Pricing Supplement Dated		February 23, 2006		Filed pursuant to Rule 424(b)(2)
(To Prospectus dated February 16, 2006, and				Registration Statement Nos.		333-129763 and
Prospectus Supplement dated February 16, 2006)						333-129763-01
				CUSIP: 74254PLA8
				ISIN: US74254PLA83

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.

Principal Amount:		$	350,000,000			Purchasing Agent(s) Discount:		0.315%
Issue Price:			99.751%			Original Issue Date:		February 28, 2006
Net Proceeds to the Trust:		$	348,026,000			Stated Maturity Date:		March 1, 2011

Specified Currency:		U.S. Dollars
Interest Payment Dates:		March 1 and September 1 of each year
Initial Interest Payment Date:		September 1, 2006
Regular Record Date:		15 calendar days prior to the Interest Date
Type of Interest Rate:		x Fixed Rate		o Floating Rate
Fixed Rate Notes:		x Yes		o No.		If, Yes,
Interest Rate:		5.125%
Floating Rate Notes:		o Yes		x No.		If, Yes,
Regular Floating Rate Notes:		o Yes		o No.		If, Yes,
Interest Rate:
Interest Rate Basis(es):
Floating Rate/Fixed Rate Note:		o Yes		o No.		If, Yes,
Floating Interest Rate:
Interest Rate Basis(es):
Fixed Interest Rate:
Fixed Rate Commencement Date:
Inverse Floating Rate Note:		o Yes		o No.		If, Yes,
Fixed Interest Rate:
Floating Interest Rate:
Interest Rate Basis(es):
Initial Interest Rate, if any:
Initial Interest Reset Date:

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
		o LIBORs		o Federal Funds Rate
		o EURIBOR		o Treasury Rate
		o Prime Rate		o Other (See Attached)
If LIBOR:		o LIBOR Reuters Page		o LIBOR Moneyline Telerate Page
		LIBOR Currency:
If CMT Rate:
Designated CMT Telerate Page:
If 7052:		o Weekly Average		o Monthly Average
Designated CMT Maturity Index:
Index Maturity:
Spread (+/-):
Spread Multiplier:
Interest Reset Date(s):
Interest Rate Determination Date(s):
Maximum Interest Rate, if any:
Minimum Interest Rate, if any:

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 Note:		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 Aa3 by Moody’s Investors Service, Inc. (“Moody’s”).

Purchasing Agents Purchasing Notes as Principal:		x Yes		o No.		If, Yes:

Purchasing Agent(s)		Principal Amount
Banc of America Securities LLC		$	166,250,000
Goldman, Sachs & Co.		$	166,250,000
Barclays Capital Inc.		$	4,375,000
Credit Suisse Securities (USA) LLC		$	4,375,000
Lehman Brothers Inc.		$	4,375,000
Wachovia Capital Markets, LLC		$	4,375,000
Total:		$	350,000,000

Purchasing Agent(s) Purchasing Notes as Principal:		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.:		8-02862
Deposit Amount:		$350,000,015
Net Deposit:		$348,026,000
Effective Date:		February 28, 2006
Stated Maturity Date:		March 1, 2011
Specified Currency:		U.S. Dollars
Interest Payment Dates:		March 1 and September 1 of each year
Initial Interest Payment Date:		September 1, 2006
Type of Interest Rate:		x Fixed Rate		o Floating Rate
Fixed Rate Funding Agreement:		x Yes		o No.		If, Yes,
Interest Rate:		5.125%
Floating Rate Funding Agreement:		o Yes		x No.		If, Yes,
Regular Floating Rate Funding Agreement:		o Yes		o No.		If, Yes,
Interest Rate:
Interest Rate Basis(es):
Floating Rate/Fixed Rate Funding Agreement:		o Yes		o No.		If, Yes,
Floating Interest Rate:
Interest Rate Basis(es):
Fixed Interest Rate:
Fixed Rate Commencement Date:
Inverse Floating Rate Funding Agreement:		o Yes		o No.		If, Yes,
Fixed Interest Rate:
Floating Interest Rate:
Interest Rate Basis(es):
Initial Interest Rate, if any:
Initial Interest Reset Date:

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
		o LIBORs		o Federal Funds Rate
		o EURIBOR		o Treasury Rate
		o Prime Rate		o Other (See Attached)
If LIBOR:		o LIBOR Reuters Page		o LIBOR Moneyline Telerate Page
		LIBOR Currency:
If CMT Rate:
Designated CMT Telerate Page:
If 7052:		o Weekly Average		o Monthly Average
Designated CMT Maturity Index:

Index Maturity:
Spread (+/-):
Spread Multiplier:
Interest Reset Date(s):
Interest Rate Determination Date(s):
Maximum Interest Rate, if any:
Minimum Interest Rate, if any:
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 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:
Special Tax Considerations:
3. The Guarantee
Guarantee Issuer:		Principal Financial Group, Inc.
Effective Date:		February 28, 2006
Additional/Other Terms: