fwp
 

Filed Pursuant to Rule 433
Registration Statement Nos. 333-129763 and 333-129763-01
February 23, 2006
FINAL TERM SHEET
         
Issuing Entity:
  Principal Life Income Fundings Trust 17    
 
        
Description of Securities:
  FA-Backed Fixed Rate Senior Notes    
 
        
Expected Ratings:
  Aa2 / AA (Stable / Stable)    
 
        
Size:
  $350,000,000    
 
        
Trade Date:
  February 23, 2006    
 
        
Maturity:
  March 1, 2011    
 
        
Settlement:
  February 28, 2006 (T+3)    
 
        
Coupon:
  5.125%    
 
        
Yield*:
  5.182%    
 
        
Benchmark Treasury:
  4.25% due 1/15/2011    
 
        
Spread to Benchmark*:
  58 basis points    
 
        
Benchmark Price and Yield*:
  98-15 to yield 5.182%    
 
        
Redemption / Call Features:
  N/A    
 
        
CUSIP:
  74254PLA8    
 
        
Public Offering Price*:
  99.751    
 
        
Discounts:
  0.315%    
 
        
Proceeds to Issuing Entity:
  $348,026,000     (99.436%)    
 
        
Coupon Payment Dates:   Semi-annually on March 1 and September 1 of each year, commencing September 1, 2006 and ending on the Maturity Date
 
        
Day Count:
  30/360    
 
        
Minimum Denominations:
  $1,000 by $1,000    
 
        
Billing and Delivery:
  Goldman, Sachs & Co.    
 
        
Bookrunners:
  Banc of America Securities LLC   47.5%
 
  Goldman, Sachs & Co.   47.5%
 
        
Co-Managers:
  Barclays Capital Inc.   1.25%
 
  Credit Suisse Securities (USA) LLC   1.25%
 
  Lehman Brothers Inc.   1.25%
 
  Wachovia Capital Markets, LLC   1.25%
* Please note that the above terms apply as of the time of pricing
Principal Life Insurance Company (“PLIC”), as statutory issuer and depositor, and Principal Financial Group, Inc. (“PFG”) have filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents PLIC and PFG have filed with the SEC for more complete information about PLIC, PFG, and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, PLIC, PFG, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-866-375-2526.