Can some one aware me on Primerica

[toolbelt]

Ran into too many people who have Primerica policies who were never agents.

More commonly referred to as Pity Purchasers or collateral damage. And recruits aren't reps but represent self-consumption all the same. With well over 10M involved over the years, you're bound to find some clients who had no association to the opportunity itself.

 

[toolbelt]

"From January 1 through December 31, 2022 Primerica paid cash flow to sales representatives at an average of $7,479, which includes commissions paid on all lines of business to licensed representatives. Figures include U.S. and Canadian dollars remaining in the local currency earned by the representative, not adjusted for exchange rates."

Can anybody spot the key words here?

 

[jcorr]

One word stands out for me: "average". You can have one person making $747,900 and 99 others making $0 and the "average" comes out to $7479 per agent.

 

[toolbelt]

One word stands out for me: "average". You can have one person making $747,900 and 99 others making $0 and the "average" comes out to $7479 per agent.

The average is calculated by taking the daily average rep count and dividing it into the total commission "advances" paid out. It is not based on the total count of individuals with them at some point during the year. Would that inflate the earning's average considering the rep turnover rate is in the 40% range? Absolutely!!!! But keep looking.

 

[Cornelius]

PFS as a company looks at the large numbers. They have a field force of agents marketing the products and services they allow their agents to offer.

Now as far as agents. The big earners build RVP's and AUM/Securities. As with anything else not everyone who is brought in the opportunity can recruit and build. They have their system and it is what it is. At the end of the day for the agent it's captive sales. It's selling a product and if interested a opportunity.

Not a scam or pyramid scheme just an option. At the very least the field force gets people insured.

 

[Deborah Armstrong]

I will give my personal opinion based on being a licensed agent and having a degree in finance.

They sell both life insurance products and securities. They have a philosophy of "buy term and invest the rest". The idea is that term is cheaper than whole life insurance so you will have money left over to invest for your retirement. However, that is not the reality.

[EXTERNAL LINK] - New study says 'buy term, invest the difference' is bunk when it comes to life insurance - InvestmentNews

I will add that their solution is a one size fits all philosphy that came from a man named Arthur L. Williams, Jr., who founded an insurance company. It was later bought out and became known as Primerica.

Arthur L. Williams, Jr was a football coach with no background in insurance or securities. He decided term insurance was the solution because his dad was sold a lousy whole life insurance product.

Insurance should be based on a thorough needs analysis, so that you can consider what is best for them.

Primerica also sells mutual funds. Mutual funds are actively managed, meaning they are actively trying to beat the market. No investment product has ever beaten the market, but that is what you are paying for. You will pay higher fees for actively managed accounts.

You could do just as well or better with passively managed investments like ETF's (this is just an example not advice). Regardless no one should be advising anybody to get into a product without doing a proper needs analysis to determine which products would be in their best interest.

 

[Deborah Armstrong]

A.L. Williams was ironically the biggest victim of his own BTID philosophy.

Interesting. Tell us more. There are a few of us that don't know that story. Please share.

 

[Deborah Armstrong]

You can call it bull shit all you want. I was there and I saw it happen. You said in your previous post that you started in the mid 80's. Here what was going on before you got here:

On February 10, 1977, A.L. Williams entered the marketplace with a mere 85 agents. Over the next 13 years, the "peanut" company grew into an industry phenomenon - a licensed sales force of 225,000 agents, $300 billion in cumulative sales, thousands of offices across the United States and Canada.

Anything else you want to pontificate about?

McDonald's Corporation is the largest fast-food chain. As of 2022, Starbucks is the largest restaurant company by revenue, with 35,000 stores globally.

It doesn't make the best hamburgers.

 

[Deborah Armstrong]

They just followed Hubert Humphrey's lead, based on his earlier Amway experience.

By the Way Hubert Humphry is now the founder of HGI?

 

[Deborah Armstrong]

I have been a licensed insurance agent for nearly 20 years. I hold CLU and ChFC advanced planning designations. I was in MLM decades ago. I have never been with Primerica. With that being said, Primerica is NOT a pyramid scheme. (Publicly traded companies are rarely operating illegally.) Pyramid schemes are primarily designed for compensation for INTERNAL CONSUMPTION of a product through recruiting. Primerica does recruit (as most companies do). The biggest issue (aside from policy misrepresentation) is that the recruiter sells the new recruit's contacts their policies. It's THAT method of selling that is still LEGAL, but FUNCTIONS like a pyramid.

There's certainly a lot of misrepresentation that he's exposing in his video... and I agree - the company is operating legally... but yes, there's a lot of issues.

Well said, I agree it isn't a pyramid scheme and their philosophy has lots of issues.