Insurance Agent Forum

[wfs]

This serves to be as an informational thread on the current Multilevel Marketing (MLM) companies that sell life insurance. I put this together for new agents who may not be aware that these companies are MLM and to provide some basic info.

I am not intending this to be a thread to debate MLM, just to help whoever it may help. Some of this may be incorrect or dated, so if I am asked, I will correct.

[COLOR=Red](For the record, I am not involved in any MLM organization)[/COLOR]

[COLOR=Purple]Primerica[/COLOR] www.primerica.com
Description: Almost everyone knows this one. Started as A.L. Williams (ALW), later bought by Primerica Corp (now Citigroup) and renamed Primerica Financial Services.
Primary Marketing Angle: Replace all permanent life policies with the "Buy Term and Invest the Difference" philosophy.
Companies: Primerica Life
Captive: Yes
Fee to join: Yes

[COLOR=Purple]World Financial Group[/COLOR] www.worldfinancialgroup.com
Description: Started by A.L. Williams / Primerica top producer and recruiter S. Hubert Humphrey. He left ALW after it was sold to Primerica Corp, and started Alexander Inc, later known as World Marketing Alliance. Sold assets (not the WMA name/logo) to Aegon (except for WMA Mortgage Services which was retained by Mr. Humphrey) and was renamed World Financial Group
Primary Marketing Angle: Replace policies with Variable Universal Life and Indexed UL.
Companies: Western Reserve Life, Pacific Life, others
Captive: Somewhat
Fee to join: Yes

[COLOR=Purple]International Marketing Group[/COLOR] www.img-corp.com
Description: Marketing group owned by World Financial Group's Xuan Nguyen, although you will find no mention of Xuan or WFG on the website. Not exactly sure how this operates, but I believe it caters specifically to the Asian prospect. I believe there is an arrangement between WFG and IMG.
Primary Marketing Angle: Not sure
Companies: various
Captive: Not sure
Fee to join: Not sure, but I would assume so.

[COLOR=Purple]Capital Choice[/COLOR] www.capitalchoice.com
Description: Started by Art Williams' brother-in-law DIck Kinnard. Basically the same thing as Primerica without the corporate owner, and on a much smaller scale.
Primary Marketing Angle: Replace all permanent life policies with the "Buy Term and Invest the Difference" philosophy.
Companies: ING, Fidelity, others
Captive: Yes
Fee to join: Yes

[COLOR=Purple]HBW Insurance[/COLOR] www.hbwinc.com
Description: More of a General Agency type of MLM. Allows agents to sell a variety of products and build a network of subagents. While MLM, seems to be a bit more toned down.
Primary Marketing Angle: Sell a variety of products part time, build a team
Companies: ING, Old Mutual, others
Captive: I don't think so
Fee to join: Not sure

[COLOR=Purple]The Alliance Group[/COLOR] www.anallianceforlife.com
Description: Started by a former Amerishare agent, their main focus is mortgage term and a term insurance product with "Living Benefits" underwritten by Western Reserve Life. The structure is very similar to WFG.
Primary Marketing Angle: Mortgage Life and Proprietary Term Life w/Living Benefits
Companies: Western Reserve Life, Transamerica, others
Captive: No
Fee to join: No

[COLOR=Purple]Life Agent Alliance[/COLOR] www.lifeagentalliance.com
Description: New company started in 2007. From the website, it seems to be fly-by night. No corporate address. I can't even be 100% sure if it is MLM, but the word "Alliance" in the title indicates that it is.
Primary Marketing Angle: Non-medical life insurance, voicemail leads
Companies: United Home Life, American Amicable, etc..
Captive: Unsure
Fee to join: Unsure

[COLOR=Purple]National Agents Alliance[/COLOR] www.naaleads.com
Description: Yet another "alliance" pushing non-medical term to everyone. Their system is mortgage leads from their direct mail program. Agents actually buy these leads from the company.
Primary Marketing Angle: Non-medical mortgage life insurance
Companies: Presidential, American General, others
Captive: Unsure
Fee to join: Unsure, but probably

And for history's sake, we can't forget National Marketing Alliance (RIP) and Amerishare (RIP). And not life insurance related, but Hubert Humphrey's World Leadership Group WLGI has Ceased Business Operations (formerly WMA Mortgage Services) which was MLM mortgage and real estate, closed it's doors in December 2008 (RIP).

I hope this is helpful.

[Norwayguy]

Very Concise and more complete than I would have thought of....

[CHUMPS FROM OXFORD]

Bravo! 5 stars!

[EDM]

Great info for newbies.

[wfs]

Thanks. Glad you all like it.

[xrac]

Originally Posted by wfs

Thanks. Glad you all like it.

Good post!

[Marker77]

Good Post Len!

I have always believed that insurance & MLM really don't mix because the focus, normally, is on recruiting and not on doing what is in the client's best interest.

I have built a sucessful insurance business and a successful MLM business but never put both of them together.

I can remember 27 years ago coming across some very aggressive AL Williams agents who beleived that one product fit every situation. "Buy Term and Invest the Difference." Their term went to age 65 and expired. When I asked them what happens past age 65, they were would spout off something that their trainer said. The funny thing was their term wasn't even that competitive. Most of the people were part timers and had no knowledge how insurance actually worked.

When you mix MLM with that business model, it may work for awhile but will fall apart quickly. Al Williams would bring in part-time family members, replace whole life policies with term insurance and then they would be out of the business. They wrote a large amount of insurance but the promises of the MLM model really never worked.

The best thing my state did was implement 52 hours of pre-licensing before they could take the test.

[EDM]

Are the Independent Producers of America on this list?

[Corporate Death]

Originally Posted by EDM

Are the Independent Producers of America on this list?

Oh man, cant forget THEM. Put your "Sales" resume' on Careerbuilder and they'll hound you day and night. Just wow.

[Norwayguy]

Originally Posted by Marker77

The funny thing was their term wasn't even that competitive. Most of the people were part timers and had no knowledge how insurance actually worked.

This is still the case....They only know what there RVP tells them and the RVP's only have experience with Primerica...I stopped in one day to talk to them because I liked the idea of creating a financial plan for the clients and taking care of the mortgage, insurance and investments under one roof...I didn't care that most Primerica reps I ever met didn't know what they were talking about because I thought it would be different with me since I had experience outside Primerica....but as I was talking to the RVP I caught him in many inconsistancies and errors...He stated that you could sell say 10K in mutual fund family A and say 20K in family B and because of primerica you would qualify for breakpoints with both companies (Totally wrong I was so insistent that if true would be a great selling feature I had him call the trade desk at the B/D not only was it wrong but here is a RVP just finding this out) wonder how many clients thought they were getting break points that they weren't.

[anthonyxm]

Good stuff Primerica has ruined lives in the northern VA area. A lot of agents were just used for signing up their friends and family, then they are discarded.
Now there is Premier Financial in MD that holds recruiting seminars in which anyone off the street is hired as long as they have $150 bucks and promise to 3 sign up family members for their upline,then they are left with no support. Its really sad.

[susieQ]

I believe UFirstAlliance is a new MLM. They are a spin off of the company that does the "Money Merge Account"

[wfs]

Originally Posted by susieQ

I believe UFirstAlliance is a new MLM. They are a spin off of the company that does the "Money Merge Account"

It is. I looked into that a while back until I realized not only was it an MLM, but they charge you (the client) thousands so that their "proprietary" software can calculate the best way to pay off debt. Totally ridiculous.

Well, here is the simplest and one of the best methods for eliminating debts. The snowball method. You can give it to your clients for free.

Free Debt Reduction Calculator for Excel

[somarco]

UandIwin is missing . . .

[robliano]

Great post!

[wfs]

Originally Posted by somarco

UandIwin is missing . . .

Huh. I've never seen this one. Goofy name.

[Cornelius]

Just a bit more information about HBW. HBW is a Financial Services marketing company with a MLM optional compensation structure. There are no recruiting requirements. Agents can earn and advance from personal production or with a team if they so decide to build one. The agents are independent with no restrictions on other outside activities as long as it's legal and compliant. Agents can pick and choose which products they wish to market. There's no requirement to market all the products. Some people just sign up to add a mortgage line to what they already offer.

The agents have ownership of clients and team from day one. Currently the admin. fee to join is $49.00. ( until May 31, 2009) There is no cost to market the HBW/Victory Mortgage program once the agent has a company code number.

HBW has their own Broker dealer HBW securities LLC and HBW Advisory Services. HBW agents have the option of series 6,63,26 and 65 (RIA).. HBW also has a debt reduction program available to agents to market. HBW - Helping Build Wealth - Cornelius Key

The MLM is basically just about comepnsation. HBW - Compensation

Any information people may want or need is on the web site or just call the home office. Three great points are being independent, immediate ownership and no noncompete. For carriers just go to the pipeline section on the HBW site. (If there is a carrier thats' not available with HBW agents are allowed to go outside and contract to fill the need of the client) Not all things are for all people, but HBW is an option. If people have a problem with recruiting, "Don't do it". Yes it's that simple.

[DJM]

Originally Posted by EDM

Are the Independent Producers of America on this list?

Tread carefully when considering joining this outfit.
And remember, believe only 25% of what you hear, and 50% of what you see

[wfs]

Too bad I can't update my original post...

[DJM]

Originally Posted by wfs

Too bad I can't update my original post...

They got rid of the edit feature???
Those bastards!!!