I Love Replacing Primerica/Citigroup Policies

[Cornelius]

As for myself I have nothing against PFS I just think they are a company and they offer their products. The thing is the "we are out to save the world thing". Yet at some point the agents who may post on forums or just read forums will have to confront the question of where is their loyalty?

It's one thing to know about only one product or concept and sell it to family and friends but when you know of other options then the mirror test comes into play. It's kind of hard to look at family members and sell them a product which may not be in their best interest especialy if funds are limited.

That's when the reality of the business side comes in. Being captive the agents have to sell what the company approves which leans toward doing what's best for the company first. Which brings into play the concept of leaving a client in a better position than before they got there.

I remember back in the day when I was shown a person won't get their cash value in a perm. policy if they died. Later on when I was shown how the CV is there to allow the policy to perform as designed I felt I was told a half truth. That's when other questions came about..Let me just say it one more time.

Pogo if Primerica is where you want to be it's best to stay away from forums. You talk about a life policy but it's much bigger than that. There's still compensation, the agent agreement and the potential of earning other income with the license(s) you may have. Something you may not understand is just because PFS doesn't offer a product doesn't mean you can't sell it outside of PFS as an independent. Primerica isn't a bad company but just understand as a new person there are some things from an industry perspective where you may not know what you don't know.. The secret to going big is to recruit and work their warm market..Get tunnel vision on that and you will go far. Just work the numbers.. As for me I just had some personal conflicts with what I was being told and it became "Who moved my cheese"..

 

[LFIns]

Prime America Agents are scam artists, charlatans; fakes with insurance licenses!!! They are more like a cult than anything else. Insurance sales license part is the only thing that "sorta" makes them seem legitimate . They are lousy. It is a gimmick that has lasted nearly 30 years now.

 

[WinoBlues]

Prime America Agents are scam artists, charlatans; fakes with insurance licenses!!! They are more like a cult than anything else. Insurance sales license part is the only thing that "sorta" makes them seem legitimate . They are lousy. It is a gimmick that has lasted nearly 30 years now.

Where in California are you? Rewrite the "training" clients they made you give them.
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Prime America Agents are scam artists, charlatans; fakes with insurance licenses!!! They are more like a cult than anything else. Insurance sales license part is the only thing that "sorta" makes them seem legitimate . They are lousy. It is a gimmick that has lasted nearly 30 years now.

PS... I am starting to rebuild my term inventory. Let me know if you want to talk about putting your friends and family into more coverage for less money. I am pretty good against them.

Lee

 

[vic616283]

Pogo, a few points for your consideration.

1) Several koolaid-based insurance carriers use that 9/11 line. NWM claims that it was their payment of 9/11 claims which prompted the whole industry to go ahead and follow suit and not claim the act of war clause. Yes you read that right, during sales training when NWM shoots koolaid out of a fire hose at their new recruits, they tell us that it was because of northwestern mutual's decision to not invoke the war clause that any 9/11 claims were paid. They tell us that other insurance carriers had already invoked the war clause and they took it back and paid their claims after northwestern did it.


2) An A+ company is an A company (the plus and minus tomfoolery is a new creation for rating agencies that want to be nice to companies they're downgrading), and A rating is one in the lower half of the investment grade range. I don't expect you to know, but there are AA and AAA ratings above A. --> This part was wrong because I was assuming you were talking about S&P ratings like most brokers do. Either way, There are some companies with higher ratings than primerica and which have been around for 4-5x longer. One such company is NWM, which has been around 157 years to PFS's 36. And NWM term is garbage. I wouldn't sell it to my worst enemy now that I know better.

Oh and BTW I never failed to replace primerica even when I was with northwestern. Their policies are usually at a significantly higher price point than NWM, which says a lot since NWM's prices are terrible. NWM's grotesquely overpriced disability waiver rider is also cheaper than primerica's :/

3) Insurance death claims are guaranteed up to 300-500k (depending on the state) by a state guarantee fund. You should have learned this from your pre-licensing course... But then again koolaid-prone people are usually not much into actually learning anything or knowing anything but rather into revering something they already like and finding ways to reinforce their opinions.

4) I disagree with such a thing as a "sucessful high school coaching career" existing outside of mythology.

5) The answer to all your rhetorical questions in your one post is that a great many companies are better than primerica, in the timeliness of their claims (NWM pays in 48 hours from notification), in their invoking the war clause, in their non-med issue policies, and yes every good company includes an increasing DB rider that performs far better than primerica's. It's called "cash value buildup," and it results in death benefit that keeps growing for life while the amount of "pure" life insurance actually shrinks (and therefore its cost also shrinks)

6) 8-10x salary is a pretty inadequate estimate for coverage. You have to take into account whether the salary even needs to be replaced, what other financial goals need to be funded, the client's budget, their risk aversion, etc. A true advisor doesn't impose his views on his clients even when his client is mistaken. A true advisor finds a plan which the client will actually stick to. A plan is no good if your client isn't going to stick to it. And blaming this on the client is like the personal trainer who expects a morbidly obese chick to actually stick to a 500 calorie diet for chicken and lettuce. A true plan, a good plan, is implemented step by step.

7) " do your companies offer customizable-term policies" Yes dude. ANY policy issued ANYWHERE can be modified to reduce the face amount without additional underwriting. Just issue a 300k policy and modify it 10 years from now if the need for DB actually declines.

8) Term-only is woefully inadequate in a great many cases. Good luck getting even 5% of your clients to amass enough money so that they can die at age 75 and their spouse can live to age 88 on reduced social security and no death benefit from life insurance.

9) Guaranteed universal life. Look it up. A 60-65 year old can sometimes get a GUL to age 100 for not much higher of a price than a primerica term.

 

[rousemark]

2) An A+ company is an A company (the plus and minus tomfoolery is a new creation for rating agencies that want to be nice to companies they're downgrading), and A rating is one in the lower half of the investment grade range. I don't expect you to know, but there are AA and AAA ratings above A. And btw NWM is AAA rated and has been for the longest time. It's also been around 157 years to PFS's 36. And NWM term is garbage. I wouldn't sell it to my worst enemy now that I know better.

When agents refer to an A+, A, or A- rating they are referring to a company's AM Best Financial Strength rating.. Wouldn't expect you to know but there is no AA or AAA rating with AM Best but there is an A++ which NWM holds.

 

[vic616283]

When agents refer to an A+, A, or A- rating they are referring to a company's AM Best Financial Strength rating.. Wouldn't expect you to know but there is no AA or AAA rating with AM Best but there is an A++ which NWM holds.

I guess talking about AM best ratings is an insurance agent thing. Outside the world of insurance, AM Best ratings seldom even get mentioned. It's all about S&P and occassionally moody's. S&P also has A+, A, and A- ratings. Since you might not believe me, have a look at investopedia's series 7 study materials: http://www.investopedia.com/exam-guide/series-7/debt-securities/bond-ratings.asp . My study materials actually did mention AM Best in passing, though.

Also, since the series 7 deals with bond ratings, let's have a look at investopedia's article on corporate ratings: http://www.investopedia.com/articles/03/102203.asp -> No mention of AM best and fitch is only mentioned in passing.

I'm sorry about the confusion I'm still less than a year into the insurance game. Do you have any idea why insurance guys talk about the least popular rating agency?

 

[Norwayguy]

I guess talking about AM best ratings is an insurance agent thing. Outside the world of insurance, AM Best ratings seldom even get mentioned. It's all about S&P and occassionally moody's. S&P also has A+, A, and A- ratings.

It's because AM Best is specific to the claims paying ability of the carrier which is the name of the game with insurance.

 

[Rearden]

What a stupid kool-aide drinker.

Product-pushers be damned.

This business is all about education of the choices, and letting the prospect choose what's in their best interest.

Primerica agents can't do that, and they end up disservicing their clients.

 

[WinoBlues]

I guess talking about AM best ratings is an insurance agent thing. Outside the world of insurance, AM Best ratings seldom even get mentioned. It's all about S&P and occassionally moody's. S&P also has A+, A, and A- ratings. Since you might not believe me, have a look at investopedia's series 7 study materials: Bond Ratings - Series 7 | Investopedia . My study materials actually did mention AM Best in passing, though.

Also, since the series 7 deals with bond ratings, let's have a look at investopedia's article on corporate ratings: What Is A Corporate Credit Rating? -> No mention of AM best and fitch is only mentioned in passing.

I'm sorry about the confusion I'm still less than a year into the insurance game. Do you have any idea why insurance guys talk about the least popular rating agency?

You may find that most of the people on this insurance forum are insurance agents.

 

[LGilmore]

"I'm sorry about the confusion I'm still less than a year into the insurance game. Do you have any idea why insurance guys talk about the least popular rating agency?"

Then you should have big ears and a small mouth..
It's great to have an opinion, it's even better when it is correct.


"Outside the world of insurance,"

That's a big clue for you, right there. What you want to understand is "Inside" the insurance world...

You also appear to be confusing equities and bonds with insurance. Not the same animals. Different things. Different functions.