December 12, 2007, 7:00 am

A Response From a Primerica Agent Part 1

by: The Financial Blogger    Category: Primerica Series
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I knew I would create some interesting waves by writing this series about Primerica and especially with the conclusion that I made out of it. However, I also had the great opportunity to communicate with Michael, a Primerica Agent. I asked him to write more information about his company in order to understand what really lies beneath the Primerica Paradox. Here’s the result of our first communication:

When you state that all financial planners state that they are the best or have the best solutions you have to understand that this runs across all business lines. Ask a salesman for Ford who has the best vehicles….FORD. Ask a Sears Department Store salesman who has the best department store….SEARS!

A sales person should have confidence. He should also have a depth of knowledge about the product or service he markets as well as an understanding about his competitions’s products and services.

Further, he should have very good communication skills so that he can convey effectively the benefits of the services he provides. You see, people need to understand the benefit derived from purchasing the product and the advantages of one over another. Now you have a partnership between the salesman and the consumer and in the case of financial sales, it is advantageous to both parties to forge a long-term relationship based upon trust and success in the client attaining what we all want…financial freedom.

I have read your Primerica blogs. I believe you are making a genuine attempt to provide objective, unbiased information to your readers. What I would suggest is analyzing what Primerica offers and compares that to the competition. For instance, we were conferred the title, “King of Term” by Consumer Reports years ago in reference to us marketing only term insurance. As you are aware, Consumer Reports has long advocated Term Insurance over “Cash Value” life insurance.

When we come on board, we understand that a “Whole Life” Insurance guy will make a much better commission on Whole Life than we do on Term. He elects to sell the most expensive life insurance (at a cost per thousand) and we elect to sell only Term (the lowest cost per thousand). Our goal is not to make the fattest commission, but to satisfy the needs of the client.

Our belief is that savings and insurance should remain separate. In fact, if you call any state insurance commissioner’s office and ask them if Whole Life is an “investment” you will receive an emphatic “NO!” Nearly 80% of Americans who own life insurance were SOLD Whole Life, often under the guise of an “investment.” What they were not told is that if the policyowner dies, in most cases the “savings” component of the Whole Life Policy is retained by the company. Now, I have yet to find anybody, even after conversing with my competitors, who can explain how it is better that the company retain the savings (which the consumer paid for) rather than the beneficiaries who need it.

Thank you for the opportunity of having a form to present my side of Primerica. It is indeed a pleasure.

Stay tuned for the 2nd part tomorrow morning!

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by: RRodriguez | March 5th, 2009 (2:10 pm)

Many people working for companies will say that they are the best but I don’t work for any company and I am able to objectively measure products based on their own merits as an independent adviser.
In my opinion with that level of objectivity one can more accurately tell which product does in deed fit a particular client’s situation better than other products. I do not have to fit my clients into a predetermined arsenal from which I can never expand on my own.
It is a fact that some agents think that whole life products are bad only because they don’t know the proper use of these products and quite honestly because they are sales people under sales people with a need to sell their already limited programs.
A Whole Life product actually pays less commission than term products on any comparable first year.
Why do these sales people keep saying that commission is a mission on Whole Life when most have never seen a commission table for WL products?
I am not saying they are good or bad just that the commission statement is erroneous. Think of a term policy that needs to support deep hierarchy levels as only one possible reason for it’s price affected to begin with.
We all agree that during certain periods of a person’s life they should keep insurance and savings separate but we are not limited to that notion where it does not make sense.
For instance… What kind of insurance would this agent issue to a 67 year old who wishes to preserve his or her estate intact?
You cannot seriously propose a term policy which would cost more than permanent plans at that point. They would need to issue costly term that increases ever 10 years or less based on age. So what options are we left with?

Also, if an when we are to issue any insurance plan we cannot let a company determine what a client should be limited to.
That is to say… If I truly love BTID if I really think that is the best thing ever then why not research all term carriers since a single agent with a single policy cannot presume to have the best product for all people.
Notice I did not say cheapest but best, a price break would not be bad either.
The fact is concepts evolve and expand in time. The new BTID is a far cry from the 80’s and 90’s BTID products and some companies have failed to evolve in my opinion.

by: 2thebrainwashed | May 11th, 2009 (2:11 pm)

Many agents do not know how life insurance really works. The agents that sell whole life as investment are not doing their clients justice. Also, every client that you run into that has whole life or a permanent plan, don’t assume they have it for an investment.

If what I read from the post above by RRodriguez, he is correct the concept and the industry has evolved. You as an advisor must be in position to adapt with the ever changing times.

[…] Primerica Paradox?: A response from a Primerica agent. […]

I worked for this awesome company replacing $40,000 whole life
policies with $250,000 in term. I paid 62 death claims giving
the grieving family enough to carry on. I earned $1,700,000 during
my stay which included a $420,000 ownership package. I did this
until becoming a partner in an abatement company. Love Primerica