I was recruited, but not signed on YET to Primerica. Is Primerica a scam?

Two days ago, I got a call for a position with a financial company, Primerica. At the time I was very delighted to heard that such an opportunity was available. I went for a Primerica presentation today (2 days later), and it was a really great presentation, they sold it REALLY well. I was very convinced, but of course, also VERY hesistant due to the fact that I had absolutely no background in finance, I have NO IDEA who referred me, and there were alot of other random people in the presentation room as well (a variety of students--in punkish clothing, and in conservative clothing, college and high school), there were also a few business looking people (or looks like it; guys in dress pants and shirts and ties), there was this women (in her 20s) heals and a evening party looking tropical dress, and a few older guys.

During the presentation they showed the rule of 72, and 2 very successful "primericans." One age 29- $178,000 salary, and the other is a VP, age 28 -- $273,000 salary. He pitched the company VERY WELL.

The training process/ class is $100 to get you government approved lisence to sell life insurance, and some other gov't lisence for $25 per session (so that's about $200 in total). They mentioned that if you were trying to obtain these lisences in college it would take you 2-2.5 yrs and alot more money (of course, 2 years is like $8000 ??). So they cram thoses classes into 40hrs, with an examination afterwards.

ANYHOW, 'say' i DO pass the exam, is working for primerica actually as good as they make it sound? They also mentioned something along the lines of "you can earn about $1000 dollars in 5 hours of work" -- something along the lines of that.

Well, I am VERY skeptical about it. I have read on another yahoo answer about it being a scam, but that was from 2005. What about now??

PS-The office was not very professional looking. It was quite small for the "largest growing north american financial company."

-The were recuiting alot of random people, there were no requirements.

-They also told me to refer a friend or family member.

-They asked for a reference who would know my personality and how I deal with money. They asked me to provide two references, one was my current employer, the other was a long time friend [she suggested this]. I questioned my interviwer on this when she mentioned a friend. "Is it okay to use a friend??" "yep, that's fine." --I found this very odd and not professional.

-Application and recruiting process is very FAST.

-[I heard about it monday, interview wednesday (today), a VERY easy interview (did not even realized it was the actual and ONE interview-- no second interview required), and they want to talk about it to me again on friday and sign me on to their program]

--I think I will decline, but I am very curious, is Primerica a scam or is it just this cycling rumor?

-- Or is there anyone that has worked with Primerica/ been recruited, how was it?

7 Answers

  • 1 decade ago
    Best Answer

    It's not a scam but it IS structured as pyramid sales. You'll either do extremely well at it, or barely get by. Depends on what you put into it, how hard you really work at it and what natural talent you have for sales. If you can't see yourself making those same presentations as well as the slick people you watched, it's probably not for you. After all, most people lack the skills, commitment, drive and perseverance to make 6-figure incomes. That is why so many answers here essentially are telling you to take the easy, low pay route selling cars, insurance other doing something "safe" on a salary.

    Source(s): Strong 6-figure earner or most of my professional career in sales. I would NEVER take a salary job where someone else dictates what I make. Give me the open opportunity any day. I KNOW what I am capable of and I KNOW what I'm worth. Do YOU?
  • 1 decade ago

    Primerica is not a scam. However, I don't like their methods as I see them.

    Their origin was "A. L. Williams", though it's not something normally disclosed. He was a coach from Georgia who advocated "buying term (life insurance) and investing the difference."

    They claim that people without families don't need life insurance.

    The problem is that life insurance has many characteristics in the 21st century. Even if one doesn't have a family, s/he can sell the policy as a "viatical" in the event of terminal illness. This can make a big difference in one's comfort as life ends, perhaps even allowing a person to travel before s/he dies.

    Another reality is that, when one buys a life insurance policy while healthy, it's much less expensive than when one is older or not so healthy and (if a term insurance policy) it can be converted to a level premium policy.

    Its agents are "captive", meaning that they only can sell Primerica's products (except for mutual funds), Therefore, other policies and mortgage programs that might fit a client's needs better are not available.

    Then there's the problem of the life insurance product they seem to push the most; a 30 year level premium "term" policy. The way premiums in life insurance remain level is by taking more up front to handle the greater probability/costs of paying claims later. They really don't have a claim to buying term and investing the difference when the "term" is so long! Yearly renewable term is much less expensive. It makes more sense to take the difference in the premiums and add that to any investing a person does, then use the funds to pay the higher premiums in later years.

    All in all, while they may help some people, financial planning is a profession - complicated enough to the point that it's a full time job staying up on changes in the industry. It's NOT something a part-timer should embrace.

    Even though they'll tell you that there is a great deal of professional support, I have found them much less knowledable than most in the industry.

    I don't have any insurance licenses or investment licenses any more, though I did maintain them for about 15 years. Primerica appears to me to be a terrific marketing operation more than anything, but I don't believe they do as good a job as possible for the clients.

    They wanted me to come on board earlier this year and become a manager. My standards are higher than theirs and I refused.

  • 1 decade ago

    Declining the offer is a smart play.

    Primerica is not a scam, but it is also not a company that most people can build a career on. If you are familiar with how Amway sells stuff, that is how Primerica sells insurance and financial services.

    Primerica deals is "pyramid sales" leads...everything is on referrals from people you talk to (your mother's book club, your dad's golfing buddies, etc.). These tend to run out really fast...then so does the money.

    If insurance and financial service sales is a field you want to get into, then contact the big companies (New York Life, Met life, etc.). These guys actually train you in sales techniques, provide leads and get you ready for Series 6 and 7 exams.

  • Anonymous
    1 decade ago

    It's a bit of a pyramid.

    They will make money off you for the classes. All well and good for them.

    If you sell, the people "above" you get a piece of the pie. All well and good for them.

    As in most pyramid schemes - the people on top do well, the people coming in further down, don't do as well...UNLESS you can pull in more and more people, who in turn pull in more people, who them start supporting YOUR piece of the pie.

    It's no mystery that you have been recruited while having no "experience". You're a warm body. And so if your friend. The more warm bodies, the better. Their motto is "every person is a sale".

    They may call it an "interview" and give lots of high-sounding, business oriented names and titles for everything...but in the end, it's still about how many people they can recruit. And even if you don't buy the whole idea and become a salesperson, they've made the class tuition money off you, so all well and good for them.

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  • 1 decade ago

    Primerica is structured like a network marketing company, similar to many other insurance companies. If you are familiar at all with real estate, it's like having a real estate broker who has a lot of real estate agents out in the field and making a small portion off every sale. In Primerica, you have the opportunity to build a team and you are financially incentivised to support them.

    They are a very reputable and legitimate company and with great products. My family has done business with them in the past and have been very pleased - my brother even signed on with the company.

    One thing to consider is that the insurance industry is very saturated. There are so many companies out there that offer similar life, health, business insurance products with competitive pricing.

    I have opted to work with a company that provides legal and identity theft services to the market place. If you're still keeping your options open, you're welcome to check it out. Good luck!

  • Anonymous
    1 decade ago

    While not technically a scam (you technically can make money, but why bother when you can sell used cars and make more?)

    It is like a pyramid scheme, the only way to make money is to sell to everyone you know (they URGE you to share the good news with your family as a starter kit)

    I lasted in the meeting about 15 mins before I figured out the deal. Legitimate jobs don't ask you for references on a card so that they can market them.

    Save your time, sell snowshoes to Eskimos, you' ll fell less dirty.

  • queen
    Lv 4
    3 years ago

    I am waiting for more replies before I share my opinion

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