Slide 2: Primerica
The best part-time business opportunity
or
The best full-time business opportunity
2
Slide 3: Primerica
Part-time or Full-time
You Decide.
3
Slide 4: Just the Facts
Sunday 1 2 Monday 3 Tuesday Wednesday 4 5 Thursday 6 Friday 7 Saturday
$0.02
8 9
$0.04
10
$0.08
11
$0.16
12
$0.32
13 14
$0.64
$81.92
21
$1.28
15
$2.56
16
$5.12
17
$10.24
18
$20.48
19
$40.96
20
$163.84
22
$20,971.52
$327.68
23
$41,943.04
$655.36
24
$83,886.08
$1,310.72
25
$167,772.16
$2,621.44
26
$335,544.32
$5,242.88
27
$671,088.64
$10,485.76
28
$1,342,177.28
29
$2,684,354.56
30
$5,368,709.12
31
$10,737,418.24
4
For illustrative purposes only. Not intended to demonstrate the growth potential of any specific investment.
Slide 5: What Do People Want?
When people talk about freedom, they’re really talking about…
Quality of Life
5
Slide 6: What Is Quality of Life?
More … Time
More … Money
6
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 7: For Most People, These Things Are Just Wishes
Dream home A second home at the lake, the beach, the mountains Travel, entertainment, hobbies, events Toys – cars, boats Education for your children Charitable contributions to your favorite cause Building a legacy for your family
7
Would you want to make this a reality?
Slide 8: Which One Seems More Like Freedom?
Your Life Revolves Around Your Job Your Business Revolves Around Your Life
8
Slide 9: Quality of Life
What determines your quality of life?
How You
MAKE
Your
MANAGE MONEY
Your
How You
MONEY
9
Slide 10: How Do Most People Make Their Money?
No Control of TIME. No Control of MONEY. Employee
Has a job. Income based on position, not the person.
Control of TIME. Control of MONEY. Business Owner
Owns a system. Has others working for him/her. Unlimited income potential via manufacturing, marketing, etc.
Self-Employed
Owns a job. Dentist, doctor, lawyer, hair stylist, real estate agent, salesperson.
Investor
Has money working for them. Enjoys complete freedom and lives the dream.
Limited control of TIME. Limited control of MONEY.
Control of TIME. Control of MONEY.
10
The Cash Flow Quadrant, CASH FLOW Technologies, used with permission. The Cash Flow Quadrant and ESBI are trademarks of CASH FLOW Technologies Inc. For information purposes only. Not for any product solicitation.
Slide 11: Working for Yourself Pays
Those who run their own business tend to build wealth faster than employees.
Wage Earners Self-Employed
$336,000
$49,000
$67,000
$67,000
Median Income
11
Median Net Worth
— Money, July 2009
Slide 12: There Are Two Reasons People Don’t Start a Business:
1. Money 2. Ideas
12
Slide 13: Starting a Business
13
In Primerica, you are in business FOR yourself, but not BY yourself!
Slide 14: Primerica
Listed on the New York Stock Exchange (PRI)
14
Slide 15: Primerica
Primerica was named one of the “Best [performing] IPOs in First Quarter of 2010.”
— Investopedia (a Forbes Digital Company), April 22, 2010
Among the initial investors:
15
Legg Mason Invesco Franklin Templeton An Oppenheimer Fund AGF Investments Inc.
Plus 200 other companies!
Slide 16: Among the Significant Holders of Primerica Stock: Warburg Pincus LLC
Private equity firm with offices in the United States, Europe, and Asia Private equity investor since 1966 Approximately $25 billion in assets under management
“At Warburg Pincus, we look for companies that we believe deliver high value products to the consumer. We believe Primerica is uniquely positioned to be the top financial services distributor in North America.” Michael E. Martin, Partner, Warburg Pincus & Co. and Managing
Director, Warburg Pincus LLC.
16
Slide 17: Among the Significant Holders of Primerica Stock: Baron Capital Management
Founded by Ron Baron in 1982 Approximately $16 billion in assets under management Ron Baron is listed on the Forbes 400 (The 400 Richest Americans) and has a net worth of $1.3 billion
“Baron Funds invests for the long term in what we believe are unique, well-financed businesses with open-ended growth opportunities and sustainable competitive advantages. We are most interested in businesses like Primerica that provide products with broad appeal to an underserved market. “We like to say, ‘Baron Funds invests in people not just buildings.’ Primerica is a good example of a company that meets our investment criteria.” Ron Baron, Chairman and Chief Executive Officer, Chief Investment
17
Officer, Baron Capital Management, Portfolio Manager of Baron Growth Fund, Baron Partners Fund and Baron Retirement Income Fund
Slide 18: We Are the Largest Independent Financial Services Marketing Organization in North America
100.0
Insurance Agents
75.3
Sales Force (in thousands)
Brokers Financial Advisors
17.6 12.6 18.1 7.5
Torch mark6 MSSB7 BAML8
32.0 15.0
12.5
12.0
5.3
Raymond James11
Primerica1
Aflac2
Allstate3
State Farm4
MetLife5
Edward Jones9
Ameri prise10
1 2 3 4
Size of life sales force (2009) Aflac U.S. licensed sales associates Estimated number of licensed sales professionals Number of agents as of December 31, 2008 per the company Web site; accessed January 10, 2010 5 Total number of sales representatives
6 7 8 9
Number of producing exclusive agents as of September 30, 2009 Global representatives Number of financial advisors Estimated number of financial advisors per the company Web site; accessed February 25, 2010 10 Total financial advisors 11 Estimated number of financial advisors per fourth quarter 2009 report
18
Slide 19: Primerica
New company with 33-year proven track record #1 rank of in-force term life premium
– 4.3 million lives insured
2 million investment clients
– $31 billion in assets under management
Accredited member of the Better Business Bureau Doing business in one of the most highly regulated industries Rated A+
Primerica Life’s, National Benefit Life’s and Primerica Life Insurance Company of Canada’s financial strength is rated A+ (Superior) by A.M. Best, the oldest and most prominent rating agency in the industry.*
Could all these people be wrong?
19
*A.M. Best ratings range in order from the highest ratings as follows: A++, A+, A, A-, B++, B+, B, B-, C++, C+, C, C-, D, E, F. Primerica’s term life insurance is underwritten by National Benefit Life Insurance Company, Home Office: Long Island City, NY, in New York State, Primerica Life Insurance Company, Home Office: Duluth, GA, in all other U. S. jurisdictions; and Primerica Life Insurance Company of Canada, Home Office: Mississauga, Ontario, in Canada. Investments offered by: PFS Investments Inc., 3120 Breckinridge Blvd., Duluth, GA, 30099, 770-3811000.
Slide 20: Debt Solutions
Life Insurance Annuities
Primerica DebtWatchers™
Offered by Primerica Client Services, Inc. through contractual agreement with
Mutual Funds
Auto & Home Insurance Referral Program
Quotes from such companies as:
Travelers Safeco Progressive
Long Term Care
20
Legal Protection
Primerica Legal Protection Program
Slide 21: The Power of Primerica
A Main Street company delivering to Main Street families Common sense solutions If it’s complicated, we don’t offer it We teach people how money works.
21
Slide 22: Ask Yourself
On a scale of 1-10, 10 being the highest, how would you rate most people’s DESIRE to be properly protected, debt free and financially independent?
1
2
3
4
5
6
7
8
9
10
Do you believe it’s POSSIBLE for people in this country to become properly protected, debt free and financially independent? How do you think most people would FEEL if they woke up tomorrow morning properly protected, debt free and financially independent?
22
Slide 23: Ask Yourself
If most people have…
The DESIRE to be properly protected, debt free and financially independent, and… Believe it’s POSSIBLE for people in this country to become properly protected, debt free and financially independent, and… Would FEEL UNBELIEVABLE if they were properly protected, debt free and financially independent…
Then why aren’t more families properly protected, debt free and financially independent?
23
Slide 24: How do most people manage their money?
They Don’t!
24
Slide 25: You’ll Earn A Fortune In Your Lifetime
What you will earn over a 40-year career:
If you make: $30,000 $40,000 $50,000 $1.2 Million $1.6 Million $2 Million
If you AND your spouse each make: $30,000 $40,000 $50,000
25
$2.4 Million $3.2 Million $4 Million
Slide 26: It’s Not What You Make, It’s What You Keep.
To have $1 million at age 65, would you rather save:
$158/month from 25-65
$1,000,000
25
26 This hypothetical assumes a constant nominal 10% rate of return compounded monthly, unlike actual investments which will fluctuate in value, and does not include taxes or fees which would reduce returns.
65
Slide 27: It’s Not What You Make, It’s What You Keep.
To have $1 million at age 65, would you rather save:
$442/month from 35-65
$1,000,000
25
27
35
This hypothetical assumes a constant nominal 10% rate of return compounded monthly, unlike actual investments which will fluctuate in value, and does not include taxes or fees which would reduce returns.
65
Slide 28: It’s Not What You Make, It’s What You Keep.
To have $1 million at age 65, would you rather save:
$1,317/month from 45-65
$1,000,000
25
28
35
45
65
This hypothetical assumes a constant nominal 10% rate of return compounded monthly, unlike actual investments which will fluctuate in value, and does not include taxes or fees which would reduce returns.
Slide 29: It’s Not What You Make, It’s What You Keep.
To have $1 million at age 65, would you rather save:
$4,882/month from 55-65
$1,000,000
25
29
35
45
55
65
This hypothetical assumes a constant nominal 10% rate of return compounded monthly, unlike actual investments which will fluctuate in value, and does not include taxes or fees which would reduce returns.
Slide 30: It’s Not What You Make, It’s What You Keep.
To have $1 million at age 65, would you rather save:
$12,914/month from 60-65
$1,000,000
25
30
35
45
55
60
65
This hypothetical assumes a constant nominal 10% rate of return compounded monthly, unlike actual investments which will fluctuate in value, and does not include taxes or fees which would reduce returns.
Slide 31: It’s Not What You Make, It’s What You Keep.
Too Late at 65
$1,000,000
25
31
35
45
55
60
65
Slide 32: Money Management Mistakes:
Not Understanding How Money Works
32
Slide 33: Bypass the Middleman
Traditional Financial Institutions
Banks, Credit Unions, Insurance Companies = Historically Low Rates of Return
33 CDs and savings accounts are generally FDIC insured up to $250,000. Cash value life insurance offers life insurance components in addition to the investment component.
Slide 34: The Rule of 72
This simple calculation gives you the approximate number of years it will take to double your investment.
Number of Years 0 6 12 18 24 30 36 42 48
34
3% $2,000
6% $2,000 $4,000
12% $2,000 $4,000 $8,000 $16,000 $32,000 $64,000 $128,000 $256,000 $512,000
Based on the Rule of 72, a one-time contribution of $2,000 doubles six more times at 12% than at 3%.
The table serves as a demonstration of how the Rule of 72 works and is only an approximation of accumulations. It is not intended to represent any specific 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.
$4,000
$8,000 $16,000
$8,000
$32,000
Slide 35: How Does Primerica Help Families?
Dad $30,000
Household Income $60,000
Mom $30,000
35
Slide 36: How Does Primerica Help Families?
Dad $30,000
Household Income $60,000
Mom $30,000
Where does it all go?
BILLS INSURANCE GIVING
36
DEBT
MORTGAGE SAVING
TAXES
Slide 37: Money Management Mistakes:
Overpaying Taxes
37
Slide 38: How Does Primerica Help Families?
Dad $30,000
Household Income $60,000
Mom $30,000
Where does it all go?
BILLS INSURANCE GIVING
38
TAXES
DEBT SAVING
MORTGAGE
TAXES
Slide 39: Taxes
Average 2009 tax refund = $2,960
$2,960/12 months = $246/month
— USA Today, April 28, 2010
$246 Monthly Overpayment for 35 Years (Age 30-65)
If you make: 0% interest 3% interest 6% interest 12% interest
39 The hypothetical interest rates are for illustrative purposes only and not indicative of a guaranteed rate of return on any investment. Illustrative rates of return are nominal, compounded monthly.
$103,320 $182,425 $350,479 $1,582,016
Slide 40: Taxes
Your choice:
IRA or IRS?
40
Slide 41: Money Management Mistakes:
Debt
41
Slide 42: How Does Primerica Help Families?
Dad $30,000
Household Income $60,000
Mom $30,000
Where does it all go?
BILLS
Debt Mortgage
INSURANCE DEBT MORTGAGE GIVING SAVING
TAXES
42
Slide 43: The Smart Solution
1st Mortgage
$175,000 at $1,2931 (for 25 more years)
Personal Debt
$37,664 at $1,4272
Total monthly payments = $2,720
Original Loan APR: 7.50% Original Term: 30 years Original Loan Amount: $184,955 Market Value of Home: $269,000
Refinanced $215,000 for 25 years at $1,353 per month3 at age 35
Makes available $1,367 a month4
The above example is for illustrative purposes only. 1. The above monthly payment does not include taxes and insurance. 2. Based on the assumption that the present payment program continues on three open-end credit card accounts with balances of $7,570, $8,830, and $5,500 respectively, each with an APR of 18%, 16% and 14.9% respectively, and combined minimum monthly payments of $876 ($303 and $353 and $220 respectively) and one fixed installment car loan with a balance of $15,764, an APR of 6%, a monthly payment of $551, and an original term of 60 months. 3. The above monthly payment does not include taxes and insurance. The payment reflects an annual percentage rate of 5.86% and a note rate of 5.75%. The loan in this illustration includes points and applicable closing costs, which are financed from the loan proceeds. Your actual closing costs and APR may differ. 4. Assumes no additional debt is incurred.
43
Slide 44: The Smart Solution
Invest $934 a month at 10% for 15 years = $387,1005 Add $4336 a month toward payment of principal
$387,100 invested/home and all debt paid off in 15 years
Acceleration Additional principal payment of 1/12 of your regular P&I payment may result in reducing total time and cost of your mortgage debt. (Reduces a family’s housing debt faster, possibly saves thousands of dollars in interest and may increase borrower cash flow.)
Take the $387,100 lump sum and invest with the $2,720 now available each month until age 67 The total, given a 10% return = $3.55 million5
5. The hypothetical interest rate is for illustrative purposes only and not indicative of a guaranteed rate of return on any investment. Illustrated rates of return are nominal, compounded monthly. 6. This example assumes the payment + 1/12 option is chosen.
44
Slide 45: Be in the Know
No matter what your personal debt situation is, you can’t afford NOT to be in the know.
Do you know your debt freedom date? Do you know your FICO®* score? When in your adult life did you feel you had control of your credit score? Not your credit — the score? Has anyone tried to steal your identity? How would you know? A good credit score can determine a lot of things today — whether you will be approved for credit, what interest rate you get on a loan, the cost of homeowners and car insurance and much more.
45 *FICO® is a registered trademark of Fair Isaac Corporation. Product not available for purchase by residents of Washington D.C.
Slide 46: The Debt Stacking Concept*
+ $220 $573 $353 + $573 $551 $303 $1,293 $2,720 $1,124 $551 $303 $1,293 $2,720 + $1,124 $1,427 $303 $1,293 $2,720 + $1,427 $2,720 $1,293
Retail Card 1 Credit Card 2
$220 $353 $551
Car Loan
$303 $1,293 $2,720
Credit Card 1
46
* The above example is for illustrative purposes only. The Debt Stacking concept assumes that: (1) you make consistent payments on all of your debts, (2) when you pay off the first debt in your plan, you add the payment you were making toward that debt to your existing payment on the next debt in your plan (therefore you make the same total monthly payment each month toward your debts) (3) you continue this process until you have eliminated all of the debts in your plan. In the example above, when the retail card 1 is paid off, the $220 is applied to credit card 2, accelerating its payment to $573. After credit card 2 is paid off, the $573 is applied to car loan for a total payment of $1,124. The process is then continued until all debts are paid off. Note that the total payment per month remains constant.
Mortgage
$2,720
Slide 47: The Debt Stacking Concept*
Without Debt Stacking Payoff Date Interest Saved Interest Paid Monthly Payments May 2034 $0 $214,433 $2,720 With Debt Stacking
182 Months Sooner
March 2019 $130,643 $83,789 $2,720
Once debts are paid off at age 35, invest $2,720 each month until age 67 – the total, given a 10% return is $2.87 million.*
*This hypothetical assumes a constant nominal 10% rate of return compounded monthly, unlike actual investments which will fluctuate in value, and does not include taxes or fees which would reduce returns.
47
Slide 48: Money Management Mistakes:
Buying the Wrong Type of Life Insurance
48
Slide 49: How Does Primerica Help Families?
Dad $30,000
Household Income $60,000
Mom $30,000
Where does it all go?
BILLS INSURANCE GIVING
49
Insurance
DEBT SAVING
MORTGAGE
TAXES
Slide 50: The Theory of Decreasing Responsibility
How Life Works
Today
1. Young children 2. High debt 3. House mortgage Loss of income would be devastating
At Retirement
1. Grown children 2. Lower debt 3. Mortgage paid Retirement income needed
50
Slide 51: How Does Primerica Help Families?
Dad $30,000
Household Income $60,000
Mom $30,000
Where does it all go?
BILLS GIVING
51
INSURANCE DEBT
MORTGAGE TAXES SAVING
Slide 52: How Does Primerica Help Families?
Dad $30,000
Household Income $30,000 $60,000
Mom $30,000
Where does it all go?
BILLS
52
INSURANCE GIVING
DEBT
MORTGAGE SAVING
TAXES
Slide 53: How Does Primerica Help Families?
Dad Life Ins $30,000 $300,000
Household Income $60,000 $30,000
Mom $30,000
Where does it all go?
BILLS
53
INSURANCE GIVING
DEBT
MORTGAGE SAVING
TAXES
Slide 54: Cash Value vs. Buy Term and Invest the Difference
Death Benefit Before Primerica John Mary Children Total coverage Monthly Premium $150,000 $150,000 $0 $300,000 $298 Changed to Primerica’s Term John Mary Children Total coverage Monthly Premium $300,000 $300,000 $25,000 $625,000 $123
Life Insurance:
Difference = $175/month!
Nearly THREE TIMES the coverage for $175 LESS per month!
Invest the Difference
$175 monthly savings invested at 10% for 35 years = $669,948 at age 65
1. Monthly premium is an average of whole life policies from three major North American life insurance companies for male, age 35, standard risk and female, age 33, standard risk. Cash value life insurance can be universal life, whole life, etc., and may contain benefits in addition to a death benefit, such as dividends, interest, or cash value available for a loan or upon surrender of the policy. Whole life usually has a level premium for the life of the policy. 2. Primerica monthly premium for age 35, nontobacco use for 35 year Custom Advantage policy (C535) and spouse age 33, non-tobacco use for 35 year Custom Advantage rider (C5SR), both with rates guaranteed for 20 years, plus a child rider of $25,000 each on two children, underwritten by Primerica Life Insurance Company, Home Office, Duluth, GA. Term insurance provides a death benefit only and its premiums increase at certain ages. The accumulation figure reflects continued investment at the same rate over 35 years at a 10% nominal rate of return compounded monthly and does not take into consideration taxes or other factors, which would lower results. This example uses a constant rate of return, unlike actual investments, which will fluctuate in value. This is hypothetical and does not represent an actual investment.
54
Slide 55: How Does Primerica Help Families?
We help Main Street families get the PROTECTION they need at a price they can AFFORD.
Insured Male, age 41 Male, age 26 Male, age 34 Female, age 22 Female, age 34 Male, age 32 Female, age 50
55
Cause of Death Motorcycle Accident Iraqi Sniper Fire Shot while on police duty Vehicular Accident Cancer Vehicular Accident Pneumonia
Death Benefit Before Primerica $150,000 $0 $37,000 $0 $0 $40,000 $80,000
Death Benefit After Primerica $643,000 $400,000 $550,000 $250,000 $295,000 $200,000 $400,000
Survived by Wife & 2 children, ages 6 & 12 Expectant wife Expectant wife 1 child, age 3 Infant child Husband & 2 children, ages 4 & 8 Wife & 3 children, ages 5,10 & 11 Husband & son
Slide 56: Money Management Mistakes:
Overpaying For Other Types of Insurance
56
Slide 57: A Common Sense Approach to Auto/Home Insurance
Get as much quality protection as possible for the least amount of premium.
Auto & Homeowner’s Insurance offered through Primerica Secure™, a referral service
Largest comparative quoting system with 20+ top national insurers Get competitive rate quotes in 10 minutes or less Average savings is $478 per year for the average family* (that’s $40/month) No referral license or test is required to earn referral fees in 33 states (including the District of Columbia)
*The average savings amount is based on a survey of insurance premium information provided by 567 purchasers of insurance from Answer Financial between January 1, 2009, and March 31, 2009. 57
Slide 58: Invest the $40 Difference
$139,799
$125,000
Rate of Return
$100,000 8% 10% 12% $75,000
$90,420 $59,614
$50,000
$25,000
$40
30 years
58 Rates of return used in the above illustration are hypothetical and do not represent the returns of an actual investment, which will fluctuate in value. The figures show a nominal rate of return compounded monthly and do not take into consideration taxes or other factors which would lower performance.
Slide 59: Most people don’t plan to fail, they fail to plan.
59
Slide 60: What’s Next?
Set up a time in the next 24-48 hours to:
Complete your FNA and begin your own personal program for proper protection, debt freedom & financial independence (if you haven’t already).
60
Slide 61: What You Would Make
Product
Loan Primerica DebtWatchers™ Life Insurance Auto & Home Investments Total
District
$645 $50 $696 $55 $198 $1,644
Regional
$645 $74 $975 $60 $240 $1,994
RVP
$1,290 $110 $1,323 $85 $351 $3,159
How many people do you want to help?
These estimated earnings are based on the following assumptions: Life — Custom Advantage 35 policy for primary insured, totaling $300,000 (C535) at 35-year-old non-tobacco rates and spouse, totaling $300,000 (C535) at 33-year-old non-tobacco rates, plus a child rider at $25,000 each on two children. Loan — $215,000 $.M.A.R.T. Loan®. Investment — 12 monthly savings of $934 and $175 monthly saving from the life insurance example into a mutual fund. DebtWatchers — one completed sale. Auto & Home — one completed sale.
61
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 62: Four Things Every Business Needs
Any business
(whether it’s a restaurant, retail, manufacturing, etc.)
Location (building, supplies, equipment) Licenses (certificates, etc.) Client Base (customers) People (you’ve got to build a team to build a business)
62
Slide 63: Businesses Are Built With People
You can know everything about the business you’re starting but to win you’ve got to have talented people No one can do it alone (Bill Gates had Paul Allen, Steve Jobs had Steve Wozniak, Thomas Edison had three business partners!) Surround yourself with great people You can have a great product or a great service BUT if you don’t have a great team no one will know about it!
Think about the 3-10 people you know that you’d like to be in business with.
63
Slide 64: Traditional Brokerage Business
Broker
Override Income:
Broker
$180,000 $90,000 $90,000 $30,000
Agent
$30,000
Agent
$60,000
Agent
$90,000
InYou ARE NOT rewarded by Business, the Traditional Brokerage helping others get a better quality of life! who has the best Quality of Life?
64
Slide 65: Override Income
District $1,644 Regional $1,994 RVP $3,127
Total
Build a team = Override You help 1 family = $1,994 $350 x 2= $700 $2,694 How many reps do you want to override?
65
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 66: District Leader
You are a District Leader doing $2,500 in personal life premium per month. You override downlines that produce $2,500 in premium.
Your personal life insurance business Your overrides on your team Income from other products Total monthly cash flow
$783 $313 $395 $1,491
Fast Start Bonus Potential (in your first two months)
District Leader
$1,000
66
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 67: Division Leader
You are a Division Leader doing $2,500 in personal life premium per month. You override downlines that produce $5,000 in premium.
Your personal life insurance business Your overrides on your team Income from other products Total monthly cash flow
$939 $626 $1,103 $2,668
Fast Start Bonus Potential (in your first four months)
Division Leader
$2,000
67
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 68: Regional Leader
You are a Regional Leader doing $2,500 in personal life premium per month. You override downlines that produce $7,500 in premium. Your personal life insurance business Your overrides on your team Other income from securities, loans, auto & homeowner’s insurance referrals, etc. Total monthly cash flow Regional Leader $1,096 $1,409 $2,144 $4,649
68
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 69: Regional Vice President
You are an RVP doing $2,500 in personal life premium per month. You override downlines that produce $7,500 in premium. Your personal life insurance business $1,487 Your overrides on your team $1,800 1 Total in bonuses $1,597 Other income from securities, loans, auto & homeowner’s insurance referrals, etc. $3,610 Total monthly cash flow Total annual cash flow RVP $8,494 $101,928
69
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 70: Regional Vice President
with One Direct RVP You are an RVP doing $2,500 in personal life premium per month. You override downlines that produce $7,500 in base shop premium and $10,000 at first generation. Your personal life insurance business $1,487 Your overrides on your team $2,708 2 Total in bonuses $2,997 Other income from securities, loans, auto & homeowner’s insurance referrals, etc. $5,316 Total monthly cash flow Total annual cash flow $12,508 $150,096
RVP
70
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 71: Senior Vice President
with a $30,000 Base Shop and Three Direct RVPs You are an SVP doing $2,500 in personal life premium per month. You override downlines that produce $27,500 in base shop premium and $45,000 at first generation. Your personal life insurance business $1,487 Your overrides on your team $9,956 3 Total in bonuses $16,472 Other income from securities, loans, auto & homeowner’s insurance referrals, etc. $14,062 Total monthly cash flow Total annual cash flow $41,977 $503,724
SVP
71
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 72: National Sales Director
with a $30,000 Base Shop and Six Direct RVPs You are an NSD doing $2,500 in personal life premium per month. You override downlines that produce $27,500 in base shop premium and $90,000 at first generation. Your personal life insurance business $1,487 Your overrides on your team $14,041 4 Total in bonuses $30,122 Other income from securities, loans, auto & homeowner’s insurance referrals, etc. $19,564 Total monthly cash flow Total annual cash flow $65,214 $782,568
NSD
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In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 73: Senior National Sales Director
with a $30,000 Base Shop and 15 Downline RVPs You are an SNSD doing $2,500 in personal life premium per month. You override downlines that produce $27,500 in base shop premium and $135,000 at first generation and $90,000 at second generation. Your personal life insurance business $1,487 Your overrides on your team $21,226 Total in bonuses5 $48,759 Other income from securities, loans, auto & homeowner’s insurance referrals, etc. $24,464 Total monthly cash flow Total annual cash flow $95,936 $1,151,232
SNSD
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In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 74: Primerica Success Stories
Ivan & Sharon Earle
Former Occupation: Plant Worker Joined Primerica: Age 23 Achieved RVP in just over 2 years Primerica’s newest million-dollar earner Current Income: $1,039,129*
Jim & Tammy Meyer
Former Occupation: Pressman Joined Primerica: Age 18 Achieved RVP within six months Current Income: $1,333,489*
Collis & Britney Temple
Former Occupation: Student/Athlete Joined Primerica: 2003 Achieved RVP in one year at age 24 Current Income: $479,900*
George & Ursula Chavez
Former Occupation: Realtor Joined Primerica: 2007 Current Income: $123,482*
*Cash flow as of 12-months ending May 2010 74
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 75: Primerica Success Stories
Brett & Andrea Burks
Former Occupation: Student Joined Primerica: 2003 Achieved RVP in less than 2 years at age 23 Current Income: $394,000*
Yvette & Eddie Henderson
Former Occupation: Mechanical Engineer Joined Primerica: 2004 Went RVP in less than 1½ years Current Income: $203,000*
Frank Dillon & Alain Dillon
Former Occupation: Psychologist Joined Primerica: 1995 Father & Son Team Achieved RVP: 1999 Achieved million-dollar earner status in less than 7 years (July 2003) Current Income: $1,460,000*
*Cash flow as of 12-months ending May 2010 75
Jeff & Kelcey Fieldstad
Former Occupation: Advertising Joined Primerica: 2004 25 years old Current Income: $461,000*
In 2009, Primerica paid a total of $515,691,076 to 100,000 life-licensed representatives, for an average of $5,156 person.
Slide 76: Our Target Market
Our goal is to serve the middle market, and despite all of our tremendous achievements, we have barely scratched the surface of our market share.
1.52%
— ACLI Fact Book, 2009
The new Primerica is uniquely positioned to dominate the market.
“The ‘need’ in the middle income markets greatly exceeds the industry’s capacity to adequately serve these markets.”
— The Wall Street Journal, February 17, 2005
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Slide 77: The Primerica Business Opportunity
Low upfront costs No inventory Plus $25/month . Financially solid Products people need We do what’s right – not what’s being hyped
$99 .
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Slide 78: Why People Don’t Join:
Ego
1. Time 2. Money 3. Confidence/Belief 4. Pride 5. Fear
6. No ambition or desire to do or have more with your life.
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Slide 79: What’s Next?
The Question All WINNERS Ask!
Submit your Independent Business Application
(IBA + $99 initial licensing fee, $25/mo. Business Building Support System).
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Slide 80: What’s Next?
Set up a time in the next 24-48 hours to: Sit down with your Field Trainer to complete your Fast Track Planner and begin a Game Plan to Build Your Business
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Slide 81: Get Your Business and Your Income off to a Fast Start Learn how to earn your FAST START BONUSES of
$500-$2,000
See Your Field Trainer For Details!
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Slide 82: YOU Are In Control Keep Your
Job
And Build Your
Business
Keep Your
Job
Until You Build Your
Business
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Slide 83: It’s Decision Time
If you don’t make a change, won’t the NEXT five years be the same as the LAST five years?
Is that what you really want?
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Slide 84: 84
Slide 85: www.primerica.com
Important Notes 1 Assumes 20% Base Shop Bonus, average estimated Fast Start Bonus for RVP . 2 Assumes 20% Base Shop Bonus, average estimated Fast Start Bonus for RVP and 20% RVP Team Builders Bonus. 3 Assumes 30% Base Shop Bonus, 30% RVP Team Builders Bonus and average estimated Fast Start Bonus for RVP. 4 Assumes 30% Base Shop Bonus, 30% RVP Team Builders Bonus, average estimated Fast Start Bonus for RVP and 5% NSD Bonus. 5 Assumes 30% Base Shop Bonus, 30% RVP Team Builders Bonus, average estimated Fast Start Bonus for RVP , 5% NSD Bonus and 2.5% SNSD Bonus; overriding 9 first generation bonusable RVPs and 6 second generation bonusable RVPs. Additional Notes In Canada, not all products and services are available in all jurisdictions. No commissions are earned except upon product sales. In Canada, compensation levels noted for products and services may vary by jurisdiction. Premium reflected is Gross Bonusable Premium. Contract advancement is subject to being in good standing with each Primerica Company. Examples assume sales of Custom Advantage 30-year policy, issue ages 26-45, and QBI of 70%. In addition, Builder’s Track Bonus rate assumptions are: Senior Representative - 16%, District Leader - 20% personal and 8.5% over Sr. Rep and Rep, Division Leader and Regional Leader – 8.5% over District, Sr. Rep and Rep, and all Regional Vice President categories (RVP, SVP, NSD, SNSD) - 15%. Base shop overrides for the District Leader assumes one Sr. Rep and one Rep generating $1,250 in premium each; for the Division Leader, assumes one District Leader generating $2,500 in premium and one Sr. Rep and one Rep generating $2,500 in premium each; for the Regional Leader, assumes one District Leader and two Senior Representatives generating $2,500 in premium each; for the RVP and the RVP with one Direct RVP categories, assumes one District Leader and two Division Leaders generating $2,500 in premium each; for the RVP with a $30,000 Base Shop and one Direct RVP, as well as the SVP, NSD, and SNSD categories, assumes three District Leaders, four Division Leaders and four Regional Leaders generating $2,500 in premium each. For below-RVP categories, non-life cash flow examples assume the client continues to pay for the respective products throughout the first year; for RVP and above categories, non-life cash flow examples are based on Company-wide experience for representatives at the stated sales force level. For slides 104-109: Eligibility to earn overrides on loans is subject to meeting state licensing requirements and requirements of Primerica Financial Services Home Mortgages, Inc. Important Earnings Disclosure: The cash flows stated are hypothetical and are not intended to demonstrate the earnings of typical RVPs/representatives. Rather, the cash flows that have been cited reflect the potential that comes with building your business, and there is no guarantee that you will achieve any specific cash flow level. Most RVPs/representatives do not achieve the levels illustrated. In the 12‑month period ending in December 2009, Primerica’s sales force consisted of approximately 100,000 life‑licensed representatives, to whom the Company paid a total of $515,691,076 in compensation, an average of $5,156 per licensed representative. Average RVP earnings are typically higher. Actual gross cash flow is, among other factors, dependent upon the size and scale of a representative’s organization, the number of sales and the override spread on each sale, and the ability and efforts of you and your downlines. Having said this, Primerica provides a tremendous opportunity for individuals who work hard and who desire to develop a business with strong income potential. The Company may from time to time modify, supplement or terminate any compensation program in any manner. Further details are available from Primerica. Life Insurance: In New York, term life insurance products are underwritten by National Benefit Life Insurance Company, Home Office: Long Island City, New York; in the United States (except in New York), term life insurance products are underwritten by Primerica Life Insurance Company, Executive Offices: Duluth, Georgia; and in Canada, term life insurance products and segregated funds are underwritten by Primerica Life Insurance Company of Canada, Head Office: Mississauga, Ontario. Primerica Secure: A personal lines insurance referral program in which representatives may refer individuals to Answer Financial Inc. which offers insurance products and services through its licensed affiliates. Primerica, its representatives and the Secure Program™ do not represent any of the insurers in the program. Primerica Legal Protection Program, a legal services contract from PrePaid Legal Services, Inc. Securities: In the United States, securities are offered by PFS Investments Inc., 3120 Breckinridge Blvd., Duluth, Georgia 30099-0001. In Canada, representatives may be sponsored for mutual funds by PFSL Investments Canada Ltd., Head Office: Mississauga, Ontario. Loans: In the United States, loan products are originated through Primerica Financial Services Home Mortgages, Inc., Primerica Financial Services Home Mortgages Limited Partnership of Arizona, and Primerica Financial Services Home Mortgages Limited Partnership of Ohio, EQUAL HOUSING OPPORTUNITY. In Canada, representatives do not offer mortgage broker services, but may refer clients to AGF Trust Company for debt consolidation loans. Primerica DebtWatchers™: Primerica, representatives of Primerica, Equifax and Primerica DebtWatchers will not act as an intermediary between Primerica DebtWatchers customers and their creditors and do not imply, promise or guarantee that credit files or credit scores will or may be improved, repaired, boosted, enhanced, corrected or increased by the use of the Primerica DebtWatchers product. See http://my.primerica.com or www.primericacanada.ca for additional Important Disclosures. Lending: In the United States, loan products are offered by Primerica Financial Services Home Mortgages, Inc. through affiliated lenders. EQUAL HOUSING OPPORTUNITY. Please see www.primerica.com for Important Disclosures. Primerica DebtWatchers™ is a trademark of Primerica, Inc. Products not available for purchase by residents of Washington D.C.
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