Primerica

[DHK]

Nope.

 

[sman]

Nope.

Then why would you post it in a Primerica thread?

 

[xrac]

It amazes me how those that defend Primerica make statements like, "You only bash them because they're successful". When in reality, that's exactly what they do about every company other than theirs.

How successful are they really? I mean top to bottom. Sure the company is profitable. Why wouldn't they be? They sell overpriced products. But how far down the line are reps really successful? At one time in the past, Primerica had a website showing their "24-Year Track Record of Success". Amazingly, that site is no longer available. But here is what it looked like (I copied and pasted it in a word document). It was from around 2002.

[FONT=&quot]A 24-Year Track Record of Success[/FONT]

[FONT=&quot]Personal Income [/FONT]

[FONT=&quot]Today[/FONT]​

[FONT=&quot]Goal 2004[/FONT]​

[FONT=&quot]$2,000,000 - $4,999,999[/FONT]

[FONT=&quot]11[/FONT]​

[FONT=&quot]20[/FONT]​

[FONT=&quot]$1,000,000 - $1,999,999[/FONT]

[FONT=&quot]24[/FONT]​

[FONT=&quot]85[/FONT]​

[FONT=&quot]$100,000 - $999,999[/FONT]

[FONT=&quot]1,522[/FONT]​

[FONT=&quot]6,000[/FONT]​

[FONT=&quot]$50,000 - $99,999[/FONT]

[FONT=&quot]3,653[/FONT]​

[FONT=&quot]15,000[/FONT]​

Now let’s look at the 6 figure income myth. Primerica claims they have over 100,000 reps and to have paid out 450 million dollars in commissions. Let’s take a closer look at the numbers. Above is a chart of what reps made. You will see that just over 5200 reps made $50,000 or more. Keep in mind, there are expenses that one must cover on an annual basis that comes out of that $50,000. Now this leaves 95,000+ that make less than $50,000.

1. • 11 reps "earn" $2 million – $5 million per year. $2 million times 11 reps is $22 million. That leaves $428 million in compensation and 99,989 reps. ($450 million - $22 million and 100,000 - 11)
   • 24 reps "earn" $1 million – $2 million per year. $1 million times 24 reps is $24 million. That leaves $404 million in compensation and 99,965 reps. ($428 million - $24 million and 99,989 - 24)
   • 1,522 "earn" $100,000 - $999,999 per year. 1,522 reps times $100,000 is $152.2 million. That leaves $251.8 million in compensation and 98,443 reps. ($404 million - $152.2 million and 99,965 – 1,522)
   • 3,653 "earn" $50,000 - $99,999 per year. 3,653 reps times $50,000 is $182.65 million. That leaves $69.15 million in compensation and 94,790 reps. ($251.8 million – 182.65 million and 98,443 – 3,653)
   • That leaves $69.15 million in compensation to split between 94,790 reps. That averages out to approximately $730 per rep, per year BEFORE EXPENSES. And that is figuring at the low end. (Some of the first group make more than $2 million, some of the second group make more than $1 million, etc., which will bring the average compensation per rep, per year LOWER!! What does this mean? It means that 95% of the agents at Primerica DO NOT make a livable income.

The concept of Primerica is a good one. Buy term and invest the difference. The problem is rarely do people invest the difference. Secondly, if you were going to follow this concept, shouldn't you find the cheapest term available, thus giving you more money to invest? And don't even get me started on their overpriced mortgages.

Primerica/ALW made several people very rich and tons of people with over priced term insurance. I would love to have a list of every primerica policy holder. I have yet to come across one that I couldn't replace (assuming they were insurable).

Good post! If one looks at the plain hard truth there is little reason to go with Primerica.

 

[SalemInsuranceGuy]

Good post! If one looks at the plain hard truth there is little reason to go with Primerica.

One thing I don't miss about Primerica was the 7 am Saturday morning Rah Rah meeting. It was tough to do back then when I was single and had been out partying all Friday night.

 

[Martin Johnson]

One thing I don't miss about Primerica was the 7 am Saturday morning Rah Rah meeting. It was tough to do back then when I was single and had been out partying all Friday night.

Amen!

 

[rbrewer]

I have a lady who called me today who took a policy out with PA 3 weeks ago she wants to change says she does not trust the company. Since I know how they operate I asked how did you get hooked up with them? She said her husband got sucked in by someone at the church and roped her in. She says they are paying $108.00 for both her and husband with child rider of $25,000 and $150,000 on each of them for a 20 year term. She said she got the super plus rate and he got standard. I was comparing and they seem to be in the ball park. It does not seem to be over priced or am I wrong? Thanks for any feed back.

 

[SalemInsuranceGuy]

I have a lady who called me today who took a policy out with PA 3 weeks ago she wants to change says she does not trust the company. Since I know how they operate I asked how did you get hooked up with them? She said her husband got sucked in by someone at the church and roped her in. She says they are paying $108.00 for both her and husband with child rider of $25,000 and $150,000 on each of them for a 20 year term. She said she got the super plus rate and he got standard. I was comparing and they seem to be in the ball park. It does not seem to be over priced or am I wrong? Thanks for any feed back.

How would we know, unless we had their ages and smoker status?

 

[rbrewer]

Sorry how could I forget that. Both nonsmokers, she is 48 and he is 50. She is 5'3 123lb and he is 6'2 271lb. He takes one HBP med. Thanks.

 

[SalemInsuranceGuy]

Sorry how could I forget that. Both nonsmokers, she is 48 and he is 50. She is 5'3 123lb and he is 6'2 271lb. He takes one HBP med. Thanks.

Based on this info her rate would be around $21-$24 a month and his rate about $53-$57 a month for a total of $74-81 a month. Add a child rider on top of that let's say $10-$12 a month and you're at $84-$93 a month. So a savings of about $15-$24 a month. Which is $180-$288 a year or $3600-$5760 over the 20 years. Or if you invested the difference and assumed 10% return in a mutual fund that would be $11,486-$18,377 that they would have at the end of the 20 years by going through a different company than Primerica.

 

[whoaskew]

I am a male, nonsmoker, with asthma, and average weight.

When I was 21, I purchased a $100,000 30-year term policy from Primerica for $25 per month.

5 years later, I replaced it with an AIG $350,000 30-year term for $21 per month.

6 months after that, I got my insurance license and in the past few years have since replaced quite a few Primerica policies for a variety of reasons.