• Report:  #2461

Complaint Review: Primerica Financial Services - Nationwide

Reported By:
- Atlanta, Ga,

Primerica Financial Services
All States Nationwide, U.S.A.
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Primerica Financial Services is a company that promotes itself to be a family first business that strives to improve the life stlye of the middle income family. They claim to do this by decreasing the difference between ones monthly income and expenditures. Their main avenue for doing this is to replace various types of whole life insurance with term insurance, which is cheaper. Then taking the money saved to invest in some form of equities. That is the basic cover story.

If one beleives this and falls within certain perimeters, the real objective is to get this beleiver to join the company.

The perimeters that they look for are, hunger, greed, emotional dependency, a willingness to bend or overlook some laws and/or the companies own rules, followers (they call it the ablity to be coached), the ability to lie well, people with cult like blind faith, people who have failed in other business or professional endeavors, people with low self esteem and/or the inability to speak up for themselves and most of all, people with large warm markets or the ability to seduce a general cold market.

This is the core group that comes into Primerica and are told that if they recruit someone, they will override that person for life (earn commissions from someone elses labor).It is never revealed to one that the company has a "promotional exchange policy" until sometime after the person joins. Promotional exchange is when one receives a promotion, one gives up from one to three or sometimes four people that they have recruited to the regional vice president who now gets that commission. There are about five or six promotion levels to get to regional vice president depending what hierarchy one is in. This means that a regional vice president could theoretically a regional vice president could take as many as eighteen people form one. Each regional vice president is an individual contractor for Primerica, like holding a franchise. As such they run their business as they wish.

There are company rules and policies but there is no enforcement of the various regional vice presidents. In fact when the company finds out that they have a rogue within their mist, they actually cover up for them because of the money that they bring in. This puts a lot of the honest regional vice president's business in jeopary. These rogues prey upon the weekness of their core people mentioned earlier. They incriminate the core into shady and sometimes criminal activities.

By the time the dim witted finds out what they are involved with, they are traped fearing that if they leave they will be exposed for wrong doing or they will loss all of the people that they have recruited. Most of these core will stay between two and five years trying to "improve their life styles" and then leave the company in debt. Most do not even formally resign from the company, they just leave poorer while the hierarchy is that much richer. The amazing thing about it is that they could get some help from the various federal and state agencies if they could drop the shame of being taken and had the courage to report what happened to them.



Subj: Rebuttal to Report

Date: 7/9/00 6:11:02 PM US Mountain Standard Time

From: [email protected] (Jeannie Scott)

To: [email protected]

Primerica is an entity of Citigroup one of the worlds largest financial insitutions. Agents must be licensed to make money and it is no different than your local State Farm or Met Life agent as to how you make your income. They get licensed by the state and make money off commissions the same way Primerica agents do. The difference is in the type of life insurance product sold. Primerica agents also help people w/ loans, investments and many other services all requiring state licenses. These people are hard working people and they are doing right for the general public. Yes, you can recruit others but you do not have to recruit one single person to make money. Pyramid schemes only work if you do get a downline and that is not true of Primerica. The reason why you are making more money at another insurance company is because you are more than likely selling whole life/cash value policies which have higher commissions due to the ripping off of your clients with higher premiums for less product.

I have an entire notebook of why and how other insurance companies are ripping people off and I am so glad I switched to Primerica Life Insurance. I got 3 times the coverage for the same price as my old insurance company and the old company would not give me any of my cash value back b/c I was under the 3 yrs but they said they would appy the cash value to keep my policy for another 6 mths. Ripped me off. That was USAble Life--Rip offs!

Most importantly, Primerica has more of their clients claim money than any other life insurance company so what good is it if your company can't pay out its claims to all its clients? Isnt that a bit deceitful? Yes, I did extensive homework on this subject and I hope your attempt to disillusion people has been unsuccessful. Its sad that your comments seem to center around you making more money instead of doing the right

thing for people. Whole life/cash value policies hurt people, takes advantage of people and that is why you make more money. Your'e a typical insurance agent selling the wrong thing and more than likely, your'e the one ripping people off. By the way--Its Amway, not Anmway.

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3 Updates & Rebuttals


Crooks. I have recently joined Primerica and thought the world of them.

#2UPDATE Employee

Tue, November 09, 2004

I gave them the $200 I didn't really have to get started. I felt pressured from day one. At the very first meeting after the meeting the person who invited me was pressuring me into joining the company. Then when i told him that it all sounded good he was pressuring me into when i'd have the money. Now that I have been here int he company for a couple months I am slowly begining to realize that I don't like it. They tell you to set up appointments so you can be successfula nd that they work for you and you don't work for them. WRONG!!! In my opion they are crooks and it is a cult and they are only out to make themselves money and they don't care who they step on to get there. Their mission statement is to help people become debt free and financially independent well what about their employees? They take money from people that really don't have that money. It takes you forever to get the money you payed back in. You have to work for the money you gave them. Then when you don't do what they ask you to do or you have other priorities they don't like it all too well and start treating you like crap. Since when in any poisition do you have to help your boss get promoted. have you ever had your boss tell you " We need to get you promoted, because I can't get promoted until you get promoted. If I don't get promoted I won't be very happy!"


Not a puppet

#3UPDATE EX-employee responds

Thu, September 11, 2003

I was recruited to Primerica Financial Services in 1998, when I was in college, and was finance major at the time. Since then Ive graduated college and have became a well respected independent Financial Planner with several different companies. I am an independent producer and I sell whole life, universal life, and term insurance. The point is no company can effectively HELP everyone with a one-size fits all plan. Fortunately I never sold one Primerica plan. Unfortunately for Primerica I was not a puppet, their sales tactics raised several questions in my mind and I found the answers. First of all no insurance company can sell a product in any state without being approved in that state. If product rates are a rip-off the product will not be approved for sale. Secondly, since most Primerica agents dont know it, term insurance pays almost the same and sometimes more commission the first year than a whole life policy. Term polices pay 80-110% commission where whole life policies pay 50-60% the first year. Even though the whole life policy is more expensive the agent usually doesnt profit by selling it over term. Third, Primericas term rates arent even that good! They have to increase rates just to pay all the people in the pyramid commissions. So Jeannie you could have bought 5 times the coverage if you would have bought your insurance with a competitive company, oh, and by the way, you would have made more money on the commission since you wouldnt have had to share it with the puppet masters above you. Fourth, term and invest the difference ignores the fact that some people might want insurance longer than thirty years. It also ignores the tax advantages of accumulating money in an insurance product I.E. tax-free income at retirement. Plus most insurance companies whole life products are paying 6-7% interest if you keep it more that ten years which requires a 7-8.5% return in a SAFE taxable investment to match it. You expect someone to keep their term policy ten years, if you would have held on to your whole life policy you would have found out how good it really was. Fifth, if Primerica agents would actually read the insurance licensing material rather than letting someone come in and brain wash them they would see that there is a reason for products other than term, it would be a shame to learn about split dollar, employee bonus, buy sells. In fact Primerica would fall apart if their agents took responsibility for their own actions and learned what they needed to know about our business. Their agents would find that they couldnt sell the products they should be selling in most situations because they dont even offer it. I could go on and on, but in conclusion Primerica recruits insurance ignorant people to promote complicated products to make a corporate profit. No one cares how big a company is, and its been proven that several big companies are greedy and money hungry, for example Enron and WorldCom. If anyone wants some information on how to be a real financial planner just send me an e-mail.


British Columbia,
consider the source

#4UPDATE Employee

Tue, May 21, 2002

I am disgusted by the name calling taking place on this website. In my opinion, it merely reiterates that you should "consider the source" when researching on the internet. My husband and I have been involved with Primerica for about six months now, and I am nothing short of impressed. Having entered into this with a great deal of skepticism, I am not 100 % convinced... yet. However, I have just spent almost 2 hours reading comments made by very bitter, angry sounding people, and have this to say : Yes, we did pay $199 up front. This money went to a background check (in my opinion, a worthy cause) and training and resources. We have since received $100 back for setting up 6 appointments (regardless of who bought what). We have also received $100 when my husband became the leader in non licensed premium sales. We will receive another $100 when he gets his license. My math actually puts us ahead of the game. To all of those touting the phrase, "if it seems too good to be true, it's a scam", you're absolutely right.Take a closer look. Money is not made in PFS by sitting on your rear, waiting for it to find you. We work for every penny we make, and we work hard. PFS has not asked us to give up our day jobs, and we won't... not yet. According to some, term insurance is a raw deal. Do the research, "bundled" whole life insurance contracts don't make sense. Those who sell them seem to think that you cannot have your cake and eat it, too. You die, the beneficiary is paid, and the so-called savings disappears. Cash it in, and you are paid far less than what you have put in, and now have a defunct policy. Either way, the company (and agent) has made it's money! I have never once heard God, faith or any other religious message preached at a meeting. To be honest, I was a little taken aback by the applause and constant recognition for the team members, but perhaps it was because I was so used to my superiors berating their employees! It is unfortunate that some feel taken advantage of by this company, when more often than not, misunderstanding and miscommunication is to blame. If you have questions, ask them. If it doesn't seem right, find out why. Never sign anything before understanding it completely. And for crying out loud, DO NOT give someone a voided cheque, until you know it's legit. We entered into this venture with our eyes wide open, and I don't think that we are alone in this. If everything does not work out, I am not going to run to a whistle-blower, and whine about how badly I was treated. I am tired of ignorant people wasting their time (and others), "warning" the public of something they know nothing about. And to all the nay-sayers, keep your money in a "traditional" account, I'm going to help my family and friends laugh all the way from the bank to the beach.

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