MTN GLOBAL FUNDING AGREEMENT

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                                                                     EXHIBIT 4.8


MTN GLOBAL FUNDING AGREEMENT

Principal Life Insurance Company
711 High Street
Des Moines, Iowa 50392-0001
(515) 247-5111

In consideration of the payment made by, or at the direction of,

                     PRINCIPAL LIFE INCOME FUNDINGS TRUST o

                            (the "Agreement Holder")

of the Net Deposit, as described below, Principal Life Insurance Company
("Principal Life") agrees to make payments to the person or persons entitled to
them, subject to the provisions of this funding agreement (this "Agreement").

This Agreement is delivered in and subject to the laws of the State of Iowa.

This Agreement is issued and accepted subject to all the terms set out in it.

This Agreement is executed by Principal Life at its Corporate Center to take
effect as of the o day of o, 200o, which is referred to as the Effective Date,
subject to the receipt by Principal Life or its designee of the Net Deposit (as
set forth in Section 1).


                              --------------------
                                    Registrar


                              --------------------
                                      Date


                         GLOBAL FUNDING AGREEMENT NO. o

                 RESTRICTIONS REGARDING THE TRANSFER OR SALE OF
       THIS FUNDING AGREEMENT OR ANY INTEREST HEREIN ARE SET FORTH HEREIN

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FUNDING AGREEMENT                                                          NO. o

         This Agreement is issued in connection with the issuance by the Trust
(specified in the Annex) of Secured Notes (the "Notes") which are identified in
the annex hereto (the "Annex") and which are being issued by the Trust pursuant
to the Prospectus dated o, the Prospectus Supplement dated o, as from time to
time amended or supplemented, and the Pricing Supplement applicable to the Notes
(the "Pricing Supplement"). Capitalized terms not otherwise defined herein shall
have the meanings ascribed to them in the Notes. Where used in this Agreement,
the term "Notes" shall mean the Notes secured by this Agreement as the same
exist on the Effective Date, without giving effect to any amendments or
modifications to said Notes effected or made after any such Effective Date
unless such amendments or modifications to said Notes have been consented to in
writing by Principal Life.

1.       DEPOSIT

         Principal Life agrees to accept, and the Agreement Holder agrees to pay
         or cause to be paid to Principal Life, for value on the Effective Date,
         the Net Deposit (as specified in the Annex). All funds received by
         Principal Life under this Agreement shall become the exclusive property
         of Principal Life and remain a part of Principal Life's general account
         without any duty or requirement of segregation or separate investment.

         This Agreement shall become effective only upon the receipt by
         Principal Life or its designee of the Net Deposit.

2.       FUND

         Upon receipt of the Net Deposit, Principal Life will establish, under
         this Agreement, a bookkeeping account in the name of the Agreement
         Holder, which will evidence Principal Life's obligations under this
         Agreement.

         The Deposit deemed received (as specified in the Annex), (i) less any
         withdrawals to make payments hereunder and (ii) plus any interest
         accrued and premium, if any, pursuant to Section 7, will be referred to
         as the "Fund".

         Principal Life is neither a trustee nor a fiduciary with respect to the
         Fund.

3.       PURCHASE OF NOTES BY PRINCIPAL LIFE.

         Principal Life may purchase some or all of the Notes in the open market
         or otherwise at any time, and from time to time. Simultaneously, upon
         such purchase, (1) the purchased Notes shall, by their terms become
         mandatorily redeemable by the Trust as specified in the related Pricing
         Supplement, Prospectus Supplement and/or Prospectus and (2) the Fund
         under this Agreement shall be permanently reduced by the same
         percentage as the principal amount of the Notes so redeemed bears to
         the sum of (i) the aggregate principal amount of all Notes issued and
         outstanding immediately prior to such redemption and (ii) the principal
         amount of the Trust Beneficial Interest related to such Notes. If
         Principal Life, in its sole discretion, engages in such open market or
         other purchases, then the Trust, the Indenture Trustee in respect of
         such Notes, and Principal Life shall take

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         such actions (including, in the case of Principal Life, making the
         payment(s) necessary to effect the Trust's redemption of such Notes) as
         may be necessary or desirable to effect the cancellation of such Notes
         by the Trust.

4.       ENTIRE AGREEMENT

         This Agreement and the Annex attached hereto constitute the entire
         Agreement.

5.       REPRESENTATIONS

         (a)      Each party hereto represents and warrants to the other that as
                  of the date hereof:

                  (i)      it has the power to enter into this Agreement and to
                           consummate the transactions contemplated hereby;

                  (ii)     this Agreement has been duly authorized, executed and
                           delivered, this Agreement constitutes a legal, valid
                           and binding obligation of each party hereto, and this
                           Agreement is enforceable in accordance with the terms
                           hereof, subject to applicable bankruptcy, insolvency
                           and similar laws affecting creditors' rights, and
                           subject as to enforceability to general principles of
                           equity, regardless of whether enforcement is sought
                           in a proceeding in equity or at law; and

                  (iii)    the execution and delivery of this Agreement and the
                           performance of obligations hereunder do not and will
                           not constitute or result in a default, breach or
                           violation of the terms or provisions of its
                           certificate, articles or charter of incorporation,
                           declaration of trust, by-laws or any agreement,
                           instrument, mortgage, judgment, injunction or order
                           applicable to it or any of its property.

         (b)      The Trust further represents and warrants to Principal Life
                  that:

                  (i)      it is a person other than a natural person and is
                           purchasing this Agreement for the purpose of
                           providing collateral security for securities
                           registered with the United States Securities and
                           Exchange Commission;

                  (ii)     it has been informed and understands that transfer is
                           restricted by the terms of this Agreement; and

                  (iii)    it (a) is solely responsible for determining whether
                           this Agreement is suitable for the purpose intended;
                           (b) has carefully read this Agreement (including the
                           Annex) before signing this Agreement; (c) has had a
                           reasonable opportunity to make such inquiries as it
                           deemed necessary prior to signing this Agreement; and
                           (d) has received or had access to such additional
                           information as it deemed necessary in connection with
                           its decision to sign this Agreement.

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         In performing its obligations hereunder Principal Life is not acting as
         a fiduciary, agent or other representative for the Agreement Holder or
         anyone else. All representations and warranties made by the Agreement
         Holder and Principal Life in this Agreement shall be considered to have
         been relied upon by the other in connection with the execution hereof.

6.       ASSIGNMENT OF AGREEMENT

         The following conditions must be satisfied in order to effectuate any
         assignment of this Agreement:

         (i)      This Agreement may only be transferred through a book entry
                  system maintained by Principal Life, or an agent designated by
                  it, within the meaning of Temporary Treasury Regulations
                  Section 5f.103-1(c) and Treasury Regulations Section
                  1.871-14(c)(1)(i).

         (ii)     The Agreement Holder, and any assignee, must comply with
                  applicable securities laws.

         (iii)    Principal Life has consented in writing to the proposed
                  assignment, such consent not to be unreasonably withheld.

         (iv)     Principal Life shall have received from the proposed assignee
                  a duly executed certificate containing, in substance, the
                  information, representations, warranties, acknowledgments and
                  agreements set forth in this Agreement.

         Any attempted sale, transfer, anticipation, assignment, hypothecation,
         or alienation not in accordance with this Section 6 shall be void and
         of no effect. Until such time, if any, as Principal Life has consented
         in writing to a proposed assignment, Principal Life shall not be
         obligated to make any payments to or at the direction of anyone other
         than the person shown on Principal Life's books and records as the
         Agreement Holder. Once the foregoing conditions have been satisfied
         with respect to an assignment, the assignee or its successor shall be
         deemed to be the sole Agreement Holder for all purposes of this
         Agreement and Principal Life shall promptly amend its records to
         reflect the assignee's status as Agreement Holder.

7.       PAYMENTS TO THE AGREEMENT HOLDER

         Principal Life shall pay to, or at the direction of, the Agreement
         Holder by the date (the "Due Date") on which any payment becomes due in
         respect of the Notes secured by this Agreement (and in any event such
         period of time prior to the Due Date as shall be necessary to ensure
         that the Trust can fulfill its obligation to make payment in full of
         all amounts due and payable under the Notes on the Due Date), an amount
         in the currency or currencies in which the Notes are denominated as
         specified in the Notes equal to the sum of (i) the amount of principal
         and/or (as the case may be) interest and/or (as the case may be)
         premium falling due in respect of the Notes on such Due Date (the
         "Notes Component") and (ii) the amount of any payments owed by the
         Trust in respect of the Trust Beneficial Interest falling due on such
         date (the "Beneficial Interest Component"). In the event that Principal
         Life fails to make payment of any such amount on or prior to

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         the Due Date, Principal Life shall pay to or at the direction of the
         Agreement Holder, on demand by the Agreeme