Primerica Coming To Discuss Personal Finance Options Tomorrow

by Scott on January 23, 2009

My wife has a friend coming over tomorrow to discuss our personal finance goals for 2009 including life insurance and I believe our investments as well. I’ve never heard of Primerica, did a quick google search, and found that they have been in business for years selling life insurance policies. Primerica also is part of Citigroup, so I’m surprised I’ve never heard of them before. My wife did not give me any other info other than we are meeting with her to discuss financial goals. Since I’m a “hand on” personal finance type, I’m curious what she will want to discuss. Since it’s the beginning of 2009, I figure now is a good time to review our insurance policies for home, autos, and life. Not sure what she can do with our investments, but won’t hurt to ask.

Has anyone used Primerica for life insurance or investments?

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{ 16 comments… read them below or add one }

1 Ryan @ SpillingBuckets January 23, 2009 at 4:17 pm

I have heard of them a few times and did some quick research a while back. I am pretty sure it is a multi-level marketing thing, commission based for the sellers I am sure. Now there is nothing wrong with that necessarily, but I would multiply my due diligence by 10 knowing this is their business structure.

2 Scott January 23, 2009 at 5:01 pm

@ Ryan

I’ll have to ask some questions when she comes over tonight. Thanks for the info.

3 jj-momscashblog January 25, 2009 at 12:24 pm

sorry I can’t help you on this one, but just knowing you from what you write I know you will be prepared with intelligent questions. I’d be interested in hearing what the outcome is. Good luck. JJ

4 Scott January 25, 2009 at 12:50 pm

@ JJ

It was a very interesting meeting and I’m working on a post about Primerica now. We learned some good info about what Primerica offers for insurance and they actually do have some type of business model for people interested in part-time income. They do have an income opportunity, but I don’t know if it’s really a passive income opportunity for me.

5 Richard January 30, 2009 at 11:46 pm

Primerica income opportunity starts out very active. You must be licensed and sell to make money. You must recruit to build a business for yourself. It can become a passive income over time, like any other business venture.

It may be for you, it may not.

6 Scott January 31, 2009 at 9:08 pm

@ Richard

I heard the sales pitch from our Primerica rep and she gave a brief overview of the organization chart. It looks like you don’t receive passive income until you reach Regional Vice President. Passive income would be derived from life insurance contracts or smart loans. The model with Primerica looks like you only get paid for current business you write and don’t get paid for ongoing contracts. Am I missing something or was it just not explained clearly to me? On the org chart I see the different levels, but the RVP seems to be the highest level that receives passive income. This would not be a part-time job and would require a ton of work and years of selling insurance. The Primerica rep that met with me stated that I could make part-time income, but it doesn’t appear to be passive income. The part-time income would be derived from selling life insurance and Smart loans, so the RVP would receive the passive income. Is this correct?

7 Matt February 1, 2009 at 1:48 pm

You can start recieving passive income/overrides from the production of individuals you or your trainer/RVP hire, train, and develop, that get licensed and produce. The company rolled out a new bonus system as of January, most Reps cannot really explain the full details of it but it gives individuals the ability to increase personal commissions and overrides/passive income by up to 20% over normal contracts by meeting training criteria. If you are looking for more information, it would be good to meet with a Regional Vice President that can give you the full details. The company is a great way for individuals with a good work ethic and not a lot available financially to create their own business, either home based or a full fledged financial services agency, the products marketed a very simple to explain and thus easy to duplicate through distribution. You can start earning passive income prior to becoming a Regional Vice President. If your looking for something “quick and easy” you will never find it…if you are looking for financial freedom. Time and consistancy are your greatest assets.

8 Scott February 1, 2009 at 10:33 pm

@ Matt

Thank you for sharing the info on Primerica revenue sharing. We met on Friday night again with the Primerica rep and she again was a little vague on the passive income potential. I’ll have to ask her about the new January policy for reps. It looks like it takes more than a part time effort to make some serious money with Primerica. I think she was not being realistic with the part-time job requirements.

9 Matt February 1, 2009 at 11:45 pm
10 Scott February 2, 2009 at 12:16 am

@ Matt

Thanks for the link. If this is the corporate website for Primerica, I think I’ve been here before. I’ll take another look and take some notes. Thanks again for the info and I would love to hear more about your passive income with Primerica.

11 Richard February 2, 2009 at 12:14 pm

I believe the passive income you are looking for, in reference to other articles you have written, will take a committed person about 5 years to make happen in Primerica. That does require being promoted to RVP (which can take as little as 6 months, on average 24 if committed).

There is more than just insurance and investments, but that is the brunt of the passive income. And even then, it will be either overrides or the yearly 12b-1s that are paid.

If you are looking for truly passive income from the start, Primerica is not for you. If you want something that will take time, hard work, and patience that will build into massive passive income, Primerica may be for you. I can not say for sure since I have never met you.

As for whats possible, one of my RVPs has a passive income of between $15k and $20k/mo. He has also been in the business for 20 years. That being said, a 29yr old just broke $100k/mo passive with only being in for 8 years. He was the first sub-30 year old to break past the $1 million a year in income in this company.

You will get out of it what you put into it.

The bonus system that was mentioned allows for any newly licensed rep to make between 10 and 20% bonus each month for production. That lasts for 6 months. After that, they can receive between 5 and 10% bonus over what their team does. The RVP receives between 10 and 20% on top of the normal bonus they would receive.

Regardless, you will have to work to get paid. Either training of personal production, but work.

12 Scott February 2, 2009 at 1:34 pm

@ Richard

I would imagine that the gentleman making $100k a month is not typical of a Primerica business, but I do think he must work awfully hard for that passive income. Interesting feedback regarding the RVP within 6 months. I’m surprised the lady I met with did not mention the time it takes to reach various milestones like this, nor the amount of time commitment. I realize any business takes time to build and mature, but she might just be looking to add part-time people to her down line. I think you are correct in stating that Primerica is a business, just like any other venture and you get out what you put into it. The RVP is holding an informational meeting in a couple weeks at a restaurant and I thought I would go to ask more questions. Since I’m interested in personal finance and helping people establish long term savings goals and getting out of debt, I thought it might be a good fit. What I don’t want is to be pressured to make a sales quota or have to push products on customers.

13 Richard James Hancock February 12, 2009 at 7:25 am

@Scott

The ones making over $100k are not typical. That is correct. Only about 5000 people make over that mark and 66 make over a million. Ask for the FIC book and you can probably find someone in there that has done what you do. There is no one in that book that makes less than $100k.

That being said, most people are content making $50k or less part time. To each their own.

As a company, there are no quotas or pressure to sell. Sales are not allowed on the first visit, we are supposed to “let them happen” on their time. Each office is run differently though and so long as nothing illegal goes on and no reported violations of compliance happen, each office is left to run how the RVP sees it.

If they don’t answer the questions the way you like, or at all, send me a note and I’ll try to do it justice.

14 Scott February 12, 2009 at 10:35 am

@ Richard

I have to admit that I have had no pressure to from our Primerica friend to sign-up as a representative. I think she is taking the same approach you have described for your business and waiting for me to follow-up with her. I guess I was sort of expecting a hard sell from her, but actually that is not her personality at all. I’m sure it depends a lot on the person you meet with and the overall expectations from the RVP or Primerica business leader. I’m still curious what the average person is making on her team. I know you state that the part-timers make under $50k, but how much lower? I guess it depends on how many sales they make, but I would be interested to know. Next time our Primerica friend comes over I’ll be sure to ask.

15 Richard James Hancock February 12, 2009 at 9:33 pm

@Scott

Off of personal production? Taking company averages on number of sales per agent and number of agents that do business each month, probably around $1000 to $1500 per month. That is going to be different due to the new bonus structure put in place.

The average RVP makes about $110k/year. The numbers do get skewed due to the million+ earners and all, but that being said, if you’re in RVP in Primerica and you’re NOT making that, you are not even trying.

16 Gina Carson December 5, 2009 at 11:23 pm

Listen, it’s not really about “sales pitch’ — you either have a family or you don’t…. (i don’t)…. you either are married and have a child or not…. Even if your aren’t married, you just have a kid with someone…. email me… you need insurance…. what if something happens to you???

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