Pricing Supplement Dated December 12, 2006	 	Filed Pursuant to Rule 424(b)(2)	
(To Prospectus dated February 16, 2006, and	 	Registration Statement Nos. 333-129763	
Prospectus Supplement dated February 16, 2006)	 	 	 	and 333-129763-01	
	 	 	 	CUSIP: 74254PPR7	

Principal Life Insurance Company
Secured Medium-Term Notes (that are also Asset-Backed Securities)
Issued Through and Obligations of
Principal Life Income Fundings Trust 27 (the “Trust” and the “Issuing Entity”)
     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:	 	 	$250,000,000	 	 	Purchasing Agent(s) Discount:	 	0%	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Issue Price:	 	 	100%	 	 	Original Issue Date:	 	December 19, 2006	
 	 	 	 	 	 	 	 	 	 	 	
Net Proceeds to the Trust:	 	 	$250,000,000	 	 	Stated Maturity Date:	 	October 20, 2008	

 	 	 	 	 	 	 	 	 	 	 	
Specified Currency:	 	U.S. Dollars	
 	 	 	 	 	 	 	 	 	 	 	
Interest Payment Dates:	 	January 20, April 20, July 20 and October 20 of each year	
 	 	 	 	 	 	 	 	 	 	 	
Initial Interest Payment Dates:	 	April 20, 2007	
 	 	 	 	 	 	 	 	 	 	 	
Regular Record Date:	 	15 calendar days prior to the Interest Payment Date	
 	 	 	 	 	 	 	 	 	 	 	
Type of Interest Rate:	 	o  Fixed Rate	 	x  Floating Rate	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Fixed Rate Notes:	 	o  Yes		x  No.	 	If, Yes,	
 	 	 	 	 	 	 	 	 	 	 	
Interest Rate:	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Floating Rate Notes:	 	x  Yes		o No.	 	If, Yes,	
 	 	 	 	 	 	 	 	 	 	 	
Regular Floating Rate Notes:	 	x  Yes	 	o  No.	 	If, Yes,	
Interest Rate:	 	3-Month LIBOR - .0475%	 	 	 	 	 	 	 	 	
Interest Rate Basis(es):	See below	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Floating Rate/Fixed Rate Note:	 	o  Yes	 	x  No.	 	If, Yes,	
Floating Interest Rate:	 	 	
Interest Rate Basis(es):	 	 	
Fixed Interest Rate:	 	 	
Fixed Rate Commencement Date:	 	 	

 

 	 	 	 	 	 	 	 	 	 	 	
Inverse Floating Rate Note:	 	o  Yes	 	x  No.	 	If, Yes,	
Fixed Interest Rate:	 	 	
Floating Interest Rate:	 	 	
Interest Rate Basis(es):	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Initial Interest Rate, if any:	 	3-Month LIBOR - .0475% determined on the second business day preceding the Original Issue Date.	
 	 	 	 	 	 	 	 	 	 	 	
Initial Interest Reset Date:	 	April 20, 2007	
 	 	 	 	 	 	 	
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  Constant Maturity Swap Rate	 	o  Federal Fund Open Rate	 	 	
 	 	x  LIBOR	 	o  Federal Funds Rate	 	 	
 	 	o  EURIBOR	 	o  Treasury Rate	 	 	
 	 	o  Prime Rate	 	o  Other (See Attached)	 	 	
 	 	 	 	 	 	 	
If LIBOR:	 	o  LIBOR Reuters	 	x  LIBOR Moneyline Telerate Page 3750	
 	 	     LIBOR Currency: U.S. Dollars	 	 	 	
 	 	 	 	 	 	 	
If CMT Rate:	 	 	 	 	 	 	
Designated CMT Telerate Page:	 	 	 	 	
If 7052:	 	o  Weekly Average	 	o  Monthly Average	 	 	
Designated CMT Maturity Index:	 	 	 	 	
 	 	 	 	 	 	 	
Index Maturity:	 	3-Month	 	 	 	 	
 	 	 	 	 	 	 	
Spread (+/-):	 	- .0475%	 	 	 	 	
 	 	 	 	 	 	 	
Spread Multiplier:	 	Not Applicable	 	 	 	 	
 	 	 	 	 	 	 	
Interest Reset Date(s):	 	Each Interest Payment Date	 	 	 	 	
 	 	 	 	 	 	 	
Interest Rate Determination Date(s):	 	The second business day preceding the Interest Reset Date	 	 	 	 	
 	 	 	 	 	 	 	
Maximum Interest Rate, if any:	 	Not Applicable	 	 	 	 	
 	 	 	 	 	 	 	
Minimum Interest Rate, if any:	 	Not Applicable	 	 	 	 	
 	 	 	 	 	 	 	
Calculation Agent:	 	Citibank, N.A.	 	 	
 	 	 	 	 	 	 	
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 Notes:	 	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, Name of Exchange:	
 	 	 	 	 	 	 	
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 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

Wachovia Capital Markets, LLC	 	$	250,000,000	 	

 	 	
Total:	 	$	250,000,000	 	
 	 	 	 	 	 	 	
Purchasing Agent(s) Acting as Agent :	 	o Yes	 	x No.	 	If, Yes:	
 	 	 	 	 	
 Purchasing Agent(s)
	 	Principal Amount

 	 	 	
 	 	
Total:	 	 	                           	 	
 	 	 	 	 	 	 	 	 	 	 	
State of Organization of the Trust:	New York	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Additional/Other Terms:	 	
 	 	 	 	 	 	 	 	 	 	 	
Special Tax Considerations:	 	
 	 	 	 	 	 	 	 	 	 	 	
2. The Funding Agreement	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Funding Agreement Issuer:	Principal Life Insurance Company	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Funding Agreement No.:	5-19230	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Deposit Amount:	 	$250,000,015	
 	 	 	 	 	 	 	 	 	 	 	
Net Deposit:	$250,000,000	
 	 	 	 	 	 	 	 	 	 	 	
Effective Date:	December 19, 2006	
 	 	 	 	 	 	 	 	 	 	 	
Stated Maturity Date:	October 20, 2008	
 	 	 	 	 	 	 	 	 	 	 	
Specified Currency:	 	U.S. Dollars	
 	 	 	 	 	 	 	 	 	 	 	
Interest Payment Dates:	 	January 20, April 20, July 20 and October 20 of each year	
 	 	 	 	 	 	 	 	 	 	 	
Initial Interest Payment Date:	 	April 20, 2007	
 	 	 	 	 	 	 	 	 	 	 	
Type of Interest Rate:	 	o  Fixed Rate	 	x  Floating Rate	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Fixed Rate Funding Agreement:	 	o  Yes		x  No.	 	If, Yes,	

 

 	 	 	 	 	 	 	 	 	 	 	
Interest Rate:	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Floating Rate Funding Agreement:	 	x  Yes		o No.	 	If, Yes,	
 	 	 	 	 	 	 	 	 	 	 	
Regular Floating Rate Funding Agreement:	 	x  Yes	 	o  No.	 	If Yes,	
Interest Rate:	 	3 Month LIBOR - .0475%	 	 	 	 	 	 	 	 	
Interest Rate Basis(es):	 	See below	
 	 	 	 	 	 	 	 	 	 	 	
Floating Rate/Fixed Rate Funding Agreement:	 	o  Yes	 	x  No.	 	If, Yes,	
Floating Interest Rate:	 	 	
Interest Rate Basis(es):	 	 	
Fixed Interest Rate:	 	 	 	 	
Fixed Rate Commencement Date:	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Inverse Floating Rate Funding Agreement:	 	o  Yes	 	x  No.	 	If, Yes,	
Fixed Interest Rate:	 	 	
Floating Interest Rate:	 	 	
Interest Rate Basis(es):	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Initial Interest Rate, if any:	 	3-Month LIBOR - .0475% determined on the second business day preceding the Original Issue Date.	
 	 	 	 	 	 	 	 	 	 	 	
Initial Interest Reset Date:	 	April 20, 2007	
 	 	 	 	 	 	 	
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  Constant Maturity Swap Rate	 	o  Federal Funds Open Rate	 	 	
 	 	x  LIBOR	 	o  Federal Funds Rate	 	 	
 	 	o  EURIBOR	 	o  Treasury Rate	 	 	
 	 	o  Prime Rate	 	o  Other (See Attached)	 	 	
 	 	 	 	 	 	 	
If LIBOR:	 	o  LIBOR Reuters Page	 	x  LIBOR Moneyline Telerate Page 3750	 	 	
 	 	     LIBOR Currency: U.S. Dollars	 	 	 	
 	 	 	 	 	 	 	
If CMT Rate:	 	 	 	 	 	 	
Designated CMT Telerate Page:	 	 	 	 	
If 7052:	 	o  Weekly Average	 	o  Monthly Average	 	 	
Designated CMT Maturity Index:	 	 	 	 	
 	 	 	 	 	 	 	
Index Maturity:	 	3-Month	
 	 	 	 	 	 	 	
Spread (+/-):	 	- .0475%	
 	 	 	 	 	 	 	
Spread Multiplier:	 	Not Applicable	
 	 	 	 	 	 	 	
Interest Reset Date(s):	 	Each Interest Payment Date	
 	 	 	 	 	 	 	
Interest Rate Determination Date(s):	 	The second business day preceding the related Interest Reset Date	
 	 	 	 	 	 	 	
Maximum Interest Rate, if any:	 	Not Applicable	
 	 	 	 	 	 	 	
Minimum Interest Rate, if any:	 	Not Applicable	
 	 	 	 	 	 	 	
Calculation 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 Aa2 by Moody’s.

Additional/Other Terms if any:	 	 	
 	 	 	
Special Tax Considerations:	 	 	
 	 	 	
3. The Guarantee	 	 	
 	 	 	
Guarantee Issuer:	 	Principal Financial Group, Inc.	
 	 	 	
Effective Date:	 	December 19, 2006	
 	 	 	
Additional/Other Terms if any: