Primerica (Citibank)?

Question

First off, i DO NOT need comments like how Primerica is a scam or w/e. What i'm interested in is whether the products that Primerica sells is as reliable as they say. For example:

$MART Loans. Is it really as good as they make it sound?

Life Insurance: is it really cheaper then other companies? What about other term insurance?

Investments: is their Rate of Return as high as they say it is? Why can they reach these high rates and can these high rates only be obtained by Primerica or is there other methods of getting these rates?

RRSP: how do they help with the tax refund and wouldn't a tax accountant be able to do all of these things for you?

Last thing... i would also like to know where you are when you answer this. Primerica is all over the world so i would like to know where this is coming from. Thank you very much

Answer 1

Before I start, I'm a Primerica agent in the New York, New Jersey, and Pennsylvania area.

The SMART loan is a unique loan offered exclusively to Primerica's clients only. Citicorp Trust Bank is the lender. This loan is designed to help clients get out of debt faster and save tens of thousands of dollars off the total cost. How? Through the equity builder program. The equity builder allows more of your payment goes toward the principal. There is no setup fee, no monthly fee, gives clients 0.25% rate reduction, and it uses simple interest calculation versus schedule interest. Not all clients qualify for this loan because they may have a bad credit or they don't have enough equity in the home yet. I guarantee you are not going to find any other bank who is going to show you a way to pay off your debt faster, let alone do it with no upfront costs.

As for the term life insurance, it is not the cheapest, but the prices are pretty competitive. But you have to compare the features of term insurance between companies. Every company has its own way of designing their life insurance policies. You have to ask yourself would you pick price over quality or quality over price? If you are looking for the cheapest, then there's a good chance that the term policy will leave out many features such as guaranteed renewable. In Primerica's life policies, term policies are guaranteed renewable and contain terminal illness benefit. As with any life insurance, Primerica's life policies also contain Disability of Waiver. Plus, both husband and wife are covered in a single policy.

As for investments, Primerica offers many mutual fund families such as Legg Mason Partners, American Fund Funds, Oppenheimer Funds, Van Kampen, and many others. It is important to know that rates are not guaranteed and past performance can not predict future results. Rates are determined by market performance and no one in the world can predict how the market will do in the future. But the long term trend is that the market has long term growth. In the past 25 years, equity mutual funds has perform an average of 12%. It doesn't mean that every year your investment gets 12% because some years it maybe in the negative rate and other years in a positive rate. But the average is 12%.

As for RRSP, I don't know much about retirement plans in Canada. In USA, Primerica can setup Roth IRAs, Traditional IRAs, SEP IRA, SIMPLE IRA, variable annuities, 401(k), and 403(b). They also do college savings plans as well.

As for tax accountants, they can only help you with taxes. They can't help you do financial plan for you and they are not licensed to talk about investments or insurance or mortgages.

Answer 2

Do you homeworks.

re loans: ask a loan broker to do a price comparison

re life insurance: ask an insurance broker to do a price comparison

re investments: rule of thumb - higher the return, higher the risk.  

re rrsp: most financial planners/advisors can help you with that.

P.S.

1) I am from Toronto

2) Primerica is a member of Citigroup

Answer 3

Regarding your question for Life Insurance (Comparison)

Male 40 $100K Term 30

1) Unity Life $317

2) Industrial Alliance $330

3) Transamerica $347

4) Primerica $449

Source:  Compulife

As for investments (including RRSPs), Globefund.com has a report of all the funds (Fund Filter section).  They don't have much to pick from but the MERs are fair, and AGF seems to be the underlying Fund Manager for most of them.

Update:  

I'm not sure why the Primerica folks gave me 2 thumbs down, I did pay them a compliment regarding their investments (ie: MERs and AGF).

But if you want the truth, go for an Independent Financial Planner/Advisor.  They have access to a wide range of companies and can provide you with a market analysis of all insurance and investment products.

Manulife, for example, is the *only* AAA rated insurance company.  So if you are looking for strength, there are better companies out there.  99.9% of insurance companies offer renewable and convertible insurance coverage.  99.9 also have terminal illness benefits and disability of waiver and offer Single/1st to Die/2nd to Die policies.  And finally, most insurance companies offer reduced or no policy fee if you buy 2 or more insurance products from them.

Are Primerica's products reliable?  Yes!  But can you get better investments and insurance products elsewhere?  Yes!!!  Do your homework!

Answer 4

I'm an agent in Texas.

For the $MART Loan, if all you are doing is paying the min., it doesn't matter.  If you pay a little extra or use the Equity Builder option, it pays off usually several years earlier.  The rate is typically a little higher but there is no PMI either.

Life insurance is not the cheapest, but is competitive.  Few, if any, term products cheaper can offer guaranteed renewability to another level term product.

The investments are the same at any other investment company.  The rates stated will be the same anywhere, and unless the specific fund or product in question has it stated in writing, rates are not guaranteed.  When it comes to fees, have your agent do a comparison on plans.  One with higher fees, one with lower ones.  You just might be surprised.

RRSPs: Can't speak on them.

If you are going to compare to other companies, ask what they will make on it as well and factor that into your decision.  Ask your Primerica agent as well.

Answer 5

Their products are overpriced.

Their loans cost more than other company's loans.

Their mutual funds are more expensive that other company's funds.  And no one can guarantee performance.

Their insurance rates are higher that those offered at other insurance companies.

Shop around!

Start by talking to a financial planner and coming up with a game plan for your life.

Primerica's "Needs Analysis" is a joke.

Good Luck

(America)

Answer 6

Shop around.  You can do better.  Do your research and listen to what others say.  

I am in Florida in the USA,

Answer 7

The client can do much better elsewhere........

Answer 8

did u join primerica ? i am in the process of joining and want to know if it is good?