• Report: #160244

Complaint Review: World Financial Group

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  • Submitted: Mon, October 10, 2005
  • Updated: Thu, January 19, 2006

  • Reported By:Salem New Hampshire
World Financial Group
Worldfinancialgroup.com Nationwide U.S.A.

World Financial Group WFG - MLMpyramid scheme RIPOFF Nationwide

*Consumer Comment: Steve..remember deposit term?

*Consumer Suggestion: Leroy..Remember "United Agencies"

*Consumer Suggestion: Leroy..Remember "United Agencies"

*Consumer Suggestion: Leroy..Remember "United Agencies"

*Consumer Comment: World Financial Group was started by someone formerly associated with A.L. Williams same cult mentality.

*UPDATE Employee: Let me enlighten you

*UPDATE Employee: Let me enlighten you

*UPDATE Employee: Let me enlighten you

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A friend of mine approached me with this big opportunity of learning and investment from World Financial Group, so very excited by the idea, I went to a seminar and signed up on their guest list. Soon enough, this friend and some other people came to my house and urged me to jump in, unsuspecting to my friend, I paid $100 for material fee and thought it was pretty cheap for learning. I was asked to call my other friends to sign up, meanwhile, I was urged to buy their product VUL. Little by little I realized this was actually a MLM, or pyramid scheme, and this VUL sounded too good, I started getting suspicious, and then I realized I was actually targeted for their sales and it was nothing to do with the learning. So I refused to recruit my friends, and refused to buy VUL. I thought that was it, I paid $100 and learned a lesson.

But apparently, these people never gave up, they started calling me to ask a list of my friends' phone number, which I refused to give them. They also kept trying to sell me the VUL which I know better.

So basically the rules are:

1. If you join, you are meant to be their sales target, unless you are more aggressive and to recruit more people.
2. If you don't mind losing friends and money, go ahead.

Regaring VUL, my findings are:

1. if you are rich, that's one way to evade or defer tax
2. if you make $350K a year, it might be good for you
3. Commission and maintenance fee are outrageous, I used a tool to calculate, basically, if the earning is only 4% and you put the minimum investment for about 20 years, after 25 years, the cash value in the account is 0!
4. If you buy it, the salesperson gets commission every year!(that's why they only want to sell VUL)

Thanks God, I only lost $100 but did not lose any friends except the one who cheated me in.

Joyce
Salem, New Hampshire
U.S.A.

This report was posted on Ripoff Report on 10/10/2005 06:45 PM and is a permanent record located here: http://www.ripoffreport.com/r/World-Financial-Group/nationwide/World-Financial-Group-WFG-MLMpyramid-scheme-RIPOFF-Nationwide-160244. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
0Author 8Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

Steve..remember deposit term?

AUTHOR: Leroy - (U.S.A.)

Steve, we had a similar thing here in California in the early 80s. It was an MLM that was selling deposit term. I forget who the insurance company was. I didn't do it, knew a few who did, and it all collapsed fairly quickly.



I am now semi-retired. I no longer seek new clients, I just service the existing ones. I still work 2-3 hours a day because I like to, and I now spend more time than I should on this board.



However, if I can dissuade one person from joining, then I know I have saved 6 or 7 of his friends and relatives from having to sit through one of their sales pitches.
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#2 Consumer Suggestion

Leroy..Remember "United Agencies"

AUTHOR: Steve - (U.S.A.)

Late 80's-Early 90's. I got roped into signing on with them when I was in Tucson in 1992 as a life agent.



They tried coming in with a high priced term product on an MLM payout structure. They failed because too many people needed to get paid from each sale.



They had cult like meetings that really were scary.



I jumped ship pretty quick.
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#3 Consumer Suggestion

Leroy..Remember "United Agencies"

AUTHOR: Steve - (U.S.A.)

Late 80's-Early 90's. I got roped into signing on with them when I was in Tucson in 1992 as a life agent.



They tried coming in with a high priced term product on an MLM payout structure. They failed because too many people needed to get paid from each sale.



They had cult like meetings that really were scary.



I jumped ship pretty quick.
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#4 Consumer Suggestion

Leroy..Remember "United Agencies"

AUTHOR: Steve - (U.S.A.)

Late 80's-Early 90's. I got roped into signing on with them when I was in Tucson in 1992 as a life agent.



They tried coming in with a high priced term product on an MLM payout structure. They failed because too many people needed to get paid from each sale.



They had cult like meetings that really were scary.



I jumped ship pretty quick.
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#5 Consumer Comment

World Financial Group was started by someone formerly associated with A.L. Williams same cult mentality.

AUTHOR: Leroy - (U.S.A.)

Yes Steve....WFG was started by someone formerly associated with A.L. Williams.



Yes Steve, same cult mentality.



In my opinion WFG is even more dangerous. VUL products are complicated and not easily explained. What I see in the San Francisco Bay area is that most of the WFG clients are from Southeast asia with limited command of English. I have no way of knowing whther the complexities of a variable universal life contract written in English can be accurately translated to someone who speaks only Hmong, but I have my doubts.



As an agent I have written VUL in the past. I own VUL myself, but I have a very hard time imagining it as a suitable life insurance product for someone with limited means and without the need for tax free income after retirement.



p.s To consumers- ANY product whether its soap or life insurance or loans marketed by a multi-level marketing company will be higher priced because of the BLOATED COMMISSION schedule needed to market it.



p.s.- to Joyce in New Hampshire, all permanent insurance products pay a commission to the agent each year. Most pay a large commission the first year and then much much smaller trail commissions after that. (typically 1/4th of 1%) Are you saying WFG has a level commision structure? If so then the first year commission will be small....maybe 3% if my guess is correct.
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#6 UPDATE Employee

Let me enlighten you

AUTHOR: Nick - (U.S.A.)

First, the $100 you paid is a processing fee which allows our company to give a code number that will allow you to make money once your are life licensed , mortgage licensed(depending on the state) or securities licensed. Our company creates marketing materials, a multimillion dollar website that allows you to track your education and business, free training, a system that allows you to have your own business, sets up awards for the top performers in the company which might include agents you recruited, a home office with over 250 employees and selling contracts with some of the top insurance and financial companies in the country .

It is unfortunate that our company only charges $100 as a processing fee instead of $10,000. It is obvious that you never had your own business otherwise, you would know that you have expenses associated with it, and although in our company you have expenses such as: marketing materials, education and licensing, it doesn't compare to what you would have to put up if you started a business on you own.

Now, when it comes to our system of recruiting let me explain to you how it works.

First, our company is not a pyramid scheme, because they are illegal . World Financial Group is part of AEGON, which has a impeccable world reputation with assets of over $300 billion , they own Transamerica Life from San Francisco and if World Financial Group was a company that was going to damage Aegon's shareholders they wouldn't have acquired us in 2001.

Every company recruits people to grow their company. When you were asked to put list of friends and family members was to help you obtain your 10 on the field training appointments, which was meant for you to see how we offer suggestions on the fields of mortgages, life insurance and securities products(by the way, nobody has to buy anything , and the 10 appointments to get you $500 for your licensing expenses). That way when you are properly licensed you could have a better chance of running you own appointments.

In my opinion recruiting allows you to build a business, which hopefully allows you to have your own office and have a team of friends working with you . The opportunity that was offered to you is the same opportunity the president of our company took advantage of and got him to be at the top of our company. But if you are not explained our business properly or if you are the kind of person who is afraid of rejection, lacks self-discipline and wants to be an employee all your life, our company is not for you.



When it comes to the Variable Universal Life (VUL), is an approved life insurance product offered by literally every life insurance company, such as: Allstate, State Farm and Met Life. The fact that you were offered to buy this product is unknown to me why, because I don't know you situation. VUL is not suitable for everyone but you don't need to make $350,000 a year either. If you were offered something that was not suitable for you then you should report it so that our company penalizes that individual. Remember that in the different industries we do business, they are strictly regulated by the SEC, NASD and the Department of insurance of its respective states.
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#7 UPDATE Employee

Let me enlighten you

AUTHOR: Nick - (U.S.A.)

First, the $100 you paid is a processing fee which allows our company to give a code number that will allow you to make money once your are life licensed , mortgage licensed(depending on the state) or securities licensed. Our company creates marketing materials, a multimillion dollar website that allows you to track your education and business, free training, a system that allows you to have your own business, sets up awards for the top performers in the company which might include agents you recruited, a home office with over 250 employees and selling contracts with some of the top insurance and financial companies in the country .

It is unfortunate that our company only charges $100 as a processing fee instead of $10,000. It is obvious that you never had your own business otherwise, you would know that you have expenses associated with it, and although in our company you have expenses such as: marketing materials, education and licensing, it doesn't compare to what you would have to put up if you started a business on you own.

Now, when it comes to our system of recruiting let me explain to you how it works.

First, our company is not a pyramid scheme, because they are illegal . World Financial Group is part of AEGON, which has a impeccable world reputation with assets of over $300 billion , they own Transamerica Life from San Francisco and if World Financial Group was a company that was going to damage Aegon's shareholders they wouldn't have acquired us in 2001.

Every company recruits people to grow their company. When you were asked to put list of friends and family members was to help you obtain your 10 on the field training appointments, which was meant for you to see how we offer suggestions on the fields of mortgages, life insurance and securities products(by the way, nobody has to buy anything , and the 10 appointments to get you $500 for your licensing expenses). That way when you are properly licensed you could have a better chance of running you own appointments.

In my opinion recruiting allows you to build a business, which hopefully allows you to have your own office and have a team of friends working with you . The opportunity that was offered to you is the same opportunity the president of our company took advantage of and got him to be at the top of our company. But if you are not explained our business properly or if you are the kind of person who is afraid of rejection, lacks self-discipline and wants to be an employee all your life, our company is not for you.



When it comes to the Variable Universal Life (VUL), is an approved life insurance product offered by literally every life insurance company, such as: Allstate, State Farm and Met Life. The fact that you were offered to buy this product is unknown to me why, because I don't know you situation. VUL is not suitable for everyone but you don't need to make $350,000 a year either. If you were offered something that was not suitable for you then you should report it so that our company penalizes that individual. Remember that in the different industries we do business, they are strictly regulated by the SEC, NASD and the Department of insurance of its respective states.
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#8 UPDATE Employee

Let me enlighten you

AUTHOR: Nick - (U.S.A.)

First, the $100 you paid is a processing fee which allows our company to give a code number that will allow you to make money once your are life licensed , mortgage licensed(depending on the state) or securities licensed. Our company creates marketing materials, a multimillion dollar website that allows you to track your education and business, free training, a system that allows you to have your own business, sets up awards for the top performers in the company which might include agents you recruited, a home office with over 250 employees and selling contracts with some of the top insurance and financial companies in the country .

It is unfortunate that our company only charges $100 as a processing fee instead of $10,000. It is obvious that you never had your own business otherwise, you would know that you have expenses associated with it, and although in our company you have expenses such as: marketing materials, education and licensing, it doesn't compare to what you would have to put up if you started a business on you own.

Now, when it comes to our system of recruiting let me explain to you how it works.

First, our company is not a pyramid scheme, because they are illegal . World Financial Group is part of AEGON, which has a impeccable world reputation with assets of over $300 billion , they own Transamerica Life from San Francisco and if World Financial Group was a company that was going to damage Aegon's shareholders they wouldn't have acquired us in 2001.

Every company recruits people to grow their company. When you were asked to put list of friends and family members was to help you obtain your 10 on the field training appointments, which was meant for you to see how we offer suggestions on the fields of mortgages, life insurance and securities products(by the way, nobody has to buy anything , and the 10 appointments to get you $500 for your licensing expenses). That way when you are properly licensed you could have a better chance of running you own appointments.

In my opinion recruiting allows you to build a business, which hopefully allows you to have your own office and have a team of friends working with you . The opportunity that was offered to you is the same opportunity the president of our company took advantage of and got him to be at the top of our company. But if you are not explained our business properly or if you are the kind of person who is afraid of rejection, lacks self-discipline and wants to be an employee all your life, our company is not for you.



When it comes to the Variable Universal Life (VUL), is an approved life insurance product offered by literally every life insurance company, such as: Allstate, State Farm and Met Life. The fact that you were offered to buy this product is unknown to me why, because I don't know you situation. VUL is not suitable for everyone but you don't need to make $350,000 a year either. If you were offered something that was not suitable for you then you should report it so that our company penalizes that individual. Remember that in the different industries we do business, they are strictly regulated by the SEC, NASD and the Department of insurance of its respective states.
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