Rate Basis(es):  
  Fixed Interest Rate:  
  Fixed Rate Commencement Date:  
 
          
Inverse Floating Rate Funding Agreement:   
o Yes o No. If, Yes,
 
Fixed Interest Rate:
  
 
Floating Interest Rate:
  
 
Interest Rate Basis(es):
  
 
          
Initial Interest Rate, if any:
      
 
          
Initial Interest Reset Date:
      
             
Interest Rate Basis(es). Check all that apply:
   
  o CD Rate       o Commercial Paper Rate
  o CMT Rate       o Eleventh District Cost of Funds Rate
  o LIBOR s       o Federal Funds Rate
  o EURIBOR       o Treasury Rate
  o Prime Rate       o Other (See Attached)
 
            
  If LIBOR:   o LIBOR Reuters Page o LIBOR Moneyline Telerate Page
           LIBOR Currency:  
 
            
  If CMT Rate:        
      Designated CMT Telerate Page:  
      If 7052: o Weekly Average    o Monthly Average
      Designated CMT Maturity Index:  
             
Index Maturity:
        
 
            
Spread (+/-):
        
 
            
Spread Multiplier:
        
 
            
Interest Reset Date(s):
    
 
            
Interest Rate Determination Date(s):
    
 
            
Maximum Interest Rate, if any:
    
 
            
Minimum Interest Rate, if any:
    
             
Computation of Interest (not applicable unless different than as specified in the prospectus and prospectus supplement):
 
Day Count Convention (not applicable unless different than as specified in the prospectus and prospectus supplement):

 

 

             
Amortizing Funding Agreement:
  o Yes   x No.   If, Yes,
Amortizing Schedule:
            
Additional/Other Terms:
            
 
            
Discount Funding Agreement:
  o Yes   x No.   If, Yes,
Total Amount of Discount:
            
Initial Accrual Period of Discount:
            
Additional/Other Terms:
            
 
            
Redemption Provisions:
  o Yes   x No.   If, Yes,
Initial Redemption Date:
            
Initial Redemption Percentage:
            
Annual Redemption Percentage Reduction (if any):
Redemption:
  o In whole only and not in part    
  o May be in whole or in part    
Additional Other Terms:
            
 
            
Repayment:
  o Yes   x No.   If, Yes,
Repayment Date(s):
            
Repayment Price:
            
Repayment:
  o In whole only and not in part    
 
o May be in whole or in part
    
Additional/Other Terms:
            
 
            
Sinking Fund (not applicable unless specified):
      
 
            
Additional Amounts to be Paid For Withholding Tax (not applicable unless specified):

Ratings:

The Funding Agreement issued under the Program is rated AA by S&P.
Principal Life expects the Funding Agreement to be rated Aa3 by Moody’s.
         
Additional/Other Terms:
  Not applicable.    
 
        
Special Tax Considerations:
  Not applicable.    
 
        
3. The Guarantee
        
 
        
Guarantee Issuer:
  Principal Financial Group, Inc.    
Effective Date:
  April 16, 2004    
Additional/Other Terms:
  Not applicable.