For the life of me I cannot understand why they call it “Life Insurance“. I am serious folks, it's impossible to insure “life”. When you die, you are done. It cannot be fixed like a car after an accident and some insurance company pays for the repair.
That's a fact that cannot be refuted. So what is the purpose then to buy a life insurance policy? The two main reasons people usually buy life insurance are ….
1) to cover their funeral expenses and
2) to provide their family and loved ones with sufficient financial support in case of premature death, AND to accumulate significant savings for life after retirement.
Insurance companies offer two kinds of policies that cover your needs:
- Term Life Insurance come with relatively low monthly premiums and pay the coverage amount ONLY in the case of death before expire date.
- Whole Life Insurance with higher monthly premiums that pay the coverage amount in the case of death, but accumulate cash value you can borrow against to provide funds for education or other future goals.
From 1940 to 1977, people purchased whole life insurance to secure income for their family in case of untimely death and to subsidize their retirement planning. Term insurance wasn't very popular or even known in those days.
History Of Primerica
In 1977 A. L. Williams figured out a way to make founded, together with 85 associates, their own company: A.L. Williams & Associates.
His philosophy was “Buy Term Insurance and invest the difference“. He created a monumental MLM opportunity with an army of part time agents to convince customers to switch from their whole life insurance to term policies.
Within two short years, ALW Marketing became the largest seller of life insurance in the U.S. with over 100,000 agents.
L. A. Williams, now a Billionaire, made most of his fortune from investments in Citigroup, of which he owns over 20 million shares.
Primerica is a publicly traded company on the New York Stock Exchange under the symbol “PRI” and it is listed in a good standing with the BBB.
The Primerica Products:
At the inception of A. L. Williams & Associates, the main focus was the sale of term life insurance. But as Primerica grew they started to offer a variety of other products:
- Financial Needs Analysis
- Investments
- Auto & Home Insurance
- Long Term Care Insurance
- Primerica DebtWatchers
- Pre-Paid Legal Services
I may be missing some but you get the picture. They offer a wide range of products.
How Does The Primerica Business Opportunity Work?
Unfortunately or fortunately depending on your point of view, Primerica functions as a typical MLM!
They have an 11-level upline system that will get you “kickback commissions” from your recruits, your recruit's recruits down to the 11th level (as outlined in their “Primerica Final Prospectus”, filed April 2, 2010).
Primerica DOES NOT employ salaried agents to sell their products, nor do they contract with independent insurance agencies. Instead, they build their sales force under the premise to offer a job opportunity. And here is how that works.
Someone you know (a friend or family member) tells you about this great opportunity to start a new career and become your own boss. He/she invites you to a meeting in which you will find out the details.
In typical fashion, these meetings take place in a conference room at a Holiday Inn or Best Western hotel. There is the usual build up of hype and excitement, and you sign up to become an agent for Primerica.
What are the Primerica Start Up Costs?
At the time of this review you pay $99 to join, plus $25/month for the Primerica Online support system. In Canada, the fee is $103.95, plus $28/month for Primerica Online. These fees also include applicable sales taxes.
Part of the charge is a fee for a license you need in The U.S. to sell life insurance policies which makes sense. But at the same time, you are urged to take out a term life insurance for your self.
Remember, the person that recruits you needs to make a commission to feed his/her kids, the goldfish and dog, cat or bird they have. But at the same time it also makes sense that you own the product you sell in this situation.
The Primerica Complaints!
So you're probably thinking well everything must be sweet if the company is publicly traded and they're listed with the BBB right?
Not so fast, my friend. Before you jump in and try to swim with the sharks, let me tell you what I don't like about this whole Primerica thing.
Unrealistic Income Claims & Time Frames
Some Primerica reps likes to sell people on how easy it is to earn a six-figure income within a year or two by making a few sales per day.
But the reality shows us a different picture. Here is an excerpt from the official Primerica Income Statement for the year of 2013:
“…there is no guarantee that you will achieve any specific cash flow level. Most RVPs/representatives do not achieve the levels illustrated. From January 1 through December 31, 2013, Primerica paid a total of $536,506,140 in compensation to its sales force, at an average of $5,614 per life licensed representative…”
The average compensation of $5.600 per agent includes the income of the top earners.
Out of roughly 100,000 Primerica reps, there were 2818 earners that received compensations in the amounts from $1,000,000 (1 million) to $36,000 for the year.
- 28 made seven-figures ($1,002,832)
- 1,035 got six-figures ($100.056)
- 1,755 five figures (36.010)
ONLY 3% of all Primerica reps made a living income!
Now compare that to a, State Farm Insurance Agents Annual compensation – $30.000 to $67,000 (source: ehow – State Farm Earning Report). Makes you wonder.
The High Failure Rate
According to the Primerica Annual Report 244,756 new reps were recruited and 152,901 reps either quit or were dropped.
This accounts to a 60% failure rate within the first year. According to the U.S. Bureau of Labor Statistics the failure rate of start-up businesses is 14% – 19% and the survival rate for a normal business is 54% – 67% after 4 years.
Of course, not everybody taking the step from employment to being self employed will succeed. It does not matter what market or industry people try to start their own business, many will fail for manifold reasons. But it seems like you're more likely to fail with this business given their own stats.
Primerica's Products Are Overpriced
Back in the old days, good ‘ol Art was able to offer the cheapest term life insurance policies to a certain customer base to replace their whole life policies and have them invest the difference.
But times have changed, and other insurance companies offer 20% to 50% CHEAPER POLICIES than Primerica. This is probably because, they don't have to feed 11 upline levels of hungry reps.
To Sell or To Recruit, that is the question.
Like many MLMs it seems that many of Primerica's reps are trained and more focused on recruiting people into their MLM rather than pushing the actual products. It's probably easier to recruit people into the business since some of the products are overpriced. But I've always taken issue when an MLM focuses more on the recruiting because it leads me to believe their products aren't as good. That said it doesn't mean reps aren't actually pushing the products or making money with that alone. But the recruiting does seem to be more important.
You Do Not Really Own The Business
If you decide to leave Primerica, you will lose all your clients, their recurring commissions and you can sell your business only to another Primerica member (for a few pennies on the dollar, that is).
You Cannot Have Your Own Website
Primerica wants to control all aspects of your business and will not allow you to have your own website. In addition to that, they charge you $25 per month for the use of their server and pre-build website. Now this may be because of the fact you're selling financial products so by law they really need to monitor what you put out there to cover their asses. But from a branding standpoint it limits what you can do online. You're really going to need to hit the streets to make that money from selling the products. Or you can focus more on the recruiting aspect which is probably why you see more reps doing that part of the business.
Very HIGH number Of Complaints!
Now I'll be the first to admit that every company is going to have some complaints. It doesn't necessarily mean they're a scam or bad. But the sheer number of Primerica complaints I found online was staggering even for my liking. I read way over 500 complaints, and there were tons more I did not read.
For the sake of completeness, I show you two typical complaints, one from a customer and another from one of the Primerica reps.
This is a customer complaint. You can read more like it by clicking here!
Here we have a collection of complaints by Primerica reps (you'll find some positives as well)!
I ask you to read some of the complaints yourself and let me know your opinion before you leave. These complaints should not be taken lightly. I agree that some may be unfounded or from “notorious complainers” (you know the kind of folks that always complain about water being too wet).
However, the sheer amount of complaints is a clear message: Something is not right in Primerica land
Is Primerica A Scam or Legit?
Technically it's not by the legal definition of scam. The customer does get a product. But are they getting the best product and the best price they can? That's open for debate.
The other aspect that can be argued is the validity of advice of giving up your whole life policy for a term policy and investing the difference. I'm not a financial advisor nor do I know your financial situation. There may be merit to using a term life insurance policy over a whole life depending on your situation.
I can see how some people would argue that a term life policy is a waste of money in the long run for most people. It seems like the insurance company would make out more times than not because the likelihood of those policies being cashed out before their term is very slight. So the life insurance company is basically collecting free money for the most part.
Whole life insurance always appealed to me because of the cash value, being able to borrow against it and many of the other features that make it more expensive than term. I feel as if I'm getting more for my money and that's why it cost more.
So again I can't really speak to your situation. The financial aspect of the Primerica philosophy can be debated either way. So I'll leave that to individual circumstances to determine the right path for you.
But from the business opportunity aspect, the cons I've listed above do give me pause. Although Primerica is a legitimate company, I personally walked away from their company after attending one of their hype sessions and doing my research. I didn't like the idea I was misled into believing we were going to be presented with a job opportunity which at the time is what I was seeking. So for me it was “no bueno”.
Of course, “Eddy with a y” cannot tell you what to do. If you think this is a good business opportunity for you, then give it a shot. But I ask you to consider the statistical data I showed you in my review.
- Do you really want to be one of the 150,000 that join every year, only to drop out a short while later?
- Do you really want to be one of the 100,000 reps making a meager 5 Grand a year?
Ultimately that's on you to decide. At least now you know what some of the negative things are that other reps may try to hide from you. You can go into this knowing full well what some of the pitfalls are.
Looking for an Alternative To Primerica?
If what you read about Primerica doesn't appeal to you, there are other options. I quickly discovered that when I opted against this company many moons ago. I've been making money online since 1998 but it's actually based on my passion and not pushing over priced products. I don't have to harass my family or friends or hit the pavement to make money. And that's just the way I like it.
If you want to make money online around something you love, you need to check out my My Top Free Work At Home Recommendation! It's totally risk free and you have nothing to lose if you decide it's not for you. So it may be something to consider.
I have no problems giving you other options and make no apologies for it. If you're on this site, obviously you're looking to make money and my job is to give you some other options that I have actually made money with. I'm very blessed to get paid to do so and I'm totally transparent about it.
Regardless, I try to be objective as possible when reviewing companies. This is why I've stated that Primerica is a legitimate company but it has some serious flaws that one must consider. If the flaws don't jive well with you feel free to consider My Top Recommendation. Either way you have choices. Don't feel pressured by any reps!
Like always, I would love to hear your opinion about my Primerica Review. So, chime in and leave a comment down below on your way out. I know there are some die hard Primerica reps out there and I welcome your feedback. Feel free to straighten out anything I may get wrong.
It's always good to have healthy debates. Hopefully the Primerica reps won't resort to some of the name calling or attacks I've seen other reps use because I don't just sing praises of their companies (ah hem Nerium reps, please stand up.)
That's it for today, folks. Thanks for stopping by.
Eddy with a Y
After my marriage, I was looking for a source of extra earning. One of my husband’s colleague introduced me to the Primerica insurance company. Initially, I was bit hesitant to involve myself with an MLM company, having heard many reviews. However, I thought to give Primerica a try.
From what I have researched, Primerica is a multi-level marketing insurance company. That is it with the theory part.
Coming to my experience, I have been using this scheme from a year and as of now, I have a good experience with Primerica. I have yet to experince the bad side of this MLM scheme. Most importantly, I have lived the life of an agent and learnt the business well. All-in-all; I’m satisfied that I have chosen Primerica.
Hello,
I am a very skeptical person, and I too was leery of Primerica. My take is very different in that I was one of the women that earned the use of three cars in MK years ago. When I left, I vowed never to be in another MLM again. Fast forward 15 years, my children were grown and I knew that education wouldn’t cut it for my retirement needs. I was introduced to Primerica through my son as a client first. We found that we were helped tremendously with the debt stacking program. We would have been in debt for 30 more years, with this program, we will be out of debt in 8-10, including our mortgage. Just a word regarding whole life vs term, even the financial experts like, Suzy Orman and Dave Ramsey advise buying term and investing the difference as a wise financial decision. Needless to say, we see the value. Then the RVP showed us the compensation plan and I told him there is a catch, always was. He agreed with me and said, yes there was, he said,”you have to be willing to work hard and you must have resolve.” “If, when you hear a ‘no’, and that makes you quit, don’t waste your $125, your time or mine by moving forward.” He was very up front and honest. About 10 years before, my husband was laid off and tricked into an office for a job opportunity. It was one of the juice or coffee MLM’s. We were hot, because, not only had he wasted gas, but time as well. I am not a fan of scouring the Indeed, Monster, Craigslist, for those looking for work. They need a paycheck, not a business at that point in their lives. That is one thing I refuse to practice. I will say that our group has not used verbiage to invite anyone to visit our office.
Hi Lisa,
I truly appreciated your no-fuss, concise comment and am wondering what it is your group does if you’re not using verbiage to invite anyone to your office? I’d love to chat with you personally
Sort of. If you never get into an accident you then you don’t get money. If your term ends and you’re still alive then you don’t get paid. Term is for a certain amount of time. So is auto insurance, 6 months to a year. Usually life insurance is 35 years or less. Well if you don’t die within that 35 years then you don’t get paid nor does a beneficiary when you die after your policy has expired.
One last question? How is term life insurance really that different from auto or health insurance?
Term life is paid to your dependents upon your death. Health and auto insurance you use while you’re still alive. lol
Thanks for sharing this. Eddy I agree… while multilevel marketing is not necessarily a scam per say there is some deceptive practices that they use to “recruit” people into the “opportunity” by choosing to omit certain information that is important for someone who is making an informed decision. Just last week I answered an ad on craigslist (of course have to be cautious) The rep called me today basically was trying to jam me into an “interview” before I had any time to ask questions. I asked him to tell me more before I “come in for an interview” he told me that they were in the financial industry and when I asked if there was any investment he says “yes” a background check fee. I ask how much and he replied “$124.00″… I asked him the name of the company, and that I would do research first. I already messaged him back stating I was not interested and that background checks do not cost that much. Turns out it is the $99 fee you talk about plus the internet charge of $25 per month that equaled that amount! But he lied again stating the charge was the background check, appointment fee and website.
You’re welcome Gina. Thanks for sharing your experience. This is the type of crap that I’m talking about that some of their reps engage in.
This is all bullsh*t. Our products are in no way over priced?!?! We sell the truth to the consumers. Reason other companies sell whole life is because they get bigger commission. Term life is the way to go. Not just that but you don’t even have to recruit!!!! They don’t force you to recruit. And in the interview we clearly state that it IS NOT A JOB omg y’all are some serious idiots. This is not a job. It’s a business. When you decide to join you go in business for yourself, but not by yourself. Everyone who says it’s a scam is because 1. they’ve never been offered something like this so they’re scared 2. haven’t even given it a shot and 3. they don’t want to put the work into it. Now I know this isn’t for everyone. People who don’t make it are those who just want to make it without even putting work into it. We’re on the NYSE! HOW THE HELL WILL A SCAM BE ON THERE!? We’re listed as one of the most TRUSTWORTHY companies by Forbes. I can go on and on but Eddy you’re not worth my time. I made $6k my first month being licensed and I’m just 18. So go on and try to get idiots into your pathetic company. My scam company and I will be laughing and all the doubters when we’re at the top.
Settle down younging. Don’t get upset because we’re pointing out what people have complained about and what I personally experienced. You’re so wound up you probably missed where I do say the company is legitimate but has flaws and there is no debating that. Every company has flaws. But to sit here and front like your company doesn’t is nonsense.
1. Price is subjective. So some people feel that it is over price. Whereas others may not. It doesn’t mean either person is right or wrong but that is the feeling out there for some folks.
2. I agree whole life is usually pushed because an Agent makes more. It’s not to say there aren’t some benefits to whole life like cash value that you can borrow against. But even that argument can probably be disputed as well. Term life is probably good for most people
3. Obviously this is a business. But unfortunately it isn’t always presented as such. Some reps and ads have misrepresented as a job. And then when you finally meet or learn more about the company you’re then told its a business. I’m not saying everyone at this company operates like this. But I know I’ve experienced this and others. So for you to call people idiots because reps of your company have misrepresented the opportunity is just childish.
4. Everyone that calls it a scam doesn’t do it because of the reasons you listed. That would mean you personally know and have talked to everyone that has labeled this a scam and we know that’s not true.
I get it you’re a rep and you’re making money with this company and that’s great. But trust me when I say you never win over people by resorting to name calling and being emotional because you don’t like the idea that there are complaints against a company.
Are some people just natural complainers? Sure. But there are some people that have valid gripes and to ignore them says a lot about you as a rep.
Primerica is a scam. I don’t know about people who work for them but I am a customer and I’ve been lied and literally robbed by them. They told me to pay them $100 each month, and they would be adding more dollars by playing with my money in stock market. And they promised me that if they lose money, it would never effect the money that I invested. After all, they lost money, and cut it from me. I’ve spend about a thousand dollars and when was expecting to see that I made some extra bucks out of it, I found out that I lost $200 already. So I decided to cancel it and called the customer service. Some guy picked up the phone, who had a huge accent that you can not understand nothing. I asked him how come they cut my money when they promised to not to touch it. He said, it is market change and that’s how it goes and they can’t do nothing about it. So I wanted to cancel my account, but then they asked me $50 of termination fee! Really!?! Did you give me any signup bonus or anything? Hell no! So I already lost money, plus now gotta pay some ridiculous termination fee to get rid of them. Spent a thousand, and have my $500 back, if I can really get it back.. Don’t let them fool you people, it is a SCAM.
Hey Nick,
Thanks for sharing your real experience. That’s crazy.
Primerica is a legitimate marketing business.
They market financial products for numerous companies. And for doing that they make a lot of money. The commissions are LARGE compared to insurance companies because Primerica doesn’t spend the millions of dollars like other insurance companies do on advertising.
Primerica is marketed as a PART TIME opportunity. You should have a full time job before starting this business.
The company pays for your licensing and fingerprinting.
The insurance industry is highly regulated and is not like an MLM business. Primerica runs like a real estate business with “brokers” who own the business and “agents” who work for the brokers. Once you reach the Regional Vice President (RVP) level, then you are a “broker” so to speak. Your commissions and bonuses are $$$$. So the goal is to hit RVP. problem is most people do not have the drive, desire, motivation, or where-with-all to accomplish great things.
In any “sales” opportunity it is a numbers game. If you can weather the rejection, just by sheer numbers, you can win.
Not everyone is cut out for this. Not everyone wants to grow and change and be teachable to make the money. Most people want to use any excuse when things get hard – so they fail and blame the excuse. Those who want to succeed do – because they continue when it’s hard and win by the sheer numbers!
Ask any statistician: If I
NEVER give up, can I win at this? The answer is ALWAYS YES. The question is: What price am I willing to pay?
If you want to give up you will find ANY excuse to give up. It’s not the company or the products or your upline.
The problem is staring you in the mirror. YOU are your own competition. YOU determine if you succeed or fail, win or lose.
There is NO OTHER COMPANY IN NORTH AMERICA where you can start a business for $99 and have all the support and business tools to help you succeed. This is the GREATEST opportunity to those looking for it!
Although I agree with some of what you’re saying in that any business requires hard work, consistency and patience to work. But some businesses are better designed for success than others.
This company does have inherent flaws which you failed to address. And just blaming the rep for their success or lack there of doesn’t take that away.
But I appreciate your comments even if you sound like you’re sipping the primerica koolaid. Cult like blind following of a company where a rep can’t admit a company has flaws is always a warning sign to me. But that’s me.
It’s just a glorified AMWAY. It’s a legalized pyramid scheme.
Most traditional life insurance policies won’t sell you term because the commission they pay to their agents is very low. They pay high commissions on whole life policies. Whole Life never made a lot of sense, since a savings vehicle is for the living and life insurance (a misnomer if ever because the policy can’t replace a life) is for when someone passes away prematurely. Secondly to “borrow” my own money and pay back with interest makes no sense to me. Thirdly, often these policies will only pay one or the other but not both. Additionally, the first one to three years of a policy earns you nothing in cash value and then sequentially, you have about a hundred or so dollars in your so called “savings vehicle” and it very slowly builds from there. Even in a conservative investment account your money would grow faster. Check out Suze Orman on the difference between whole life and term.
Yvette, thanks for sharing the breakdown of life insurance products.
I just recently joined primerica, got licensed for insurance and going for my other licenses. The office I work in is great. I’ve been working here for about 3 months and my first month was the hardest. My second month I made 6,098.03 not bad for selling life and car insurance. My up lines do push for more recruits and they focus on training and coaching rather then selling. And I already figured out why. It’s because of the mlm structure. I will not say this job is for everyone. Just like a car sales isn’t for everyone. But if you have the ability to sell then yes you can succeed. My up line paid the cost for me when I signed up, I just pay the cost of access to there online website witch is very useful. Most of my friends want to work where I am at but I know they will fail because most people want to stand around and get paid. This is a job where you need to go out and sell, my main method is door to door as I think phones are to impersonal. But this is just my 2 cents.
Hey Bob,
It sounds like you’re doing great and that’s wonderful. You definitely need to be a sales person at heart to work with Primerica and clearly you are.But most people aren’t sales people. And unfortunately some reps misrepresent this business opportunity as a job when it’s really a business. So you’ll attract the wrong people who have a job mindset and work ethic. So that’s always been my primary issue with how this company is marketed. Either way, I’m happy its working for you. Thanks for sharing.
I thought Primerica is a SCAM run by con artists but your facts and statistics prove it! Starting with the fake job interview, they crush the hopes of many hopeful people. It is bait and switch with everything and they lie so much. It makes you wonder how they live with themselves. People need to wake up and ditch the self-delusion: If you are not the one starting the pyramid scam, you are never getting the payoff. NEVER. 3% can earn a living at selling Primerica insurance (which is half price if you go directly to the insurance co) and that is because they got in 35 years ago. You are not them. You are too late. Become a lying scumbag criminal and start your own PYRAMID SCAM.
Hey Nancy,
Thanks for sharing your thoughts about Primerica.
I wouldn’t encourage people to start their own pyramid scheme. There are plenty of legitimate ways to earn money. If people want to get into business for themselves, take a look at my recommendation here. It’s what’s helped me make money legitimately for years.
Only 5% of their entire force exceeds more than $36k/yr. Their top earner list is cumulative, not annual, and 64% of those on the list made that money prior to 2000. Many never repeated those “career” numbers ever again.
http://www.foxunited.net/company-destiny_us.pdf
Thanks for sharing.
It is so sad that hopeful, trusting people think they are getting a job when Primerica uses them as a cog in this Pyramid scheme. They can lie without blinking. 97% of Primerica people cannot earn a living from it.
If someone needs term life insurance they can go DIRECTLY to an INSURANCE company and pay half the cost of PRimerica.
Thanks for sharing your thoughts Ginpols. I appreciate it.
Ive been an entrepreneur since I was 16 and 1) your stats on business up start failures for the 1st yr are way off. 90% of the population will never own their own business. Of the 10% theres only a 1% chance theyll make it. Most businesses are at a loss the first 3 yrs. I’ve been around business professionals my entire life. Just trust me. They all say the same thing. So sure MLM isnt your thing fine. I have my own business as well as my primerica business and the better of the 2 is Primerica. Not because the MLM structure is favorable. In any type of product pushing MLM its no fun. But why I happen to personally get coached fr several 50k-100k per month earning reps is because on the product side we do whats right 100%. Your right passion sells not money hungry ppl which I mentioned earlier is pretty much 99% of the population. So that makes our 60% failure rate actually look excellent. “over priced products” is a joke. My fiance had cancer and his premium rate was high. Then after a couple of years we upped coverage and they took the rating off the entire amt reducing our coverage fr 111 to 65 for an additional 50k coverage. You cant compare Primerica term to other term fr banks or other insurance providers. Of course it will cost more because no other company pays 35 yr level term mostly the highest is 20 yrs. We also do family not individual policies that drive down cost. We have GUARENTEED renewability. Only company in the industry that does. That means as a young healthy adult my insurance is cheap for the next 35 yrs and even if i get sick later in life they cant deny coverage. We also have no hidden conversion clauses which means you may think you have term insurance but really it converts to cash value (if youve been scammed into this its because you didnt read the fine print). And last but not least Primerica has ZERO exclusions. You buy, you die, we pay. I just saw a “term” policy that had so many exclusions we were scratching our heads trying to see in what way could you actually die for it to pay? Were the only company that does that which is why we are literally the only company that paid their claims when 9/11 hit. All other companies usually have a war clause. Not to mention the ppl who jumped fr the burning towers whos insurance company denied them claiming they committed suicide. Ive seen it all in the income protection world fr having family members with no coverage, work coverage only (good luck), and trashy scamming cash value give my agent a vacation commission hungry crap insurance, that probably wont pay anyway because of all the conditions. There just isnt any comparison when it comes to these supposed “over priced products”. Ps if you have pre paid legal your going to pay 30/month. I have primerica legal protection, same exact thing as legal shield our partner company but I pay 25. That because our business is so not in debt with 6 bil in reserves we can afford to cut cost to the consumer.
Rebekah,
Thanks for chiming in.
1. I don’t claim to be a mathematician. But the fact is most business will fail within their first couple of years and that includes MLMs and in some cases the failure rate is a lot greater with MLMs. The exact figures can be open to debate depending on the source. But either way we both seem to agree that it is very difficult to succeed at any business which I’ve always argued. I just like my chances outside an MLM.
2. I’m not a financial advisor or life insurance agent so I can’t really debate if the features you mentioned are indeed a true differentiator or just propaganda taught by the head quarters to address the valid concern of the higher prices charged by Primerica. I’m sure there are some unique features that may justify the price in your mind as a rep. But as a customer it may not and so the consumer will always shop around for the best price because of the society we live in. And thus it’s definitely going to make this harder to sell. I’m not saying it’s impossible. But even reading some of the justifications of the higher price you mentioned I don’t know if I’d be swayed by it. But it’s not to say others wouldn’t.
That all said, the company or reps seem to push recruiting more then selling the product. There are still a high number of complaints from people that were recruited by shady reps misrepresenting the Primerica opportunity and you don’t really own your business if you decide to leave the company. So there are still a lot of areas of concerns that would give me pause. But to each their own. There are definitely people making money with the company despite all this and that’s great. But it’s just not my cup of tea and I don’t think it is for a lot of people.
Hey Eddy! I used to be a primerica rep around 2008. Even got licensed. I left because of some unethical things that were going on. Some offices use monster.com and careerbuilder to look for leads. They select resumes, block their number and start calling people who are genuinely looking for a job, inviting them to an “interview.” I used to be so mad looking at these people coming into the office, well dressed, anxious about their “interview”, and later pushed to sit to about an hour long presentation. A friend introduced me. I left quickly after I could no longer stomach some of their recruiting methods. They would sit them in front of the room and everybody in the back would be hyped up from what the presenter would say. Can I say that primerica is a scam? Not necessarily because they provide products (same conclusion as the one you presented) , yet the likelihood of you making it in that business is very slim. You will make it if you don’t mind ruining relationships with your friends and family (your warm market) or if you don’t mind harrassing strangers. This is my take on Primerica.
Hey Steph,
Thanks for sharing with me. That’s how they tricked my friend into one of those presentations and we realized what it really was, we weren’t very happy about it. So I can totally understand why you were turned off as well. I appreciate you sharing your experience with us and re-affirming some of the things I argued.
Hi Eddy,
Great review on PA and in my opinion it is your typical MLM scheme (scam).
I detest these scams because they take the hopes and dreams of others and run with them. I have been scammed before and it is very frustrating to say the least.
If anyone here truly wants to control their destiny and fulfill their dreams they will act on your recommendation and check it out…..I did and have not looked back.
Thanks for your review on Pa.
Tammy
Hey Tammy, Thanks for chiming in. I’m so happy you trusted me and already seeing success because of my recommendation. You have see first hand why it’s my top recommendation.
Hi Eddy, you are so right.PA is a royal MLM mess. Way back then in ’78 I lived in Moreno Valley, CA and was introduced to A.L Williams by my tax preparer.
The meeting was in a hotel conference room and there were about 250 folks sitting around, waiting for the bit TV show to start. A.L. had his own private TV station to reach out to his sheep on a weekly basis.
Let me tell you, if you are a little weak in the thinking department, it was easy to get all hyped up. A.L. had a great gift……he was a phenomenal speaker and able to make people believe that water is not wet but dry.
But isn’t that what all the MLM/Pyramid gurus do? Hype you up, sign you up……you lose your money and the handful of guys that started it are laughing all the way to the bank and back.
My advice: If it’s MLM…..RUN fast and far away
John
Wow John,
So you got to meet the man yourself. That’s crazy. I have to agree with your MLM pitches are like timeshare pitches. I don’t know if they’re all bad. But I just know they aren’t for me. Thanks for chiming in my friend. Always good to hear from you!
I used to be a life insurance agent with New York Life. This is SOOOOO a scam!!! You can get cheaper and better term life insurance. I do not understand the cost for licensing, as most states, such as Florida, have requirements and state exams to be able to sell ANY life insurance products in their state.
That’s ironic I use to work with New York Life in their internet department. I do agree you can definitely shop around for better prices and features. Thanks for chiming in!
Hi Eddy,
Sounds like a scam to me.
This sounds like a legitimate company that has made its money scamming people. Some people actually do that for a living and call it good business practices.
Hey Bev,
This company was a tough one for me. Because they do sell real life insurance products. They are publicly traded, etc. etc.
I’m just not a big fan of the business opportunity aspect of this company. Legally they aren’t doing anything wrong so that’s why I wouldn’t call them a scam. I think that word is thrown around too loosely when we disagree with a company’s business practice. That said I respect your opinion and appreciate you chiming in. It’s always welcomed!
Hi Eddy. Love the review and I have a revelation. I too, was a Primerica rep in 2002 and 2003.
Seems that some things may have changed since I was on board. As with any other MLM company, you are hyped in the beginning about making the money. When I was a rep, the cost was $199, so it seems sponsorship has declined. Not to mention that you have to take an insurance exam (which at the time was $200).
I wouldn’t call it a scam, but I certainly wouldn’t call it a viable business opportunity either. Aside from having to obtain an insurance license, you also have to get a Savings and Loan license to sell the other financial products. Hmmm? As far as business opportunities go, I would not suggest Primerica unless you have “extreme” gift of gab. As with any business, it takes commitment to succeed. You will have to make way too strong a commitment and sacrifice to succeed in a Primerica business.
I’m not very fond of this opportunity and I wouldn’t recommend it to any more of my friends or family. I’m not even bitter about it either, just giving it to the people as straight as I possibly can. It’s not a universal possibility for the average Joe to succeed; and highly unlikely they will.
Hey Ken!
Thanks for chiming in. That speaks volumes since you were a rep. So thanks for filling in the gaps and providing more insight from someone that was actually with the company. I really appreciate it!
I would definitely not sign up for Primerica! To sell any kind of life insurance in this state (Wis.) you need to study the products to be sold, pass the test, and be licensed by the state. I have been there, being retired from major life insurance company. Another scam . . . .
Thanks for sharing your feedback Janet! I appreciate it.
Eddy, Good and thorough review of Prim America. I was familiar with AL Williams but not with Prim America. You quote their average agent income of 5600.00 annually, decent as a second or third income stream, but certainly life changing money. Does this figure account for the nearly 1500.00 dollars in expenses for being agent for PA? If not then it is much less attractive.
Your comparison to State Farm agents may be somewhat miss leading because most State Farm agents (indeed most all agents, independent or “company owned”) sell a full line of insurance products. Life, Health, Auto, Home, Fire ect,ect.
PA sells only life with the emphasis on Whole Life if I understand your review. None the less the review is solid IMO.
PA would prove to be of little to no interest to me. Of course if one could get in the 3% who are making a very nice income from the program, it would be very nice. Sort of like the real world where the 1% seem to control most of the assets and enjoy the largest incomes.
Thanks for your review, keep on informing us of opportunities both good and bad.
Larry
Hey Larry,
Thanks for chiming in with some great insight and points. You’re right that with other agents they do have a multitude of high commission products to sell as well so that would skew the numbers in their favor. And I agree I would love to be the fortunate minor percentage of people that are making most of the income of the world. I’m working towards that because apparently they get to make all the rules that benefit them. 😉 But that’s a topic for another time. lol
Thanks again for the great insight Larry. I appreciate it!
Eddy, Great review! It mirrors my experience with Primamerica a years back. At the time I believe I would have had to pay for licensing and training. So I decided not to move forward with them.
Thanks Marian.
I appreciate your feedback.
sure sounds like one to me and yes I agree with you that they try to tell you that you can make easy money that way , but the truth is that you can’t and they will tell you anything to get you in.
Hey Laura,
Thanks for chiming in. I have to agree they make it seem very easy when we all know any business will take time and effort. If it were so easy everyone would be running a business. So I definitely take issue with the misrepresentation.