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PRIMERICA 101

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LICENSING

Life Insurance (IBA to license in 30 days)

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• App login
• Exam FX
• 2 Day class
• Test scheduled

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Securities

Mortgage Loan Originator

• SIE
• SERIES 6
• SERIES 63

($450)

BE ALL IN

Customized for CHAMPIONS

Version 1.0

PRIMERICA FINANCIAL HEADQUARTERS

SINCE 1977

Overview

Problems to solve

Project objective

Market trends

Trend analysis

Target audience

Proposed solution

Process

Vision

Team

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• More than 2,000 dedicated home office employees to support our clients and reps

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• Serving over 8 Million Clients in the United States, Canada & Puerto Rico

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• Over 142,000 Licensed agents with more than 6,000 offices

Daluth, GA

BE ALL IN

Customized for CHAMPIONS

Version 1.0

ONE STOP FINANCIAL PLATFORM WITH VIRTUAL DELIVERY

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1965 – Art’s father dies of a heart attack & the family has a whole life insurance policy leaving them grossly underinsured!

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1970 – Arts cousin Ted Harrison introduced to him the concept of term life insurance, offering much more coverage for a lot less money. At the time, insurance companies rarely sold it due to lower commissions even though it was better for the client.

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1973 – Art had quit coaching and joins Waddell & Reed Insurance and is promoted to RVP quickly. Despite the numerous benefits of working at W&R, Art grows frustrated with the corporate model. He believes that the executives and higher ups make all the decisions based on the bottom line, instead of what is best for the employees and clients.

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1977 – Art and 85 associates founds his own company, A.L. Williams on a simple philosophy: "Buy Term and Invest the Difference. The company placed its main emphasis on "pushing up“ people, giving EVERY person the opportunity to advance and become an owner.

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1984 – A.L. Williams becomes “National Champions”. #1 life insurer in the United States and has over 100,000 associates

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1991 – Primerica Financial Services buys A.L. Williams

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2010 – Primerica has an IPO (Initial public offering of stock). Stock opens up at $15 per share.

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2018 – Primerica stock roars past $100 per share. The company has over 120,000 licensed insurance agents and is the largest distributor of financial services in all of North America!

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2020 – Covid-19 pandemic hits and shuts the country down. Primerica is uniquely positioned to switch to zoom technology. Every measurable company record is broken by year end.

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History of Primerica - Art Williams

“Everybody wants to be Somebody”

Art Williams took on the entire life insurance industry because it had been ripping people off with whole life insurance. He started his company to right a wrong and to give the everyday average person an opportunity at business ownership!

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Four Ways to Earn Income

THE CASHFLOW QUADRANT

Robert Kiyosaki

Where are most people?

Which side of the quadrant appeals to you the most?

What stops people from making the transition?

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The Real Estate Model

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Primerica’s business model is not intended to be depicted like a real estate broker model. �Rather, this slide is intended to distinguish both models and is being shown for illustrative purposes only.

The Real Estate Model, What’s the Problem?

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Primerica’s business model is not intended to be depicted like a real estate broker model. �Rather, this slide is intended to distinguish both models and is being shown for illustrative purposes only.

Primerica’s RVP Model Solves the Problem

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• Earn recurring income off the business they produce
• Produce an unlimited number of RVPs

Regional Vice President (RVP)

District Leader

Regional Leader

District Leader

District Leader

Primerica’s business model is not intended to be depicted like a real estate broker model. �Rather, this slide is intended to distinguish both models and is being shown for illustrative purposes only.

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We Are Incented to Promote RVPs

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Earn income from your base shop and all of your RVPs.

Qualify for Ownership.

Develop and promote as many RVPs as you want.

SVP

$300,000 in a year

Building Distribution

The Benefits of Ownership

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When you develop a bigger team and grow your income to the $300,000 level, you can qualify for Ownership.

Ownership allows you to:

Ownership refers to the conditional right of an eligible Regional Vice President RVP to transfer his or her business to another eligible RVP, subject to the consent of Primerica and subject to terms, conditions and regulatory requirements. The Ownership Program Document and policies located on Primerica Online (POL) control in all respects. Please refer to Important Endnotes at the end of presentation for detailed disclosures.

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ANSWERING SOME OF THE FIRST FEW QUESTIONS:

WHAT TYPE OF BUSINESS MODEL IS THIS EXACTLY?

…AND HOW DO I KNOW IT’S LEGITIMATE?

“Mom and Pop” (Restaurant, Flower Shop, Tire Shop)

Pros:

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-Your business.

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-Your marks are all over it.

Cons:

-Self employed.

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-Typically lose money early.

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-High rates of failure.

MLM/Network Marketing

(Mary Kay, Amway, Ambit, etc.)

Pros:

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-Can recruit.

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-Override unlimited people.

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-Incented to move up.

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-Inexpensive to start up.

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-Build through multiplication.

Cons:

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-Low profit margins.

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-Unstable client base.

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-Limited/no ownership

possibilities.

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-Inflated consumer prices to pay

distributors.

Franchise (McDonald’s, Subway)

Pros:

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-Established system to

follow.

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-Brick and mortar business.

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-Real ownership.

Cons:

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-Very expensive to start.

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-High franchise fees.

Traditional Brokerage Model (Real Estate, Finance)

Pros:

-Ability to start part time.

-Control of schedule.

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-Freedom.

Cons:

-Positioned to lose most capable, ambition people.

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-Training your own competition.

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-Subject to the mercy of the

market.

If you look closely, Primerica has all the pros and no cons.

-Your business.

-Your marks are all over it.

-Can recruit.

-Override unlimited people.

-Incented to move up.

-Inexpensive to start up.

-Build through multiplication.

-Established system to follow.

-Brick and mortar business.

-Real ownership.

-Ability to start part time.

-Control of schedule.

-Freedom.

-Self employed.

-Typically lose money early.

-High rates of failure.

-Low profit margins.

-Unstable client base.

-Limited/no ownership possibilities.

-Inflated consumer prices to pay distributors.

-Very expensive to start.

-High franchise fees.

-Positioned to lose most capable, ambition people.

-Training your own competition.

-Subject to the mercy of the market.

Pros:

None of the cons:

Let’s get this out of the way. Is Primerica legitimate?

Let’s get this out of the way. Is Primerica legitimate?

Primerica became a publicly traded company in April 2010. When presenting to investors for the initial public offering more than 200 institutional investors in five countries participated in 65 presentations about the Primerica business model. Of the 200 investors, 96% chose to invest in Primerica, including 8 of the 10 largest mutual funds in North America.

Before investing, top private equity firm Warburg Pincus invested $10 million in researching the Primerica business model and then announced “We believe Primerica is uniquely positioned to be the top financial services distributor in North America.”

Warburg Pincus then invested $230,000,000 into primerica stock!

PUBLICLY TRADED

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Primerica is a PUBLICLY TRADED company in one of the highest REGULATED industries in the world.

Primerica Stock (PRI) Notable Shareholders

1 - Institutional shareholders as of 05/2024 – Source: www.nasdaq.com

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PRI: PUBLICLY TRADED COMPANY

ADVERTISING?

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Solvency

Long Range Financial Health

Ethics

Appropriate Policies & Practices

Over 48 Death Claims Related to the 9/11 event, TOTALING $9.7 Million Dollars

Primerica paid out 9 Death Claims even though the President declared it “act of terrorism”

Primerica DELIVERS when it matters MOST! 94% of Death claims paid within 14 days!!

Ethics

Appropriate Policies & Practices

Doing what’s right never goes out of style!

Client Before Pri Paid Claim

Female, 38, Pentagon, Program Asst Cash Value $11,522 $100,000

Male, 33, Pentagon. US Army Officer SGLI $200,000 $350,000

Male, 38, WTC, Porter Cash Value $17,000 $200,000

Male, 50, WTC, Property Manager Cash Value $40,000 $213,000

Male, 44, WTC, Sales Tax Auditor Cash Value $50,000 $250,000

Female, 47, WTC, Claims Supervisor Cash Value $50,000 $250,000

Female, 33, WTC, Security Analyst Cash Value $50,000 $300,000

Female, 24, WTC, Admin Assistant Cash Value $50,000 $300,000

Male, 40, WTC, Bond Trader AR Term $100,000 $315,000

Male, 41 WTC, Police Officer Work $160,000 $300,000

Male, 32, WTC, Bond Broker AR Term $500,000 $995,000

Female, 58, Flight 77, Waitress None $0 $125,000

Male, 54, Flight 77, Insurance Broker Work $10,000 $500,000

Male, 45, Flight 11, Dir of Products Work $25,000 $750,000

Customer Satisfaction

Ensuring Client Loyalty

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Customer Satisfaction

Ensuring Client Loyalty

INDUSTRY AWARDS & RECOGNITION

PART 2 : BUILDING A STRONG FINANCIAL HOUSE

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LIFE INSURANCE TRAPS!

#1 Work/Group Life Insurance

What's the catch? Active Work Clause (30+ hours/week)

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#2 Cash Value Life Insurance

What's the catch? The rules in the Cash Value (Savings) account!

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1. $0 balance in account for 2-5 yrs.
2. Borrow the money for 6% to 8%
3. Keep your money if you die!

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GROUP INSURANCE

WORK INSURAMCE

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WHOLE LIFE

VS TERM

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1. 3-5 Years = $0 Cash Value

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• Loan 6-8%

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• When you die, you don’t get both

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Cash Value Life Insurance

Cash Value vs Buy Term & Invest the Difference

What makes more sense….allowing the insurance company to keep your hard earned savings, or leaving your investments to your family?

Cash Value Life Insurance

Primerica Term Life Insurance

**Insurance company keeps the cash value if you die!

• 1-3 Years = $0 Cash Value

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• Loan 6-8%

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• When you die, you don’t get both

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• High Renewal Rates

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• Poor Renewal Options

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• Can’t Customize

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Industry Term Life Insurance

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• Would you knowingly invest your money in policies like these?

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• If anyone you knew had their money in policies like these would you want them to know?

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• Over $400 Billion in accounts like these!

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• We replace one and the industry sells 40 like these.

WHAT THE EXPERTS AGREE ON!

“Term insurance is pure protection, like fire

insurance or auto insurance, its sole function

is to support your family if you die. You can

buy large amounts of coverage for modest

amounts of money — and big policies are

what your spouse and children need.”

-Jane Bryant Quinn

“In my opinion, there is only

one kind of life insurance

that makes sense for the

vast majority of us: term

life insurance.”

-Suze Orman

“Term life provides coverage for a defined period of time …. What you see is what you get, and it typically costs far less than whole life.”

Kiplinger.com, “How to Shop for Life Insurance,”

Primerica Custom Term Insurance

Credibility & Quality

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• #1 Most trusted company in the industry

• 94 percent of claims are paid within 14 days

• An average of $6.1 million in benefit claims paid every day

• Terminal Illness Rider

• No Exclusions (Suicide 24 months)

• Customized Terms available (10, 15, 20, 25, 30, 35)

• End of Term Conversion WITHOUT evidence of insurability

• Insurable to Age 100 with

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The Theory of Decreasing Responsibility

ASSETS UNDER MANAGEMENT

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MAKING A DIFFERENCE

“The Invesco Equity & Income Fund… Historic Results”

“Both a husband and a wife” invested $333/ ea. mo.

($4,000 yr. ea.) from 1970-1990, (20 yrs )

they invested $160,000 total.

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They withdrew $50,000/ yr. from “1990-2015” (25 yrs)

they took out $1,300,000!

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How much money do you think they have left in the fund today?

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How about: $2,100,000!!

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You’ll have the license to do this for people!

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Do You Know the Rule of 72?

This table serves as a demonstration of how the Rule of 72 concept works from a mathematical standpoint. It is not intended to represent an investment. The chart uses constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower performance. It is unlikely that an investment would grow 10% or more on a consistent basis.

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Your money will double at a certain point determined by dividing 72 by the interest rate.

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Based on the Rule

of 72, a one-time contribution of $10,000 doubles six more times at 12% than at 3%.

$2.52 Million

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FINANCIAL PLANNING COSTS

Does the Average family have $1,000-$3,000 extra to spend on a financial plan?

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To qualify for Reserved, a client’s household must have and maintain a minimum of $1,000,000 in eligible assets and liabilities or paid at least $10,000 in managed fees/commissions.

Primerica’s Field Training Bonus

(covered in Fast Start plan)

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Earn credits that can convert to an actual cash bonus once

you get life licensed.* You’ll Learn:

• How Primerica’s business works
• About Primerica’s products and how we help clients with life insurance
• How to build your team
• The path to life insurance licensing success, as you earn your first promotion

*The qualification period is 90 days in the US, 120 in Canada (150 in QC), and 220 in Puerto Rico. In Puerto Rico submit Temp App in 60 days instead of pre-licensing.

Details about this bonus program are provided in the Field Training Bonus Program Document, on Primerica Online (POL). Ask a Primerica Representative for more details.

Build a team�and grow �your business.

Help families �across the�kitchen table.

Learn the business, get licensed,�and earn a Field Training Bonus.

Earn a promotion�to District Leader �to kick start �your future.

Primerica’s Field Training Bonus

(covered in Fast Start plan)

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BANK A $200 CREDIT for every 1 recruit

and $1,000 in annual life premium you

observe during field training¹

1. During the qualification period bonus will be paid to licensed Representatives who qualify (minimum 1 x $1,000 etc.) based on approved product sales. Of those who qualified for a bonus in 2023, the average bonus (without extra incentives) was $536. Figures include US and Canadian dollars remaining in the local currency earned by the Representative, not adjusted for exchange rates.

2. Get life licensed in 90 days in US, 120 in Canada (150 in QC), and 220 in Puerto Rico. You must �have full-service POL at the time the bonus is payable and in order to access the Primerica App.

If pre-licensing is not completed in 60 days, all bonus credits are reduced by 50%. Details about this �bonus program are provided in the Field Training Bonus Program Document, on Primerica Online (POL).

WHAT WILL YOUR BONUS BE?

Your bonus is paid when you get

your license!² NO MAXIMUM!¹

Ask a Primerica Representative for a copy.

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