Well i've been browsing this site recently, and I have found a significant amount of information trashing Primerica as an employer, but I'd like to bring up some gripes for the clients of a Primerica agent.
The situation that began this is a friend of mine recently joined the ranks of Primerica. She's been desperately trying to recruit me, even though I'm already in the personal finance business, and she told me some "facts" that startled me.
She was instructed by her manager to firstly, recruit everyone she knows. Nothing new here. But her parents had existing policies through Met Life. Now I do not work for Met Life, and to be quite frank, are not too fond of their products. But she was told to replace her parents policies with cheaper term policies and invest the difference.
Now here's the kicker. Each policy she replaced was a traditional whole life policy that has been paid for, for over 20 years. The N-pay situation has already kicked in, and they were not paying any premiums.
I bought up the fact that... "Well... I'm not too sure it was a great idea to replace those policies. " She replies "Well Met Life policies are garbage! My manager tells us that all Met Life policies are ticking time bombs. Eventually, the benefits will decrease and she'll have to start paying higher premiums again."
WHAT THE HELL!!! How did she get her life and health license! I spoke to another "senior" agent, and asked him what he would do in the situation. Much to my suprise, the same exact suggestion.
Fast forward one week.
The news reports that Met Life is taking over the insurance business for Travelers, so now they have a wider array of products. Guess who was singing praises about how this is a great thing for Primerica....
Give me a break!!!
Here's a quick quiz for any Primerica agents...
1) You have a 75 year old man who is interested in passing his savings to his heirs. He wants to avoid estate taxes.. What do you suggest?
2) You have a person who wants only term insurance and wants to save money for their childs education... What do you suggest?
3) Same person from before, however, this person was burned by the market and does not want to invest in stocks. Interested in other methods of accumulation... What do you suggest?
If all your suggestions are "Buy term and invest in the S&P 500, please wake up and smell the coffee....
Ever heard of ILITs, Trusts or 529 Plans?
I'm not against buy term, invest the difference. I feel that it depends on the person and situation.
So those are the reasons I feel that Primerica is a scam and the $199 fee should've been spent taking LUTCF courses and working elsewhere.
New York, New York