Complaint Review: Primerica (Bob Goldman & Shelly Zandel) - Willow Grove Pennsylvania

Mark misunderstands Chris's plea (see Chris's post). Chris, looking for a source of honest employment, was cajoled into an "interview". As business people, Primerica representatives (as well as any other business person) have a burden and responsibility to be straightforward with potential clientele. It is plain to the average reader that the Primerica representatives mentioned in Chris's post were not as such. A breach of ethics can be said to have occurred when a business's practices fail one or both of the following tests (in the form of questions): 1) Has a conflict of interest been violated? 2) Has a consumer been sold a service or product by a provider (in this case, a Primerica representative) who fails to properly educate the consumer? My experience with Primerica has found that their general approach to the marketplace fails both tests. Here is why: 1) Primerica will typically "lure" a client into a business relationship by posing as a typical financial services provider. Once the client seems to have "bought in" to an idea like "buy term and invest the difference" (which may in fact be a good idea in certain cases), they begin to talk about how great it is to be in business with Primerica. Because the "key to success" financially for a Primerica representative is recruiting (not selling the product line), they will attempt to draw the unsuspecting client into their organization (through promises of riches, no less). Doing so helps the representative achieve two objectives: one, the client is psychologically "stuck" investing with the Primerica product line and two, their MLM organization grows larger. It is not a stretch to say that a conflict of interest has been violated during this process. A Primerica representative has ulterior motives (unknown to the unsuspecting client) that coerces him or her to work - not in the best interests of their client (research has show that only .05% of Primerica representatives make over $50,000/year...by the way, I have a brother-in-law that has been involved with Primerica for over 6 years and still does not make over $50,000 a year - a crying shame) but in the best interest of themselves. A business structure and/or culture that breeds selfishness and dishonesty cannot survive, and if most Primerica representatives are either, Primerica simply will not survive. God designs it that way. Check out Proverbs 21:6 "The getting of treasures by a lying tongue is a vanity tossed to and fro of them that seek death." Also, see Proverbs 28:22 "He that hasteth to be rich hath an evil eye, and considereth not that poverty shall come upon him." 2) There is a critical burden on the seller in a free market system to educate the buyer. The Primerica representative's typical approach, which is to attempt to "reel" someone in by using confusing language and promises of wealth is what causes it to fail our second test. While I would agree that this description is not indicative of ALL Primerica representatives, it is evident in my experience and from reading report after report of alleged betrayal by a Primerica representative, that this is generally true of how Primerica representatives approach their clients. Interesting nuances like the way Primerica titles its representatives signal that something odd is at work here. "Regional Vice President" is an impressive-sounding title, but look beneath the veil and you are unlikely to find someone with knowledge of how to handle a family's financial strategies. Instead you will find a good recruiter. Once again, there is a critical burden on the seller in a free market system to educate the buyer. Unfortunately, this general practice (withholding information or lying) by a large constituent of Primerica representatives constitutes a breach of ethics. Finally, some advice to those that have walked the path or are considering walking the path that Primerica offers: 1) Ask yourself, do I really want to make a career of selling insurance, securities, etc.? Am I doing this for the money (i.e., so that I myself may gain financial freedom), OR am I doing this because I like to help people, I enjoy the work AND I enjoy the money? 2) If you are doing this for the right reasons, and if you don't have any experience or education in the field, JOIN PRIMERICA. Doing so is one of the cheapest ways to get your feet wet in the financial services industry. Be honest with your clients, and be straightforward. Don't make recruiting your clients your goal unless you meet someone who has a very strong interest in the field (at that point, have them read this post). After a few months, once you 1)begin to see Primerica's often unethical approach for yourself and 2) you realize that your products are generally more expensive than the great majority of your competitors and 3) you have gained some valuable training, LEAVE PRIMERICA and join a financial services firm who is not structured (not an MLM organization) in a way that causes people to be hurt and ethics to be breached. Best wishes!

Chris misunderstood the relationship between Primerica and himself when signing an Independent Business Agreement with the $199.00 offer of acceptance. Primerica in return for his $199 would provide Chris with 25 hours of Pennsylvania Life Producer and Health Producer training, including books, testing CD and testing and then certified to the Commonwealth that he was ready for the licensing exam. Chris was signing a business contract to be an independent agent with Primerica. He was not being hired for a job. Primerica had no intention hiring Chris as an employee. In some cases, Regional VPs with pay the agent back their $199 when they reach a certain production which typically comes out of the pocket of the RVP. Contract law requires an offer and acceptance of something of value. Primerica has set this at a nominal $199. Furthermore, Chris would have been taught how to help families get out of debt and become financially independent. If he had stayed with Primerica he would also be licensed to help families consolidate debt and invest families hard earned cash in high yield mutual funds from Solomon Smith Barney (another subsidiary of Citigroup) and other triple A rated funds. Had Chris stayed, he would have learned how to protect families estates from the tax man. Furthermore, once Chris reached Regional Vice President designation, would have owned something very valuable... his own business, a business that has real market value. A business that would generate income for him, had he stayed even when he was not working. I am not sure about Shelly or Bob's taste in cloths. I have seen some of the most wealthy people ware some fairly tacky cloths, but I have also seen Shelly in some very fashionable clothing. Shelly and as VP earns in excess of $200K. Shelly and Bob get none of the $199.00 Unlike Chris, I signed with Primerica, a subsidiary of Citigroup because it is the largest financial services company in the world with over $1 Trillion in assets. Primerica is an Insurance company that believes that the only effective Life Insurance that should be sold is Term. That insurance is NOT an investment vehicle and should not be sold that way. Primerica has a habit of replacing other insurance carriers Whole Life, Universal Life and Variable Life with Term and investing the rest in mutual funds with average returns of 10 - 14% compounded over 20 years.