Primerica Review (MLM or Pyramid Scheme Scam?)

There are a lot of insurance companies popping up like mushrooms in today’s generation. Being a financial manager is one of the most high-paying jobs in demand right now. Giving financial services, and some are also selling lifetime insurance like car, house and health care, and debt management plans. These companies say that all of these things are important as we grow older, but how does it really work?

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Primerica (Prime America) is one of these insurance companies established by Arthur Williams Jr. in 1977 and the current CEO is Glenn J. Williams. It has been in the industry for more than 40 years and it has helped families be educated on simple financial concepts and empower them to make informed financial choices and then match it with the right financial solutions, may it be term life insurance, car and house, and more which can help them achieve their financial goals. 

All in all, they will show you how you must play and use your money to the extent that you can still secure your financial status for your family. Since establishment, their mission is to help middle-income families get on track to achieve each of their respective financial goals and to do that, they start it by doing a Financial Needs Analysis. Their representatives can show you how to achieve your goals from where you are now, is what they say.

One of the most important insurance that any insurance company has to offer is the Life Insurance (or in Primerica, they call it Term Life). You can either pay monthly coverage of the insurance until the specific period of time (term) in years or pay it one time is up to you, and if ever you’ve caught on an unexpected accident? Death benefit is paid out to your beneficiaries. These insurances can help you with buying a home, kid’s education or just by saving for retirement.

Money grows on insurances and investments, but the downside is that you don’t have control over it since you can only use it when the term of your contract ends. If you have terminal sickness or even need money for operations (in case you applied for health insurance), financial advisors need to submit a petition to the company first before you can use the said insurance. Most of them are approved by the way as long as your reason is legit.

If you’re enthusiastic enough and want to help other family’s lives be secure and happy in the future, you can apply at Primerica as a Financial Advisor.  No requirements needed, as long as you don’t have any criminal records. You just have to pass the screening process and the interview after that. Joining to become an FA costs $99 and a monthly renewal of $25 for your membership to stay active. This comes with a website where you can track all of your customer’s insurances and be up to date. 

Primerica doesn’t provide a paid-for insurance lead program just like any other insurance marketing organizations out there which leads you to offering insurances on your warm market. This market is where your family, friends, coworkers, and ex-classmates are classified. You’ll set appointments, try to talk to them, offer insurance/investments to make a sale and will even try to recruit them to join you as an FA because that’s how you will earn in this setup.

Insurance business work is basically a commission-based business model. Financial advisors earn 25-30% of commissions for each financial product they sell. And then they earn 10% of the sales made by their downline. They have this so-called 11-tier compensation plan in which as you recruit new agents and they’re making sales, you will get a percentage of each of their sales and it can go down to 11 levels. According to stats, their agents are earning $60,000/year on average. 

Upon looking at Primerica’s reviews online, a good number of people regret buying some of their financial products and are complaining about their quality. In 2014, they settled over 200 cases in court and they ended up paying more than $15 million. In 2021, three Primerica policy holders filed an action lawsuit against them claiming that Primerica refuses to fulfill its legally contractual obligations and Primerica just terminated their insurance contract since they refuse to pay their monthly premium. 

Primerica is not a scam. It is a legitimate MLM company with an A+ BBB rating and has even been featured on Forbes as well. They sell financial products but the main focus of commission is through recruitment. Climbing in ranks needs recruiting more people and it is not an easy task. There are just a limited number of people you can recruit and your primary target is within your warm market, which can jeopardize your relationship with them.

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About the author: If you want someone who will talk straight with you, respect your time, and show you a business that might actually work for you, you should watch this short video.