Primerica Rates

Oct 13, 2018

Tags:
  1. Robert Barney
    Offline

    Robert Barney Guru

    Posts:
    1,186
    Likes Received:
    103
    In a market where product providers are allowed to make up their own minds about whether or not to use sex distinct or unisex rates there will be winners and losers. As I mentioned, in MT where unisex life insurance rates are offered, females pay more than males for insurance. If a company was allowed to go into MT and price males differently than females, they would quickly gain most of the female market as they would have a big price advantage over unisex priced products. That would leave only the males buying the blended priced products, and the companies selling them would not have many females in their product mix.

    Of course, as noted earlier, the opposite would be the case in the pension market, where females would get less benefits than males because they live longer and companies would have to pay pension benefits longer. Unisex pricing would get all the female pension business.

    We witnessed similar things when the life insurance market adopted non-smoker versus smoker rates. At one time smokers and non-smokers all paid the same amount. But once companies decided to make a distinction, those that still blended their premiums were losing non-smokers to the new non-smoking products, and only getting smokers buying their blended rates. The reality forced everyone to move away from the blended pricing.

    In a competitive and free market, that is why I believe unisex pricing can only be implemented if it is imposed by regulation as is happening in MT.
     
    Last edited: Oct 18, 2018
  2. MosesNewmanNAAIP
    Offline

    MosesNewmanNAAIP Guru

    Posts:
    265
    Likes Received:
    1
    State:
    Connecticut
    https://www.beyondquotes.com/insurance/prime-america-life-insurance -

    Prime America Life Insurance - The Multi-Level Marketer (MLM) of the Insurance Industry
    Massive amounts of time and effort is resourced by Prime America Life Insurance to recruit new agents. This recruiting did work well for Prime America Insurance's A.L. Williams. Mr. Williams founded the predecessor to Prime America, A.L. Williams and Associates, in 1977 at the age of 35. A.L. Williams and Associates became Primerica Financial Services in 1991. By 2006, A.L. Williams had a net worth of 1.5 Billion Dollars. Not bad for an insurance agent.

    Keep It Simple Stupid (KISS) - Should Really be PrimeAmerica's Logo
    A.L. Williams and Prime America Insurance got rich by using the multi-level marketing technique to constantly bring in new agents. The new agents would get a standard training which was highlighted by a weekly video conference call that was seen by upwards of 100,000 agents each week. Mr. Williams was the presenter during these video conferences and it should be noted that Mr. Williams' childhood career aspiration was to be a NFL football coach. Recruiting insurance agents was Mr. Williams' forte.

    The Policies that Prime America Insurance Sells are Incredibly Simple
    Term Life - Pay so much per month for 10 or 20 years and the policy ends. Prime America agents are encouraged to solicit investment money for highly commissioned mutual fund investments products during their sales presentation. Ignoring the tax advantages that the life insurance policies receives when combining life insurance and investments on the same transaction. I guess explaining the tax advantages of universal or whole life would be too complicated to explain to 100,000 insurance agents over a video conference call.

    Prime America's Insurance term life policies are simple. A very simple application. The medical underwriting is not extensive. Underwriting is the term to describe how the life insurance company checks out the applicant before issuing the policy. Since Prime America Insurance is not checking the physical health of its applicants in a thorough manner, the premium rates are extremely high.

    If an applicant is in terrible health, then Prime America Insurance maybe a good value. Yet, a large percentage of potential clients are able to get much better value for their money by applying to a life insurer that checks their medical condition completely.

    Prime America Life Policies is Overpriced for the Vast Majority of Applicants
    Your life insurance agent should be your professional shopper. A person that can explain the tax consequences of investments and life insurance. Your life insurance agent should be able to help you apply to the insurance company that will give you the best value for your money.

    Prime America agents represent only Prime America. A traditional life insurance professional will represent multiple life insurance companies and present to you the application to the insurer that, based on your physical health and other factors, will give you the best value.

    Commissions to Agents are Extremely Low - Which Allows Layers of Recruiters to Earn
    The Prime America agent is not a professional shopper. He or she was recruited by a local office and instructed to contact every person that they know to sell term life insurance and mutual funds. The recruiter will join the new agent on the appointments and, in essence, split the commissions.

    The recruiter of the recruiter will also be splitting commissions. The recruiter of the recruiter of the recruiter will also be taking a cut. The local office rent and expenses also has to be reimbursed.

    The new agent will sell dozens of policies to his relatives and friends during the first few months of Prime American employment. Afterward, the new Prime America agent will get smart and find new employment or he/she will become a recruiter for Prime America.

    Soliciting Distant Relatives
    New Prime America agents should be prepared to solicit:

    • Every distant cousin.
    • Every guest at their wedding.
    • Everyone in their high school year book.
    These people will be your first victims and will be fueling this multi-level marketing insurance sales scheme. Any normally intelligent person should realize that there is no need for multiple levels of commission-able entities in a sales process - The money has to come from somewhere.


    We are in the Age of the Internet
    It is getting harder to deceive people. More than ever, clients realize that if the insurance company is more careful on who they are accepting then that policy is better value for relatively health applicants.

    Agents realize that if you eliminate the local office and layers of recruiters then their is probably more money to compensate the actual sales person.

    Shopping online is easy. The term life quote engine at the top of the page shows over 100 life insurance companies. Probably a good idea to apply with a professional shopper/agent that can get you the best value.

    Life insurance can be purchased over the phone. Is there really a need to sit at the kitchen table with an insurance agent? Obviously the answer is no. Clients are getting smarter.
     
  3. toolbelt
    Offline

    toolbelt Super Genius

    Posts:
    249
    Likes Received:
    57
    Except in the case of unisex rates, its not a blending of the premiums, but rather a lack of recognition of the lower risks to females, forcing them to pay full male rates.
     
  4. Robert Barney
    Offline

    Robert Barney Guru

    Posts:
    1,186
    Likes Received:
    103
    Sure, but the opposite is true with an annuity (pension) payment.

    In a sex distinct state a female at the same age will get paid less per month because the female is expected to live longer and so the pension will make more payments. The male will get more per month because he won't live as long.

    In a unisex jurisdiction the male and female will get the same pension, meaning the male will end up being paid less per month than in a sex distinct jurisdiction, and the female will be paid more per month. Females win with pensions in a unisex system.

    Actually, I suspect that it was pensions that motivated the change in MT more than anything, and life insurance was caught in the back water of a bad law.
     
  5. wfs
    Offline

    wfs Guru

    Posts:
    326
    Likes Received:
    13
    Will the Basic Quoter return results for Primerica?
    COMPULIFE Product | Basic Quoter - $96/year

    We run all Macs here - so this would be perfect if it works with the Basic Quoter.
     
    wfs, Mar 12, 2019
    #25
  6. toolbelt
    Offline

    toolbelt Super Genius

    Posts:
    249
    Likes Received:
    57
    The point is, females still live longer statistically, so any insurer that doesn't take that into account is doing a disservice to potentially half their client base.
     
  7. rousemark
    Offline

    rousemark Still Here!

    Posts:
    15,908
    Likes Received:
    3,249
    State:
    Tennessee
    Yeah, but they are doing a favor for the other half .
     
    Last edited: Mar 17, 2019 at 1:30 PM
  8. toolbelt
    Offline

    toolbelt Super Genius

    Posts:
    249
    Likes Received:
    57
    Not quite true because there's no averaging affect applied to males.
     
  9. pfg1
    Offline

    pfg1 Guru

    Posts:
    1,381
    Likes Received:
    199
    State:
    Virginia
    I was surprised a few weeks back I was playing on a quoting engine (I think term4sale) that Primerica was right up near the top. It was for an older smoker std health, not sure where their sweet spot is, and have no clue how their underwriting is. I can't remember the last time I saw them on the list.
     
    Last edited: Mar 13, 2019
    pfg1, Mar 13, 2019
    #29
  10. WinoBlues
    Offline

    WinoBlues Guru

    Posts:
    18,986
    Likes Received:
    2,371
    State:
    California
    You found it.
    "older smoker std health, " I rarely run into them any longer. Maybe someone terming out but rarely a recent policy. Prospects have easy access to term rates to compare.
     
Loading...