What is the difference between Primerica and the World Financial Group?

World Financial Group and Primerica are more alike that they are different. I worked as an agent-contractor for WFG and so can share with you my direct experience, which was terrible. WFG is a predatory exploitative company that all people--clients and recruits--should avoid. Primerica sprouts many red flags too, which include consistent reports of overpriced insurance and pushy undertrained agents. A very good place to read about Primerica is at Insurance Forums. This thread's a good place to start:

Signed Up with Primerica

Back to WFG. Indeed, my experience with this multi-level marketing (MLM) firm was so bad, it led me to become a fee-only financial advisor so I could help people victimized by woefully undertrained and/or unscrupulous agents like far too many of them I once called my colleagues.

Both companies engage contractor-agents in an MLM structure. The agents sell financial products, which includes insurance policies and investments such as mutual funds. Both companies try to sell you on the supposed "value-add" that their "experienced" agents analyze your specific needs and assemble the proper financial package from a wide

variety of products. The main difference between the two MLMs: WFG focuses heavily to sell Permanent Life insurance while Primerica pushes Term Life insurance and encourages you to buy investment products with the money you save over buying a Permanent Life policy. You often hear agents call the latter approach "Buy Term and Invest the Rest."

For WFG, the dark reality is that our uplines pushed us very hard to 1) recruit, recruit, recruit, and 2) sell a super pricey high-risk Permanent Life Insurance policy from Transamerica called Financial Foundation Indexed Universal Life (FFIUL). This, because Transamerica owns WFG and its FFIUL policy generates fat $3k--$5k commissions. The FFIUL is choked with fees and charges and is typically very badly configured. Especially the agents illustrate the FFIUL's long-term average index account Rate of Return at an absurdly high 7--8+% when 3--4+% is much closer to reality. This vastly overillustrated rate all but guarantees your FFIUL will implode on you in the coming years, and you lose everything--your death benefit and all of the money you paid into it. Hope this helps you.

Category: Financial group

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