Principal Life Income Fundings Trust 25 FWP Free writing prospectus

Free Writing Prospectus dated November 29, 2006
Filed pursuant to Rule 433
Registration Statement Nos. 333-129763 and 333-129763-01

Principal Life Income Fundings Trust 25
	Terms for Issuance
	November 29, 2006
ISSUER:	Principal Life Income Fundings Trust 25
SECURITY:	Senior Secured Medium-Term Notes
RATINGS:	Aa2/AA/AA
AMOUNT:	$200,000,000
TRADE DATE:	November 29, 2006
SETTLEMENT DATE:	December 6, 2006
MATURITY DATE:	June 6, 2008
COUPON:	3-MONTH LIBOR -5.5bp
COUPON PAY DATES:	March 6th, 2007 (1st Coupon Date), then quarterly on the 6th of June, September, December, and March, or on the next good business day, and on the Maturity Date
COUPON DETERMINATION DATE:	Two New York and London business days preceding the settlement date and each applicable coupon reset date
DAY COUNT BASIS:	Actual/360
ISSUE PRICE:	100.00%
PRICE TO ISSUER:	100.00%
ISSUER PROCEEDS:	$200,000,000
MINIMUM DENOMINATIONS:	$1,000 and integral multiples of $1,000 in excess thereof
CUSIP:	74254PPP1
UNDERWRITER:	Banc of America Securities LLC

Principal Life Insurance Company (“PLIC”), as statutory issuer and depositor, and Principal Financial Group, Inc. (“PFG”) have filed a registration statement (including a prospectus and prospectus supplement) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus and prospectus supplement in that registration statement and other documents PLIC and PFG have filed with the SEC for more complete information about PLIC and PFG and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Banc of America Securities will arrange to send you the prospectus and prospectus supplement if you request it by calling Banc of America Securities toll-free at 1-800-294-1322