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| *Ostroff, Fair and Company>>>Financial Services |
Primerica or Northwestern Mutual Financial Services? |
Looking for GOOD advise. Looking at Primerica or Northwestern Mutual. Anyone have any experiences with Northwestern Mutual? I have heard mixed reviews about Primerica, are their products good? How about NM mutual, what are the money making possibilities like in both? Thank You! Primerica Financial Services is the largest financial company in North America with over 100,000 licensed representatives. They been in business since 1977 and have offices in USA, Canada, Puerto Rico, Spain, and UK. Primerica is a member of Citigroup. Citigroup is listed on the NYSE as stock symbol "C". They are one of 30 companies listed on the Dow Jones Industrial Aaverage, which is really hard to get into. They have over $1 trillion in assets. Citigroup been ranked #1 on Forbes Global 2000 for the past 4 years. Many financial publications talked about Primerica. For example, the Wall Street Journal states, "Primerica's ability to sell products generated by other Citigroup units means its success creates ripples throughout the corporation." You can read more articles about Primerica at http://www.primerica.com/public/primeric... Primerica is not in the business of just selling products. They are in the business of helping middle income families with their finances. Majority of families have debt. Primerica's mission is to help families get out of debt and become financially independent. With the products we have from various companies, we are able to help families achieve their goals. What products am I talking about? 1) Life insurance. Primerica only sells customize term insurance from Primerica Life and National Benefit Life. That means they find the exact amount of coverage you need so that your family can maintain its life style and also fulfill some of your goals (such as putting your kids in college or having the family own the home). Did you know that Primerica was the number one company in 2006 for issuing the most face amount on a life policy? Why? Its because term insurance is inexpensive, so the client can afford the amount of coverage they needed. With whole life or universal life, most clients can't afford the amount they need. It also have to do with the fact that we can now fill out life applications on palm pilots, making the processing faster and easier. 2) Debt elimination loan. The loan application is offer exclusively from Citicorp Trust Bank and its free application process. The loans are designed to help a client get out of debt as soon as possible and for less money. Sometimes, the loans come back bad, so there will be no point of going ahead with the loan. In that case, Primerica has its own debt elimination plan called debt stacking. 3) Mutual funds. Primerica markets many mutual fund companies such as Legg Mason Partners Funds, Van Kampen Funds, Pioneer Funds, AIM Funds, Alliancebernstein Funds, American Funds Funds, Fidelity Advisor Funds, MFS Funds, Oppenheimer Funds, Putnam Funds, and Franklin/Templeton Funds. With the free Morningstar Program offered by Primerica, I can help clients find the suitable investments and find investments that has outperform their current investments. 4) Variable annuities. Primerica markets Metlife's PrimeElite IV. 5) College Funds such as 529 plans and Coverdell. 6) Prepaid Legal Service. For just $25/month ($10 setup fee on first month), you can get a Will done for no additional cost, have a attorney review any legal documents for no additional cost, get a discount on attorney and lawyer fees when you need them in court (they are great to have if you get speeding ticket or you are getting sued), and many other benefits. 7) Long term care. I'm not licensed to sell this so I can't talk about it, but Primerica does sell Genworth Financial Long Term Care. 8) Auto insurance and Homeowner's insurance referral program. This is where the client go to a website or they call the toll free number and give some information. Within 10 minutues, they will get various quotes from 20+ different companies such as AIG, Esurance, Travelers, Safeco, Hartford, Deerbrook, and so on. On average, a client saves about $400/year on their auto and/or homeowner insurance. This program is currently not available in all states since it just came out this year. By end of 2008, it will be available in all states. 9) If the client doesn't own a home but is looking to get one, Primerica offers Home Loans from CitiMortgage and the pre-approval process is free. Many mortgage companies will ask you to pay upfront fees or try to sell you on locking the current interest rate. The interest rate will always change. You don't know what's it going to be next month, so why lock it in? 10) Financial Need Analysis. Its free and customize for each client. The products I talked about are tied into the FNA. The FNA shows the current assets and liabilities of the client and the current networth. The FNA will then create a plan to increase that networth and help the client achieve their goals. Do you know that I can do most of these things with one client? Plus, I can recruit someone and train them and if this person gets to work, I get paid an override. For example, lets say you were in real estate. You start off as an agent making 3% commission. Your broker gets 6% commissions. Lets say you go out and sell home. You get paid 3% and your broker gets paid 3%. Primerica took the exact same system, except there are more than 2 levels in the company. I don't know much about Northwestern Mutual, but they usually don't have the best interest on helping the client because they sell cash value life insurance as though its an investment program or some sort of long term savings program. Why? Cash value life insurance has high premiums, so you earn more commissions. With term insurance, premiums are lower, so you get lower commissions. Life insurance only purpose is to protect your family's income. If you want to save for the long term, you should invest it into mutual funds and/or bonds. Put your investments in an IRA so that it grows tax-deferred. This is what Primerica does: Keeping life insurance and savings separate. Therefore, we only sell term insurance and never cash value life insurance. Source(s): http://www.primerica.com Please for god sake....go with Northwestern Mutual... Primerica and Ameriprise are the black sheep of in the industry... When meeting an agent of these companies...ask these questions: -What investment firms they own. -How do they rate amongst those in the industry (life insurance for instance) -How much insurance they have in place for the whole company as compared to others -Analyze their Disability Insurance and Long-term care policies, and see if they pay dividends on those policies as well. -MOST IMPORTANTLY: What is the companies current and historic dividend rate. -Also, ask for a breakdown in the cost structure. Ask an agent from each company to run an illustration comparing the two companies cost. Upon answering these questions, I CAN ASSURE you that the northwestern mutual is by far the leader in the industry, and primerica is not even on the map... Primerica is a joke. Ask a financial advisor specifically what kind of an education he has. He will not have much only what the insurance provided for him (basics). Primerica is owned by Citigroup. Citigroup has only gotten large because they have bought up the smaller firms. Their service is not the best. During my capstone seminar for my BS in Financial Management, my class was taught by a CFP. He didn't have anything good to say about either of these companies. NWMFS is limited in the products they offer (I believe he said they are ALL proprietary - which are inferior in most cases). Primerica will recruit anyone who is interested. As one other person said, check their credentials. They will have a good work history in financial services. Advisors will not only be licensed, they will have designations (if not CFP, ChFC, degrees, etc). Why would someone want a person less educated than themselves to handle their money? Check other investment firms like Charles Schwab, Morgan Stanley, even Edward Jones. Ron, ChFC |
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