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1 Principal Variable Universal Life Income III SM Prospectus May 1, Sign up for edelivery! My Profile, and sign up under - For Life products, call For Annuity products, call

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3 PRIVACY NOTICE PROTECTING YOUR PRIVACY This Notice is required by law. It tells how we handle personal information. This Notice applies to: people who own or apply for our products or services for personal use. employee benefit plan participants and beneficiaries. Please note that in this Notice, you refers to only these people. The Notice does not apply to an employer plan sponsor or group policyholder. WE PROTECT INFORMATION WE COLLECT ABOUT YOU We follow strict standards to safeguard personal information. These standards include limiting access to data and regularly testing our security technology. HOW WE COLLECT INFORMATION We collect data about you as we do business with you. Some of the sources of this data are as follows: Information we obtain when you apply or enroll for products or services. You may provide facts such as your name; address; Social Security number; financial status; and, when applicable, health history. Information we obtain from others. This may include claim reports, medical records, when applicable, credit reports, property values and similar data. Information we obtain through our transactions and experience with you. This includes your claims history, payment and investment records, and account values and balances. Information we obtain through the Internet. This includes data from online forms you complete. It also includes data we collect when you visit our websites. This Notice is provided on behalf of the following companies of the Principal Financial Group: Principal Life Insurance Company Principal National Life Insurance Company Principal Securities, Inc. Principal Trust Company Principal Global Investors, LLC Principal Global Investors Trust Principal Real Estate Investors, LLC Principal Commercial Acceptance, LLC Principal Commercial Funding, LLC Principal Green Fund I, LP / PGF GP, LLC Principal Green Property Fund Employees II, LLC Principal Real Estate Debt Fund I, LP Principal Real Estate Debt Fund, GP, LLC Edge Asset Management, Inc. / Spectrum Asset Management, Inc. Principal Variable Contracts Funds, Inc. Principal Life Insurance Company Variable Life Separate Account Principal National Life Insurance Company Variable Life Separate Account Principal Life Insurance Company Separate Account B Principal Funds, Inc. / Principal Funds Distributor, Inc. Employers Dental Services, Inc. / Principal Dental Services, Inc. First Dental Health HOW WE SHARE INFORMATION We may share personal information about you or about former customers, plan participants or beneficiaries among companies within the Principal Financial Group for several reasons, including: to assist us in servicing your account; to help design and improve products; to protect against potential identity theft or unauthorized transactions; in response to a subpoena or for other legal purposes; to prevent fraud; to comply with inquiries from government agencies or other regulators; with others that service your account, or that perform services on our behalf; with others with whom we may have joint marketing agreements. These include financial services companies (such as other insurance companies, banks or mutual fund companies); and with your consent, at your request or as allowed by law. MEDICAL INFORMATION We do not share medical information among companies of the Principal Financial Group or with others except: when needed to service your policies, accounts, claims or contracts; when laws protecting your privacy permit it; or when you consent. MM /2016 Page 1 of 2 F445PS-16

4 ACCURACY OF INFORMATION We strive for accurate records. Please tell us if you receive any incorrect materials from us. We will make the appropriate changes. COMPANIES WITHIN THE PRINCIPAL FINANCIAL GROUP Several companies within the Principal Financial Group are listed at the top of this Notice. The companies of the Principal Financial Group are leading providers of retirement savings, investment, and insurance products. MORE INFORMATION You may write to us if you have questions about our Privacy Notice. Contact our Privacy Officer at P.O. Box 14582, Des Moines, Iowa To contact us, please call Receipt of this notice does not mean your application has been accepted. We may change our privacy practices at times. We will give you a revised notice when required by law. Our privacy practices comply with all applicable laws. If a state s privacy laws are more restrictive than those stated in this Notice, we comply with those laws. Your agent, broker, registered representative, consultant or advisor may have a different privacy policy. MM /2016 Page 2 of 2 F456PS-16

5 PROTECTING YOUR PRIVACY This Notice is required by law. It tells how we handle personal information. This Notice applies to individual residents of California who: own or apply for our products or services for personal use. are employee benefit plan participants and beneficiaries. Please note that in this Notice, you refers to only these people. The Notice does not apply to an employer plan sponsor or group policyholder. WE PROTECT INFORMATION WE COLLECT ABOUT YOU We follow strict standards to protect personal information. These standards include limiting access to data and regularly testing our security technology. HOW WE COLLECT INFORMATION We collect data about you as we do business with you. Some of the sources of this data are as follows: Information we obtain when you apply or enroll for products or services. You may provide facts such as your name; address; Social Security number; financial status; and, when applicable, health history. Information we obtain from others. This may include claim reports, medical records, credit reports and similar data. Information we obtain through our transactions and experience with you. This includes your claims history, payment and investment records, and account values. CALIFORNIA PRIVACY NOTICE This Notice is provided on behalf of the following companies of the Principal Financial Group: Principal Life Insurance Company Principal National Life Insurance Company Principal Securities, Inc. Principal Trust Company Principal Global Investors, LLC Principal Global Investors Trust Principal Real Estate Investors, LLC Principal Commercial Acceptance, LLC Principal Commercial Funding, LLC Principal Green Fund I, LP / PGF GP, LLC Principal Green Property Fund Employees II, LLC Principal Real Estate Debt Fund I, LP Principal Real Estate Debt Fund, GP, LLC Edge Asset Management, Inc. / Spectrum Asset Management, Inc. Principal Variable Contracts Funds, Inc. Principal Life Insurance Company Variable Life Separate Account Principal National Life Insurance Company Variable Life Separate Account Principal Life Insurance Company Separate Account B Principal Funds, Inc. / Principal Funds Distributor, Inc. Employers Dental Services, Inc. / Principal Dental Services, Inc. First Dental Health Information we obtain through the Internet. This includes data from online forms you complete. It also includes data we receive when you visit our websites. HOW WE SHARE INFORMATION We may share personal information about you or about former customers, plan participants or beneficiaries among companies within the Principal Financial Group or with others for several reasons, including: to assist us in servicing your account; to help design and improve products; to protect against potential identity theft or unauthorized transactions; in response to a subpoena or for other legal purposes; to prevent fraud; to comply with inquiries from government agencies or other regulators; with others that service your account, or that perform services on our behalf; or with your consent, at your request or as allowed by law. MEDICAL INFORMATION We do not share medical information among companies of the Principal Financial Group or with others except: when needed to service your policies, accounts, claims or contracts; when laws protecting your privacy permit it; or when you consent. BB /2016 Page 1 of 2 F445CA-13

6 ACCURACY OF INFORMATION We strive for accurate records. Please tell us if you receive any incorrect materials from us. We will make the appropriate changes. COMPANIES WITHIN THE PRINCIPAL FINANCIAL GROUP Several companies within the Principal Financial Group are listed at the top of this Notice. The companies of the Principal Financial Group are leading providers of retirement savings, investment, and insurance products. MORE INFORMATION You may write to us if you have questions about our Privacy Notice. Contact our Privacy Officer at P.O. Box 14582, Des Moines, Iowa To contact us, please call Receipt of this notice does not mean your application has been accepted. We may change our privacy practices at times. We will give you a revised notice when required by law. Our privacy practices comply with all applicable laws. Your agent, broker, registered representative, consultant or advisor may have a different privacy policy. BB /2016 Page 2 of 2 F445CA-13

7 Principal National Life Insurance Company Variable Life Separate Account Notice and Supplement dated May 19, 2016 to the Statutory Prospectus dated May 1, 2016 for Principal Variable Universal Life Income III This supplement updates information contained in the Statutory Prospectus for the variable life insurance policy referenced above. Please retain this supplement for future reference. PUTNAM VT VOYAGER FUND MERGING One of the mutual funds available as an investment option under the insurance policy referenced above is merging into another fund effective July 15, The purpose of this notice and supplement is to advise you of the merger and, if you have values allocated to the merging fund, inform you of your options. Principal National Life Insurance Company has been informed by Putnam Investments that the Putnam VT Voyager Fund, which is the underlying fund for the Putnam VT Voyager Division (the Merging Fund Division ) will merge into the Putnam VT Growth Opportunities Fund effective July 15, 2016 (the Merger Date ). No transfers into the Merging Fund Division will be allowed on or after July 14, On the Merger Date, we will transfer any remaining values in the Merging Fund Division to the division that invests in the Putnam VT Growth Opportunities Fund. REVISIONS TO THE PROSPECTUS TABLE OF SEPARATE ACCOUNT DIVISIONS On or about July 15, 2016, replace the row for the Putnam VT Voyager Division with the following: Putnam VT Growth Opportunities Division Invests in: Putnam VT Growth Opportunities Fund - Class IB Investment Advisor: Putnam Investment Management, LLC Investment Objective: seeks capital appreciation. OPTIONS FOR OWNERS WHO HAVE VALUES ALLOCATED TO THE MERGING FUND DIVISION If you have policy values allocated to the Merging Fund Division: You can do nothing, and any funds remaining in the Merging Fund Division will be automatically transferred to the Putnam VT Growth Opportunities Division on the Merger Date. There will be no transfer fee charged to you when this automatic transfer occurs, and you will have the right to subsequently transfer such value as described below. You can transfer value out of the Merging Fund Division (before the Merger Date) or the Putnam VT Growth Opportunities Division (after the Closing Date) to another available investment option under your Policy without charge for a period beginning 30 days before the Closing Date through 60 days following the Closing Date. Transfers made related to this merger during the prescribed time periods will not count in determining the number of transfers made in any period or the number made in any period without charge. To request a transfer of division values you have in the Merging Fund Division to another division, you must provide us notice using one of the following methods: 1. Visit and complete the transfer online using your logon and password; 2. Call us at We can process your transfer request by phone or provide you with the forms to submit your request in writing via mail or via FAX ( ); or 3. Contact your financial professional or servicing representative. Page 1 of 2

8 NOTE: 1. For variable life insurance as part of a Corporate-Owned Life Insurance (COLI) plan, please request your transfer by calling For variable life insurance using Automatic Portfolio Rebalancing or Dollar Cost Averaging, you must provide your instruction to us by July 15, Otherwise, we will direct any Merging Fund Division allocations to the Putnam VT Growth Opportunities Division. 3. There are no tax consequences resulting from the transfer of funds as required by this Notice. 4. In summary, your instructions related to transferring funds out of the Merging Fund Division must be received by us by 5 p.m. CST on July 15, 2016 to avoid the automatic transfer of funds from the Merging Fund Division to the Putnam VT Growth Opportunities Division. We previously sent you prospectuses for available underlying funds which may aid you in choosing new investments, and a copy of the summary prospectus for the Putnam VT Growth Opportunities Fund is included with this notice and supplement mailing. You can also view the underlying funds at or call us to request copies. LV622S-04 Page 2 of 2

9 VK-VIAMVA SUM SUP Summary Prospectus Supplement dated June 14, 2016 The purpose of this mailing is to provide you with changes to the current Summary Prospectuses for Series I and Series II shares of the Fund listed below: Invesco V.I. American Value Fund The following information replaces the table in its entirety appearing under the heading Management of the Fund in the summary prospectuses: Portfolio Managers Title Length of Service on the Fund Thomas R. Copper Portfolio Manager (co-lead) 2010 (predecessor fund 2005) Jeffrey Vancavage Portfolio Manager (co-lead) 2016 Sergio Marcheli Portfolio Manager 2010 (predecessor fund 2003) John Mazanec Portfolio Manager 2010 (predecessor fund 2008) Effective on or about September 30, 2016, John Mazanec will no longer serve as Portfolio Manager to the Fund. VK-VIAMVA SUM SUP LV601INS-06 Accompanies all VL Prospectuses

10 Summary prospectus FUND SYMBOLS CLASS IA CLASS IB Putnam VT Growth Opportunities Fund Before you invest, you may wish to review the fund s prospectus, which contains more information about the fund and its risks. You may obtain the prospectus and other information about the fund, including the statement of additional information (SAI) and most recent reports to shareholders, at no cost by visiting putnam.com/individual/annuities, calling , or ing Putnam at funddocuments@putnam.com. The fund s prospectus and SAI, both dated 4/30/16, are incorporated by reference into this summary prospectus. Fund summary Goal Putnam VT Growth Opportunities Fund seeks capital appreciation. Fees and expenses The following table describes the fees and expenses you may pay if you buy and hold shares of the fund. The fees and expenses information does not reflect insurance-related charges or expenses borne by contract holders indirectly investing in the fund. If it did, expenses would be higher. Annual fund operating expenses (expenses you pay each year as a percentage of the value of your investment) Share class Management fees Distribution and service (12b-1) fees Other expenses Total annual fund operating expenses Expense reimbursement= Total annual fund operating expenses after expense reimbursement Class IA 0.55% N/A 0.36% 0.91% (0.09%) 0.82% Class IB 0.55% 0.25% 0.36% 1.16% (0.09%) 1.07% = Reflects Putnam Investment Management, LLC s contractual obligation to limit certain fund expenses through 4/30/17. This obligation may be modified or discontinued only with approval of the fund s Board of Trustees. Example The following hypothetical example is intended to help you compare the cost of investing in the fund with the cost of investing in other funds. The example does not reflect insurance-related charges or expenses. If it did, expenses would be higher. It assumes that you invest $10,000 in the fund for the time periods indicated and then redeem or hold all your shares at the end of those periods. It assumes a 5% return on your investment each year and that the fund s operating expenses remain the same. Only the first year of each period in the example takes into account the expense reimbursement described above. Your actual costs may be higher or lower. Share class 1 year 3 years 5 years 10 years Class IA $84 $281 $495 $1,111 Class IB $109 $360 $630 $1,401 Portfolio turnover The fund pays transaction-related costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher turnover rate may indicate higher transaction costs. These costs, which are not reflected in annual fund operating expenses or the above example, affect fund performance. The fund s turnover rate in the most recent fiscal year was 79%. Investments, risks, and performance Investments We invest mainly in common stocks of large U.S. companies, with a focus on growth stocks. Growth stocks are issued by companies whose earnings are expected to grow faster than those of similar firms, and whose business growth and other characteristics may lead to an increase in stock price. We may consider, among other factors, a company s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends when deciding whether to buy or sell investments. Risks It is important to understand that you can lose money by investing in the fund. The value of stocks in the fund s portfolio may fall or fail to rise over extended periods of time for a variety of reasons, including both general financial market conditions and factors related to a specific company or industry. Growth stocks may be more susceptible to earnings disappointments, and the market may not favor growth-style investing. The fund may not achieve its goal, and it is not intended to be a complete investment program. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Summary prospectus of the Trust 1

11 Performance The performance information below gives some indication of the risks associated with an investment in the fund by showing the fund s performance year to year and over time. The performance information does not reflect insurance-related charges or expenses. If it did, performance would be lower. Please remember that past performance is not necessarily an indication of future results. Annual total returns for class IA shares 8.75% 5.82% 37.63% 41.26% 17.57% % 17.85% Average annual total returns (for periods ending 12/31/15) 36.55% 14.16% 1.28% Year-todate performance through 3/31/16 Best calendar quarter Q1 12 Worst calendar quarter Q4 08 Share class 1 year 5 years 10 years 1.99% 18.22% 21.27% Class IA 1.28% 12.34% 7.87% Class IB 1.03% 12.05% 7.60% Russell 1000 Growth Index (no deduction for fees or expenses) 5.67% 13.53% 8.53% Your fund s management Investment advisor Putnam Investment Management, LLC Portfolio manager Robert Brookby, Portfolio Manager, portfolio manager of the fund since 2009 Purchase and sale of fund shares Fund shares are offered to separate accounts of various insurers. The fund requires no minimum investment, but insurers may require minimum investments from those purchasing variable insurance products for which the fund is an underlying investment option. Insurers may purchase or sell shares on behalf of separate accounts by submitting an order to Putnam Retail Management any day the New York Stock Exchange (NYSE) is open. Some restrictions may apply. Tax information Generally, owners of variable insurance contracts are not taxed currently on income or gains realized with respect to such contracts. However, some distributions from such contracts may be taxable at ordinary income tax rates and distributions to contract owners younger than 59½ may be subject to a 10% penalty tax. For more information, please see the prospectus (or other offering document) for your variable insurance contract. Payments to insurance companies The fund is offered as an underlying investment option for variable insurance contracts. The fund and its related companies may make payments to the sponsoring insurance company (or its affiliates) and dealers for distribution and/or other services. These payments may create an incentive for the insurance company to include the fund, rather than another investment, as an option in its products and may create a conflict of interest for dealers in recommending the fund over another investment. The prospectus (or other offering document) for your variable insurance contract may contain additional information about these payments. Additional information is available at putnam.com/individual/ annuities, by calling , or by ing Putnam at funddocuments@putnam.com. LV858PTS-02 2 Summary prospectus of the Trust Accompanies all VL Prospectuses File No VTBP /16

12 PRINCIPAL VARIABLE UNIVERSAL LIFE INCOME III SM FLEXIBLE PREMIUM VARIABLE UNIVERSAL LIFE INSURANCE POLICY (the Policy ) Issued by Principal National Life Insurance Company (the Company ) through its Principal National Life Insurance Company Variable Life Separate Account This prospectus is dated May 1, This prospectus describes an individual-flexible premium variable universal life insurance policy offered by the Company. As in the case of other life insurance policies, it may not be in Your best interest to buy this Policy as a replacement for, or in addition to, existing insurance coverage. The Policy involves investment risk, including possible loss of principal. This prospectus provides information that You should know before buying a Policy. It is accompanied by current prospectuses for the Underlying Mutual Funds that are available as investment options under the Policy. Please read these prospectuses carefully and keep them for future reference. The Securities and Exchange Commission ( SEC ) has not approved or disapproved this security or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense. Not all the contract provisions, benefits, programs, features, and investment options described in this prospectus are available or approved for use in every state. This prospectus offers a Policy which may not be available in all states and is not an offer to sell or solicitation of an offer to buy the Policy in states in which the offer or solicitation may not be lawfully made. No person is authorized to give any information or to make any representation in connection with this Policy other than those contained in this prospectus.

13 TABLE OF CONTENTS Page SUMMARY: BENEFITS AND RISKS POLICY BENEFITS POLICY RISKS SUMMARY: FEE TABLES GLOSSARY CORPORATE ORGANIZATION AND OPERATION CHARGES AND DEDUCTIONS Premium Expense Charge (Sales Charge and Taxes) Surrender Charge Transfer Fee Illustration Fee Monthly Policy Charge Net Policy Loan Charge Optional Insurance Benefits Charges Underlying Mutual Fund Charges GENERAL DESCRIPTION OF THE POLICY The Contract Rights Under the Policy Policy Limitations Optional Insurance Benefits Reservation of Rights Right to Exchange Suicide Delay of Payments or Transfers PREMIUMS Payment of Premiums Premiums Affecting Guarantee Provisions Premium Limitations Allocation of Premiums Division Valuation DEATH BENEFITS AND POLICY VALUES Death Proceeds Benefit Payment Instructions Benefit Payment Options Death Benefit Options Change in Death Benefit Option IRS Definition of Life Insurance Maturity Proceeds Adjustment Options Policy Values Account Value Enhancement SURRENDERS AND PARTIAL SURRENDERS Surrenders Examination Offer (Free-Look Provision)

14 Page LOANS Policy Loans Loan Account Unscheduled Loans Scheduled Loans Loan Payments POLICY TERMINATION AND REINSTATEMENT TAX ISSUES RELATED TO THE POLICY GENERAL PROVISIONS Frequent Trading and Market-Timing (Abusive Trading Practices) Purchase Procedures Special Purchase Plans Distribution of the Policy Payments to Financial Intermediaries Service Arrangements and Compensation Statement of Values Services Available via the Internet and Telephone Misstatement of Age or Gender Non-Participating Policy Incontestability Independent Registered Public Accounting Firm LEGAL PROCEEDINGS TABLE OF SEPARATE ACCOUNT DIVISIONS APPENDIX A - SURRENDER CHARGE RATE TABLE APPENDIX B - SURRENDER CHARGE PERCENTAGE TABLE APPENDIX C - TARGET PREMIUM RATES For Policies with a Policy Date on or after May 16, For Policies with a Policy Date before May 16, APPENDIX D - APPLICABLE PERCENTAGES (FOR LIFE INSURANCE DEFINITION TEST) Life Insurance Definition Test Cash Value Accumulation Test APPENDIX E - SURRENDER CHARGE RATE AND PERCENTABLE TABLES AS OF MAY 1, 2014 (prior to any supplement) ADDITIONAL INFORMATION

15 UNDERLYING MUTUAL FUNDS TABLE OF CONTENTS AllianceBernstein VPS International Value Portfolio Class A S-1 AllianceBernstein VPS Small Cap Growth Portfolio Class A S-5 AllianceBernstein VPS Small/Mid Cap Value Portfolio Class A S-8 American Century VP Capital Appreciation Fund Class II S-12 American Century VP Income & Growth Fund Class II S-16 American Century VP Inflation Protection Fund Class II S-20 American Century VP Mid Cap Value Fund Class II S-24 American Century VP Value Fund Class II S-28 American Funds Insurance Series Blue Chip Income and Growth Fund Class 2 Shares S-32 American Funds Insurance Series - Growth Fund Class 2 Shares S-36 American Funds Insurance Series - International Fund Class 2 Shares S-40 American Funds Insurance Series - New World Fund Class 2 Shares S-44 Calvert VP Investment Grade Bond Index Portfolio Initial S-49 Calvert VP Russell 2000 Small Cap Index Portfolio Class F S-53 Calvert VP S&P 500 Index Portfolio Class F S-56 Calvert VP S&P Mid Cap 400 Index Portfolio Class F S-59 ClearBridge Variable Mid Cap Portfolio Class I Shares S-62 Delaware VIP Small Cap Value Series Service Class S-68 Delaware VIP Smid Cap Growth Series Service Class S-72 Deutsche Small Mid Cap Value VIP Class B S-76 Dreyfus IP MidCap Stock Portfolio Service Shares S-80 Fidelity VIP Contrafund Portfolio Service Class 2 S-83 Fidelity VIP Equity-Income Portfolio Service Class 2 S-88 Fidelity VIP Government Money Market Portfolio Service Class S-93 Fidelity VIP High Income Portfolio Service Class 2 S-98 Fidelity VIP Mid Cap Portfolio Service Class 2 S-103 Franklin Templeton VIP Trust - Franklin Mutual Global Discovery VIP Fund Class 2 S-108 Franklin Templeton VIP Trust - Franklin Rising Dividends VIP Fund Class 2 S-115 Franklin Templeton VIP Trust - Franklin Small Cap Value VIP Fund Class 2 S-121 Invesco V.I. American Franchise Fund Series II Shares S-127 Invesco V.I. American Value Fund Series I Shares S-130 Invesco V.I. Core Equity Fund Series II Shares S-133 Invesco V.I. Global Health Care Fund Series I Shares S-136 Invesco V.I. Mid Cap Core Equity Fund Series II Shares S-139 Janus Aspen Series Forty Portfolio Service Shares S-142 Lord Abbett Series Fund Developing Growth Portfolio Class VC S-146 Lord Abbett Series Fund International Opportunities Portfolio Class VC S-155 MFS Blended Research Small Cap Equity Portfolio Service Class S-165 MFS Mid Cap Value Portfolio Service Class S-168 MFS New Discovery Series Service Class S-171 MFS New Discovery Value Portfolio Service Class S-174 MFS Utilities Series Service Class S-177 Neuberger Berman AMT Large Cap Value Portfolio Class I Shares S-181

16 Oppenheimer Main Street Small Cap Fund /VA Service Shares S-187 Principal Variable Contracts Funds Capital Appreciation Account Class 1 Shares S-192 Principal Variable Contracts Funds Core Plus Bond Account Class 1 Shares S-195 Principal Variable Contracts Funds Diversified International Account Class 1 Shares S-200 Principal Variable Contracts Funds Equity Income Account Class 1 Shares S-203 Principal Variable Contracts Funds Government & High Quality Bond Account Class 1 Shares S-207 Principal Variable Contracts Funds International Emerging Markets Account Class 1 Shares S-211 Principal Variable Contracts Funds LargeCap Growth Account Class 1 Shares S-215 Principal Variable Contracts Funds LargeCap Growth Account I Class 1 Shares S-218 Principal Variable Contracts Funds LargeCap S&P 500 Index Account Class 1 Shares S-221 Principal Variable Contracts Funds LargeCap Value Account Class 1 Shares S-225 Principal Variable Contracts Funds MidCap Account Class 1 Shares S-228 Principal Variable Contracts Funds Multi-Asset Income Account Class 1 Shares S-232 Principal Variable Contracts Funds Principal LifeTime 2010 Account Class 1 Shares S-237 Principal Variable Contracts Funds Principal LifeTime 2020 Account Class 1 Shares S-243 Principal Variable Contracts Funds Principal LifeTime 2030 Account Class 1 Shares S-249 Principal Variable Contracts Funds Principal LifeTime 2040 Account Class 1 Shares S-255 Principal Variable Contracts Funds Principal LifeTime 2050 Account Class 1 Shares S-261 Principal Variable Contracts Funds Principal LifeTime 2060 Account Class 1 Shares S-267 Principal Variable Contracts Funds Principal LifeTime Strategic Income Account Class 1 Shares S-273 Principal Variable Contracts Funds Real Estate Securities Account Class 1 Shares S-279 Principal Variable Contracts Funds SAM Balanced Portfolio Class 1 Shares S-283 Principal Variable Contracts Funds SAM Conservative Balanced Portfolio Class 1 Shares S-288 Principal Variable Contracts Funds SAM Conservative Growth Portfolio Class 1 Shares S-293 Principal Variable Contracts Funds SAM Flexible Income Portfolio Class 1 Shares S-298 Principal Variable Contracts Funds SAM Strategic Growth Portfolio Class 1 Shares S-303 Principal Variable Contracts Funds Short-Term Income Account Class 1 Shares S-308 Principal Variable Contracts Funds SmallCap Account Class 1 Shares S-312 Putnam VT Voyager Fund Class IB S-315 Franklin Templeton VIP Trust - Templeton Global Bond VIP Fund Class 2 S-318 TOPS Managed Risk Balanced ETF Portfolio Class 2 S-326 TOPS Managed Risk Growth ETF Portfolio Class 2 S-330 TOPS Managed Risk Moderate Growth ETF Portfolio Class 2 S-334 VanEck VIP Trust - Van Eck VIP Global Hard Assets Fund Class S Shares S-338 Wanger International S-358

17 SUMMARY: BENEFITS AND RISKS This is a brief summary of the Policy s features. More detailed information follows later in this prospectus. POLICY BENEFITS Death Benefits and Proceeds The Company guarantees to pay a death benefit for as long as the Policy is in force. The death proceeds are paid to the beneficiary(ies) when the Insured dies. Death proceeds are calculated as of the date of death of the Insured. The amount of the death proceeds is: the death benefit plus interest (as explained in DEATH BENEFITS AND POLICY VALUES Death Proceeds); minus Loan Indebtedness; minus any overdue Monthly Policy Charges (Overdue Monthly Policy Charges arise when a Policy is in a grace period and the Net Surrender Value is insufficient to cover the sum of the cost of insurance and of additional benefits provided by any rider plus other policy charges). Death proceeds are paid in cash or applied under a benefit payment option. The Policy provides for three death benefit options. A death benefit option is elected on the application. We will issue the Policy with Death Benefit Option 1 if You do not elect a death benefit option on the application. Subject to certain conditions, the death benefit option may be changed after the Policy has been issued. Premium Payment Flexibility You may choose the amount and frequency of premium payments (subject to certain limitations). Policy Values The Policy Value reflects Your premium payments, partial surrenders, policy loans, unpaid loan interest, policy expenses, interest credited to the Fixed Accounts, and/or the investment experience of the Divisions. There is no guaranteed minimum Division value. For eligible policies with a Policy Date on or after May 16, 2015, and subject to state approval of all May 16, 2015 Modifications, Your policy may be credited with an Account Value Enhancement. The Account Value Enhancement is not guaranteed. See DEATH BENEFITS AND POLICY VALUES-Account Value Enhancement. Policy Loans A loan may be taken using the Policy as collateral. The maximum loan amount is 90% of the Net Surrender Value. Full Surrender The Policy may be surrendered and any Net Surrender Value paid to the Owner. If the full surrender is within ten years of the Policy Date or a Face Amount increase, a surrender charge is imposed. Partial Surrender On or after the first policy anniversary, a Policy may be partially surrendered and the proceeds paid to the Owner. The surrender charge does not apply to partial surrenders. Adjustment Options The Face Amount may be increased or decreased unless the Policy is in a grace period or if Monthly Policy Charges are being waived under a rider. Face Amount Increase The minimum amount of an increase is $50,000 ($10,000 for special underwriting programs) and is subject to Our underwriting guidelines in effect at the time the increase is requested. Face Amount Decrease On or after the first policy anniversary, a decrease in Face Amount may be requested if the request does not decrease the Face Amount below $100,000. Cumulative Face Amount decreases in Policy Years two through five cannot exceed 35% of the Initial Face Amount. 4

18 Maturity Proceeds If the Insured is living on the Policy Maturity Date, We will pay the Owner an amount equal to the Net Surrender Value unless the Extended Coverage Rider is in effect. Maturity proceeds are paid in cash lump sum or applied under a benefit payment option. The Policy terminates on the Policy Maturity Date unless extended by the Extended Coverage Rider. POLICY RISKS Risks of Poor Investment Performance Your Policy Value will fluctuate depending on the investment performance of the Divisions to which You allocate Your premium payments. Poor investment performance could diminish Your entire Policy Value and death benefit. Positive investment performance does not guarantee that Your Policy Value will equal the total of Your premium payments after deducting applicable Policy and rider charges. Certain Policy and rider charges are higher during earlier Policy Years than during subsequent Policy Years. This has a more negative impact on Policy Value during earlier Policy Years, making the Policy not suitable as a short-term savings vehicle. Policy Termination (Lapse) Surrender charges apply in the first ten Policy Years (and the first ten Policy Years after a face increase) and reduce the Policy Value available to collect policy charges. A Policy will enter a grace period and is at risk of terminating (meaning You will no longer have any life insurance coverage) if the Net Surrender Value on any Monthly Date is less than the Monthly Policy Charge, unless (i) during the first ten Policy Years, the no-lapse guarantee test is met or (ii) after the first ten Policy Years, the Policy has the Death Benefit Guarantee Rider and its terms are met. A policy may be at risk of terminating due to insufficient premium payments, poor investment results, partial surrenders, or Loan Indebtedness. If a Policy is at risk of terminating, We will notify You that the Policy will terminate without value unless You make a required premium payment by the end of the grace period. A Policy may be reinstated within three years after it has lapsed, subject to certain conditions. Limitations on Access to Surrender Value Unscheduled Partial Surrenders Two unscheduled partial surrenders may be made in a Policy Year. An unscheduled partial surrender may not be less than $500. The total of the amount(s) surrendered may not be greater than 75% of the Net Surrender Value (as of the date of the request for the first unscheduled partial surrender in that Policy Year). The Face Amount may be reduced by the amount of the unscheduled partial surrender. Scheduled Partial Surrenders Partial surrenders may be scheduled on a monthly, quarterly, semiannual, or annual basis. Each scheduled partial surrender may not be greater than 90% of the Net Surrender Value (as of the date of the scheduled partial surrender). The Face Amount may be reduced by the amount of the scheduled partial surrender. Full Surrenders If the full surrender is within ten years of the Policy Date or a Face Amount increase, a surrender charge is imposed. Surrender charges are calculated based on the number of years the Policy was in force. Adverse Tax Consequences Termination of the Policy for any reason other than death of the Insured may have adverse tax consequences. If the amount received by the Owner plus any Loan Indebtedness exceeds the premiums paid into the Policy, then the excess generally will be treated as taxable income. Distributions from a Modified Endowment Contract during the life of the Insured are taxed as if the Policy is a deferred annuity; therefore, partial surrenders and loans may be taxable as ordinary income to the extent there are earnings in the Policy. In certain employer-sponsored life insurance arrangements, participants may be required to report for income tax purposes, one or more of the following: the value each year of the life insurance protection provided; an amount equal to any employer-paid premiums; or some or all of the amount by which the current value exceeds the employer s interest in the Policy. 5

19 Participants should consult with the sponsor or the administrator of the plan, and/or with their personal tax or legal adviser, to determine the tax consequences, if any, of their employer-sponsored life insurance arrangements. Federal estate taxes and state and local estate, inheritance and other taxes may become due depending on applicable law and Your circumstances or the circumstances of the Policy s beneficiary(ies) if You or the Insured dies. There are other tax issues to consider when You own a life insurance policy. These are described in more detail in TAX ISSUES RELATED TO THE POLICY. Risks of Underlying Mutual Funds A comprehensive discussion of the risks of each Underlying Mutual Fund may be found in the Underlying Mutual Fund s prospectus. As with all mutual funds, as the value of an Underlying Mutual Fund s assets rise or fall, the fund s share price changes. If You sell Your Units in a Division (each of which invests in an Underlying Mutual Fund) when their value is less than the price You paid, You will lose money. Equity Funds The biggest risk is that the fund s returns may vary, and You could lose money. The equity funds are each designed for long-term investors who can accept the risks of investing in a portfolio with significant common stock holdings. Common stocks tend to be more volatile than other investment choices. The value of an Underlying Mutual Fund s portfolio may decrease if the value of an individual company in the portfolio decreases. The value of an Underlying Mutual Fund s portfolio could also decrease if the stock market goes down. Income Funds A fundamental risk of fixed-income securities is that their value will fall if interest rates rise. Since the value of a fixedincome portfolio will generally decrease when interest rates rise, the Underlying Mutual Fund s share price may likewise decrease. Another fundamental risk associated with fixed-income securities is credit risk, which is the risk that an issuer will be unable to make principal and interest payments when due. International Funds The international Underlying Mutual Funds have significant exposure to foreign markets. As a result, their returns and price per share may be affected to a large degree by fluctuations in currency exchange rates or political or economic conditions in a particular country. Fund of Funds A fund of funds is subject to the particular risks of the underlying funds in the proportions in which the fund of funds invests in them, and its share prices will fluctuate as the prices of underlying funds shares rise or fall with changing market conditions. In addition, a fund of funds indirectly bears its pro rata share of the management fees incurred by the underlying funds. Thus, the cost of investing in a fund of funds will generally be higher than the cost of investing in a fund that invests directly in individual stocks and bonds. General Account The Company's general obligations and any guaranteed benefits under the Policy are supported by our general account (and not by the separate account) and are subject to the Company's claims-paying ability. A Policy owner should look to the financial strength of the Company for its claims-paying ability. Assets in the general account are not segregated for the exclusive benefit of any particular Policy or obligation. General account assets are also available to the Company's general creditors and the conduct of its routine business activities, such as the payment of salaries, rent and other ordinary business expenses. For more information about the Company's financial strength, you may review its financial statements and/or check its current rating with one or more of the independent sources that rate insurance companies for their financial strength and stability. Such ratings are subject to change and have no bearing on the performance of the underlying mutual funds. 6

20 SUMMARY: FEE TABLES The following tables describe fees and expenses that You will pay when buying, owning, and surrendering the Policy. For Policies with a Policy Date on or after May 16, 2015 (1) This table describes the fees and expenses that You will pay at the time that You buy, surrender the Policy, or transfer cash value between investment options. Transaction Fees (For Policies with a Policy Date on or after May 16, 2015) (1) Charge When Charge is Deducted Amount Deducted Sales Charge upon receipt of premium Maximum 5.00% of premium paid Current 4.00% of premium paid (3) Taxes (federal, state and local) Maximum Current Surrender Charge (4) (full surrender of Policy) Maximum Minimum Current Charge for Representative Insured (The representative insured is a 40-year old male in Policy Year one) Transfer Fee for Unscheduled Division Transfer (5) Maximum Current Illustration Fee upon receipt of premium from surrender proceeds upon each unscheduled Division transfer after the first unscheduled Division transfer in a Policy Year upon each illustration after the first illustration in a Policy Year 3.25% of premium paid 3.25% of premium paid $56.93 per $1,000 of Face Amount $7.62 per $1,000 of Face Amount $17.81 per $1,000 of Face Amount $25 per unscheduled transfer None Maximum $25.00 Current None Optional Insurance Benefits Accelerated Benefits Rider (processing fee) Maximum Current Death Benefit Advance Rider (processing fee) Maximum Current Life Paid-Up Rider Maximum Current (if Policy is issued with the guideline premium/ cash value corridor test) (6) Current (if the Policy is issued with the cash value accumulation test) (7) Surrender Value Enhancement Rider Maximum Current at the time of death benefit advance $150 administrative fee None at the time of death benefit advance $150 administrative fee None on the date rider benefit begins 13.50% of Policy Value 3.50% of Policy Value 7.50% of Policy Value upon receipt of premium 3.00% of premium paid in excess of Target Premium Year % of premium paid in excess of Target Premium Years % of premium paid in excess of Target Premium 7

21 This table describes the fees and expenses that You will pay periodically during the time that You own the Policy, not including Underlying Mutual Fund fees and expenses. Periodic Charges Other Than Underlying Mutual Fund Operating Expenses (For Policies with a Policy Date on or after May 16, 2015) (1) Charge When Charge is Deducted Amount Deducted Cost of Insurance (4) monthly Maximum $83.33 per $1,000 of Net Amount At Risk (7) Minimum $0.01 per $1,000 of Net Amount At Risk (7) Current Charge for Representative Insured (The representative Insured is a 40 year-old male with a risk classification of preferred nontobacco in Policy Year one) $0.05 per $1,000 of Net Amount At Risk (7) Asset Based Charge monthly Maximum 0.15% of Net Policy Value (annualized charge) Current 0.00% of Net Policy Value (annualized charge) Monthly Administration Charge monthly Maximum $25.00 per month Current $25.00 per month (8) Monthly Policy Issue Charge (4) monthly Maximum Minimum Current Charge for Representative Insured (The representative Insured is a 40 year-old male with a risk classification of preferred nontobacco in Policy Year one) $0.46 per $1,000 of Face Amount $0.05 per $1,000 of Face Amount $0.19 per $1,000 of Face Amount Net Policy Loan Charge (9) annually (accrued daily) Maximum 1.50% of Loan Indebtedness per year (10) Current 1.50% of Loan Indebtedness per year (10) Optional Insurance Benefits (11) Accelerated Benefit Rider (annual interest charge) Maximum annually, if You have a death benefit advance (accrued daily) 5.50% of death proceeds advance per year Current 5.50% of death proceeds advance per year (10) Death Benefit Advance Rider (annual interest charge) annually, if You have a death benefit advance (accrued daily) Maximum 18% of death proceeds advanced per year (12) Current 5.50% of death proceeds advance per year (10) Salary Increase Rider (13) Maximum monthly $0.13 per $1,000 of rider benefit in excess of $30,000 Current $0.13 per $1,000 of rider benefit in excess of $30,000 Waiver of Monthly Policy Charges Rider (4) monthly Maximum $0.51 per $1,000 of Net Amount At Risk (7) Minimum $0.01 per $1,000 of Net Amount At Risk (7) Current Charge for Representative Insured (The representative Insured is a 40-year-old male with a risk classification of preferred nontobacco in Policy Year one) Waiver of Specified Premium Rider (4) Maximum Minimum Current Charge for Representative Insured (The representative Insured is a 40-year-old male with a risk classification of preferred nontobacco in Policy Year one) monthly $0.02 per $1,000 of Net Amount At Risk (7) $0.94 per $100 of Planned Periodic Premium $0.15 per $100 of Planned Periodic Premium $0.40 per $100 of Planned Periodic Premium 8