Have you ever had a burning desire to sell securities on Wall Street? If so, maybe selling mutual funds and insurance products would satisfy you. Primerica MLM pride themselves on helping middle America with their investment needs. So if you enjoy helping people and working with insurance products, this could be a great opportunity for you, right? Maybe. In this Primerica MLM Review, I’ll outline how much it will cost before you even get started. Then we’ll take a look at if this is right for you. So let’s get started.
What is Primerica?
A.L. Williams was the founder of the company back in 1977 along with his wife and 85 other colleagues. Primerica is a multi-level marketing (MLM) company that provides financial services and is headquartered in Duluth, Georgia. The company services households in the U.S., Canada and the territories of Guam and Puerto Rico. They have over 130,000 life insurance licensed independent representatives as of 2018. They are SEC registered as a broker-dealer and their shares are traded on the New York Stock Exchange.
The company started out selling term life insurance. Their target market now is middle-income consumers with incomes between $30,000-$100,000.
Are Primerica Products Worth Their Price?
Primerica products seem to be higher priced in comparison to other similar products. Take their Term Life Insurance, for example. These policies are, on average, 11% higher than other similar policies. In this case, the quote was for a 35-year old non-smoking male in good health and the policy was for $500,000 in coverage.
Unfortunately, you can’t find prices for any of the products on the website. In order to get any pricing, you need to contact a representative. But if their term life insurance is 11% higher than their competitors, this means that customers can find equal or better products elsewhere. So Primerica products could be a hard sell.
What is Term Life Insurance?
Term life insurance is basically a death benefit used to cover funeral costs and financial obligations upon the insured person’s death. The money from the policy goes to the beneficiaries. The policy only pays if the insured dies during the life of the policy. No money is paid out if the insured dies after the policy expires.
The Primerica MLM Opportunity
Primerica also provides other products such as mutual funds, annuities, long-term care insurance, auto insurance, home insurance and more. So the opportunity is not to just sell term life insurance. You can also make money selling other products.
Before you can even begin to sell any type of insurance you must be a licensed insurance broker. And these licenses are state licenses. This may mean that you’ll need to take the Series 6 and 63 License exams which permits you to sell securities like mutual funds and variable annuities. You may also be required to take other exams depending on what products you intend to sell.
Here’s a video on the Primerica MLM Opportunity called ‘A Simple Philosophy’. Have a watch below.
How Much Does It Cost To Join Primerica?
To get started with Primerica you’ll have to pay a one-time fee of $99 in the U.S. or $103.95 in Canada. In addition to that, representatives also have to pay $25 per month for access to Primerica Online (POL) which is their intranet website. Keep in mind that any licensing exams you take will have associated fees as well which you will have to pay for out of your own pocket.
Can You Make Money With Primerica?
Each of the products you sell with Primerica has it’s own commission point. The policies you sell will also have an expiration date. But for the term of any policy you sell, you will earn residual commissions in the form of monthly fees that are built into each policy.
As you recruit more people to join, you will also earn a commission from any of their sales as well.
Get Paid With Fees
Along with the commissions you earn, you will also earn money through monthly fees for the policies you sell. And these fees provide income for the life of the policy.
Actually Pay Claims
Primerica has a pretty good track record for paying insurance claims. According to my research, they pay 94% of life insurance claims within 14 days. This would be good news for your customers.
Before you can hold a presentation for your own potential clients, you must participate in field training where you observe a licensed representative give a presentation to prospective customers. In the meantime, you are not making any money.
Pay Your Own Expenses
As a representative, you will have to pay for all of your own expenses including any training, licensing fees, and other expenses.
Recruit, Recruit, Recruit!
In your first 90 days you are expected to get AT LEAST three new representatives into your business all while studying for your exams.
According to the BBB, (Better Business Bureau) Numerous complaints from customers who have tried to move their money from Primerica to another financial institution.
Sloppy Customer Support
Again, according to the BBB, there are complaints that customers who simply try to change their banking instructions have their policies cancelled because Customer Support neglected to process the request and then deny receiving the instructions.
There are numerous complaints about hidden fees within the policies purchased by customers. These fees, of course, probably go back to the representative who sold the policy.
Is Primerica a Scam?
The reviews I’ve read about Primerica are mixed. Even a reputable site like Consumer Affairs has mixed reviews. It actually starts out with a few good reviews. Reading further down and you see how people are angry over feeling like they’ve been scammed.
You’ve heard of slimy insurance salespeople, right? And why is that? It’s because they work on commission only in most cases. They don’t make a cent unless they make a sale. And their commission rate probably isn’t that great.
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