This is just a theory, but I was thinking to myself about the difference in philosophy between Primerica and the rest of the industry. Primerica helps families by educating them, while the rest of the industry sells products that may or may not make any sense to the client. Take a look at this:
Primerica shows people how to get out of debt by educating people that they can control how long they can be in debt. Banks on the other hand, advertise interest rate like crazy, which keeps people in debt for a very long time. There's a simple mathematical formula where Total Interest = Principal x Rate x Time. Banks control the interest rate, but you can control the time. Its not the interest rate that will get you out of debt, its the rate at which you pay. If you were able to pay off your debt faster, that reduces your total interest, which then gives you the net effective interest rate.
Primerica educates people to keep life insurance and savings separate by "Buying term and invest the difference." The entire life insurance industry sells whole life or universal life insurance, which bundles your life insurance and savings together. Since when should people trust insurance companies with their savings? You only have the need for insurance if:
1) It is required by law to have it (such as auto insurance).
2) You don't have lots of savings right now, so you need insurance in case something happens. In other words, insurance is a financial tool that can provide income to you or your beneficiary (depending on the type of insurance) when a major event happens such as your house being caught on fire and homeowner's insurance will cover the damages OR you die, and life insurance will provide income to your beneficiary.
Primerica helps people invest their money for as little as $25/month or $50/month and get on the road to financial independence. Big investment companies will tend to ignore anyone who has less than $100,000 to invest. In fact, some say go to their website and invest online, but you have to pick on your own and where to invest. Primerica provides guidance on where you should put your money.
Primerica does a customize, confidential, and complimentary Financial Needs Analysis (FNA), which is a financial tool or financial guide to help you reach your financial goals. Many companies will charge you anywhere between $500 to $2000 or more.
At Primerica, they do what is right. I believe this is the main reason why the rest of industry don't like Primerica because they want to take in as much profits as possible by selling very expensive products. But Primerica's profits continues to grow because they do what is right 100% of the time.
Tuesday, July 14, 2009
Friday, July 3, 2009
Oh the truth hurts!
The last post I made really made several agents of the PRO-cash value life insurance really mad and pissed off. Some say its all lies and untrue. Some say its illegal to write that. Some say I should have my license taken away. First of all it is all true since it says so in the life insurance policy. I don't make this stuff up. I read over 500 different life insurance policies and they basically say the same thing (in less or more words). Are they saying that a life insurance policy has no truth behind it and what they (the agent) is saying is true? If that's so, then who should really lose their license? The agents who are ripping people off or honest person like myself who cares about the client's financial situation?
I know what my clients are going through and how tough it is to live in America. Middle income families such as myself have to work very hard just to get by in life. We have bills to pay and debt always seem to follow us wherever we are. We're not too sure about our future. Most of us don't even know if we will ever be able to retire. But I have solutions to all these financial challenges. There's always different ways to earn more income legally. One way is to look at the Primerica's business opportunity. Another way is to get a 2nd job. As for debts, I have several different programs that can get people out of debt in less time and save them tens of thousands of dollars toward interest payments. As for retirement, its good idea to start now and there's several investment plans where your money can grow tax-deferred. Do you honestly think that life insurance agents really care about your financial needs? They only care about how much you can afford and how much commissions they can make. After that, you probably will never hear from them again.
As for being illegal to write it, it is legal since I have the right to write it and there's nothing you can do about it.
I know what my clients are going through and how tough it is to live in America. Middle income families such as myself have to work very hard just to get by in life. We have bills to pay and debt always seem to follow us wherever we are. We're not too sure about our future. Most of us don't even know if we will ever be able to retire. But I have solutions to all these financial challenges. There's always different ways to earn more income legally. One way is to look at the Primerica's business opportunity. Another way is to get a 2nd job. As for debts, I have several different programs that can get people out of debt in less time and save them tens of thousands of dollars toward interest payments. As for retirement, its good idea to start now and there's several investment plans where your money can grow tax-deferred. Do you honestly think that life insurance agents really care about your financial needs? They only care about how much you can afford and how much commissions they can make. After that, you probably will never hear from them again.
As for being illegal to write it, it is legal since I have the right to write it and there's nothing you can do about it.
Thursday, July 2, 2009
Another look at life insurance
Its a fact that any life insurance that builds cash value is a ripoff and should be a scam. Generally how cash value life insurance works is that your premiums are paid for two parts in the policy, which is the insurance and the cash value. The fact that these types of life insurance have more than one parts to it should be a red flag to you. After all, look at the other types of insurance out there such as auto insurance or homeowner's insurance. Why is that only life insurance builds cash value and the other types of insurance don't?
Cash value life insurance policies are very expensive. If you own it, you will realize that you have pay lots of money for a very low coverage. An average 30 year old with $100,000 coverage will pay about $1000/year.
Many life insurance agents or financial advisors may tell you that life insurance is a great way to save for your kid's education or a great way to save for retirement. If you keep the policy long enough, you can take out the cash value. But did you know that when you take money out, that you are borrowing your own money? Did you also know that the company has the right to deferred you loan up to 6-9 months? That means, they put a hold on your loan request. When you get the money from the cash value, the insurance company will charge you a loan interest of anywhere between 5-8%! And when you pay the loan back, the interest portion of the payment does not go back into the cash value. It is kept by the insurance company as profits. If there is insufficient cash value in the policy, your policy is in high risk of being lapsed. If this happens, all that loan you have taken out will now have to be reported to the IRS and you will pay income tax on that loan. If you die while there's a loan balance due, the loan balance plus interest plus and missed premiums will be deducted from the death benefit. For example, if you had $100,000 coverage and there's a $20,000 loan and you die, your beneficiary will receive less than $80,000.
People selling this garbage may also say its a great way to build tax-deferred savings! FACT: There is no life insurance policy out there that has done better than a 5% rate of return. FACT: It only grows tax-deferred because the total amount of premiums you paid is always greater than the value of the cash value. How do you pay income tax on a loss of return? You don't! But if somehow the cash value is greater than the total amount you paid, your life insurance policy will be considered a "Modified Endowment." This means that any growth on the cash value will be subjected to income tax and that the death benefit will also be subjected to income tax to the beneficiary.
Let's say you paid all your premiums on time and never taken a loan out and then someday, you die. All the cash value in the life insurance policy will be kept by the insurance company while your beneficiary will only receive the death benefit.
You are probably wondering why anyone would want to own a cash value life insurance? The main reason is that they don't understand how it works and the person selling it makes this type of life insurance very attractive to the buyer. When the client receives the policy, majority of them never read it.
The solution: Buy pure life insurance that doesn't build cash value, which is Term Insurance. Term insurance can provide you lots of coverage for a low amount of premium. An average 30 year old with $100,000 coverage will pay about $600/year (compare to the $1000/year for a cash value life insurance).
Since it doesn't build cash value, you have the opportunity to save your money wherever you want. Whether its in a safe , inside your home, at the bank, or at any financial institution, you have easy access to your money. There's no such thing as "borrowing" (unless you have a 401(k) and you want to borrow from that. But at least the interest portion you pay goes into your investments, not to the investment company).
If you do the smart thing with your money by investing it in the right mutual funds, you will achieve a higher rate of return than any cash value life insurance policy. There's many mutual funds out there that has done a 10% or greater return in the past 10 years, even during all the tough times in the economy in some of those years.
If you die during the term, your beneficiary will get the death benefit. All the savings you built up will be paid to your spouse or family members. (Its always a good idea to have a Will setup for yourself so that your assets is properly distributed to the right person(s)).
If you live to the end of the term, you have options on what to do next. If you believe you still need life insurance, then you can renew the term for another one to 5 years, regardless of your current health conditions. You may be able to do a policy exchange into another term policy, but proof of insurability maybe required (depending on how much coverage you are asking for). Or you can cancel the term policy and save the money for retirement.
If you die after the term is up, at least your family will receive your savings. If you buy term and invested your money since the start, that could be lots of money for your family. If you invested $400/month for the next 30 years and the average rate of return was 10%, you will have $911,730.
Keeping life insurance and investments separate just makes sense, doesn't it?
Cash value life insurance policies are very expensive. If you own it, you will realize that you have pay lots of money for a very low coverage. An average 30 year old with $100,000 coverage will pay about $1000/year.
Many life insurance agents or financial advisors may tell you that life insurance is a great way to save for your kid's education or a great way to save for retirement. If you keep the policy long enough, you can take out the cash value. But did you know that when you take money out, that you are borrowing your own money? Did you also know that the company has the right to deferred you loan up to 6-9 months? That means, they put a hold on your loan request. When you get the money from the cash value, the insurance company will charge you a loan interest of anywhere between 5-8%! And when you pay the loan back, the interest portion of the payment does not go back into the cash value. It is kept by the insurance company as profits. If there is insufficient cash value in the policy, your policy is in high risk of being lapsed. If this happens, all that loan you have taken out will now have to be reported to the IRS and you will pay income tax on that loan. If you die while there's a loan balance due, the loan balance plus interest plus and missed premiums will be deducted from the death benefit. For example, if you had $100,000 coverage and there's a $20,000 loan and you die, your beneficiary will receive less than $80,000.
People selling this garbage may also say its a great way to build tax-deferred savings! FACT: There is no life insurance policy out there that has done better than a 5% rate of return. FACT: It only grows tax-deferred because the total amount of premiums you paid is always greater than the value of the cash value. How do you pay income tax on a loss of return? You don't! But if somehow the cash value is greater than the total amount you paid, your life insurance policy will be considered a "Modified Endowment." This means that any growth on the cash value will be subjected to income tax and that the death benefit will also be subjected to income tax to the beneficiary.
Let's say you paid all your premiums on time and never taken a loan out and then someday, you die. All the cash value in the life insurance policy will be kept by the insurance company while your beneficiary will only receive the death benefit.
You are probably wondering why anyone would want to own a cash value life insurance? The main reason is that they don't understand how it works and the person selling it makes this type of life insurance very attractive to the buyer. When the client receives the policy, majority of them never read it.
The solution: Buy pure life insurance that doesn't build cash value, which is Term Insurance. Term insurance can provide you lots of coverage for a low amount of premium. An average 30 year old with $100,000 coverage will pay about $600/year (compare to the $1000/year for a cash value life insurance).
Since it doesn't build cash value, you have the opportunity to save your money wherever you want. Whether its in a safe , inside your home, at the bank, or at any financial institution, you have easy access to your money. There's no such thing as "borrowing" (unless you have a 401(k) and you want to borrow from that. But at least the interest portion you pay goes into your investments, not to the investment company).
If you do the smart thing with your money by investing it in the right mutual funds, you will achieve a higher rate of return than any cash value life insurance policy. There's many mutual funds out there that has done a 10% or greater return in the past 10 years, even during all the tough times in the economy in some of those years.
If you die during the term, your beneficiary will get the death benefit. All the savings you built up will be paid to your spouse or family members. (Its always a good idea to have a Will setup for yourself so that your assets is properly distributed to the right person(s)).
If you live to the end of the term, you have options on what to do next. If you believe you still need life insurance, then you can renew the term for another one to 5 years, regardless of your current health conditions. You may be able to do a policy exchange into another term policy, but proof of insurability maybe required (depending on how much coverage you are asking for). Or you can cancel the term policy and save the money for retirement.
If you die after the term is up, at least your family will receive your savings. If you buy term and invested your money since the start, that could be lots of money for your family. If you invested $400/month for the next 30 years and the average rate of return was 10%, you will have $911,730.
Keeping life insurance and investments separate just makes sense, doesn't it?
Saturday, June 27, 2009
Primerica Presents Six Reasons a Roth IRA May be a Good Investment
THIS WAS TAKEN FROM AN ARTICLE ON PR.COM. LINK: http://www.pr.com/press-release/159201
Primerica, a financial services industry leader, presents six reasons why opening a Roth IRA may be a great way to prepare for the future. In fact, Kiplinger’s Personal Finance magazine labels today’s Roth IRA as “Best all around retirement account.”
Duluth, GA, June 18, 2009 --(PR.com)-- For the first time in a long time, Americans are saving more and spending less – and many economists expect that savings trend to continue rising.1
Primerica, a financial services industry leader, presents six reasons why opening a Roth IRA may be a great way to prepare for the future. In fact, Kiplinger’s Personal Finance magazine labels today’s Roth IRA as “Best all‑around retirement account.”2
Clients pay less tax on savings. For older savers, this means an IRA can help rebuild any losses to their nest egg. Younger savers stand to gain even more, because they have more time to invest their savings and let them grow tax‑free.
Contributions and earnings can be withdrawn tax‑free after age 59 ½. This applies to accounts that are at least five years old – making it a great choice for long‑term savers.
Families can tap earnings early to pay for college or buy a first home.
Savers can withdraw contributions (but not any earnings) to a Roth IRA tax‑free and penalty‑free at any time. This benefit could come in handy if an unexpected major expense or emergency arises. Of course, by withdrawing funds early, the client also gives up future earnings on that cash.
For 2009, you can contribute up to $5,000 into a Roth plus an additional $1,000 for clients age 50+, subject to income limits.3
As growth in a Roth IRA may be tax‑free, clients are encouraged to consider converting a Traditional IRA to a Roth IRA. During 2009, the opportunity to convert a regular IRA to a Roth IRA is only available to those who have a modified adjusted gross income of $100,000 or less. However, this income restriction is scheduled to be completely eliminated in 2010. A conversion has tax consequences. If you are considering this option, you should consult your tax advisor.
For young people just starting out, the Roth IRA is an excellent choice because it allows them to enjoy tax‑free growth with the flexibility to withdraw contributions (excluding earnings) any time, tax‑ and penalty‑free. Older savers can enjoy a special “catch up” provision that allows them to save an extra $1,000 in a Roth.
Primerica helps clients make an informed decision about how to best utilize their money. Clients are encouraged to visit www.PrimericaFNA.com to learn more about Primerica’s free, personalized financial snapshot.
1Foxnews.com, February 1, 2009
2Kiplinger’s, December 2008
3For the year 2009, married individuals who file jointly can contribute $5,000 ($6,000 if 50 or older) to a Roth IRA if their modified adjusted gross income (MAGI) is below $166,000. If their MAGI is between $166,000 and $176,000, then they can contribute some amount less than their full limit. If their income exceeds $176,000, they are not eligible to contribute to a Roth IRA for 2009.
Securities offered by PFS Investments Inc. 3120 Breckenridge Blvd. Duluth, GA 30099
###
Primerica Financial Services, headquartered in Duluth, Georgia, is the largest financial services marketing organization in North America, with more than 100,000 licensed independent representatives. The company provides its 6 million clients with quality financial products and services, including term life insurance, mutual funds, variable annuities, loans, auto and homeowners insurance and long-term care insurance. Primerica conducts business in the US, Canada, and Puerto Rico; the company also operates in Spain as PriEuropa.
Additional information about Primerica is available on its web site: www.primerica.com.
Primerica, a financial services industry leader, presents six reasons why opening a Roth IRA may be a great way to prepare for the future. In fact, Kiplinger’s Personal Finance magazine labels today’s Roth IRA as “Best all around retirement account.”
Duluth, GA, June 18, 2009 --(PR.com)-- For the first time in a long time, Americans are saving more and spending less – and many economists expect that savings trend to continue rising.1
Primerica, a financial services industry leader, presents six reasons why opening a Roth IRA may be a great way to prepare for the future. In fact, Kiplinger’s Personal Finance magazine labels today’s Roth IRA as “Best all‑around retirement account.”2
Clients pay less tax on savings. For older savers, this means an IRA can help rebuild any losses to their nest egg. Younger savers stand to gain even more, because they have more time to invest their savings and let them grow tax‑free.
Contributions and earnings can be withdrawn tax‑free after age 59 ½. This applies to accounts that are at least five years old – making it a great choice for long‑term savers.
Families can tap earnings early to pay for college or buy a first home.
Savers can withdraw contributions (but not any earnings) to a Roth IRA tax‑free and penalty‑free at any time. This benefit could come in handy if an unexpected major expense or emergency arises. Of course, by withdrawing funds early, the client also gives up future earnings on that cash.
For 2009, you can contribute up to $5,000 into a Roth plus an additional $1,000 for clients age 50+, subject to income limits.3
As growth in a Roth IRA may be tax‑free, clients are encouraged to consider converting a Traditional IRA to a Roth IRA. During 2009, the opportunity to convert a regular IRA to a Roth IRA is only available to those who have a modified adjusted gross income of $100,000 or less. However, this income restriction is scheduled to be completely eliminated in 2010. A conversion has tax consequences. If you are considering this option, you should consult your tax advisor.
For young people just starting out, the Roth IRA is an excellent choice because it allows them to enjoy tax‑free growth with the flexibility to withdraw contributions (excluding earnings) any time, tax‑ and penalty‑free. Older savers can enjoy a special “catch up” provision that allows them to save an extra $1,000 in a Roth.
Primerica helps clients make an informed decision about how to best utilize their money. Clients are encouraged to visit www.PrimericaFNA.com to learn more about Primerica’s free, personalized financial snapshot.
1Foxnews.com, February 1, 2009
2Kiplinger’s, December 2008
3For the year 2009, married individuals who file jointly can contribute $5,000 ($6,000 if 50 or older) to a Roth IRA if their modified adjusted gross income (MAGI) is below $166,000. If their MAGI is between $166,000 and $176,000, then they can contribute some amount less than their full limit. If their income exceeds $176,000, they are not eligible to contribute to a Roth IRA for 2009.
Securities offered by PFS Investments Inc. 3120 Breckenridge Blvd. Duluth, GA 30099
###
Primerica Financial Services, headquartered in Duluth, Georgia, is the largest financial services marketing organization in North America, with more than 100,000 licensed independent representatives. The company provides its 6 million clients with quality financial products and services, including term life insurance, mutual funds, variable annuities, loans, auto and homeowners insurance and long-term care insurance. Primerica conducts business in the US, Canada, and Puerto Rico; the company also operates in Spain as PriEuropa.
Additional information about Primerica is available on its web site: www.primerica.com.
Saturday, June 13, 2009
A new program to eliminate debt
Primerica has teamed up with Equifax to give clients a tool to pay off debt in the most efficient way. It takes information from your credit report from Equifax and provides step by step game plan to pay each and every single debt you have. This is a web-base program, so internet access is required and you can watch your progress anytime you want. You can also setup to receive alerts if there are changes to your credit report.
Also, it will give you your credit score and explains why you have that score. You also can run a simulation about what will happen if you apply for a new loan or apply for more credit or close an account.
Remember, this is a tool to help you eliminate debt. It is not a bill payment center, so you have to pay your bills directly. Primerica representatives does not do any credit counseling services or negotiate with creditors.
I have couple loans I want to pay off, so I'm going to sign up for it and see what's the game plan is. I'm very interested in learning more about my credit score and how it compares to the national average and what improvements I can make to make the score better.
Also, it will give you your credit score and explains why you have that score. You also can run a simulation about what will happen if you apply for a new loan or apply for more credit or close an account.
Remember, this is a tool to help you eliminate debt. It is not a bill payment center, so you have to pay your bills directly. Primerica representatives does not do any credit counseling services or negotiate with creditors.
I have couple loans I want to pay off, so I'm going to sign up for it and see what's the game plan is. I'm very interested in learning more about my credit score and how it compares to the national average and what improvements I can make to make the score better.
Tuesday, April 7, 2009
If its not pppular in US, go to India
Does anyone notice that the great whole life insurance or universal life insurance that once dominated the markets in US have grown more popular in India? In US, people are starting to realize that term insurance is the best type of life insurance. But in India, the same ripoffs that happen (and continues to happen) in US is now prevalent in India. Life insurance agents in India are selling cash value life insurance policies as a savings or investment vehicle, which every licensed person in the industry knows it's just life insurance that protects your income. The so-called "savings" in the life insurance policy is really an added protection for the insurance company. That's why if you want to use the savings, you have to borrow it and pay interest on it as well.
I can see why insurance companies are targeting India. After all, India has the 2nd largest population in the world with 1.1 billion, which is not too far behind from China, which is 1.3 billion. In United States, its around 304 million.
I can see why insurance companies are targeting India. After all, India has the 2nd largest population in the world with 1.1 billion, which is not too far behind from China, which is 1.3 billion. In United States, its around 304 million.
Saturday, January 17, 2009
Happy belated New Year
I've been busy in the past month and I'm 17 days late to say this, but HAPPY NEW YEAR!
Subscribe to:
Posts (Atom)