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  • Anyone did business with Primerica?

    I just spent the last 2 hours or so with someone from Primerica talking about life insurance and saving money. What surprised me, was that it turned into a recruiting pitch, with my Mom in it, trying to make me join them (get training and licensed to educate people about how to save money and whatnot). He then goes on to telling me that trained people should recruit more people, but he'll be training them, while I get paid for letting them gain more people and teaching them about how to save money. Of course, all of this saving money, is just signing up people for their service.

    While I was talking with him, in my mind it screamed pyramid scheme. A bit of googling brought up this and a few more suspicious pages.

    I know that they want to save us money by doing the regular financial decisions, but trying to recruit people just after they pitched their position? I don't think so.
    How'd I get so white and nerdy?

  • #2
    Re: Anyone did business with Primerica?

    It's a MLM. Not among the worst out there, I guess - I mean, they actually perform financial advising and apparently even have average BBB ratings - but still an MLM, like Amway/Quickstar and that breed. The "service" is probably not as big a part of their overall mission as recruiting.

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    • #3
      Re: Anyone did business with Primerica?

      I bought term life insurance from them in '89. I cancelled it a few years ago because my kids are older. As I recall, it was a simple transaction, and no recruiting or anything was involved. Maybe they changed their tactics in the years since?

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      • #4
        Re: Anyone did business with Primerica?

        You don't need to use Primerica (a subsidiary of American Express) to build your future financial security, Adrian. If you can be disciplined enough to put $25-$50/month into a mutual fund IRA every month, you could be a millionaire by the time you're 65. Instead of spending all your money on computer stuff or clothes or games, invest some of your money consistently and you, too, can retire like Craig when you're 45.

        You don't really need much life insurance because you don't have any serious debts or kids yet. Once you have kids, that's when you need the life insurance. Now your parents might want you to get some life insurance so if something happens to you, it will help pay off any debts you might have, but you wouldn't need more than a $5,000 policy for that.

        Miulang
        Last edited by Miulang; December 30, 2005, 11:42 AM.
        "Americans believe in three freedoms. Freedom of speech; freedom of religion; and the freedom to deny the other two to folks they don`t like.” --Mark Twain

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        • #5
          Re: Anyone did business with Primerica?

          My wife and I got life insurance from a friend who was selling for Primerica. Yea the shpeel is super Amway like. But since it was friend... We got the insurance but didnt want to participate in the selling part. So you can get the insurance without the pressure of being a salesperson for the company.

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          • #6
            Re: Anyone did business with Primerica?

            Originally posted by Miulang
            You don't need to use Primerica (a subsidiary of American Express) to build your future financial security
            I know that, but I'm a bit skeptical of that company because they recruited people after they did their pitch.
            How'd I get so white and nerdy?

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            • #7
              Re: Anyone did business with Primerica?

              I went to one of those "meetings" One good thing is that it's backed by Amercan Express so you know it's not a fly-by-night operation. I'm not sure about Primerica's insurance vehicles but once back in the 80's I was studying to become an IDS Financial Adviser which was part of American Express' subsidieries. I didn't think selling only American Express mutual funds and annuities was going to make me rich so I dropped out and studied the market on my own and did my own investments thru more open brokers.

              When I saw Primerica and went to their showing, I was a bit skeptial but listened to their "sell". Basically term insurance which is good, you buy what you need is what they sell.

              Don't get into whole life insurance which is like an investment where eventually the cash value of the policy will pay for itself and at some point during retirement will pay you monthly dividends. Problem with Whole Life is that if the market crashes or spirals downward against your investment model, you will have to work hard to keep that policy viable if you had planned on it's disbursement during retirement. In the 90's Whole Life policies took a major plunge and the first of the aging baby boomers had to extend their working limits past what they wanted.

              The problem was that they didn't expect the market to dive that way and they were forced to keep working to shore up their Whole Life investment portfolio so they could get the dividends when they retire.

              And just when those policies were recovering from that stock dive, the year 2001 hit...September 11th, 2001 to be precise, and all that went belly up!

              The day I heard that news I quickly pulled my investments out of aggressive growth funds and sheltered them in conservative stocks and saved my retirement program I had carefully crafted in my 20's.

              But like any crash there is an upside. Stocks that plummeted were sold pennies on the dollar and many recovered quite rapidly gaining strength to reach all time highs. As a matter of fact I remember one stock analyst say on a national TV news magazine that Wall Street needed a major correction as the markets continued to spiral upwards with no end in sight as the Feds kept lowering interest rates. 9-11 ended up being that major correction.

              Anyway Primerica sells decent term life insurance but I wouldn't buy any whole life or annuities disguised as life insurance. You can do better by going thru outlets like Price Waterhouse, Smith Barney, Putnam or any of the other brokerage houses that sell more than their in-house products.

              One thing I didn't do was get on that bandwagon back in the 80's when Fidelity's Megellan fund was netting 44% APY. Normal people became millionaires before that fund was closed. Yep the 80's was a damned good decade to invest in.
              Life is what you make of it...so please read the instructions carefully.

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              • #8
                Re: Anyone did business with Primerica?

                Originally posted by craigwatanabe
                One thing I didn't do was get on that bandwagon back in the 80's when Fidelity's Megellan fund was netting 44% APY. Normal people became millionaires before that fund was closed.
                Fidelity Magellan is still around but not selling to new clients. I still have my Fidelity Magellan 401K thru my company and contribute 10% of my gross pay per pay period to Magellan. I don't feel like a millionaire. I still have my Primerica term life insurance policy I bought from my friend's nephew. He doesn't work for them any more but he still has his policy with them. I guess Primerica was an extra income type of job for him because he has a full time job he had for 20 years. He just sold me the policy and didn't try to recruit me to be a seller for Primerica.
                Last edited by na alii; January 20, 2006, 03:35 PM.

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                • #9
                  Re: Anyone did business with Primerica?

                  Originally posted by craigwatanabe
                  " it's backed by Amercan Express "

                  "You can do better by going thru outlets like .... Smith Barney,...that sell more than their in-house products. "

                  "You don't need to use Primerica (a subsidiary of American Express) to build your future financial security"

                  "I know that, but I'm a bit skeptical of that company because they recruited people after they did their pitch."

                  well hello.. im 18, yes im young yet every ambitious...ive recently joined primerica and ive noticed that with this business, theres people who just really dislike or could careless about it or are very supportive and passionate about what we do or have done for them....

                  with what you guys have said through out this post.
                  1) we are not backed by American Express... we have about 1.5 trillian dollars in assets... we are the distribution hub for our parent company Citigroup. Meaning we back up citigroup.... we can do everything these single product companies can do you for... (citibank, citifinancial, citimortage, citicorp trust bank, and smith barney)

                  which leads into my next point is
                  2)we do what smith barney can do...

                  and...

                  3) the recruiting process...
                  in our presentation appointments we do personally with a client, is we show both the finanacial services side and what we can assist them in...and we also so the business side... Primerica as a whole, is trying to grow even more then it ever has. So yes, after we show what we do, we ask if they would like to participate.. OH and the compensation is great...

                  4)using us to build financial securities
                  that is true, yes you dont need to..but who in the middle class range knows how to use their money right, have the money, or where to put it? they dont teach that stuff in school... so we are there to educate financially and help elimnate debt as a total package...



                  with this company...im very enthused and its so awesome how its such a positive environment...

                  =)

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                  • #10
                    Re: Anyone did business with Primerica?

                    the difference between an mlm (which is a legal business) and a pyramid (ponzi) scheme is the sale of product. Otherwise, the structure of the business is the same.

                    Take your first $25 and buy Eric Tyson's Personal Finance for Dummies. Get your head first around controlling your spending, and setting financial goals. Then learn about load vs no-load investing and why no-load is better. Learn about annual costs that get tacked on to a mutual fund. Figure out how index funds work conceptually and why they are among the best vehicles out there. Learn how to start investing; why a Roth IRA is the most important account you should have. From there, look at your short term goals and start with a money market, leading into other funds, asset allocation, avoiding overlap, etc.

                    Learn about why you should have LTD insurance. When you are ready to get life insurance, learn why term is the way to go. Understand what insurance is for and why you would need to buy it. And buy it smart.

                    You can do *all* of this on your own. Vanguard. Tiaa-CREF. USAA. You are young. Learn how to do it yourself, and companies like Primarica, American Express, Smith Barney and all those others will fail to suck on your pennies.

                    pax

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                    • #11
                      Re: Anyone did business with Primerica?

                      Primerica is a MLM selling life insurance. Simple as that.

                      Life insurance is very important. It provides security and salary continuance in the event of an unlikely event (dying early). It also provides for estate planning and tax sheltering.

                      Seeing as how Primerica churns through agents by "recruiting" them, is this who you want to be planning your life financially? Many Primerica agents do this part time or are in transition. I've heard of dozens of Primerica agents who stopped selling/lost interest. I've never heard of ONE who has done this past 10 years with Primerica. I'd rather have someone that has been doing it for years and has the proper licenses to back him/herself up. Also, how much did that agent believe in Primerica products/services, if they move on after a few years?

                      I only say this because I used to work in an insurance company and I used to handle Primerica conversions all the time, usually because they weren't being services anymore, because their agent went back to their regular full time job.

                      Somethings can be done part time. Like working at Longs. Or Wal-Mart. Not selling life insurance, which could have a serious impact/effect on your life. I wouldn't go to a part time doctor or lawyer. Neither would I go to a part time life insurance agent.

                      BTW, I believe in full disclosure as well. I have NEVER worked at Primerica and used to work at a life insurance agency in the past. However, that was several years ago and I have no related interest in that company.

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                      • #12
                        Re: Anyone did business with Primerica?

                        Originally posted by surreaL 808
                        well hello.. im 18, yes im young yet every ambitious...ive recently joined primerica and ive noticed that with this business, theres people who just really dislike or could careless about it or are very supportive and passionate about what we do or have done for them.... =)
                        Yes you said it...your 18 and you have a lot to learn about the insurance biz. Primerica was backed by American Express back in it's infancy. I know I participated in Primerica selling it because a friend of mine asked me to become one of his downlines.

                        I'm glad Primerica is still around (for the sake of policy holders) but it's simple term life insurance! You cannot base a retirement around Term Life. There is no value in it until you die.

                        But I suppose because you indicated that Primerica does what Smith Barney does I presume Primerica can set up retirement and pension plans as well by managing stock and mutual fund portfolios? I guess you are selling more than Term Life.

                        Good luck in your new career however at 18, there's still a ton of knowledge out there to learn. The sales pitch that Primerica will give you will always be positive, but the proof will be in the paychecks. Let us know how you fare in this business and once again good luck
                        Life is what you make of it...so please read the instructions carefully.

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                        • #13
                          Re: Anyone did business with Primerica?

                          Originally posted by gfunk91
                          I wouldn't go to a part time doctor or lawyer.
                          I have used both a part time doctor and part time lawyer. Both had very reasonable reasons to be "part time", and I was extemely pleased with their professional services.

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                          • #14
                            Re: Anyone did business with Primerica?

                            A CAPSULE REVIEW ABOUT PRIMERICA:

                            Primerica was not ever affiliated with American Express. Primerica had its beginnings as A. L. Williams Insurance Services (Arthur L. Williams, nicknamed "the Coach"), selling term life insurance for Massachusetts Indemnity and Life Insurance Company (MILICO). There were many complaints filed about ALW's deceptive sales practices by both traditional insurance companies and former ALW agents as many who failed in the business had their accounts confiscated by their upline ALW supervisors.

                            ALW was bought out by Primerica, which had its origins as AMERICAN CAN. The coach was retained on a marketing contract, then eased out by Primerica CEO Sandy Weill. Primerica then merged with Smith Barney, Travelers Insurance, and City Financial under CITIGROUP. There had been an initial movement to rid Primerica of the part-time sales force. Claims of an affiliation with American Express were likely a lot of hot air.

                            American Express was affiliated with a small Minneapolis insurer, IDS Life. IDS Financial Services was then changed to American Express Financial Advisors to take advantage of AMEX's widespread reputation. Today, American Express is no longer affliated and the firm is now Ameriprise Financial.

                            Back in the ALW days, agents sold a 20-year term policy ("Common Sense" term) that was roughly 15-20% higher in premiums than comparable plans from traditional carriers. That was for males. For females, the disparity was often 50% or higher as the MILICO plan did not charge lower rates. I actually replaced a MILICO term policy for a female with a universal life policy charging 15% lower premiums AND cash value accumulation. She had bought the MILICO policy from a fellow nurse who was a part-timer. You tell me which you'd choose: $52.00 monthly premium and ZERO cash value vs. $44.00 monthly premium and a guaranteed minimum 35% cash value to premiums paid at the end of 20 years.

                            In addition, the broker-dealer their agents used to sell their "Common Sense" line of mutual funds charged the highest load in the industry, 8.5%.

                            Sounds like "Common Sense" was just a lot of nonsense.

                            What ALW did was to offer a lower premium product (as opposed to whole life) to the masses. The problem with traditional agents is that many of them sold policies on the basis pf "forced savings" and were reluctant to think outside the box and offer term products which were more than competitive and would have blown ALW/MILICO/Primerica out of the water.

                            There's a lot more to comment on regarding their marketing philosophy and product lines, but I'll stop at this point. Suffice to say that I have 34 years of experience in the financial services industry and hold a recognized professional designation. And I've sold a lot of "term" coverage in my time.
                            Last edited by oceanpacific; September 6, 2006, 12:18 PM.

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                            • #15
                              Re: Anyone did business with Primerica?

                              Originally posted by oceanpacific
                              Suffice to say that I have 34 years of experience in the financial services industry and hold a recognized professional designation.
                              Oh yeah...well you don't have 35!

                              Well you know what? I guess that sales pitch I went to back in 1992 in Kailua, Oahu was bullshit because they did say they were affiliated with American Express.

                              And I did the IDS thing back in the 80's too under my good buddy Vernon Wong. 40-hours of homework every week, meeting in the Ala Moana BLDG one weeknight per week. Ten classes total for ten weeks. The drop out rate was 90%. Basically you miss one class, you'll never catch up and you eventually drop out. But upon completing the ten day course, you're a certified financial planner and a licensed real estate broker (provided you take the state certification...series 7 or something like that)
                              Life is what you make of it...so please read the instructions carefully.

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