Life after WFG.......where to go next?

[DHK]

But I agree that insurance MLMs are worse. Because they are doing harm to the clients as well through incompetent sales and product choices.

Almost. I don't recall seeing any scandals for Primerica or WFG in the news. Sure, their term is over-priced and may, at times, be misrepresented. But it's not like they are an illegal ponzi scheme or something.

They may be acting in accordance with the firm's training (which is probably minimal) and with no exposure to designation studies or other industry associations... but I can't say, on a firm-wide basis, that they are always doing harm to clients.

The only harm, is their institutional biases towards their own preferred ways of doing things - Primerica is probably the worst offender there. They don't even understand cash value life insurance. They are taught mis-truths and myths so they have a bias and seek to convert all WL to term. THAT is their danger... but it's not like there are any huge lawsuits or scandals because of it. (Maybe there should be?)

 

[scagnt83]

"Harm" has different degrees or levels. It takes a lot of harm to get a class action against a state approved product. They are not ripping people off with the products they sell (premium aside).

But from a general standpoint, in my opinion, I would say the advice and guidance they give are sub-par compared to the industry as a whole. And that is not a good thing for their clients from a general standpoint.

 

[myinsurebiz]

Almost. I don't recall seeing any scandals for Primerica or WFG in the news. Sure, their term is over-priced and may, at times, be misrepresented. But it's not like they are an illegal ponzi scheme or something.

They may be acting in accordance with the firm's training (which is probably minimal) and with no exposure to designation studies or other industry associations... but I can't say, on a firm-wide basis, that they are always doing harm to clients.

The only harm, is their institutional biases towards their own preferred ways of doing things - Primerica is probably the worst offender there. They don't even understand cash value life insurance. They are taught mis-truths and myths so they have a bias and seek to convert all WL to term. THAT is their danger... but it's not like there are any huge lawsuits or scandals because of it. (Maybe there should be?)

#Truth

 

[scagnt83]

Actually, Transamerica was recently sued over IUL sales. And the main cause of that was WFG from what I hear. They were selling IUL at Target Premium... which causes considerable harm to the client.

Then there is all of this for WFG:
World Financial Group - Wikipedia



Then there is Primerica. 314 lawsuits filed against them. Of course all insurers get lawsuits.

Cases matching "PRIMERICA LIFE INSURANCE COMPANY"

 

[toolbelt]

But it's not like they are an illegal ponzi scheme or something.

That could only be determined by assessing the ratio of internal/external sales. The FTC leaves it in the hands of the consumer to make the determination. MLMs are not required to report that information, unless they happen to be under investigation. Very few MLMs are investigated, however, the FTC has a 26-0 record of those they've chosen to prosecute. The penalties are often fines, paid without admitting guilt.

 

[DHK]

Ponzi is different from pyramid. Ponzi is using the money from new investors to pay "returns" to older investors without generating any new revenues or returns.

I have yet to see an insurance agency/company be sued for being involved in a ponzi scheme by selling legitimate policies.

 

[toolbelt]

But many MLMs require you to purchase "products" of some type that you then sell. So they are just stuck with $1000s in useless inventory they cant sell.

What makes a corporation more money? A monthly $100 product purchase quota (with a 20% profit margin) or a $30 monthly online access fee (with a 75% profit margin)?

 

[toolbelt]

Ponzi is different from pyramid. Ponzi is using the money from new investors to pay "returns" to older investors without generating any new revenues or returns.

I have yet to see an insurance agency/company be sued for being involved in a ponzi scheme by selling legitimate policies.

Ponzi's have no products, pyramid schemes do. The flow of money and harm done is exactly the same. Pyramid schemes cause exponentially more harm because many are allowed to operate legally, globally.

 

[scagnt83]

Pyramid schemes cause exponentially more harm because many are allowed to operate legally, globally.

And most target low income people who are financially desperate and lack financial sophistication.

 

[toolbelt]

It takes a lot of harm to get a class action against a state approved product.

There are very few laws written or enforced specifically to protect people from their own ignorance. MLMs simply take advantage of that.