Complaint Review: Primerica Financial Services - Nationwide

First... You can buy term life insurance for a WHOLE LOT LESS and likely GET MORE COVERAGE TO BOOT! Second... If you understand the Real Rules of Money and Taxes, you can make better use of your home while paying off your bills and accumulate wealth simultaneously. And much better loan options for your family. Third... There are substantially better choices to use for growing your retirement. sorry, allowing you to give a competitors name would instigate others to just file against their competition, to only come back later to suggest their company your comments on this policy are welcome! CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.

Bill in Fredericksburg...... First of all you said ages 25-40 were primerica's target market....then I put together a graph showing primerica was uncompetetive for each and every group in that age bracket...and now you say I put together a thing showing the 1% where primerica is uncompetetive? Make up your mind will ya? is 25-40 your traget market, or is it a very small niche market that is only 1% of the population. As far as 30 and 35 year term goes, no I don't have a company that offers a 35 year term. Not too many years ago primericans said 30 year term was a ripoff. They said no one needed insurance for more than 20 years because you could make so much in mutual funds it became unnecessary. However, when 30 year term proved to be popular with the public and they came out with one. Lo and behold all of a sudden primerica home office no longer was telling its neophyte agents 30 year term was a ripoff. So you wanted comparison between primerica and others on 30 year term...here are a few; $250,000 guaranted the entire 30 years. Oh wait, I can't do that because as I recall primerica doesn't guarantee rates or death benefits for the entire 30 years. OK...these rates are for other companies that guarantee the rates the whole 30 years versus primericas rates not- guaranteed for 30. preferred non-smoker male age 40 339 versus primerica $450 female age 40 269 " " $450 smokers male age 40 1193 versus primerica $1370 female age 40 860 versus primerica $1370 Since the rates for 30 year term are approaching those of universal life for 30 years, my suspicion is that primerica's 35 year term rate woul;d be about the same as a universal life policy designed to expire in 35 years. If 35 year term becomes popular I'm sure others will pick it up. Since mortgages are being written for 35 and 40 years I suspect there will be a re-introduction of the 40 year term policies that disappeared when XXX legislation was enacted a few years back. I'm glad you talked about mutual funds doing 3-4% because in reality, thats a helluva lot closer to what mutual funds do than the 12% primericans use as projections for determining your retirement income. If you go to the SP500 website and track the return of it you'll find its 8.40% since inception to now...BEFORE taxes and BEFORE expenses. If you now calclate in the effects of inflation you come real close to that 3-4% you mentioned. I'm going to continue to monitor these sites because; 1.) I no longer need new business so I don't spend anytime looking for it...it comes to me. Also I'm approaching 60 and now basically work because I want to. I no longer have to. 2.) I have the knowledge and experience in this business so I can offer specific knowledge and insights that few others can 3.) I know more about primerica and its SORDID history than 99% of the primericans who come to these sites. I know what their line of bull was then as opposed to whatever the current rhetoruc is.....like 'NO ONE NEEDS THIRTY YEAR TERM...ITS A RIPOFF!" A few others......"NO ONE NEEDS A VARIABLE ANNUITY...ITS RIPOFF" or "LONG TERM CARE IS A RIPOFF...YOU CAN PAY THOSE EXPENSES FOR THE BAJILLIONS YOU MAKE IN THE STOCK MARKET"...and of course given primerica's new found mission of getting every middle class fmaily into the stock market "MUTUAL FUNDS ARE A RIPOFF...INVEST ONLY IN GUARANTEED PRINCIPLE PRODUCTS". That one goes back a number of years. 4. I'm here because poeple who get approached by primerica, disguising itself as citigroup, come here to get an opinion other than the one Cousin Larry the primerican is giving them. I want them to know the things primerica will not tell them. Those things are; a.) the life insurance and the loans are horribly overpriced and a ripoff to the consumer b.) you can take the same philosophy you learn at primerica.....(buy term, invest the rest, pay off your house early) and do it elsewhere while charging the clients a LOT LESS money. c.) primerica isn't the only place that will give everyone a chance. There are a half dozen national agencies that will do the exact same thing and pay both you and your downline a heckuva lot more money while charging your client's less. d. primerica exploits both the consumer and its neophyte agents here are some other primerica lies; 1. No, you don't borrow your own money when you take a loan from a cash value policy 2. Yes, interest rate matters, time in debt is just a devise to keep the client from focusing on the fct he is paying a higher interest rate...i.e. more money You say primerica HELPS someone every so many seconds????? I look at it more as "primeruca successfully exploited someone new every so many seconds" Finally Bill, you brag about how successful primerica is....well I never said you couldn't make a lot of money selling crap. Enron was real successful at what they did too. You should be real familiar with Enron...afterall it was Citigroup that was in bed with them.

What is gained by rebuttal and counter attacks? Each side has their views, my view on this thread is you have life insurance people bantering back and fourth about who is better than the other. I investigate and you should too. I go from industry to industry to learn all I can about what sales people have told me and what is the truth and what is not. Would you like to know how I did this? I joined them to get the education. I find it's quite interesting to learn than to listen to people bantering. It was once said Don't believe anything you hear and only half of what you see. I feel that relates to this tread. And my all time favorite is Never take advice from anyone more messed up than you! I took a real estate class and became a realtor for 1.5 years part time. The experience educated me and helped me buy my own farm land from a dishonest realtor. (Notice I did not say all realtors were dishonest.) I was able to instruct my lawyer, how do draw up the contract and the deed, to close the deal on my terms. Everyone left happy but the realtor who sold his property to me. And I never met the man personally. I have taken my life insurance, mortgage, and securities licenses. I have learned so much about these industries. It blows my mind at how people are easily deceived. For $199, it does not seem a bad price to pay to learn the truth about an industry that for years only hired people, and then train them to sale people stuff you do not need or tell you only what you want to hear. There I learned what insurance is best for me, how the companies are rated and how much of the money the company has on had to pay its claims. In the securities field I have learned all the ways companies get money and their legal obligation to pay it back and how to determine a good security risk. You could get the same education from a Community College but there you are being instructed at the instructors' level. It can sometimes be tainted, not the level of detail you want or some what slanted. By going the route I took, you are instructed and tested at the government level. And you get the whole picture not someones interpretation. I hope everyone on this thread gets the truth. Bantering back and fourth is not accomplishing a thing. Get educated! If you do not want to be educated, then find someone you trust to help you.

As a public service, I wish to see new, unlicensed agents at Primerica have their best opportunity at making money. This means to get a license before going out on appointments to your warm market (friends and relatives) to make sure you get your hard-earned commission instead of giving away your commission to your upline "trainer" that you're entitled to, otherwise you may wind up as the next victim of this company.

Like I also said on another one of your favorite bash spots Stat can always be manipulated. Like, had you used some one in our primary market instead of choosing a client who falls in probably less that 1% of our clients, the numbers would be dramatically different. Different to the to of that mutual fund having to only earn about 3.5 to 4% for the client to end up with more money long term. Not too tuff to find I would love to see your comparison for your 35 yr term? OH, you don't have a 35 yr term do you? I could probably let you use your 30 yr and still beat you but I have more important things to do like actually helping clients instead of talking about how others aren't. Let's face it, while you spend hrs monitoring this site, Primerica is Helping, about one client every 2 min. 24/7 365 your example of one example (if the #'s are even right) of us vs. your 1-800 cheap term doesn't hold a candle to the 10's of 1000's of families we make a real difference to every day. IF you really do care and you really have access to those tools then stop bitching and wasting time on this site and go out and help some families if you actually do these things we should be job security for you BUT YOU DON'T SO WE AREN'T. If you do You won't have to worry about us taking your clients as long as you are doing the right things we're not going to mess with them. If you do it right and based on your fabricated numbers we shouldn't be able to even if we wanted too. That tells me and all these people one of 2 things either you can't do or you don't do it. Either way if you don't fix it we will!!

You seem to grasp the idea that every situation is different however you are totally unwilling to use anything but term + a mutual fund to solve it. You say I used a canned example and seem to object to that yet you folks use a canned sales pitch...which you call an FNA. In the event of the woman's death the Return of Premium policy doesn't pay both the death benefit and the premium that has been paid, however, in the event she lives the money comes back to her. There is no mutual fund ever that has shown a 15.1% growth rate AFTER taxes and expenses over 20 years and primerica would have to sell that non-existent mutual fund to her to give her an equal outcome. Since the odds of a 40 year old woman living 20 years are greatly in her favor its a matter of risk management and putting her money where it is most likely to do the most good. What you didn't mention is that she could buy $628,000 of life insurance for the same premium primerica wopuld charge her for $300,000. What kind of mutual fund would she need for her $300,000 primereica policy + mutual fund to give her an equal outcome there if she died before the 20 years was up? As far as the loans go the one with the higher interest rates and the most fees is ALWAYS the worst loan for the consumer no matter who is selling it. You say I would sell the woman something and then send her down the street, yeah I would. I'd send her to anyone of the independent mortgage brokers I know, all of whom would give her a better deal than the $MART loan. Personally I think a consumer is better off dealing with two different people who really know what they are doing than one person with just a cursory knowledge of everything. Primerica is NEVER the best option for women, never never never. The dinosaurish unisex rate structure primerica clings to makes it impossible for her to get any value at all for her insurance OR investment dollar.

I'm just corious, what happens to that "return of premium" shoul she actually die, the extra money in the mutual fund we set for her is there for her family. will the family still get those premiums back if she dies? every ROP policy i've seen says NO As far as the loan goes, there are some fees in the loan that is correct and every loan is not the best for every client this is true. BUT we make the effort to teach them about money and about debt which by what you wrote I take it if they walked into your office, you would send them out to try and find the help on their own because you can't do the total picture anyway I don't do the loan for every client but I have helped a lot of clients(that your general brokers wouldn't touch) save a ton of time, money and interest with our loan. It is easy foryou to calculate your canned example but I think there we both know there are lots of situations not just the basic one you have prepared for situations such as this...

Lets say a 41 year old single woman needs $300,000 of 20 year term insurance and a $200,000 mortgage. She can buy Primerica 20 year term for $549 or she can buy 20 year Return of Premium term for $642, a difference of $93 a year. The R.O.P. term guarantees she will have $12,840 cash, tax free when her policy expires in 20 years. For her to have an equal outcome with Primerica she'd have to find a guaranteed tax free investment that earned 15.1% after expenses. There isn't one. She also has the option of buying $628,000 of 20 year guaranteed term life for the price Primerica is charging her for $300,000. Lets say primerica sets her up on bi-weekly plan for the $200,000 mortgage. Typically they'd charge her 1 more point ($2,000) for the loan and 1% interest more than the competition. She can accomplish the same thing as a biweekly plan by simply paying an addition 8.33% of the principle and interest each month. In total with primerica she will pay $434,000 to pay off the loan as opposed to $406,000 with a better loan. Thats a $28,000 difference. Add this to $12,840 she'd get back in Retrun of Premium term and now its a $40,000 it cost her to do business with Primerica over 20 years. So knowing this...you being the kindhearted person you are, you'll tell her to buy her term insurance from me, her loan from the independent mortgage broker down the street and you'll be happy to go ahead and sell her the same mutual funds anyone else can...and make $2.50 a month commission on a $100 contribution...right? If not then you fall into the second category of the 2 I mentioned in my first post....primerica reps either don't know any better or they do know better and don't care. Either way is bad for the consumer.

Erica in Nampa.. If you're well-intentioned, teach people that they don't need life insurance until they die, (though some do) and to invest the difference, but invest more difference by buying the cheapest term life insurance they qualify for. They'll have more money later. Maybe you don't bad mouth the other folks, but that isn't the case with 99% of your PFS compatriots. They make all kinds of wild claims about PFS and attempt to portray it as some shining standard of purity in a corporate swamp. If you're going to say you're the champion of the little guy, then don't exploit the little guy, which PFS does. Here in California the average home price is almost $500,000. When some loan company adds an extra point and an extra percent interest over what else is readily available to that consumer, they ain't doing the guy any favors whatsoever. You can hide those things with mathematical smoke and mirrors (read bi-weekly payment plan) but the bottom line is you are literally costing that person 10s of $1000s over the life of the loan, even a shortened loan. When you're busting your hump trying to make the payments on a $500,000 mortgage the price of the term life chosen makes a definite difference on what may be on the dinner table. Primerica exploits the non-sophisticated buyer, and they exploit the non-sophisticated seller. All the while they are preaching how much better they are. By the way Erica, how do you feel about the fact Primerica charges almost twice as much to insure women as most other companies? How can any woman with a conscience sell that to another woman?

Erica, I would like first clarify that eventhough we disagree on many things, I do agree with you on one thing - when you said "But we are certainly not ALL bad.". You are definitely a lot more professional, reasonable, and understanding than most of the Primerica reps who post on this site. As for my talk over the definition of advisor earlier, I've always thought that a a person needs to meet certain designation or work experience in order to be legally considered to be a finanical advisor. I've always have the impression that the term "Financial Advisor" can't be use loosely (eg. if I go to the library and read many books on investing and become very knowledgable on that field, I still can't legally call myself a finanical advisor even if I go and give advise to my friends on how to invest). I'm no expert in this issue. Please correct me (either you or any other posters) if I'm wrong. There are still things on your latest post that we'll disagree on. You can't say others aren't your colleagues because they do something that you don't believe in. When you are working for the same company, regardless how ethical they are or not, they are still your colleagues. You can't get around that (unless they quit or you quit). If a company has a reputation of having many of them around, that for sure will damage your reputation as well, no matter how kind hearted, well intent, and different you are from them.

The meaning of the word "advisor" -- One that advises, such as a person or firm that offers official or professional advice to clients We offer advice to clients about how to improve their financial futures. There are different types of life insurance, and for some people, what they have works and they are happy with it. We are simply trying to show our clients how much better term life insurance is. Please know I am not "bad mouthing" my colleagues. Any one who who tries to force any person into something they are not comfortable with doing is no colleague of mine. I am not trying to argue or prove my point that I think we are the best. I am simply trying to prove the point that not all people are untrustworthy and trying to screw you over. That is not my intention at all. It might be for some people, but it is not my way. I don't force anything on anyone. I respect each individual opinion, even if that means I make nothing off of it. Money is not my number one concern, you can believe that or not, my concern is helping people. I can also assure you, the clients I have helped are happy. What we try to teach people is you dont have to have life insurance until you pass away. If you can save money on your policy and invest part of what you save, over time you can have enough saved to be self insured. This is not the way for everyone. I respect that you have different opinions. Understand, that i am only defending myself, my actions are pure of heart.

Eric says all people in Primerica are not bad. I'll agree to this point....not all are rude or obnoxious. Many are well intentioned. However, when you say your mission is to help the middle class and then overcharge them for their loans and term life insurance you are doing it for 1 of two reasons; 1.) you don't know any better 2.) you know better and don't care As a consumer I don't want anyone's financial advise who's training consists solely of learning some company's sales pitch. Do you? If you believe in Primerica's sole solution to every person's financial plan of term insurance, biweekly mortgages and mutual funds and you're a consumer here is the real deal; 1.) for the same premium you can purchase about 20-30% more death benefit elsewhere if you're a man, and almost twice as much death benefit if you're a woman 2. you can do a bi-weekly plan with someone else (or just add 8.33% to each principle and interest payment to accomplish the exact same thing) and pay fewer points, fees and less interest, thus shortening the time you're in debt even more 3. you can purchase the exact same mutual funds from virtually anyone else with a license. If you're a primerica rep or thinking of becoming one; 1.) read above 2.) know you can save your clients 10s of $1000s over the lifetime of their insurance and loans and MAKE MORE FOR YOURSELF with other companies. You can even end up with an army of subagents below you who will also make more for themselves. Investigate, Investigate,Investigate.

Erica, Please check your own company website and don't mislead others by overstating your credentials. You call your other colleagues unethical, but how are you different from them when you deceive others by claiming yourself to be someone whom you are not? I also question your logic when you say "You should always try something out before you quit something else". Instead of just trying something out and quit when things don't work out, it is much smarter to first spend time researching on something before trying it out. And if your research indicates the business will likely not be profitable, it will then be quite silly and time wasting to still try it out. You should then spend your time looking into other opportunites that are out there. There are so many opportunties in life outside of Primerica.

I am an associate with Primerica Financial Services. It is unfair to call all of us "scum" and white trash. Even I can admit that there are agents, Regional Vice Presidents and even District Leaders that are not the most ethical of people. That is unfortunate for those who have been affected by the people who are not ethical. Believe it or not, We do good things for people. I apologize for the people who feel they have been screwed. And we are financial advisors, we cannot speak with a client directly about life insurance and or securities unless we are licensed. It is against State Laws to do so. You do have to pay $199 to get yours books/class and once you get licensed and finish training you get reimbursed for the Life Licensing, and your $199. For those of you who have been to the opportunity meetings and have had someone tell you to quit your job to come work for us, that is wrong. You should always try something out before you quit something else. Primerica is not for everyone. But we are certainly not ALL bad.

OK, DONT GET WHY PRIMERICA PEOPLE REBUTTAL ON THINGS THEY KNOW NOTHING ABOUT. THEY THINK IF YOU PASS THE EASY LIFE INSURANCE EXAM THEY ARE A FINANCIAL ADVISOR PLEEEEZ. I AM A FINANCIAL ADVISOR WITH A COMPANY THAT ACTUALLY PAID FOR ME TO GET MY LICENSES AND PAID ME TO TRAIN. IF PRIMERICA IS SO SOLID HOW COME THEY DONT PAY FOR LICENSES. I WENT TO ONE OF THOSE MEETINGS, BECAUSE MY BROTHER IN LAW STATED WHO ALMOST GOT SUCKERED IN I SHOULD GO TO THIS MEETING. I WENT TO THIS CHEAP OFFICE FULL OF 50+ PEOPLE WEARING CHEAP SUITS MINGLING. I TALKED WITH THIS SUPPOSED "RVP" AND TRIED SAYING MY COMPANY IS A RIP OFF AND I SHOULD GO WITH PRIMERICA. OK, FIRST OFF I HAVE AN OFFICE AND WAS REQUIRED TO PASS THE LIFE, ACCIDENT AND HEALTH INSURANCE LICENSES, THE SERIES 7 AND SERIES 66 BEFORE I COULD EVEN SPEAK TO CLIENTS. ALL I SAW THERE WAS A BUNCH OF MORONS TRYING TO ACT LIKE THEY ARE EXECUTIVES OR SOMETHING, SO THE RVP CAN KISS MY a*s. DURING THE MEETING THERE WAS A LOT OF CLAPPING AND CHEERING AFTER ANYTHING THIS "RVP" SAID, WHAT A BUNCH OF LOSERS. THEN HE WENT DOWN A LIST OF FIVE VERY PROMINANT FINANCIAL FIRMS, MINE WAS INCLUDED, SAYING THEY ALL SCREW PEOPLE EVERYDAY. I WANTED TO PUT THIS GUY IN HIS PLACE BUT, WHATS THE POINT, HE'S NOTHING. THEN HE TOLD A STORY HOW HE WENT TO THE ATM THE OTHER DAY, AND HIS CHECKING ACCOUNT BALANCE HAD $225,000 IN IT. THERE WAS NO POINT TO THE STORY, THE IDIOTS JUST CHEERED. IT WAS MY BROTHER IN LAW'S FIRST MEETING, HIS TEAM LEADER CAME UP TO HIM AFTERWARD AND SAID HE NEEDED HIS $199 ASAP BECAUSE THE OFFICE WAS ASKING ABOUT IT, THEY WERE NOT, HE KNOWS IT. I JUMPED IN AND SAID HE SHOULD THINK ABOUT THIS BEFORE HE JUMPS IN THIS SCAM. THE TEAM LEADER GOT VERY ESCALATED SAYING, MY BROTHER IN LAW IS NOT A KID AND I AM TRYING TO PREVENT HIM FROM MAKING SIX FIGURES. I SNAPPED AT HIM AND DEMANDED TO SEE HIS MOST RECENT PAYSTUB, HE SAID THAT WAS NONE OF MY BUSINESS, I SHOWED HIM MINE AND AGAIN, HE SAID NONE OF MY BUSINESS. I FOUND IT IRONIC HIS "RVP" JUST TOLD A MEANINGLESS STORY ABOUT HIS ATM CHECKING ACCOUNT BALANCE. I TOLD THIS TEAM LEADER JOHN, HE NEEDS TO GET A JOB WHERE AT LEAST A OFFICE IS PROVIDED. HE STORMED OFF AND ASKED ME TO LEAVE MY BROTHER IN LAW NEVER DID COME BACK. ON THE WAY OUT I JUST THOUGHT "WHAT A DUMP". WELL IN CONCLUSION, PRIMERICA IS FULL OF FINANCIAL ADVISOR IMPERSONATORS. THEY ARE LABORERS, LUMBERJACKS, FAST FOOD AND GAS STATION ATTENDTANTS THEY PUT IN THIER 40 HRS A WEEK AT THOSE JOBS, BUT IM SURE IF YOU ASK THEM WHAT THEY DO THEY WILL SAY THEY ARE A FINANCIAL ADVISOR, WHICH IS BULL s**t. I'D LOVE TO SEE JUST ONE OF THOSE JOKES GET A 50% ON THE SERIES 7. SO PRIMERICANS, YOU ARE NOT FINANCIAL ADVISORS, YOU ARE IN A FANTASY WORLD, YOU ARE NOT QUALIFIED TO GIVE ADVICE. YOU KNOW YOU ARE WITH PRIMERICA, BECAUSE IF YOU APPLIED AT A REAL COMPANY, THE RESUME WOULD BE SHREDDED INSTANTLY. BUT HEY GUYS, KEEP ON DREAMING.

There are many reasons to own a life insurance policy and there are times when a term policy is NOT the best choice for someone. But at PFS they don't teach you how to use life insurance they only teach you how to sell it. Your statement that a beneficiary does not ever get the cash value in a permanent policy, specifically Universal life is wrong. There is an option on UL policies that gives BOTH the cash and the death benefit, but they don't teach you that at PFS do they? And did you know that there are some Indexed UL policies that pay as much as 12% on the cash value and that that money is subject to some of the most favorable tax treatment allowed? I suppose now you'll say that if you want to use the cash in an insurance policy that you have to pay a high interest rate. Well, you'd be wrong again. Did you know that some UL policies have wash loan provisions where your interest on a policy loan is 0%? Did you know that some UL policies have participating loan provision that actually can result in a net positive interest rate so you can actually earn interest on your loan amount and not pay? Oh that's right PFS doesn't teach you that either. They teach you the theory of decreasing responsibility. What do you do if that doesn't work for someone? Then what would you suggest? The theory of decreasing responsibility is a prefect world scenario and therefore is not a good premise to plan one's financial future on. Wouldn't you rather prepare a client for the worst case scenario knowing that if the worst didn't happen then the client would be even better off? What if your client bought 1 million in coverage at age 35 and at age 55 he had a heart attack and he had to stop saving money for retirement and he took an early disability income from his 401k? Would you say the theory of decreasing responsibility applies to him? Do you think he'll need insurance past age 65 to make up for the fact that they had to use their retirement nest egg sooner than planned? What can you do for him? Since you can't convert a PFS policy to a permanent insurance and he can't qualify for a new policy because of his health, the only option you can offer him is to pay annually increasing term insurance after his initial term ends. That will be more expensive in the long run than converting to a permanent policy. The one size fits all strategy that PFS uses is NEVER a good thing. Would you buy anything else that way? Would you eat anywhere that said they only have one entre? Or would you buy shoes from a store that only sold size 10? I think we'll agree that your financial future is way more important then anything else, so why would you buy a one size fits all financial plan? Please do some research on financial, insurance and estate planning before you listen to another word your RVP says. Really, why do all you new PFS reps think that your RVP is preaching some gospel when in reality the training he is giving you is incomplete and inadequate?

There are many reasons to own a life insurance policy and there are times when a term policy is NOT the best choice for someone. But at PFS they don't teach you how to use life insurance they only teach you how to sell it. Your statement that a beneficiary does not ever get the cash value in a permanent policy, specifically Universal life is wrong. There is an option on UL policies that gives BOTH the cash and the death benefit, but they don't teach you that at PFS do they? And did you know that there are some Indexed UL policies that pay as much as 12% on the cash value and that that money is subject to some of the most favorable tax treatment allowed? I suppose now you'll say that if you want to use the cash in an insurance policy that you have to pay a high interest rate. Well, you'd be wrong again. Did you know that some UL policies have wash loan provisions where your interest on a policy loan is 0%? Did you know that some UL policies have participating loan provision that actually can result in a net positive interest rate so you can actually earn interest on your loan amount and not pay? Oh that's right PFS doesn't teach you that either. They teach you the theory of decreasing responsibility. What do you do if that doesn't work for someone? Then what would you suggest? The theory of decreasing responsibility is a prefect world scenario and therefore is not a good premise to plan one's financial future on. Wouldn't you rather prepare a client for the worst case scenario knowing that if the worst didn't happen then the client would be even better off? What if your client bought 1 million in coverage at age 35 and at age 55 he had a heart attack and he had to stop saving money for retirement and he took an early disability income from his 401k? Would you say the theory of decreasing responsibility applies to him? Do you think he'll need insurance past age 65 to make up for the fact that they had to use their retirement nest egg sooner than planned? What can you do for him? Since you can't convert a PFS policy to a permanent insurance and he can't qualify for a new policy because of his health, the only option you can offer him is to pay annually increasing term insurance after his initial term ends. That will be more expensive in the long run than converting to a permanent policy. The one size fits all strategy that PFS uses is NEVER a good thing. Would you buy anything else that way? Would you eat anywhere that said they only have one entre? Or would you buy shoes from a store that only sold size 10? I think we'll agree that your financial future is way more important then anything else, so why would you buy a one size fits all financial plan? Please do some research on financial, insurance and estate planning before you listen to another word your RVP says. Really, why do all you new PFS reps think that your RVP is preaching some gospel when in reality the training he is giving you is incomplete and inadequate?

There are many reasons to own a life insurance policy and there are times when a term policy is NOT the best choice for someone. But at PFS they don't teach you how to use life insurance they only teach you how to sell it. Your statement that a beneficiary does not ever get the cash value in a permanent policy, specifically Universal life is wrong. There is an option on UL policies that gives BOTH the cash and the death benefit, but they don't teach you that at PFS do they? And did you know that there are some Indexed UL policies that pay as much as 12% on the cash value and that that money is subject to some of the most favorable tax treatment allowed? I suppose now you'll say that if you want to use the cash in an insurance policy that you have to pay a high interest rate. Well, you'd be wrong again. Did you know that some UL policies have wash loan provisions where your interest on a policy loan is 0%? Did you know that some UL policies have participating loan provision that actually can result in a net positive interest rate so you can actually earn interest on your loan amount and not pay? Oh that's right PFS doesn't teach you that either. They teach you the theory of decreasing responsibility. What do you do if that doesn't work for someone? Then what would you suggest? The theory of decreasing responsibility is a prefect world scenario and therefore is not a good premise to plan one's financial future on. Wouldn't you rather prepare a client for the worst case scenario knowing that if the worst didn't happen then the client would be even better off? What if your client bought 1 million in coverage at age 35 and at age 55 he had a heart attack and he had to stop saving money for retirement and he took an early disability income from his 401k? Would you say the theory of decreasing responsibility applies to him? Do you think he'll need insurance past age 65 to make up for the fact that they had to use their retirement nest egg sooner than planned? What can you do for him? Since you can't convert a PFS policy to a permanent insurance and he can't qualify for a new policy because of his health, the only option you can offer him is to pay annually increasing term insurance after his initial term ends. That will be more expensive in the long run than converting to a permanent policy. The one size fits all strategy that PFS uses is NEVER a good thing. Would you buy anything else that way? Would you eat anywhere that said they only have one entre? Or would you buy shoes from a store that only sold size 10? I think we'll agree that your financial future is way more important then anything else, so why would you buy a one size fits all financial plan? Please do some research on financial, insurance and estate planning before you listen to another word your RVP says. Really, why do all you new PFS reps think that your RVP is preaching some gospel when in reality the training he is giving you is incomplete and inadequate?

There are many reasons to own a life insurance policy and there are times when a term policy is NOT the best choice for someone. But at PFS they don't teach you how to use life insurance they only teach you how to sell it. Your statement that a beneficiary does not ever get the cash value in a permanent policy, specifically Universal life is wrong. There is an option on UL policies that gives BOTH the cash and the death benefit, but they don't teach you that at PFS do they? And did you know that there are some Indexed UL policies that pay as much as 12% on the cash value and that that money is subject to some of the most favorable tax treatment allowed? I suppose now you'll say that if you want to use the cash in an insurance policy that you have to pay a high interest rate. Well, you'd be wrong again. Did you know that some UL policies have wash loan provisions where your interest on a policy loan is 0%? Did you know that some UL policies have participating loan provision that actually can result in a net positive interest rate so you can actually earn interest on your loan amount and not pay? Oh that's right PFS doesn't teach you that either. They teach you the theory of decreasing responsibility. What do you do if that doesn't work for someone? Then what would you suggest? The theory of decreasing responsibility is a prefect world scenario and therefore is not a good premise to plan one's financial future on. Wouldn't you rather prepare a client for the worst case scenario knowing that if the worst didn't happen then the client would be even better off? What if your client bought 1 million in coverage at age 35 and at age 55 he had a heart attack and he had to stop saving money for retirement and he took an early disability income from his 401k? Would you say the theory of decreasing responsibility applies to him? Do you think he'll need insurance past age 65 to make up for the fact that they had to use their retirement nest egg sooner than planned? What can you do for him? Since you can't convert a PFS policy to a permanent insurance and he can't qualify for a new policy because of his health, the only option you can offer him is to pay annually increasing term insurance after his initial term ends. That will be more expensive in the long run than converting to a permanent policy. The one size fits all strategy that PFS uses is NEVER a good thing. Would you buy anything else that way? Would you eat anywhere that said they only have one entre? Or would you buy shoes from a store that only sold size 10? I think we'll agree that your financial future is way more important then anything else, so why would you buy a one size fits all financial plan? Please do some research on financial, insurance and estate planning before you listen to another word your RVP says. Really, why do all you new PFS reps think that your RVP is preaching some gospel when in reality the training he is giving you is incomplete and inadequate?

First of all, we need to understand why we need life insurance. To make it simple, it should only be used to protect your income. If something happens to you, your income stops flowing in. Without life insurance, your family will have financial stress. The amount of coverage you need depends on: how much debt you have, how many kids you have, your annual income, and funeral costs. Cash value polices (known as Whole Life or Universal Life) are expensive for small amount of coverage, during first 3 years no cash value is accumulated, interest rate are very low, to use cash value you have to borrow it with interest, and if you die your beneficiary does not get the cash value (unless it's stated in the policy). You usually don't see too many clients who own more than $100,000 in coverage because premiums are so high. Some agents trick clients by saying "In 10 years, your life insurance will be paid up." It is never paid up since you are paying for your WHOLE LIFE or until Age 98. So in 10 years you don't pay, guess where they get the money to pay for your life insurance? From your cash value! What happens when cash value hits zero? You risk losing coverage. Term insurance are known as pure insurance (such as car insurance). They are inexpensive, investments are kept seperate from life insurance, interest rate of return on investments are above 8%, and if something happens to you, your beneficiary gets coverage and investments. Why it's term insurance? In the early years, you have lots of debt, you don't have much savings, and you have a family to take care of. So you need lots of coverage. In the later years, the kids move out, you are retiring, your debt is paid up, so you don't need much coverage, but you better have lots of money. That's why Primerica say, Buy Term and Invest the Difference. But the way I look at it, term insurance is "Rent wealth while building wealth."

Paul, I have a CLU, CFP, and a CSA. I think I know what I'm talking about. You are describing Universal or Variable Life, not Whole Life. The cash value never decreases in a WHOLE LIFE policy, it always increases through out the policy life ending at age 100. If you would like to see proof I could fax you a copy of a clients cash value page in the policy. Universal Life if sold incorrectly which most times it is, will decrease in cash value around the ages you described. However if you dont sell it at the minimum premium you will never run into this problem. I sell alot of Universal Life, mostly Allianz for retirement supplementation. Allianz has a wonderful product that is call Life Fund and it triples the cash value at age 65 and starts paying you a retirement income without decreasing you cash value. Again with no risk to their money because it is Equity Indexed, not Variable. Now again I wish you Termites from Primerica would get some knowledge and the facts before you sound stupid. And how come I've never seen a Primerica agent that has a designation like CLU. Would it be that you don't care about your clients to know everything possible about your profession, including policy structure. You should take a couple of courses, maybe you would know the correct policy structures before you open your mouth. But why would any of you care because this is just a part time job for you, not a career. God save your souls for everyone you have screwed.

Wayne, I feel sorry for you. You come on here and lambaste us, but what you stated is only partially right and is mostly misconception. If you are a customer, YOU are being ripped-off and don't even realize it. If you are an agent, shame on you. Here is the correct stuff. You can call any insurance company and confirm this (even though they will be very, very reluctant to confirm this). Most insurance policies are base on some form of term insurance. Most are based on what is known as Annually Renewal Term. Let's look at a 25 year old. A 25 year old can get one year's worth of insurance very cheaply. That same person at 65 would be paying much, much more for the same one year's coverage at that age. So any type of cash value permanent life insurance (Whole, Universal, Variable, Return-of-Premium, etc.) starts grossly overcharging the consumer when they are young so that the insurance company can pay the agent and build its profit level. Then after 3 to 5 years (see the guaranteed table, NOT the non-guaranteed table), the policy starts to accumulate cash value (so you paid 3 to 5 years for an investment that paid NOTHING!). Then around 60 or so, you will notice that the cash value starts to decrease. This is because the cost of a year's term at age 60 is higher than the premium paid. So even though it seems that premiums are fix, that is subterfuge, because eventually the term part of your policy starts to cost more than the premiums PLUS what that sad, low paying investment is making. So the company takes away your cash value If you do nothing, then around 68 or so, your cash value goes to zero and that kills the policy. You have nothing. No cash value. No insurance. Nothing but a history of being overcharged. But, and it even states this in most policies, the friendly insurance company advises you to check with them periodically. You can then pay a much higher premium to keep the insurance in force. The cash value is not even yours. You cannot just take it even though most agents would tell you that you can use it at anytime, but again that is subterfuge. What they don't tell you is that it is still the insurance company's money. If you take it, you actually borrow it. You have to pay it back plus interest. If you die, the company keeps your cash value (unless you have option B coverage which is super expensive.) If you borrowed the cash value, it reduces your death benefit. Your beneficiaries also get screwed. No matter how you look at it, any thing but straight term is a ripped-off. For that 25 year old, we would provide a 35 year term, whose premium stays the same. With a decent savings plan and retirement plan in place, there will be no need for income protection at age 60. A much smarter plan. I hope I have educated you. I find the ignorance in the general populace unbelievable. I find the greed of agents abhorrent. They all have term insurance available and yet they sell these horrible policies simply because they make more money on them. And they continue to get commissions every year! So these policies are very profitable for the agents. So much for our being the uneducated idiots that the jerks on this site propagate.

The person from Indiana is totally wrong about the facts in his comments on whole life insurance. He says that the premium is low when you are young and increases with age, totally wrong, but what do you expect from someone who has only sold term. Whole life premiums stay at a locked in premium for the life of the policy. He was referring to Universal Life which the premium does not increase but the cost of insurance increases. If this product is sold correctly you will never have to pay more premium when you are older. Same old story with Primerica never have their facts straight. Also I have made a nice income replacing the crap you call term with better term premiums and whole life.

At one time in the not-so-distant past, there was a need for life insurance. We are all familiar with stories of people who died just months before they were eligible for their pension, leaving their families with nothing. Life insurance was designed to provide for that lost pension if, by chance, the individual died prematurely. Today, with 401Ks, IRAs and other self-funded investment programs, the family receives the retirement plan. So, no - a person does not need life insurance for life. If a person feels his family needs $200,000 in assets, then once the person accumulates $200,000 is assets, the person no longer needs a $200,000 life policy. As your assets grow, your need for a specific level of life insurance decreases, which is called - the rule of decreasing responsibility. Whole Life policies: Primerica reps are known as termites - they only believe in term life. The motto is Buy Term and Invest the difference. Most whole life policies are scheduled for phase out when the policy holder reaches 55-60. Early in the policy life, the premium is low. But, the monthly premium increases as a person gets older. The added cost of the premium is subtracted from the cash value. These quiet increases in premium consume the cash value, leaving the insured individual with nothing. As for mutual funds, these are much more stable than individual stock. Consider the rapid decline of GM while foreign imports are doing well. Some company stocks go up while others go down. Mutual funds retain just a small amount of stocks in any one company. This mitigates your damages from a company loss - the stock increases in your mutual fund off-sets your losses. I suspect that you were not actually happy with your debt, otherwise you would not have gone along with the financial plan. I suspect that what you were happy about was mass consumption on credit with little concern about its repayment. Now, with a financial plan, you must exercise delayed gratification. You must sacrifice small pleasures - such as, restaurants - in order to enjoy greater pleasures - such as, retirement. You can eat out every day now and work at Wal-Mart until you die; or you can live more modestly now so as to enjoy your retirement years in leisure. Worrying for the first time about your family's future is a new level of maturity. Your family discussing where it should go to eat sound as if your children are now learning responsibility. Would it not be nice if more people could complain about their loss of innocence and about their newly acquired sense of responsibility as they matured in adult life.