Reason 9: I hear rumors that what I am about to say my no longer apply, but until then . . . Primerica is a subsidiary of Citigroup, a TARP taking organization. Citigroup has actually tried to sell Primerica in the past, but has been unsuccessful. This means that Citigroup both owns and controls Primerica. It should be noted that Citigroup buys billions of dollars worth of WL for its employees, something Primerica is against and cannot provide.
Reason 8: There are many way to invest, but most primericans only deal with the simplest types, like MFs, education savings plans, and variable annuities. Primericas investment options can, and have been, described as “limited”. Many primericans only have a series 6 license, few have a series 7. If you ever want to do something more complex of directly invest in the stock market, you’ll have to look elsewhere. Primericans are not financial planners.
Reason 7: Primerica is one of the few companies in the financial services industry that supports/allows/encourages part-time employment. This industry is complex, challenging, and ever changing. Would you want a part-time lawyer, accountant, or doctor? Why would it be okay for your financial representative? Part-time shouldn’t make the cut, unless it is a semi-retired experienced professional.
The 20 year level term policy only allows conversion for the first 10 years without underwriting. The term until age 80 allows conversion until age 60 if you purchase the policy between the ages of 18-45, if you purchase the policy between ages 46-55 you can convert during the first 15 years of the policy. If you purchase the policy between ages 56-65 you can convert up to age 70.
Reason 6: Primerica Doesn’t offer Disability Insurance (DI). The odds of an adult American becoming disabled before retirement are 1 in 5. The average length of long term disability is 2 years. That means that the odds of utilizing a DI policy are fare greater than utilizing at term LI policy. Even Suze Orman and Dave Ramsey highly recommend DI. Yet, Primerica doesn’t offer it, when much of its competition does.
Primerica is the best company out there…They only offer Term life insurance over Cash Value. Cash Value should be illegal!
Check this out!
Permanent (cash value) insurance provides lifelong protection as long as premiums are paid. It may build up cash value over time and the cash value grows tax deferred. With all permanent policies, the cash value is different from the face amount. Cash value is the amount available if you surrender (cancel) your policy before death.
Does the client NEED it to be WL? Nah, he’ll pass before it actually expires but if he wants to leave his family an extra $500k, then he will and he’ll do it before his age 60.
It’s sad because I did attempt to get them to try to convert it but they said (no shit) “Dave Ramsey said I shouldn’t need insurance after the end of my term” and I said “Dave Ramsey’s not looking at your finances right now and saying that you don’t have enough to self-insure.”
Inswiz: If you did your homework on the company you might know that only in 2009 can we convert 125% of the term into WL. This is not a normal thing. And they, like many of your clients, were operating under the assumption that they wouldn’t need insurance after their term expired. The guy die very soon and yes, the total conversion will cost about $50k/ year. So if you KNEW that your spouse was going to die, and you had cancer bills mounting, and you could pay $50k to get $400k, would you?
Reason 5: Primericans have no idea about the marco-level application of WL insurance. Banks, Corporations, the upper middle class, and the wealthy buy billions of dollars worth of WL every year for good reason. Primerica’s parent company, Citigroup, alone buys billions of dollars worth of WL for its employees. In other words, Citigroups is getting the best of both worlds. It has Primerica selling Term LI, while Citigroup itself buys WL.
If there is any truth to 125% conversion. I am guessing that a full conversion has to be done in the 1st few years and that in your particular made up case it is to late for this 125% conversion.
IOBK if this is not made up you should of been doing partial conversions for this couple already not waiting to the last minute. If I am wrong correct me or dumb it down for me.
Keep dumbing it down for me this is a great product.
This person is almost 60 and you are just now doing the conversion. IF all of a sudden they can afford all this WL, why did you wait to the last minute to do the conversion? Let’s see $2.5 million of WL for a 59 year old cost about what $11k a month? They were probably paying what $400 to $500 a month for term to 80. Yeah I believe you IOBK.
The convertibility will expire. I’m sorry, I guess I’ll start having to dumb-down my lingo…I thought I was talking to people who are in the biz and can keep up with the conversation. Obviously if his insurance is about to actually expire, he wouldn’t be able to convert it. He has the insurance until age 80 but can only convert until age 60 (b/c he bought it between age 18-45). I’ll dumb it down for you as I go, inswiz.
Reason 4: Primericans generally have no idea how insurance works at other companies. Even term products from other companies are a mystery to them. Having a primerican explain how Whole Life works is like having a communist explain capitalism (everything is biased and wrong). Primericans are grossly misinformed.
I do, however, see your point and agree that clients should know the impact of policy loans on their policy’s performance. I also agree that many agents fall short of offering this kind of insight.
I’ll say this again: I’m not advocating WL for every person everywhere in every situation. I’m saying there are many situations where it’s a good thing for the consumer. An assumption that WL is 100% wrong 100% of the time is illogical and much much harder to defend reasonably.
As far as the “cash value belongs to the company” soundbite, that may work in convincing the lower middle class that WL is bad. However, many affluent people control assets owned by trusts and other entities they’ve set up. They understand that controlling an asset without owning it offers protection and the benefits of ownership. The policyowner is always in control of the cash value. The company is contractually bound to pay the cash value to the owner if he requests it.
I’d argue that the loan from the insurance company has certain advantages, as many take out loans to start businesses or in times of financial distress. This makes the flexibility of the ins co. loan more attractive. On the other hand, the bank loan might be more beneficial to someone with no cash flow worries. Regardless, a WL policy is a valuable piece of property that can give the owner multiple options. It’s certainly a better than borrowing on margin or buying a CD for collateral.
The only ones that think it is fair are WL agents. The cash value belongs to the company, not the client. If the client borrowed at no interest then direct recognition makes sense. But the client is borrowing at what 6 to 8%.
Now we are getting somewhere. Even though you won’t/can’t admit WL features suck. A person can get a better loan on the cash value from the bank than the actual insurance company that is holding the CV.
What I don’t understand is that, if this term policy is about to expirein 3 months, how can this client convert to permanent? The conversion period would of expired. That is strike 3 IOBK. You are out. You better learn your products.
Reason 3: The few LI products that Primerica offers are not particularly cheap. If you check on-line web pages that compare Life Insurance (winquote . net), you’ll find there are many cheaper options for most product comparisons.
Yes, I think it’s fair. The flexibility of the repayment terms of the loan, in my opinion, is worth the cost. The repayment of the loan could actually boost the cash value and death benefit of the policy. However, if the policyholder wanted a loan, he could easily assign his cash value to a bank and get a loan from there. It would be a secure loan, so rates would be low, and there would be no reduction in dividends. Payment terms would be less flexible though. Direct rec crisis avoided.
25 Responses to NBC News – Investing In Life Insurance
wodendogsanidiot
November 30th, 2009 at 4:06 pm
i hear a rumor you are a fucking loser !! oh no i was wrong. it is not a rumor IT IS A FACT !
wodendog
November 30th, 2009 at 4:19 pm
13 Reasons why Primerica is Sub Par
Reason 9: I hear rumors that what I am about to say my no longer apply, but until then . . . Primerica is a subsidiary of Citigroup, a TARP taking organization. Citigroup has actually tried to sell Primerica in the past, but has been unsuccessful. This means that Citigroup both owns and controls Primerica. It should be noted that Citigroup buys billions of dollars worth of WL for its employees, something Primerica is against and cannot provide.
wodendog
November 30th, 2009 at 4:43 pm
13 Reasons why Primerica is Sub Par
Reason 8: There are many way to invest, but most primericans only deal with the simplest types, like MFs, education savings plans, and variable annuities. Primericas investment options can, and have been, described as “limited”. Many primericans only have a series 6 license, few have a series 7. If you ever want to do something more complex of directly invest in the stock market, you’ll have to look elsewhere. Primericans are not financial planners.
wodendog
November 30th, 2009 at 5:31 pm
13 Reasons why Primerica is Sub Par
Reason 7: Primerica is one of the few companies in the financial services industry that supports/allows/encourages part-time employment. This industry is complex, challenging, and ever changing. Would you want a part-time lawyer, accountant, or doctor? Why would it be okay for your financial representative? Part-time shouldn’t make the cut, unless it is a semi-retired experienced professional.
IOWNBANTERKING1
November 30th, 2009 at 6:10 pm
The 20 year level term policy only allows conversion for the first 10 years without underwriting. The term until age 80 allows conversion until age 60 if you purchase the policy between the ages of 18-45, if you purchase the policy between ages 46-55 you can convert during the first 15 years of the policy. If you purchase the policy between ages 56-65 you can convert up to age 70.
That’s right off the website.
inswiz
November 30th, 2009 at 6:22 pm
Oh I did my homework, so are you saying that someone that had the policy longer than let’s say 10 years can convert 125% of the term to whole life?
Keep dumbing it down for me.
wodendog
November 30th, 2009 at 7:00 pm
13 Reasons why Primerica is Sub Par
Reason 6: Primerica Doesn’t offer Disability Insurance (DI). The odds of an adult American becoming disabled before retirement are 1 in 5. The average length of long term disability is 2 years. That means that the odds of utilizing a DI policy are fare greater than utilizing at term LI policy. Even Suze Orman and Dave Ramsey highly recommend DI. Yet, Primerica doesn’t offer it, when much of its competition does.
dwl714
November 30th, 2009 at 7:03 pm
Primerica is the best company out there…They only offer Term life insurance over Cash Value. Cash Value should be illegal!
Check this out!
Permanent (cash value) insurance provides lifelong protection as long as premiums are paid. It may build up cash value over time and the cash value grows tax deferred. With all permanent policies, the cash value is different from the face amount. Cash value is the amount available if you surrender (cancel) your policy before death.
IOWNBANTERKING1
November 30th, 2009 at 7:29 pm
So now he has cancer and they want to ensure the insurance is in force and take advantage of the extra 125% conversion so that’s the plan, Stan.
IOWNBANTERKING1
November 30th, 2009 at 7:30 pm
$50k for $500k* Typo from first post.
IOWNBANTERKING1
November 30th, 2009 at 7:52 pm
Does the client NEED it to be WL? Nah, he’ll pass before it actually expires but if he wants to leave his family an extra $500k, then he will and he’ll do it before his age 60.
It’s sad because I did attempt to get them to try to convert it but they said (no shit) “Dave Ramsey said I shouldn’t need insurance after the end of my term” and I said “Dave Ramsey’s not looking at your finances right now and saying that you don’t have enough to self-insure.”
IOWNBANTERKING1
November 30th, 2009 at 8:21 pm
Inswiz: If you did your homework on the company you might know that only in 2009 can we convert 125% of the term into WL. This is not a normal thing. And they, like many of your clients, were operating under the assumption that they wouldn’t need insurance after their term expired. The guy die very soon and yes, the total conversion will cost about $50k/ year. So if you KNEW that your spouse was going to die, and you had cancer bills mounting, and you could pay $50k to get $400k, would you?
wodendog
November 30th, 2009 at 8:27 pm
13 reasons why Primerica is Sub Par
Reason 5: Primericans have no idea about the marco-level application of WL insurance. Banks, Corporations, the upper middle class, and the wealthy buy billions of dollars worth of WL every year for good reason. Primerica’s parent company, Citigroup, alone buys billions of dollars worth of WL for its employees. In other words, Citigroups is getting the best of both worlds. It has Primerica selling Term LI, while Citigroup itself buys WL.
wodendogsanidiot
November 30th, 2009 at 8:51 pm
all i know is what my name is.
inswiz
November 30th, 2009 at 9:37 pm
If there is any truth to 125% conversion. I am guessing that a full conversion has to be done in the 1st few years and that in your particular made up case it is to late for this 125% conversion.
IOBK if this is not made up you should of been doing partial conversions for this couple already not waiting to the last minute. If I am wrong correct me or dumb it down for me.
inswiz
November 30th, 2009 at 10:03 pm
Keep dumbing it down for me this is a great product.
This person is almost 60 and you are just now doing the conversion. IF all of a sudden they can afford all this WL, why did you wait to the last minute to do the conversion? Let’s see $2.5 million of WL for a 59 year old cost about what $11k a month? They were probably paying what $400 to $500 a month for term to 80. Yeah I believe you IOBK.
IOWNBANTERKING1
November 30th, 2009 at 10:46 pm
The convertibility will expire. I’m sorry, I guess I’ll start having to dumb-down my lingo…I thought I was talking to people who are in the biz and can keep up with the conversation. Obviously if his insurance is about to actually expire, he wouldn’t be able to convert it. He has the insurance until age 80 but can only convert until age 60 (b/c he bought it between age 18-45). I’ll dumb it down for you as I go, inswiz.
wodendog
November 30th, 2009 at 11:17 pm
13 Reasons why Primerica is Sub Par
Reason 4: Primericans generally have no idea how insurance works at other companies. Even term products from other companies are a mystery to them. Having a primerican explain how Whole Life works is like having a communist explain capitalism (everything is biased and wrong). Primericans are grossly misinformed.
wirehead14
December 1st, 2009 at 12:16 am
I do, however, see your point and agree that clients should know the impact of policy loans on their policy’s performance. I also agree that many agents fall short of offering this kind of insight.
I’ll say this again: I’m not advocating WL for every person everywhere in every situation. I’m saying there are many situations where it’s a good thing for the consumer. An assumption that WL is 100% wrong 100% of the time is illogical and much much harder to defend reasonably.
wirehead14
December 1st, 2009 at 1:10 am
As far as the “cash value belongs to the company” soundbite, that may work in convincing the lower middle class that WL is bad. However, many affluent people control assets owned by trusts and other entities they’ve set up. They understand that controlling an asset without owning it offers protection and the benefits of ownership. The policyowner is always in control of the cash value. The company is contractually bound to pay the cash value to the owner if he requests it.
wirehead14
December 1st, 2009 at 1:27 am
I’d argue that the loan from the insurance company has certain advantages, as many take out loans to start businesses or in times of financial distress. This makes the flexibility of the ins co. loan more attractive. On the other hand, the bank loan might be more beneficial to someone with no cash flow worries. Regardless, a WL policy is a valuable piece of property that can give the owner multiple options. It’s certainly a better than borrowing on margin or buying a CD for collateral.
inswiz
December 1st, 2009 at 2:11 am
The only ones that think it is fair are WL agents. The cash value belongs to the company, not the client. If the client borrowed at no interest then direct recognition makes sense. But the client is borrowing at what 6 to 8%.
Now we are getting somewhere. Even though you won’t/can’t admit WL features suck. A person can get a better loan on the cash value from the bank than the actual insurance company that is holding the CV.
inswiz
December 1st, 2009 at 2:34 am
What I don’t understand is that, if this term policy is about to expirein 3 months, how can this client convert to permanent? The conversion period would of expired. That is strike 3 IOBK. You are out. You better learn your products.
wodendog
December 1st, 2009 at 2:53 am
13 Reasons why Primerica is Sub Par
Reason 3: The few LI products that Primerica offers are not particularly cheap. If you check on-line web pages that compare Life Insurance (winquote . net), you’ll find there are many cheaper options for most product comparisons.
wirehead14
December 1st, 2009 at 3:03 am
Yes, I think it’s fair. The flexibility of the repayment terms of the loan, in my opinion, is worth the cost. The repayment of the loan could actually boost the cash value and death benefit of the policy. However, if the policyholder wanted a loan, he could easily assign his cash value to a bank and get a loan from there. It would be a secure loan, so rates would be low, and there would be no reduction in dividends. Payment terms would be less flexible though. Direct rec crisis avoided.