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Primerica Versus World Financial Group?

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2 of my friends from each company are trying to recruit me. Give me your best input if you are from either company. Please, current agents of each company only..... give me details! products, compensation, room for growth. Let the battle of the Financial gurus begin! And, oh, no blood and gore, just be professional! Thanks!
posted in Jobs by lionel.jackson (26,880 points)

1 Solution

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Problem resolved
I agree that you need to take a look at both companies to see what each has to offer. I've personally been involved with both, so I have a perspective from both angles. I would start this response, however, by saying the only similarity between the two is that they both deal in finance. Otherwise they're very, very different organizations.

Primerica is a fine company. They're backed by Citi, and are now attached to SolomonSmithBarney as well. The Primerica philosophy about how a family should be taken care of, however, is rather limited. Speak with any Primerica agent and you'll be told you should buy term life insurance and invest in mutual funds with the money you save by not putting permanent insurance in place.

Ultimately, the philosophy is to avoid mixing your insurance and investments in one product, and often you're told that when your term insurance expires, you can simply sell off some of your mutual funds to "make back" the premiums you paid for the term insurance over the years.

What families are often not told, however, is that there are numerous tax consequences behind the theory - both income and capital gains tax issues that the families are not appropriately prepared to deal with.

Curiously, most Primerica agents will also tell you they flatly refuse to sell anything other than term insurance, even if a family specifically tells them they want permanent insurance that will last until the end of their lives. I was told that if a family wanted anything other than term insurance, and wanted to learn how to save or invest money in a vehicle that would later yield tax-free income results, that family could not be my client, plain and simple. In that regard you need to decide whether you agree with providing only very simplistic options to your potential clients.

Regarding the compensation structure, the earlier answer makes clear what Primerica generally pays. If an average term policy (which is Primerica's focus) pays $1,000 in total commission, and a new agent makes 25%, then the average payout on a transaction is $250.

World Financial Group has a starkly different pay structure. The average total commission on a life policy (since that's Primerica's focus) sold by a World Financial Group representative is $3,000. A World Financial Group rep also begins at 25%, meaning the commission is $750 rather than $250.

Additionally, World Financial Group offers a far larger listing of products and services to its clients. This means two things to me:

First, a World Financial Group rep doesn't ever sit down with a family with an agenda in mind - he or she doesn't need to make one product or service fit for everyone. If it's term insurance the family wants, a World Finanicial Group rep has 200 insurance carriers to choose from, and can provide the term insurance. A Primerica agent has one carrier to go with.

If it's something else the client wants (a mortgage, cash value life insurance, a 401(k) plan, educational planning, stock investment, mutual funds, etc.), the World Financial Group rep can not only provide all of that from one or more of several thousand different providers, but can also make a commission on all of it. This can mean several thousand dollars in commission to a World Financial Group associate on a single family's financial plan.

This brings me to a final point, and that is licensing. World Financial Group has a large resource available for both life and securities licensing. At Primerica, the average agent is not strongly encouraged to pursue a securities license. Lack of that license means less commission, and I found that most Primerica agents are only prepared to sell the term insurance, and then refer the mutual fund transaction on to someone else.

In the end, you need to decide which philosophy and which compensation structure is right for you, and where you'll be able to build faster and stronger.

In closing, the following are a number of general differences from the agent's and client's point of view:

1. WFG term insurance prices tend to be less than Primerica prices because WFG deals with so many carriers, and Primerica doesn't;
2. WFG has a system in place to provide estate planning services to clients through varies estate planning attorneys - Primerica doesn't;
3. WFG can offer long term care insurance through varied carriers, Primerica can't;
4. WFG can offer financial planning through varied carriers respecting business and other needs (i.e. 419 plans, etc.), Primerica can't;
5. Typically, it takes Primerica agents longer on average to reach a vested position in the company (the RVP level), whereas WFG agents typically reach a vested position (the QMD level) in a shorter amount of time;
6. Recruiting in Primerica is really rather mandatory if you want your business to do well, and with WFG, recruiting is rather optional;
7. WFG offers its representatives renewal commissions on many products offered by outside providers, and Primerica agents do not receive the same types of renewal commissions;
8. WFG offers securities product trail commissions to its agents on an average 1% commission on money under management. Primerica's agents typically receive something closer to .0075%.
9. WFG agents can offer their clients property and casualty insurance through approximately 75 varied carriers. Last I heard, Primerica had discontinued its property and casualty service.

The other way you can evaluate this is to have a Primerica agent and a WFG agent (separately) sit down with you and give their presentations so you can judge the way the presentations are made by each company. Treating yourself as a client in front of each rep may give you a better idea which company is right for you, since it will give you an opportunity to decide which type of presentation you'd rather be giving as an agent yourself.
solved by phil.carter (24,300 points)

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