Looking for information on costs vs. return on investment for dealing with Primerica. I'm just getting back on my feet after the forced unemployment I just went through in the Mortgage industry, and I'm used to hard work. I have my own clients, and some, but not all, will go with me no matter where I'm writing loans. They trust me not to screw them @ this point. :)
What personal experiences have people had with re: to them. Not looking for "They suck, run away" type answers here. I've read up on them, and they DO cost a bit more on most things, but they offer awesome servicing too, so I'm kinda torn here. Let me know what you folks think... I'm a current representative there and when I'm going to answer you question, my experience may be different than your experience at Primerica.
When I first started, I didn't have a market to work with. I had my parents and my small circle of friends. It took me about a month to get my life license and about a month after that, I did my first life insurance transaction with my parents. I didn't have to sell them or push them into buying it, I just compare the difference between term insurance and universal life insurance (which is what they owned). After they qualified for term insurance, they waited for me to get my securities licensed to do a 1035 exchange from the Universal Life into a Variable Annuity. They didn't have a retirement fund setup and they both were age 55, so a variable annuity was a suitable choice. So for about a year (thats how long it took me to study and pass my securities exam), they had term insurance and universal life insurance at the same time. Making long story short, I saved them about $600 year on their life insurance and added about $100k more coverage for both of them. As for their debt, my field trainer showed them the debt stacking program (which is found in the financial needs analysis) and it showed them what debt they should pay off first and then move on to the next debt. So one by one, all the debts will be eliminated over time. So I helped my parents save money and get more coverage on their life insurance, show them a way to eliminate their debt, and help them start saving for retirement. This is basically what I do for every client. Never once have I try to sell or force people to buy a product. I just educate them and show them what they have currently and what I can offer.
If you are looking to help people eliminate their debt, Primerica's SMART loan is the best out there. When you are looking to help someone eliminate their debt, the first thing the person is going to ask you is, "What is my rate?" What they should be asking is what is their total cost and how long are they going to be in debt. Primerica is the only company out there that has a loan that is focused on getting people out of debt versus keeping people in debt for life of the loan. It is true that Primerica's SMART loan may sometime have a higher interest rate, but that's only on paper. If people sign up for the Equity Builder Program, the real interest rate is significantly lower (by as much as 4%).
The Equity Builder focus on applying more of your payment toward principal over time. It is free and there is no monthly service fee. Clients get a 0.25% rate reduction. And it uses simple interest calculation versus schedule interest calculation (to see the difference between the two, go here: http://finance1o1.blogspot.com/2007/06/s... )
There's lots of more things I can say about Primerica, but it would be a 10 page essay. If you have more questions or want more information, you should talk to a Regional Vice President at a office near you. They are the Amway of lending... The average person expects to make a fortune and ends up working full time for around 14k per year.
My cousin was doing that for a while- the whole thing is they don't just want to sign you up to refinance everything you have, they want to sign you up to sell it to other people as well... legalized Ponzi scheme. |
