Pricing Supplement Dated	 	11/6/2006	 	Filed pursuant to x Rule 424(b)(2)     o Rule 424(b)(5)	
(To Prospectus dated February 16, 2006, and	 	Registration Statement Nos.	 	333-129763 and	
Prospectus Supplement dated February 16, 2006)	 	 	 	333-129763-01	
 	 	 	 	 	 	 	
	 	 	 	CUSIP: 74254PPA4	

Principal Life Insurance Company
Principal ® Life CoreNotes ® (Callable) (That are also Asset-Backed Securities) Issued Through and Obligations of
Principal Life Income Fundings Trust 2006-81 (the “Trust” and “Issuing Entity”)
The description of this pricing supplement of the particular terms of the Principal ® Life CoreNotes ® 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:	 	 	TBD	 	 	Purchasing Agent Discount:	 	1.000%	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Issue Price:	 	 	100.0%	 	 	Original Issue Date:	 	11/15/2006	
 	 	 	 	 	 	 	 	 	 	 	
Net Proceeds to the Trust:	 	 	TBD	 	 	Stated Maturity Date:	 	11/15/2011	

 	 	 	 	 	 	 	 	 	 	 	
Interest Payment Dates:	 	The 15th day of every sixth month commencing on 05/15/2007	
 	 	 	 	 	 	 	 	 	 	 	
Initial Interest Payment Date:	 	5/15/2007	
 	 	 	 	 	 	 	 	 	 	 	
Regular Record Date:	 	15 calendar days prior to the Interest Payment Date	
 	 	 	 	 	 	 	 	 	 	 	
Type of Interest Rate:	 	x  Fixed Rate	 	o  Floating Rate	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Interest Rate:	 	5.30%	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Discount Note:	 	o  Yes	 	x  No	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Terms of Survivor’s Option:	 	 		
Annual Put Limitation:	 	 	 	x  $2,000,000 or 2%; or		
	 	 	 	o  $                     or    %		
Individual Put Limitation:	 	 	 	x  $250,000; or		
	 	 	 	o  $                    		
Trust Put Limitation:	 	 	 	x  2%; or
$                    		
 	 	 	 	 	 	 		
Redemption Provisions:	 	x  Yes	 	o  No.	 	If, Yes,		
Initial Redemption Date:	 	11/15/2007		
Redemption:	 	x  In whole only and not in part	 	 		
	 	o  May be in whole or in part	 	 		
Additional Other Terms:	 	Any redemption date will be an Interest Payment Date falling on or after the Initial Redemption Date	
 	 	 	 	 	 	 		
Repayment:	 	o  Yes	 	x  No	 	 		
 	 	 	 	 	 	 		
Authorized Denominations:	 	$1,000	 		

“Principal ® ” is a registered service mark of Principal Financial Services, Inc. and is used under license.
“CoreNotes ® ” is a registered service mark of Merrill Lynch & Co.

 

Ratings:
     The Notes issued under the Program are rated AA by Standard & Poor’s (“S&P”).
     Principal Life expects the Notes to be rated Aa2 by Moody’s Investors Service, Inc. (“Moody’s”).
 	 	 	 	 	 	 	
Purchasing Agent(s) Purchasing Notes as Principal:	 	x Yes	 	o No.	 	If, Yes,	
 	 	 	 	 	
Purchasing Agent(s)
	 	Principal Amount
	
Merrill Lynch	 	 	TBD	 	

 	
Total:	 	 	TBD	 	

 	 	 	 	 	 	 	 	 	
State of Organization of the Trust:	New York	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Additional/Other Terms:	None	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
2. The Funding Agreement	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Funding Agreement Issuer:	Principal Life Insurance Company	
 	 	 	 	 	 	 	 	 	
Funding Agreement No.:	7-08236	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Deposit:	 	TBD	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Net Deposit:	TBD	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Effective Date:	11/15/2006	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Stated Maturity Date:	11/15/2011	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Interest Payment Dates:	 	The 15th day of every sixth month commencing on 05/15/2007	
 	 	 	 	 	 	 	 	 	
Initial Interest Payment Date:	 	5/15/2007	
 	 	 	 	 	 	 	 	 	
Type of Interest Rate:	 	x  Fixed Rate	 	o  Floating Rate	 	 	
 	 	 	 	 	 	 	 	 	
Interest Rate:	 	5.30%	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Discount Funding Agreement:	 	o Yes	 	x  No	 	 		
 	 	 	 	 	 	 		
Terms of Survivor’s Option:	 	 	 	 	 	 		
Annual Put Limitation:	 	 	 	x $2,000,000 or 2%; or		
	 	 	 	o $                     or    %		
Individual Put Limitation:	 	 	 	x $250,000; or		
	 	 	 	o $                    		
Trust Put Limitation:	 	 	 	x 2%; or
$                    		
 	 	 	 	 	 	 		
Redemption:	 	x Yes	 	o  No.	 	If, Yes,		
Initial Redemption Date:	 	11/15/2007		
Redemption:	 	x In whole only and not in part	 	 		
	 	o May be in whole or in part	 	 		
Additional Other Terms:	 	Any redemption date will be an Interest Payment Date falling on or after the Initial Redemption Date	
 	 	 	 	 	 	 		
Repayment:	 	o Yes	 	x  No	 	 		
Ratings:
The Funding Agreement issued under the Program is rated AA by S&P.
Principal Life expects the Funding Agreement to be rated Aa2 by Moody’s.
 	 	 	
Additional/Other Terms:	None	 	
 	 	 	
3. The Guarantee	 	 	
 	 	 	
Guarantee Issuer:	Principal Financial Group, Inc.	
 	 	 	
Effective Date:	11/15/2006	
 	 	 	
Additional/Other Terms:	None