Primerica and Term Life Insurance – The Truth About Primerica

Primerica is a publicly traded financial services company with an emphasis on insurance products, investing and financial planning. Representatives are paid with a multilevel compensation plan which has benefits and drawbacks for agents and customers. This Primerica review will cover some of the complaints about Primerica as well as the opportunity.

Primerica is headquartered in Duluth Georgia, US and was founded in 1977. The company was formerly known as Primerica Financial Services/Arthur L. Williams. In the mid 1990s the firm acquired Smith Barney investment services and Travelers Insurance services, later becoming a subsidiary of Citigroup. Citigroup spun off Primerica in early 2010 and the company now trades on the New York Stock Exchange under the symbol PRI.

Primerica and Term Life Insurance

A.L. Williams popularized the idea of reducing life insurance premiums for the middle class by “buying term and investing the difference.” A whole life insurance product includes an investment component that builds value over the years and includes an agent commission. Term policies are more reasonably priced because they expire at the end of the term and have no investment value.

Today Primerica products include life insurance, variable annuities, consolidation loans, mortgages, pre paid legal services, long term care insurance, credit monitoring, auto and homeowner policies and mutual fund investments through Invesco, Franklin Templeton Investments, Legg Mason Funds and Pioneer Investments.

Complaints About Primerica

Many of the Primerica complaints originated from incomplete disclosure in recruitment methods. Job seekers looking for conventional salaried employment were sometimes led to believe that they were attending a job interview which instead became a recruiting session for a multilevel opportunity with no salary.

The Truth About Primerica

The multilevel compensation plan introduces aspects into this financial services company that are not present with fee based financial planners. There is an emphasis on recruiting additional agents to the firm, and new representatives can begin part time as soon as they pass licensing exams.

The cost is $99 to join, plus $25 per month and licensing fees.

In 2005 through 2009 the company developed TurboApps allowing applications to be submitted wirelessly, first on Palm handheld devices and later on the Windows mobile platform.

Primerica Compensation

Agents advance to management positions by meeting sales and recruitment goals. Regional Vice Presidents must work full time, maintain an office and train subordinates. Commissions begin at 25%. Over rides are paid on 4 levels.

The appeal of Primerica is that income potential is unlimited. Some RVPs are earning in excess of $1 million annually. There are no restrictions on sales territory, but agents may only represent Primerica products.

Investment products are targeted to middle class families through a financial needs analysis presentation.

Training and Marketing

Agents are encouraged to contact their warm market of friends and acquaintances, present the opportunity to everyone within a three foot hearing distance, and promote a replicated company web site.

Agents with initiative will also learn to develop an online presence to expand their marketing reach and drive targeted traffic to their online page.

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