|
[Home] [Insurance Quotes] [Follow Ups] [Post Followup]
[Insurance and Annuity Message Board] [FAQ]
Contact your carrier directly for personal account information.
In Reply to: Re: Re: Deceptive Practices? posted by Logic? on February 28, 2004 at 02:01:30: "One thing they never mention is investments, since we pretty much kick butt there. I mean between Smith Barney and the hundreds of other funds we offer, we pretty much dominate there. But of course, no one gives us credit for that, they just harp on the Life and the Loans." ---This is because, as you said, other companies such as Smith Barney run the funds. Smith Barney deserves the credit. And just so you know "Logic", term insurance and permanent products require separate reserves and are monitored separately. Whole life and other permanent products do not subsidize term plans. And if the term insurance is convertible, it raises the cost of the term insurance. and it is still cheaper. The reason Primerica does not have the lowest (yes I'm generalizing) term rates is because of higher distribution costs (Source: Primerica)Acquisition costs still exceed 175% of first year premium, most of that is commission, (source: AM BEST) and a shorter break-even target date than the rest of the industry on average. The lapse rates are also higher over a longer term, leading to chargebacks and reduced lifetime premium income for the particular policy. Costs have to be recouped in a shorter period if the lapse rate is higher. Primerica insurance pays just like any other policy. Smith Barney fund sold through Primerica give the same performance as the same funds sold through an independent broker. Loans are another matter but I won't go into it. It has been beaten to death on this and other forums. As far as other insurers ripping people off, do yourself a favor. Get a subscription to A.M. Best, and take a look at the amount of claims paid out by Primerica relative to its total premium income, and its total commission expenses. Now go look at Prudential, or AIG, or any other insurer you don't care for and look at the same numbers. Do you notice anything interesting? What do you notice about the numbers?
|