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Primerica / primerica scam?

1 Macomb, MI, United States Review updated:

Primerica like any company in the financial services industry is not a career for everyone. The reputable people I have delt with, for there are people posing as Primerica financial reps.& fraudulantly scamming people out of a good amount of money & are not even part of the organization, are not pushy & admit that this is hard work. Most in the Financial serv.industry work mainly for themselves & primerily are compensated by a commission structure. Primerica seems to be one of the most generous I've reserched, which is why I am taking a second look. Don't forget Building your own biz. is rather expensive today, not to mention the cost of education/licensing, in investment, insurance, & morgage securities, & is a huge risk in this economy. So go into this with your eyes open there are alot of MLM Companies that make it sound easy & are only pyramid scemes. Malti Level mkt. approch seems to offer the most affordable way the average.person to start your own Biz with low operating & investment cost on a part time basis. I have a Family could not take risk of quitting my job for a mainly commision based industry that still payes they brokers at the top most of the money for your hard work...I don't care what company your talking about. I could not afford to open an office(pay rent) hire some people & spend alot of money for education & training at this point. I do pray everyone can finde there nitch & fortunes.

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  • Tr
      9th of Aug, 2010
    +2 Votes

    I absolutely rescent this company, I started a blog to help spread the word about them please post your complaints there

  • Sa
      22nd of Nov, 2010
    +1 Votes

    Here is the Primerica rate vs the best rate. So much for doing to best for clients, eh Primerica

    30year old 1million 20yr pref plus
    Primerica Rate $56.53
    Best Rate $37.83

    35year old 1million 20yr pref
    Best Rate $54.74
    Primerica Rate $83.13

    40year old 2million 20yr standard
    Best Rate $243.08
    Primerica Rate $316.83

    Looks like Primerica doesnt even come close. Not only are they a pyramid scheme, but their rates are terrible. There is no winning with Primerica.

    PS I bought my life insurance through which is where these quotes came from

  • Cl
      21st of Apr, 2011
    +3 Votes

    I cut and pasted the following information, which I found to be very helpful and truthful:

    The Primerica Ponzi Pyramid
    Submitted by Anonymous on December 28, 2009 – 3:36pm.
    Primerica is not exactly a scam, but it is not a very good “opportunity” either. I am going to explain the half-truths, lies, and misleading statements that are used by the Primerica reps to coax people into believing that Primerica is actually a good opportunity for them to become multi-zillionaires. I am also going to compare it to other opportunities in the industry to show how you get screwed by becoming a Primerica rep. DISCLOSURE STATEMENT: I am experienced enough to analyze this topic with a MBA in Economics, series 7, 63, 65 securities license, and 12 years experience in the financial services industry with Wachovia, Morgan Stanley, and AXA Advisors. I have never worked for Primerica. I declined the offer. 1)”If you join Primerica, you will be in business for yourself; therefore you must pay for all of the cost of your business(i.e. licensing, training, and office)” $99 to start then $25 monthly for Primerica online (additional fees will come for training and investment licensing, later.) First off, you are not in business for yourself, you are an independent distributor of Primerica/Citibank products and a select group of mutual fund companies. If you read the IBA’s small print….Any assets or client accounts you bring into Primerica belong to Primerica and you must sign (not 1 but 3) 2 year non-compete contracts (1 investment, 1 mortgage, 1 Insurance). This is the way that Primerica/Citibank push their cost of sales off on their sales force. Reputable investment/insurance companies once hired will take you through a training program and pay for your licensing along with a higher commission payout and the clients are yours. 2)”You can build a team of reps and get overrides so Recruit, Recruit, Recruit.” I equate this to the equivalent of an “Insurance Salesman Mill.” You have heard of a puppy mill….well Primerica’s average rep makes 2.5 sales per year so the only way to keep new business coming in the door is to recruit new people, have the RVP work their warm market during “training” and have that rep hopefully repeat the process, so that you have more people writing less business as opposed to properly training their reps to sell through seminars, networking, or acceptable referral selling practices. This is the ponzi scheme aspect of their business model. If they do not recruit, recruit, recruit the scheme breaks down b/c they are not replacing the 99% of reps that just left the company. The FTC has on several occasions analyzed this model due to the tremendous amount of complaints and concluded that they were not a ponzi scheme because they actually sold a product, but that does not change the fact that the business model is ponziesque in nature. There is not one insurance company in the world that would disallow you the opportunity to build a team of agents under you and the payouts would be much higher, so do not waste your time splitting your commissions with people who do absolutely nothing for your business. 3)”Buy Term Invest the Difference is the only retirement strategy to use.” I do not disagree with BTID for most low/middle-class investors. It is not a cure-all strategy. People who make over 100k per year need permanent insurance, people with complex estate tax situations need permanent insurance, some people who have built up cash value would be crazy to switch from an investment vehicle that grows tax deferred vs. taxable mutual funds. Also the term insurance product that Primerica offers is overpriced when compared with other like-kind carriers with exactly the same features. They must price it that way to accomodate their tierred commission schedule which is well below industry average and pays 4 levels above to people that do absolutely nothing to help you grow your business.(will discuss later). 4) Product line Analysis: 1) The term insurance is way over priced compared to other leaders in the industry. 2) The SMART LOAN product is 100-150 basis points (1%-1.5%)higher with higher closing cost than most other bank equity loan products. They try to sell this by putting the client on a bi-monthly payment plan and illustrate how they can pay it off in less years showing the interest savings but its fuzzy math. You can pay bi-monthly on a 30 year fixed or pay an extra amount per year and accomplish more savings with the lower rate so do not buy it. Do your homeowork and make sure you are comparing apples with apples on the amoritization calculation. 5) “Pay the Eagles and starve the Turkeys” This is an expression that has been used in the insurance industry for years. Basically this strategy is worse at Primerica than any other company I have analyzed or been a part of throughout my career. By recruiting, recruiting, recruiting….. the reps at RVP level keep new business coming in the door because they tell new recruits that part of their “training” will be to offer sales leads from their warm market. The new reps set the appts with people they know (friends, family, co-workers) and the recruiter and recruited go on the sales call as a training session. Because the new rep is not insurance licensed yet, any business that is sold goes under the Recruiter’s rep code (usually RVP) with promises of being paid back later. wink, wink. Also any investment 12b-1 fees that would normally go to the sales person is not paid to reps unless you are RVP level which does not happen at other companies. If you sell a mutual fund as a rep at Wachovia, Morgan Stanley or any other investment house you receive the annual management fee not the person that recruited you. Also the payouts at Primerica start at a paultry 25% where most other companies start out at 45-50% and go up to as high as 90%. If you analyze the income earners in Primerica….you will find that the +/-5 people making over 5 million per year and the +/-43 people making over 1 million per year are all a part of the original founders of the company who are on top of the pyramid. As long as the rank and file keep recruiting, recruiting, recruiting and washing out of the business in 6-8 months, the orphaned accounts that are left keep rolling up to their book of business. Also, if you are one of the naive 1/10 of 1% that get to 100k per year after 10 years and overcome your upline in income you are duly rewarded by him taking your best downline. So in reality they could care less if you grow a successfull business because the top 5% get the business either way, either by washing out of the business and they get the orphaned clients or build a successfull business and they take your best downline. Primerica’s tag line should be “We sell false hope and a misleading, lackluster opportunity.” So the bottom line is…..If you want to sell overpriced, non-competitive products for a lower commission than you could get elsewhere, sign a 2 year non-compete to do that and also pay the insurance company for the right to do it, then Primerica is the company for you. My Advice: Work for a reputable insurance carrier that does not have to pay people like “The Primerica Debate Team” to go to online blogs and write positive things about the company to counter act all of the negative real-life experiences from people who endured the ordeal.

  • To
      30th of Nov, 2011
    0 Votes

    @learjet 2 - Great post!
    @trent, cluephone, and longoria - It's amazing to me how people devote so much energy to tearing down things they don't agree with. I didn't want to believe it but I overheard some of the Primerica reps talking about some of the things that were out here on the internet and wanted to take a look myself. Typically, I don't waste time with opinion based websites but I was alarmed at how misleading the information posted here was.

    At any rate, although I have only been involved with Primerica as a rep for a few months (I've been a client for over 10 years), I have already seen some great things the company has done for families. How can you be so sure about your findings if you've never worked with the company? I do not deny that it is a tough business but I'm thankful that I didn't have to quit my full-time job to begin learning. However, I have virtually matched my wife's income the past couple of months and hope to allow her to come home real soon. Maybe I was lucky to be recruited by someone who didn't sell me some "pie in the sky" pipe dream. He told me that the business was not for everyone and that most people don't make it because it requires getting out of the comfort zone. I work in the education world and only have a Bachelor's in Management. Although I don't have all the credentials and experience the posted has, I can see bitterness and bias a mile away. After seeing the stats on how Primerica has dominated the financial services industry in many areas, I can understand why. And seeing how most people would rather make excuses than be honest and acknowledge they just didn't want to put forth the effort to get it done, I can also understand. My mother always told me, "When people can't argue intelligently, they get personal and go into attack mode." She also told me, "What makes a lie believable is that it will always have a little truth in it. But that truth will be twisted." Looking at your post makes me think of that. Here's a few questions regarding the FACTS:
    What's wrong with people posting positive comments about a company? Isn't that what most companies encourage ... testimonials?

    Are ALL the million dollar earners part of the original founders? Did you know that there are dozens who have taken their income to $1 million who were not part of the original founders?
    If only the people at the top make the money, how did 3 of my friends who joined when I didn't 5 years ago become RVP's and are making over $100, 000/yr? One of them actually makes over $200, 000. And there are testimonials in the company of people who have joined since 2000 and taken their income to $1, 000, 000/yr.

    What would you say if I told you the bi-monthly payment strategies to pay-down your mortgage is a strategy that top financial advisors like Dave Ramsey and Suze Orman recommend?

    Additionally, what if the "basis points" you spoke of were actually off-set by lowering closing cost and fees? I compared a SMART Loan vs a loan from a major mortgage provider. Though the basis points were lower through the competitor, the client's overall cost for the SMART Loan was about $10k less. That's Primerica's true sales point. They educate clients to look at overall cost and time in debt, rather than interest rate and payment. Most mortgage companies, and car salesmen, try to get people to focus on interest and payment because it takes your focus off total cost and how long they'll be in debt.

    If Primerica is a "ponzi scheme", why have major corporations such as Genworth, Metlife, Equifax, and Answer Financial joined forces to market their products through them? How did they become a publicly traded company? Why do their agents hold the same licenses you hold?

    Did you know that Primerica is an Accredited Member of the Better Business Bureau with an A+ rating?
    Did you also know that AM Best rated Primerica as a "Superior" Company (A+), Moody rated Primerica as Aa2 (Excellent), Fitch rated A+ (Strong), and S & P rated AA (Very Strong)?

    Is “Pay the Eagles and starve the Turkeys” really a strategy of Primerica or are you projecting this onto the company? The overall majority of Primerica reps work part-time so how do people starve if Primerica is not their sole source of income?

    How is it false-hope if there are people who have joined the company and been able to achieve the results mentioned?

    As for the rates, Primerica never claimed to be the cheapest insurance. The only tout that they have the best product. Is it possible that there are some insurance companies Primerica rates will beat? Absolutely! However, Primerica does so much more than provide insurance so it's not an apples to apples comparison. They offer a complimentary Financial Needs Analysis, debt management strategies (which most financial services companies don't), investment strategies, legal protection, credit-monitoring services w/ identity theft protection, as well as providing an agent who can help the average person understand how money works.

    You see, anyone would be a fool to think that Primerica is the only company that someone has had a negative experience with. There's not a company in America that hasn't been soiled by complaints. That's the nature of American business. The true test is how fast and efficiently those complaints have been resolved. You don't get an A+ rating by not resolving customer issues.

    If you don't agree with Primerica, then that's fine. But please don't mislead others who are really looking to make a good, fact-based decision about the opportunity. You may be biased against direct sales and MLM, but it has made a lot of folks prosperous.

  • Th
      8th of Jun, 2012
    0 Votes

    I work for Mass Mutual Financial Group and we are a top notch company. In the Fortune 500 magazine as one of the most admired company in 2012. What's great about my company is that we are a Mutual company, hence Mass Mutual. What that means is the policy holders own the company and dividends are paid directly to the policy holders not shareholder and policy holders like stock companies do. We have a history of paying dividends to our policy holders for the past 160 years, since they've been in business, which if you are a history buff, that's prior to the Civil War. I have a team of specialists, not ad visors, and if you are or were looking for concepts and strategies that will be what YOU want it to look like, I am the person you want to talk to. My theory is that what I do for my clients must be what's good for them and what I do for them it MUST be something I would do for my grandmother, parents, sister, extended family and my friends. If a financial services representative tells you "this is what's best for you" and not "do you think this fits in what your big picture looks like and if it's not I will go back to the drawing board for you" then run for the hills. What I also tell my clients is this, "There are 2 outcomes that come out of my meetings with my clients: 1. you or I will stand on either sides of the table and say look I appreciate your time but I don't think this partnership is going to work or on the other hand you can say I like what you've brought to the table and I want to build a nice working relationship together. Either way we will still shake hands and part as friends." I respect and cherish my relationships with my clients and want them to feel as comfortable as possible. I will love to sit down and discuss what we can do for each other. Call me at 201-787-1054 for a free consultation. - Tom

  • Ne
      8th of Aug, 2016
    0 Votes

    For the truth regarding primerica: That settles it!

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