Primerica Financial Services a Scam?
Over on my consumer awareness site, Pink Truth, I have put together a few articles about Primerica Financial Services.
Like Mary Kay, Usana, and Mannatech, Primerica is a multi-level marketing company (MLM). The big difference, however, is that these other companies have a tangible product for sale, and many of the abuses come from loading participants with inventory they won’t ever be able to sell.
Primerica sells insurance (mostly life insurance), mutual funds, mortgages, and debt consolidation services. It appears that “debt consolidation” is the cash cow for the company, and it’s questionable whether consumers are really better off with the Primerica products than without. (i.e. The representatives are incentivized to push these products, even if it may actually cost the consumer more money!)
Primerica is a subsidiary of Citigroup, so many think this gives them instant credibility. Not for me. All it means is that Citigroup executives figured out how lucrative MLM is for the owners of the scam.
Here’s where Primerica enters the territory of being a scam:
- Overpriced products pushed to low- and middle-income people who probably have little to no experience with these financial services. They won’t realize the products are overpriced.
- Most of the sales are made by unlicensed representatives, meaning they aren’t well-trained about the things they’re selling.
- The representatives are generally paid lower commissions than at other companies. This is because Primerica is paying up to six levels of people about the salesperson. This is a hallmark of multi-level marketing. The seller gets a small payday so that many in the upline can get paid too.
You can find more information about Primerica on Pink Truth.
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Comments (234)
The most interesting thing to me is that all of the responses I see here from the Primerica reps are the same ones I heard from the ones I know. This must be the canned responses that they are trained to give.
I feel sorry for the people that fall into the trap. I am sure that there are people who make money selling the product. But it does not add up to me.
Now somebody used a carlot as an example of a commission driven business such as the insurance/mortage industry. I know a few people in the car sales line and when they were average salespeople they earned their income of a base salary plus commission. Granted the base salary was very small. Now once one of them was promoted to GM he went to a total salary nothing comissioned. He did not earn money from the commissions of his sales people either. The company expected him to hire, train, set expecations, coach these people. Why should he earn money from their legwork.
I don’t work in a commission based industry. So I am sure that my example can be trumped by someone elses example.
I just like the fact that all of the arguements for Tracy’s blog are identical.
I think Jim Jones would have been the best rep for Primerica ever.
it seems to me that the more you defend this company the more you look insecure about this company. there is a comment that is 5 paragraphs long and it looks to me that that person is unsure about primerica and very defensive to boot. just let the people talk about their frustrations because there are some down falls with a lot of people who joined the comapny and felt like thay were shafted……stop trying to convince people that its a great opportunity. it may be for some but for most it is not.
I have never drank the kool-aid. However I have a friend that goes on forever about Primerica. Her and her husband joined the parade 2 years ago. She said in one year that they would be making 250 thousand a year. 2 years have passed and they have made nothing. Actually they are in the hole. They live off her parents and many many credit cards. She is 50 her husband is 62. A little too old to live off mommy and daddy. Anyway..she always tells me what a financial wiz they are. I wouldn’t give those two a jar of pennies to invest for me.
She brags forever about primerica paying out billions in policies. They can’t even get primerica life insurance. They are getting ready to file bankrupcy again. Now how the heck can they help anyone invest or do an FNA??????
When I go to visit them..one thing I notice about all the primerica reps…they are dirt poor and keep waiting for the pot of gold at the end of the rainbow. But, they will lie up a storm and tell everyone how rich they are. Just my 2 cents worth I wouldn’t touch primerica with someone elses 10 foot shovel. The reps are not very bright if ya know what I mean.
Oh my goodness!!!. I can’t believe the responses I see…I see a LOT of IGNORANCE!! Learn about a company before saying negative or positive things about it.
1st. Primerica is not for everyone. If you don’t want to educate/help people, then that’s on you, and it’s not for you. If you don’t believe in what Primerica stands for, their product (do your research – talk to someone to see what they offer), then it’s not for you.
2nd. You HAVE to be licensed by the state to sell insurance – do you understand what it means to be licensed by ex. NJ Banking and Insurance (check it out). If someone sells you insurance, and they’re not licensed, for one, they can go to jail – plain and simple and that could happened to a non-licensed primerica rep.
3rd. You do this at your own pace and time. Never do you have to leave your so called wonderful full-time job to do Primeria (and reps will tell you that). It’s up to you how much time you want to put into it.
4th. No sell, no money – it’s your own business, so if you don’t open your business, how on earth does anyone have a successful business (that goes for everyone)…If you buy a store and sit at home and do nothing, how can you sell anything when you have no one there?
COME ON PEOPLE, BE SMART and EDUCATED!!!
LOL – This site is all about consumers being SMART AND EDUCATED. I’m educating them on Primerica Financial Services. If you work for Primerica and you sell something, most of the commission goes to the upline, who essentially did nothing to sell the product. (YOU sold it!) If you want to sell insurance and make money, then go to a LEGITIMATE INSURANCE COMPANY OR AGENCY where you will get to keep most or all of the commission on the products you sell.
Can anyone answer this question for Me please? Why is it that the only people who comment, post, lawsuits, or get “RIPPED OFF” ect. Are the people who assume that Primerica is a get rich quick scheme or easy, have been Terminated from there possition due to a criminal record, or people who are all together Lazy and don’t know the Law of Life and that you need to work hard for what you earn… Primerica is a Great Company and I am very proud to be a part of… It is NOT a Pyramid due to I started with the company only 2 weeks ago and the guy who hired me is under me by $40,000 a year. Also this is for the people who tried Primerica… Why are you lost in your own world??? I mean seriously, did you think that Primerica was going to be Easy??? Well I was raised to believe that Easy is Sleezy. Yes, Primerica is Simple but Not Easy! Another if you don’t work for a Company the Company will Not work for you, meaning Stop being LAZY and thinking it’s a get Rich Quick company… Primarica will only help you get Wealthy if your mind is Wealthy and you work hard and smart for your Success. Remember there is NO Company out there designed to get you rich over-night and if that’s what you want then give the Lottery a try. Thank’s and I hope that some of you can confess to your mistakes of failure in the company instead of blaming it on the great Primerica!
Scott, the definition of a pyramid scheme or an endless chain recruitment scheme has nothing to do with whether you make more or less than those above you in the recruiting chain.
I’ve been the target of the “lazy loser” argument before, and it just doesn’t fly. Many who get involved in MLMs aren’t looking for “get rich quick,” but they still lose money due to the way these companies are structured.
Well I got the cold call a few weeks ago and was asked to come in for a “job interview”. No mention of training or anything else. Everything would be discussed at the interview. I agreed but then decided to do a little research on the internet and I was not pleased with what I discovered about Primerica.
So I called to cancel the interview but no one answered the phone so I left a message thanking them for the initial call but that I had looked them up on the internet and was not interested. I thought that was the end of it but to my surprise they called me back.
I was asked what it was that I discovered on the internet to which I replied “That you are essentially running a scam.” Well that was all it took to send this guy into an 15 minute rant about how wrong I was. I could hardly get in a word as he rambled on and on. Rather than just cutting him off I let him continue as it was actually amusing to listen to. Plus it sounded like he was reading off a script.
“If you’re one of those people that allow themselves to be swayed by 4 or 5 complaints on the internet then that’s unfortunate.”
“4 or 5 complaints? Try 400 or 500″ I replied. Probably 4000 or 5000 if I spent the rest of the year looking.
It all ended when I said “Well that’s all great but I just don’t think its for me.” He quickly said “Oh fine. Goodbye.”
What amazes me as I read the posts from the Primerica people who defend the company is how much they sound like that guy. They use the exact same arguments as he did. I even discovered a post on another site where one of them said “If you look up Jesus Christ on the internet you’ll find thousands of sites against him.” Which is word for word one of the things that was said to me on the phone.
This is, of course, on top of the usual “If it didn’t work for you then you must be lazy and not care about your life.”
All these people repeating the same things over and over. Sounding like a bunch of clones.
Sound to me like a little washing of the brain is going on.
Scary.
I am truly amazed that people are so offended by other people trying to be helpful! I believe the service Primerica offers is truly valuable! They are unique in the category of “service”, in that they come to your home (try to get an agent from any company to spend hours helping you with your financial situation). How many other companies will help teach you how to rebuild your credit? If you are denied credit somewhere i.e. banks , mortgage companies, credit unions, etc.they say “sorry, goodbye, next” Not the case with these people. They actually build a relationship with you, and make themselves available to you. I wouldn’t have cared if the products cost double, the education and time they spent with me and my family,and friends was worth a lot more!
As I read some of these blogs, it seems as though some of you expect a lot for nothing! I have met many people in my life who work for that company, and they are happy and successful in their business. If a person doesn’t apply themselves in anything they do, they will receive nothing in return. I have sent many people to them and will continue to do so. They saved my financial life, as well as the others I sent them. The opportunity is there for the right person, they provide all you need along with the most valuable education regarding finances I’ve ever known, (I went to college to learn how to invest, and I learned more from Primerica than I ever did in school! Should they charge more than others so that we may become better advised? Why not, it was their idea, it’s their time, nobody else has stepped up to the plate! Who cares if they are “trained” or “read from a script”? Apparently, they are consistent ! Has anybody tried that 800 number for cheaper insurance?? It’s awesome too!
I’m not offended at people being helpful. I’m offended by the abusive model used by MLMs like Primerica, in which you can’t make a living by being a true salesperson of a product or service. The only way you can possibly make a real living (and still, almost no one is able to) is by recruiting multiple levels of the pyramid and feeding off their efforts.
There are plenty of professionals who will meet personally with people who need financial help. There are lots of not-for-profit credit counseling agencies out there, and I personally know several bankers who have gone above and beyond the call of duty to help their customers with their financial problems.
I am considering Primerica to stop paying 22 % interest on a credit card – long story, but I have a perfect record for paying on time every time, except when I didn’t get a bill, and I didn’t notice it until 2 days after the payment deadline. Hence, jack up to 22%. Is their product good for getting rid of debt? I dont’ care that it’s MLM, so much – but what is this going to do for me – good and bad please.
personaly i think that primerica is a very good company from what i have seen ive watched the impact the products this company has to offer vs the competition on families. I mean its literaly the difference bettween retireing with 200,000 and 2,000,000. and i dont care what people think of the business model because the fact is that if marry k and amway and avon can do it why cant primerica if its good for the client and company and the sales force whats the problem? furthurmore why would citi pay a billion dollars for a pyramid scheem? its called due dillagence. so before anyone make derogatory comments about the company do the reserch for yourself. when other companies are falling left and right and crumbling to the ground or taking tax payer dollars who is actually still in the black? PRIMERICA!!!! thats who and guess who never ingaged in selling those mortgauges that nearly destroyed our economy? oh is it primerica i think it is…well in conclusion as much as people want to attack primerica because they have maybe had a bad exsperience with a sells rep well if the company is made up of independent contractors iam willing to bet that not everyones gona be knowlegable not all of them will have the best intentions or maybe not all of them will be willing to sacrafice their commision for what the client needs but you know what at the end of the day 98.9 of the sales force will so that being said dont judge a book by its cover. over all its a great oppurtunity to join and from the client stand-point it offers some of the best solutions to financial problems in the industry so say what you will Primerica is the best oh and if you dont belive me just ask AM best or money magazine just a lil something to ponder.
This whole article is false. I dont work for Primerica, but i know people that do. Yes its multi line, but who are you to say they aren’t able to sell. So makeup is more important than getting out of debt or getting life insurance? Give me a break. People just don’t have their priorities straight which is why they’re probably in the situation that they are in anyway. If you knew anything about the company their life insurance is usually cheaper than most places because they only sell term insurance which is the most recommended insurance, but clearly not the most sold because that’s not where the money is for most insurance agencies and in order to even go out on appointments by yourself you HAVE to have your license because its the LAW. Not everyone is made for businesses like that. You sound like a bitter person that never made it to be honest
and by the way if you look at it most people have someone above them and the person above them makes more money because of what they are doing. Its just like owning a business
Ok, people listen up…everyone thinks that they are a scam. well truth is they are not a scam but YES it is true that they are a MLM company, even check them out on wikipedia which is a pretty reputable website. Now after you fill out your ”IBA” then you go to their Life Licence classes it is not so bad if you can manage the life insurance. But anyways basically they leave a few things out in their overview’s and what they tell you. Yes you can make as much money as you want because it is like owning your own busniess in a way and owning your own business requires alot of work, which they tell you that all you have to do is just put information into the computer and it all there for you. But they don’t tell you how hard it is for someone to try and build a business off of just referalls becuase they dont allow to advertise here in Ontario, Canada. So if you think you can pass the LLQP exam’s and then build a busniess off of referalls and no advertising then Yes this may be for you, if not then may want to try out another career. Now I know all of this because I used to work for them, but as my smart training of thoughts I went and got my LIfe Licence through them and then took it and now I work for another company, one that is not a MLM. I just didnt like the thought of selling only ‘TERM’ insurance, when really term is not for everyone.
If it is a scam… Then Warburg Pincus must be an idiotic company to buy 22% of Primerica. Please look at AMbest and Better business bureau and see that the company is rated A+…
And as for the opportunity, it is not meant for everyone but that does not mean it does not work. It is firstly, a business opportunity, You must learn, understand and be able to teach marketing and sales skills. Like any other entrepreneur in this world, it takes a little time to learn how to optimize and expand the business. And yes many people fail. But let’s compare this to any sport. Many kids play them. But maybe 1 out of 2 million actually make a living out of it. The main difference is that anyone can do Primerica, but again it is HARD, takes perseverence and toughness to be successful. And even if you have had a bad experience with Primerica, this does not necessarily mean that every other person is an idiot.
The owners of MLMs get rich at the expense of the people in the pyramid, so it’s no wonder that people buy shares of stock in MLMs.
Your kids and sports analogy fails, because no one is promising these kids they’ll make money from sports. In MLM, the recruiters are promising everyone they’ll make money, while almost everyone loses money. And before you go into how it’s impossible to lose money in Primerica if you just sell… Remember most people are actually able to sell very little, the bulk of the commission is paid to their upline, and the money they spend on “building a business” almost always outweighs what little they’ve made in commissions.
Well im just here to say the Company went IPO just a few days ago
and on the first day they had almost 233 mill invested into shares now
to comment on that is wow. Thats what NYSE said when they seen a 33% rise per shares. Now tell me who says this company is a scheme, this company has been running for 33 years thats a pretty long run would’nt you say.
Primerica is not making a dime from the IPO. Citibank is getting their money back. I have 6 friends that are primerica brain washed. They are deep in debt, live below poverty level. They even qualify for food stamps. However, they will tell you that things are Great at primerica and try and sell you anything. Then they want to explain to you how to get out of debt. Laughable, they can’t save thenselves. I have never meet a bunch of more uneduacated fools, looking for a pot of gold at the end of a rainbow. Everyone I have met at primerica are liars and losers. They don’t want to help families, they want their money. If you want financial help go to a person that is out of debt andhas money. If you want life ins. shop around. Don’t believe a word primerica agents tell you, until you check out ALL your options…and don’t quite your job to work for them. Your real job pays you real money.
The sockpuppets who are crowing about how great Primerica’s IPO is really don’t get it. Citigroup spun off Primerica for two reasons: to wash their hands of it, and get paid for it in the process. Only dumb money bids an IPO up sharply. Let’s check back in a year and see if it’s still a winning stock before we start handing out reacharounds for how great it’s PRI is doing.
Well..I have to say another thing about the primerica IPO…..The primerica agents peddling high cost term life…will not benefit from the IPO….I don’t know any of them that can even afford to buy PRI stock…well unless they can get increase in their welfare and food stamp benefits…here is an interesting article….
http://www.americanbankingnews.com/2010/03/26/morningstar-analyst-believes-citigroup-primerica-ipo-nyse-c-will-fail-because-of-poor-fundamentals/
i recently went was invited to one of this priamerica meetings, and i must say the atmosphere there felt a bit out of place. everyone there agreed to what the person in the front was talking about and yet no one seem to really say much. a few people went up there and talked about how much they could offer you and how much money they could safe but yet no one talked about how, or what you would have to do to make money. it was all based on what you could have and trying washed time away with facts that didn’t even talked about what they exactly did. i would of liked to see where and how this company started but yet didn’t seem important. to be honest at first i figure that, ” mmhh maybe this isn’t so bad”, but then as the meeting went on i started to feel a bit out place. it seemed that they tried really hard to come up with ideas and stuff to prove to the audience that they are the real deal. The people that were talking were pointing me and my brother out a lot, one of them even said, ” this guys in the front haven’t really smile throughout the meeting but every time they do its worth a million bucks.” I’m a friendly guy so i just yeah i should, but in the back of my head i kept repeating how about you be my first costumer.
After the whole thing was over they invited me to go in a office to talk about my future with them and to see if i saw myself working for them. i didn’t really know what to say because he kept repeating this is a legit thing i am not lying to you. after a while standing there because he didn’t even offer me to sit he asked if i wanted to sign my application on the spot to get my paper through. I didn’t show him much of interest so he invited me to go to LA ( los angeles) to meet up with the people that were making millions of dollars. he wanted me to be meet up that next Saturday to go. He also told me that i needed $90 dollars to get my license to sell insurance and stuff, i understand that you need a license but he kept repeating that and that it was a legit business haha. it made laugh a little but i tried to hold it in.. i have been introduce to pyramids before and this felt like one of those talks
im not going to to say this is a pyramid but i do not recommend people to agreed to any of this before they do a little more research because whatever you do its going to affect you for better or for worst. make sure what you do it’s what you really want because you could really regret it for the rest of your life.
thank you.
Something really good never is free and you can never get something with out working hard. I understand everyone’s frustrations with the scam or what they think is a scam but educate yourself. You have to work really really hard for this company but the payoff is great. You can not be a doctor or lawyer overnight, heck you spend so much just getting trained and educated to be one of those it is the same thing here. I think that people who don’t make it with Primerica only have themselves to blame. You have to have a strong hard working team and can not give up right away and then say it is because it is a scam. For the record you dont get scammed out of $99, you get educated on different areas of the company more information than you had before you cam on board. If you did not succeed it is only because you did not have someone who was serious about helping you and also who did not take time to train you. I think that everyone has there own opinions and is entitled to those but no one every writes about how we screwed a family out of there retirement or how we took all there money and ran off with it. In simple words WE HELP FAMILIES.
If you feel uneasy about it dont give them your money or your credit information that is your own stupid fault not the company. You should however ask questions and take a look at the stories visit there website don’t just type in there name, you have just showed your true stupidity check there website people read about it for yourself don’t let others define your choices. i wish everyone with this company luck and like everyone has said it is not for everyone does not mean it is not for no one!
the differance between a doctor , lawyer and primerica worker….doctors and lawyers have an education…primerica agents have zero none…nothing..and that is why they make very little money at the bottom……in the life ins trade..primerica agents are considered bottom feeders. anyone and i mean anyone can sell primerica ins……
An important issue to consider particularly in these difficult economic times is homeowners insurance and to beware of scams especially when people are affected by severe weather conditions that threaten life and health.
Royal Palm Insurance , Gainseville , FL , Tower Hill Insurance Company , Gainseville , FL, and Newman Insurance Agency , Inc., Hollywood , FL and were involved with arranging and providing homeowners insurance and shortly after being paid for the insurance they would inform the customer the home is at risk cancel the policy. Then they offer the customer another policy with another of their companies and charge a significant additional amount.
During hurricane season, they cancel again informing the customer again the home is at risk.
It is possible this may involve discrimination.
I am suppose to have an interview with this company, is it even worth going to??? I have NO interest in sales or the pyramid scheme. Please advise.
I can tell u didnt learn much while u were studying.. EVERY LIFE POLICY IS A “TERM” POLICY.. WHOLE LIFE IS A TERM WITH A SAVINGS VEHICLE ATTACHED TO IT SO THEY ,”NON-SCAM” INSURANCE CO., CAN MAKE ALL THE PROFIT ON THE CLIENTS PREMIUM AND GIVE THEM THE “GUARANTEED” 2% IN THE CASH VALUE WHEN THEY ARE MAKING AT LEAST 10%.. TERM LIFE: HIGHEST COVERAGE-CHEAPEST PREMIUM, INVEST THE DIFFERENCE PERSONALLY.. I STUDY HARD AND ACTUALLY CARE ABOUT MY CLIENTS AND MY BUSINESS.. IM WOULDNT SCAM MY OWN FAMILY INTO GETTING BAD POLICIES.. I MAKE MONEY AND IN THE NEXT 3-5YRS I WILL BE MAKING MORE MONEY THAN MOST OF THE WEAK MINDED PEOPLE THAT COMMENTED ON THIS TOPIC.. IM EXTENDING AN INVITE TO TRACY COENEN TO MY OFFICE TO REALLY SEE AND HERE WHAT WE ARE ABOUT..
wondering if u have followed PRI for the past year??.. U wouldnt be so bitter if u bought shares when u were too busy talkin trash about it..
I have had many bad experiences with Primerica from my co-workers selling and
recruiting at my place of work.When I chose not to be part of my co-workers
Primerica I was basically an outcast and not treated the same as the workers
who participated in the company.If they are trying to help people they are
hypocrits that are only interested in making money and if they were true friends
they would have respected my opinion of not wanting to participate.
Sorry Tracy, that’s not all together true about other insurance companies either.
Tanya, you left out the part of how the agents also lose millions of dollars in potential income as well as a leg of their business for their promotion to the RVP level in Primerica, because that’s the Primerica way! Why is that? How can Primerica explain ripping off their own people to give to some RVP who in most cases did and or is doing very little for it. Been there done that. But I have a conscience. Just Curious.
Yes, James, by and large it IS true. Real insurance companies pay the vast majority of the commissions to the person who sells the policy. General Agents exist to help manage the sales force, and they do receive a small portion of the commission as compensation for that. But it is nothing like these pyramid schemes, in which the agents themselves are supposed to endlessly recruit competitors for themselves.
I was talked into joining Primerica, I attended a few of their meetings. The main goal is who can sign up the most people in the least amount of time. All the meetings were focused on who to contact and how to present to them.
Those that were making big bucks are those with lots of suckers under them.
I requested a refun 28 days after joing, they have not responded to my request, other than to close my account. They went ahead and charged me the $25 monthly fee, and I continue to request a refund. And still no response.
very true lily and all these primerica reps keep bombing any website that goes against their pyramid views , they call regular ppl lazy , confused, mean , etc. an these are the ppl we are supposed to have faith in ?! they are a scam of the highest order, as is citigroup, their father company , they are no good at any level and will bankrupt you. JUST SAY NO