Is Primerica a Scam?

I don't know how many times I answer this question but if you really did the research, you will eventually find out that Primerica is not a scam, a pyramid scheme, or a ponzi scheme. I will provide the facts to you on how Primerica is not a scam, but first lets define what a pyramid scheme or a ponzi scheme is.

A pyramid scheme as define by the Securities Exchange Commission is where participants solely make money by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same.

The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors. But eventually the pyramid will collapse. At some point the schemes get too big, the promoter cannot raise enough money from new investors to pay earlier investors, and many people lose their money.

In other words, people pay money to join and this money goes to the recruiter and to all the people above that recruiter. Eventually the pyramid will get to big where there isn't enough people joining to pay off everyone already involve. In Primerica, this does not happen. In Primerica, it cost $99 to cover licensing fees and a background check. The recruiter or the company does not earn income from this. I recruited lots of people and I never got paid for recruiting. The $99 goes to the state department of insurance. If you were to get a life license, a securities license, and a mortgage license, its going to cost you almost $1000 or more on your own. At Primerica, its only $99. $99 to have an opportunity to build a business and earn unlimited income is a joke because most people who join the company don't treat their opportunity as a business. They treat it as a hobby or something to do on the side. So they won't work as hard as they need to. If they open their own business that's going to cost at least $100,000 to start up, they would work hard every single day to earn that money back and it will take them at least2 years to finally break even and start seeing profits. At Primerica, you can earn that $99 back by helping one family, which takes 4 hours of work. With my first client, I earn $300 by replacing a variable universal life insurance with a 20 year term insurance. I saved the client over $600/year and double their coverage.

What is a ponzi scheme? The SEC has full information about it. Web address is: http://www.sec.gov/answers/ponzi.htm Primerica has over 25,000 registered representatives, the largest mutual fund sales force in North America. They market mutual funds from well known companies such as Legg Mason, Fidelity, Inveco, American Fund, Oppenheimer, and many more. Primerica has done very well in regards in providing customer service. They have won the Dalbar Service Award every year since 2004.

So what is Primerica? It is a multi level marketing company (MLM) and there are thousands of companies that are MLM in the United States. It is estimated that over 1 million people are currently involved in MLM companies. People who have problem with a MLM company are usually people with a job and they are stuck with a job mindset. But people with a business mindset will say that Primerica is the best business opportunity in America so far that is worth trying.

Anyway, I'm here to discuss on how Primerica is not a scam. Here is a list of facts about Primerica:

1) There are over 100,000 life licensed representatives in the company, the largest marketing organization in North America.

2) Primerica been in business since 1977.

3) There are currently over 4.3 million clients in Primerica. That's lots of clients for a company that you think is a scam. Not only that, clients has invested over $28 billion through Primerica in various mutual funds and money market funds.

4) Primerica has marketing agreements with various companies. They market Citicorp Trust Bank debt elimination loans, Metlife's Variable Annuities, ING 401(k), Genworth Financial's Long Term Care, Auto&Home Insurance referral program for Answer Financial Inc, mutual fund companies such as Fidelity, Legg Mason Partners, Oppenheimer, American Fund, Invesco, and so on. Primerica Financial Services owns their own life insurance company called Primerica Life and an investment company called PFS Investment Inc. It markets term life insurance for National Benefit Life in New York.

5) Primerica has over 5000 offices in USA and Canada. The home office itself (located in Duluth, GA) is over 1 million square feet and it has its own zip code.

6) Primerica spun off from Citigroup on April 1, 2010 and is listed on NYSE as symbol "PRI". Prior to this historic event, Warburg Pincus has agreed to invest $230 million in Primerica (which by the way spent $10 million researching Primerica), owning roughly 23% of the shares. Citigroup will own 50% of the shares. 12 months later, Primerica was named the best IPO of the year.

7) Every financial company in America has to hold an annual compliance meeting. Primerica holds their Annual Compliance Meeting in the month of November. Every representative in those companies that are licensed in life, mortgage, and/or securities must attend that meeting. The purpose of this meeting is to keep representatives up to date to rules and regulations set by the federal government. By having this meeting, it protects the consumer as well as the representative.

8) Primerica representatives are require to get certain licenses in order to talk about certain financial products. For example, if you wanted to solicit life insurance, you need a life license or a producer license. If you want to talk about mortgages or debt consolidation, you need a mortgage license. If you want to talk about investments, you need a securities license. These licenses are only issued by the state or the federal government (mostly state, except for the securities which is issued by the federal government), they are not issued by individual financial companies. To get these licenses, you have to pass a test. After you get your licenses, continuing education is required.

9) Besides the fact that Primerica has over 100,000 licensed representatives, they also have about 2000 employees.

10) Primerica has its own TV network that does live broadcast every Mondays and Wednesdays at 12pm. The broadcast usually has Co-CEOs or the President of Primerica speaking first. Then after they speak, successful leaders in the company does live training.

11) Over 60,000 people attends the Primerica convention, which occurs every other year on an odd year. I'm not sure if they will still hold it at the Georgia Dome in the future since the company is getting bigger and bigger. I've been to every single convention and that dome is packed from the seats to the field. Its the most amazing event where everyone gets together. "One team. One dream."

12) Primerica is member of the Better Business Bureau, which gave Primerica a business rating of A+ (as of April 1, 2010)

13) Winner of Dalbar Service Award in since 2004

14) Primerica is member of Insurance Marketplace Standard Association (IMSA). More info can be found about IMSA can be found at: http://www.imsaethics.org/Content/AboutIMSA_46.aspx

15) Member of American Council of Life Insurers, as association of 377 companies representing 91% of total life insurance assets in the US, 90% of life insurance premiums, and 95% of annuity considerations.

16) Listed on Russell 3000 index and Russell 2000 index as of July 1, 2010. The Russell 3000 Index measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 8% of the total market capitalization of that index. It includes approximately 2,000 of the smallest securities based on a combination of their market cap and current index membership.


17) Named as a perfect business model in the book "ABC of Making Money"

But if you think Primerica is still a scam after all this proof, I got news for you. You are either ignorant to information or someone who really hates Primerica. No matter what you think, Primerica is here to stay for generations to come because the company always do the right thing with their clients. If you seen what I seen, you will be heart broken by how so many people out there screw up their finances. What's even worse, many people don't know they are financially hurt or they think their problems will go away. Its not that these people wanted to be in that position, they just don't know there are far better options out there.

I believe there is no company out there that is better than Primerica. I help people save money on their life insurance and providing them 2 to 5 times their current coverage. I help people get out of debt. Banks want people to stay in debt for the full term so they can collect all the interest. Primerica helps people to get out of debt faster, therefore paying less interest and saving time. I remember helping one client pay off the mortgage 14 years sooner. He had 26 years left to pay on the mortgage and now he has 12 years to pay off all his debts. I help people build wealth toward retirement and other goals by investing in various mutual funds. There are all kinds of mutual funds that is right for any investor. There are mutual funds for the conservative investor who don't like to be exposed to high risks in the market and there are mutual funds for the more aggressive investors who are willing to accept high risks for potential of higher returns. On top of all this, I provide a free financial needs analysis to all my clients to help them reach their goals. I even take it a step further by inviting them to the business opportunity.

Some additional sources for you to look at:
Primerica Financial Services
Better Business Bureau
Federal Trade Commission Comment (pdf file. Adobe Reader required)
S1 Registration to Securities Exchange Commission (Final Prospectus)
Primerica Scam: The Real Picture
American Chronicle "The Escalating Mortgage Crisis"
IPO VIEW-Primerica IPO, despite problems, could sell
Insurer Primerica poised to break away from Citi IPO

Last edit on May 25, 2011

Its spelled Primerica, not Prime America or Primeamerica

Do you know there is really a company called "Prime America" and they don't deal with any financial products. They are delivery service company that deliver goods across the US. Check them out at http://www.primeamerica.biz

Why having a job sucks

If you have a job, you already know why a job sucks. If you ever got fired or laid off from a job in the past few years, then you really know how much a job sucks. Perhaps you need to be reminded about what a job is really about:
1) You are an employee
2) You have a boss telling you want to do
3) Your entire life evolves around your job. If you wanted to take time off to see your kid play sports or perform at a school play or visit someone who is in the hospital, you have to take sick days or vacation days.
4) Your life style is dictated by the fixed salary you earn at your job. This includes your home, your clothes, the food you eat, your car, your vacation, the schools your child attends, and so on. You know there's a higher quality, but you can't afford it.
5) The US government take taxes out of your paycheck before you get paid.
6) You can be fired in an instant without warning. You live with this fear everyday. As you get older, employer's tend to get rid of old people and hire younger and more energetic employees with a smaller salary.
7) A job is not going to teach you how to be successful. I believe the reason why is that they don't want you to be successful because you could be their competition if that happens.
8) There is no such thing as happiness at a job. You are delusional if you think having a job makes you happy because you will always live in constant fear. Your job such as working in a hospital may do good things for the public, but deep down you complain how long your hours are and sometimes how dangerous your job can be.

From 2008 to 2010, you have witness the death of American jobs and the worst financial crisis since World War 2. If you were affected by it, why go back and search for a job? To be fired later again? Why continue to do business with companies that put America and the rest of the world in a bad situation and yet the government bailed them out? To be screwed and ripped off by these companies again? Primerica didn't need a bailout. In fact, Primerica has survived every financial crisis since the company was founded in 1977. Primerica has zero profits. Primerica's clients didn't face a recession because Primerica teaches clients to invest monthly using dollar cost averaging, shows their client how to get out of debt, and educate clients the difference between cash value and term life. By the way, these companies that were bailed out are still screwing the consumer because they need to make lots of profits to pay off their government loan. How they make profits is by selling very expensive products such as cash value life insurance to the uneducated public who don't know a thing about these products work, but are very gullible to people who hold a formal title such as "financial planner" or "financial advisor." While the government has implemented tougher regulations against mortgage companies, I bet these mortgage companies will find some way to screw average and ordinary American citizens once again. Its in their culture to do so. If it wasn't, Americans would have lots of money saved, have very little debts, and maybe many of them would own their own business.

What you should really be doing is be open minded about going into business or go into business opportunities such as Primerica. At least with business, you own it and you are your own boss. You control your destiny and how much income you want to earn. You also get tax benefits of owning a business. If people say you are crazy and telling you not to do it, don't listen to them. They want to be losers for the rest of their life who will keep having a job and live in misery, but do you want to be like them? Do you want to work for the rest of your life at a job and get nothing in return? Do you know that in the early 1900s in America, there were 10% laborers working for 90% of business owners? Today, 90% of laborers work for 10% of business owners. It shows me that most of America has lost its ability to dream and fight for financial freedom. America needs to change, but there is so many obstacles in our way that prevents Americans to pursue their dream of owning a business. Do you know that most, if not all, colleges are funded by corporations? If you go into a college, you are very likely being brainwashed into getting a job. In fact, your own parents are even influencing you to get a job. If your parents are like my parents, they would say go to school, get good grades, and get a good job with benefits. Good job with benefits? What kind of crap is that? Benefits that comes out of your paycheck? That's not a benefit if you are paying some of it. Even today they still tell me the same thing. Know what? I don't care about what they want, this is my life. I choose to go with Primerica because I see the opportunity and know great things will come my way as long as I keep working and growing my business. I earn enough income that I can buy my own benefits such as health insurance, my own retirement plan called an IRA, and so on.

Primerica celebrates 1 year anniversary

Yesterday, Primerica celebrated its 1st anniversary after becoming an IPO on April 1, 2010. Yesterday, the company labeled it "Freedom Friday." Sounds corny, but Primerica is all about freedom. What does freedom mean to you? In essence, it means more time and more money. Anyone can achieve freedom, but not everyone is willing to pay the price to earn it. I don't think its possible for anyone to achieve freedom if they have a job. There is no freedom in a job. Its impossible. You work on someone's else time and they pay you a salary. You fear everyday that you will lose your job or that someday, you will not have the ability to perform at your job.

I have been in Primerica for few years now and I grow more and more passionate about what I do. I love how this company gives ordinary people such as myself to build a business within their company. I get to start part-time and earn some extra income and still be able to keep my full-time job. Eventually, my business grew and so did my income. My part-time income at Primerica eventually replaced what I earned at my full-time job. I now don't have a job, but I own a business at Primerica. I am not a Regional Vice President yet in the company as I don't have enough people, but I have some people working consistently and they do it voluntarily. I don't tell them to work or force them to work. They do it on their own. Every time they get paid, I too get paid. Its called an override. If people don't want to work, that's their decision. I'll make money whether they work or not.

This was taken from insurancenewsnet.com:

• The largest financial services marketing organization in North America with 95,000 licensed representatives
• #1 rank in term life insurance premium (2009)
• $656.8 billion in life insurance protection in force – among the industry leaders
• $74.4 billion in face amount life insurance issued in 2010
• Paid an average of more than $2.6 million in life benefit claims each day in 2010
• $34.9 billion in client account values in investments and savings
• Opened 3.5 million client IRAs since 2000

Is Primerica life insurance really more expensive?

Some people say Primerica's term policies are expensive. While I do agree, they forget to mention that Primerica adds value to their clients and how much money clients are saving overall. People who say Primerica's term life insurance are expensive are only focusing on the life insurance aspect. It is also probable that some of these people sell whole life or universal life insurance and trying to bash Primerica and confuse the public. Whatever the case is, Primerica does the right thing for their clients. They help families get out of debt, get the right amount of life insurance coverage, and become financially independent. By showing clients how to get out of debt faster, the client would be savings thousands or tens of thousands of dollars from the total interest payment. Every Primerica's client gets a free, customized, and confidential financial needs analysis. Do other companies do this? I don't know any companies that does.

Primerica sells term insurance 100% of the time. When the term expires, the client can renew the policy every 5 years until age 75. After 75, it renews every year until age 95, which is when the policy expires. At age 75, who really needs life insurance? If your youngest child is 40, you have no debts to pay, and you are retired, making your savings last for the rest of your life is more of a concern than having life insurance. Primerica clients can also convert or exchange their term policies into another term policy. Primerica teaches their clients to also save or invest their money for the future.

With other companies, when the term expires, the client can renew every year or convert to whole life or universal life. If you don't know by now, whole life and universal life are more expensive than term insurance and if you study how they works (or if you have one, just read your own policy), you will see it is a total ripoff. Most companies don't teach their clients anything. They just sell products and its their clients that is getting screwed.

So who is really paying more? Primerica clients or the competitor's clients?

ABC's of Primerica

You will hear this often in Primerica: What is the ABC to building a business?

A-Always Bring People. Every opportunity meeting should be pack with guests. If you are not bringing people, you are not growing your business.

B-Be a student. Attend training and take notes. Instead of writing them, you should bring a recorder and record every training. Read self-help books and improve your way of thinking. Some day, you will own your own office and need to do training. Some day, you will be out in the field training others on how to do the appointment.

C-Cheerlead the system. You need to be enthusiastic about helping people. You need to get people excited about getting promoted. Encourage them to do the work. As stupid as it seems, people like positive people. If you are not excited about your business, then people you recruit won't be excited.

Why I love Primerica? OVERRIDES!

I should of posted this earlier in my career, but earning overrides is the best thing that has ever happen to me as I progress my career in Primerica. What is an override? To simply put it: "It's income earn when people in your business helps other people." Every time when someone on my team who is licensed and helps a family on his own, not only does he get paid full commissions, I too get paid by the company. Its unbelievable. There is no cut in commissions that is split between everyone. You get paid base on your sales level.

For example, an average annual premium on life insurance that a client pays is about $1000/year. If I was a District Leader in the company, I would get paid $500. My Regional Vice President, who train me, will get paid $450. What if I was a RVP doing the same work? I would earn $950 plus bonuses. What if I was a RVP who had 10 District Leaders and each District Leader helped out a family? I would earn overrides of $4500! As you can see, there's no split in commissions. Its only straight commissions (work you do) and overrides (work you didn't do).

As one Senior National Sales Director put it, "overrides = freedom" and its true. I hope that someday I will earn enough overrides that I'm comfortable with and stop working. My goal is to earn consistent overrides of $20k/month and stop working. I'm still young (less than 30 years old), so I still got lots of time until I retire. Hopefully I can get this done in 10 years. Right now, my goal is to get myself to RVP and then get more people to RVP position. How I plan to do that? By getting people to become District Leader.