World Financial Group New Program Legit?

Dec 5, 2016

  1. Roy2015
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    Roy2015 Super Genius

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    Hey a friend of a friend was telling me about this new program that World Group Financial has started. Basically he said that he took out an Indexed Universal Life policy with a $1500 monthly premium and that his upline gave him the 1st $1500 to get started. So now if he recruits someone then he will give the new recruit $1500 to get him started. I thought that this would be considered Rebating but I'm new to insurance so I don't know really. I'm not getting involved I'm just wondering how they are doing this?
     
    Roy2015, Dec 5, 2016
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  2. ianbroker31
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    ianbroker31 Expert

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    Rebating is legal in CA and FL.
     
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    I wouldn't touch it until after the recruited person is licensed. Then it's all good and legal.
     
    DHK, Dec 5, 2016
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  4. marindependent
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    marindependent Guru

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    Like DHK said, make sure everyone is licensed.

    Personally I would still stay away from it.
     
  5. VolAgent
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    VolAgent Guru

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    Classic MLM BS. A game of hot potato that works great as long as you are able to pass it off. Someone is going to be out $1500 and stuck with some chargebacks, the question is who.

    Think about it, this is an $18,000 annual premium. And I bet it is designed to be all target to generate the maximum commission. Would you otherwise buy such a policy, would your recruit? If the answer is no, then you have no business being licensed.
     
  6. jboussea
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    jboussea Guru

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    there's a MLM doing something similary around here.. Freedom Equity Group I think they're called.. not a fan of the business model.. but they're legit.. reduced comp but you get residuals from recruits.. not sure about how I feel about turning everyone I know into an insurance agent.. I definitely can't position myself as an experrt if I'm trying to recruit everyone I meet.

    ...and yes they do require your recruit to get licensed..
     
  7. VolAgent
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    VolAgent Guru

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    All MLMs are "legit" for the most part. Their attorneys can read the rulings from the FTC and the courts. They realize there has to be an actual product.

    That does not mean they aren't scum. If the focus is upon recruiting more and more people and not selling the actual product, then it is just classic MLM with enough window dressing to be legal.

    There are plenty of ways to financially hurt people and still be perfectly legal, MLMs are just one example.
     
  8. marindependent
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    marindependent Guru

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    I believe that not all "All MLMs are "legit".

    Often times with these things its hard to tell the legality until their is a trial.

    For these insurance cases, they probably are more prepared and ready, but ... you never know.
     
  9. VolAgent
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    VolAgent Guru

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    We can disagree, that is ok.

    I think most are smart enough to put enough trappings on to appear legal. Those that survive for any length of time.

    In the end of the day, it doesn't matter if it is legal or not. Unless you get in early enough and are a great recruiter, you probably are going to get hurt.
     
  10. TampaHound
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    TampaHound Guru

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    I branched off into field sales with WFG because of an old boss. It's been a so-so experience for me so far. Generally I've not been happy and am looking into leaving them (if anyone has details on how to do this and not screw up my appoints that be great).

    While MLM's are good for a new agent in some ways, I would recommend going in with your eyes open and ask really tough probing questions. Ask for things in writing when ever possible (NOT A BROCHURE) and read it twice.

    I'm not stating it was a bad thing....it just was a mistake for me.:no:
     
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