Report: #1086929

Complaint Review: World Financial Group - Houston Texas

  • Submitted:
  • Updated:
  • Reported By: FairisFairinfo — Houston Texas
  • World Financial Group Houston, Texas USA

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I would like someone from this company to answer a huge question that I think are extremely valuable to anyone seriously considering being apart of this type of business (including myself). Now that being said, if no one does answer the questions its pretty obvious that this is fishy and a scam.

Full explaination below but here is the question:


I personally have been approched by a friend about this business to sell life insurance and use it as an investment for long term. Of course it sounds great and perfect and it seems as if the product is legit.

Now Im NOT going to automatically call it a MLM scheme because a MLM scheme is signing up a mass amount of people under you in which the upfront cost partially goes to you and the people above in the hope that they get people below them.

For that to be entirely true, I would have to prove that the $100 "background check" is PARTIALLY going to the people above. In which they even make money if you dont do anything but sign up. Which I DONT really think is the case here.

It seems like there is a large amount of people in this company and the people that put in the Hard work actually make a decent amount of money. I was told that someone putting in the hard work will be earning at least +$50K yearly. Now someone way up the chain can make as much as +$500k a year. 

I was told that the big conventions range about 20k people so I think can safely assume that throughout this company there is at least 100K people that put in $100 to just get started (which includes the people that dont do anything and fall off entirely).

I think I can safely assume that at least %5 are hard working.

So undershooting everything by large amount, 5k people x $50k is $250million yearly.

Now let me assume that all those people actually pay ~$100 a month because they have the life insurance that they are trying to sell.

100k people x $100 a month x 12 months = $120million yearly

why not add $100 "background check" to everyone adds another $10million.

to even break even 100K more people would have to just get the insurance. 


All this money should be going to these people's insurance and I do understand how the insurance business works- get the money now invest it and pay these people later when they need it or when they die etc. BUT no smart business would use this model because its a losing money model. I dont want to make assumptions about the ethics of this company. But can someone at least make sense of this for me. 

Honestly, if I feel that I am given a legit answer. I will join and start making money, but if I join this I dont want it to fall apart after I have invested my time and my family and friends time/money.     


This report was posted on Ripoff Report on 09/24/2013 10:48 AM and is a permanent record located here: https://www.ripoffreport.com/reports/world-financial-group/houston-texas/world-financial-group-aegon-transamerica-where-does-the-money-come-from-mlm-houston-tex-1086929. 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. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#8 Consumer Comment

answer to question of where money comes from to pay agents

AUTHOR: Fred Kass - (USA)

POSTED: Friday, June 10, 2016

The money comes from profit resulting from premiums and investments of the premiums. The insured leverages the assets of the insurance company so that when an event occurs which would be financially damaging or impossible to handle, the insurance company under the policy pays according to the policy. The premiums should cover expenses, reasonable return to maintain solvency and strength of the company and the reserves for claims. Profit comes from prudent investment and skilled management.

As long as the policy is disclosed, the coverage is reasonable and effective, and the insurance compay pays valid claims promptly with good service, there is no basis of criticism.  Given the size of the number of policy holders sometimes the claim is not processed properly, or unfortunately there can be a poor claims processor. As long as the company does not have a policy of delaying or refusing valid claims, these problems should be corrected.

The key is to have well written policies that serve the insured, are honest, with proper claims handling, and good service.

Many people suffer because they did not have coverage that they could have afforded with better planning. Regarding some of the experiences, outside of some automobile claims management, I find the vast majority of agents really want to help people and give good service. 



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#7 UPDATE Employee

Insurance is a Big Business

AUTHOR: BillArmano - (USA)

POSTED: Monday, March 14, 2016

So 1st off I can understand the confusion, but I belive some of your questions are easily clarified. 

1) The $100 that every agent pays once goes to fund the sales and servicing tools provided by the company to the agents, plus the background check.

2) WFG is not an insurance company, they are insurance brokers.  So their agents work with 150 individual insurance companies to offer products all over the insurance spectrum (Term, IUL, Annuities, Mutual Fund backed Life, etc.)

3) Transamerica and WFG are owned by one of the largest financial service companies in the world with sales of more than $50 Billion Dollars annually.  The solvency and profitability of Transamerica does not come from agents buying policies.  Agents usually do buy policies because they/ we believe in the products. 

4) Compensation is tiered in this business because it is in every insurance company.  Even companies that pay per-diem enrollers pay an override to the agents setting up the enrollments.  Commission is just the structured way of paying people based on business performance.  It's essentially the same way that ABC company pays their software engineers for doing work that adds value to the company, or pays their accounting department for doing their job.  No company endeavors to pay more for employee A than Employee A generates for the business. 


Is this company perfect in every way?  No, but it is an ethical company in a (largely) ethical business which is very well regulated and provides services that clients want and need. 

best regards to all

~Bill A

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#6 Consumer Comment

World Financial Group

AUTHOR: Divine - (USA)

POSTED: Thursday, June 18, 2015

 To answer your question. From my understanding the money is paid by the investors. It's backed behind Fortune 500 companies. Go to a meeting you will learn everything. It is the best insurance company out. And even if they are MLM they are the originators of the game. The only group that is still around. WFG is about building people and finding financial freedom. It's your own fault if you fail. What's a 100 dollars investment on yourself monthly. When most people spend 100 on cell phone bills a month. Think about it.

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#5 Consumer Comment

Commission Structure

AUTHOR: agent25 - ()

POSTED: Thursday, March 27, 2014

Yes this is a good commission structure if you are starting out. You should be aware off the ADVANCE commission. If your client lapses the policy after 3 to 6 months or so, you will get a charge back!

It is exciting to sell a $250 monthly premium and get paid $750 the following week.

My commission as an independent with the same product is 105% first year 2.5% 2nd year and thereafter. but do not get an advance. SO I do not receive any charge backs either! I get $262.50 a month for the same $250 premium. But I get mine every month! This happens because I have the same commission structure as an agency even though I work all by myself. The Insurance company does not pay any overides to anyone. I also do NOT get paid until the policy is issued and premiums collected! Which is usually over 30-days after I write the sale as it still has to go thru underwriting and blood work has to be ordered and etc.etc.So you can see how stressfull and unattractive that set  is compared to WFG. Nobody pats me on the back for a job well done and I don't tell my client that they can possibly do what I do and recruit them. Instead they give me a referral for a job well done and i possibly make another sale. Hopefully you repeat the process over and over again and pretty soon you can live on the renewals after a few years.

No meetings pumping up and training your recruits, which I've done when I first got started.

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#4 UPDATE Employee

one more thing

AUTHOR: wn - ()

POSTED: Monday, November 25, 2013

About our upline getting overrides and how we are paid is no different than any other company. For example say sell someone a car. A certain amount is going to cover the cost of the. The profit is going to pay the salesman, the managers salary, the owners salary, bonuses, etc. 

Because i techniqually am not an employee, meaning i dont get paid hourly or salary, i dont have a boss or schedule, no W-2. I am 1099ed so i pay my own taxes so i basically have my own business. I look at paying my upline as part of doing business and helping my business associates succeed. So for those whom are greedy and have a problem with sharing the wealth this probably isnt for you and are probably the type of people that cause all of these bad reports. My advise to people is dont be afraid to say no and/or ask questions and dont stop until you are satified because if you dont then you are partially at fault. I know with my money i dont invest or buy until i know everything abkut what it is im buying or investing in. WFG is a great company that cares about its people so stop blamming the company and start blamming the people that steered you wrong. Wether it is family friend or whoever. 

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#3 UPDATE Employee

where the money comes from

AUTHOR: wn - ()

POSTED: Monday, November 25, 2013

I have been with WFG for about 6 months now and this is my understanding of how the money works. 

First of all the $100 you mention is for a background check and a WFG agent code. It is my understanding that the agent code allows you access to tools, reports, product info, etc. So some of it goes to the company, not individuals, and some of it goes to the cost of a background check, which i did recieve a copy of a few months later. 

Secondly one makes money by selling life insurance, annuities, and other financial vehicles depending on which licenses you hold. For example say i sell a life insurance policy for an insurance company i am appointed with. Commission is paid on the total premiums paid for a year. Ex. Premium is $250/month which totals $3000 per year. The insurance company issues a check to  WFG after the bussiness is submitted. Since I am fairly new, I am at a 25% commission so i get 25% of $3000 unless I wrote the policy with an  assisting agent which i would get 25% of $1500 because we split the commission 50/50 which is fair.  Lets say there was no assisting agent so i would get paid 25% of $3000 = $750. The other $2250 goes towards overrides to my upline which means, the person that hired me gets a little, the person that hired the person who hired me gets some and so on. I personally think this is a great system because it is beneficial to everyone that the new and old agents succeed so if someome needs help or training everyone is willing to do so.

I have never worked for or with a company where everyone and i mean everyone wants and helps you to succeed. As with any career in sales... YOU GET OUT OF IT WHAT YOU PUT INTO IT...we sell top quality products from top quality and well established companies. With multiple ways to make money. WFG does not require you to buy anything or attend anything unless you decide to join the $100 is required for a WFG agent code and background check. The state in which you reside has its own requirements for licensing. YOU MUST BE STATE LICENSED IN ORDER TO MAKE ANY MONEY. It is all up to you. Like i said...YOU GET OUT OF IT WHAT YOU PUT INTO IT.

Hope this helps clear things up a little...

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#2 UPDATE Employee

Where the commission comes from

AUTHOR: RasaP - ()

POSTED: Tuesday, October 15, 2013

I work at World Financial Group (WFG). We get paid by WFG when WFG receives money from our partner companies. Our partner companies calculate how much to pay us based on how much revenue they expect to generate from the accounts that we opened through them.


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#1 Consumer Comment

From the companies

AUTHOR: Brand - ()

POSTED: Sunday, October 13, 2013

The money that is being asked about comes from the company that you set up for an individual.  I.e. nationwide prudential, New York life. Those same companies pay their own agents salaries plus commissions, and their benefits, overhead.  Why aren't you questioning where there money comes from. Thos companies don't have to pay world financial group salaries.  So those companies pay WFG agents a commission to sell their products.  the same money they woulplay their employees.  Just now instead of paying a salary plus commission, now they just pay out a commission.  Probably little higher commission percentage but the. Don't have to pay them for their salaries, benefits, or overhead.  Hope that clears it up for you.

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