MEMORIZE THIS OPEN
When you walk into the home, ask them about their family, home, and quickly get to the table!
When you sit at the kitchen table, thank them for having you there..
1.Before we dive in, let me ask you, what is one area of your finances that you feel you are doing
a great job at?
2.Is there an area of your finances that you feel concerned about?
3.What are some goals and dreams that you thought you would have accomplished by now, but
haven't, yet they are still VERY important to you. (WFA)
Okay, Great...
One of three things generally happen when we meet with families, sometimes all three.
#1. Once you see the value of what we teach and fall in love with it, you'll automatically want to
refer us to your friends and family that would benefit from the same information. Those referrals
will be for __________ to help him/her to build his/her business, does that make sense?
#2. If you see that what we do can benefit you directly, we'd love to earn your business, and put
you on a better track financially.
...and finally #3 The company is expanding and we want to open up 10 new offices in Polk county
alone. So you or someone you know might be looking to make an extra $500-$1500 a month
working a few hours a week, or someone looking for a career change and a chance to earn a six
figure income. Do you keep your options open when it comes to making more money? (WFA)
Great,
There are 5 different groups of people that are drawn to our company...
Referrals/Earn Your Business/Expansion
The 5 Reasons People Get Involved!
1. Don’t like current job
Looking for career change
Better income potential
4. Love Helping
People and making
a difference.
2. Love what they do, BUT
Earning extra part-time
Income would make a
positive difference.
5. Dream of having
their own
business.
3. Want a Financial Education
Learn how to win the Money
Game.
Can you see where most
people would be
interested in at least one
of these areas?
The Financial Services Company For the 21st Century
• Founded in 1977 with 85 people
• Approximately 100,000 licensed
representatives
• 6 million clients in the United
States, Canada and Puerto Rico
• Largest Financial Services
marketing organization in North
America
• (PRI) Listed on NYSE
All accomplished without
any national TV or radio
advertising!
®
Our Mission: To help families earn more income and become
properly protected, debt free and financially independent.
Is there a need for what we do?
Well the headlines tell the story…
More than two-thirds in U.S. live paycheck to paycheck. reuters.com, 2013
The average American household with at least one credit card has
nearly$15,950 in credit card debt. CNNMoney.com, 2012
More than half of all Americans have no emergency savings. Time.com, 2011
95 million U.S. adults have no life insurance. -Lifehealthpro.com, 2013
More than half of all workers have less than $25,000 in savings and
investments for retirement. -Employee Benefit Research Institute 2013 Retirement Confidence Survey
The typical American family makes less than it did in 1989.–Washington Post, 2013
How real and serious are these problems?
Wouldn’t You Agree?
“People Don’t Plan to Fail, They Fail to Plan!”
The Problem:
The Solution:
1.
2.
3.
4.
Working with a financial
coach that educates and
provides you with a
complementary plan for
you to become financially
independent.
No Education
No Coach
No Plan
Insufficient
Income
Who would benefit from a written financial plan?
The Financial Needs Analysis answers many important questions...
Financial Independence Number
Your financial independence number is the
amount of money you need to accumulate so
that when you retire you won’t run out of
money and have to go back to work!
You want $2,500 per month to
retire today…
30 years from now, after
3% inflation… you will need $6,083 per
month to buy what $2,500 buys today!
“$30,000 today is $73,000 in 30 years!”
Your FIN is $1,080,000
To get there, invest $585 per month for 30 years at 9% = $1,080,000
How important is it to know your Financial Independence Number?
This hypothetical example assumes 20 years of retirement income needed, at a 6% post-retirement rate of return and 3% inflation. Hypothetical investment
rates assume a nominal 9% rate of return, compounded monthly, and is not indicative of any specific investment. Any actual investment may be subject to
taxes and fees, which would lower performance. This example shows a constant rate of return, unlike actual investments, which may fluctuate in value. It is
unlikely an investment would grow 9% on a consistent basis, given current market conditions.
The Rule of 72…
Sometimes called the Bankers Rule
Divide your interest rate into 72 to find the
approximate number of years it takes for money to double!
Years
0
1%
$2,000
6%
$2,000
$2,000
$4,000
6
$4,000
12
$8,000
$16,000
18
24
$8,000
30
$32,000
$64,000
36
$16,000
$128,000
$256,000
42
48
$32,000
54
60
12%
$512,000
$1,024,000
$3,634
$64,000
• How do you win a
game if you don’t
know the rules?
• Do banks or insurance
companies have any
incentive to teach us
this rule?
• Who would benefit
from learning this
rule?
• Shouldn’t we have
learned this rule in
school?
$2,048,000
Without introducing us to family and friends, how would they learn 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, given current market conditions.
The First Step to Financial Success is
Pay Yourself First
When you don’t, there’s a high cost of waiting.
$100 Monthly Savings @ 9% for 40 Years (Age 27-67)
27
$471,640
Wait 1 year
($1,200)
28
$430,040 (-$41,600)
Wait 5 years
($6,000)
32
Wait 15 years
($18,000)
42
$296,380 (-$175,260)
$112,950 (-$358,690)
Who are people hurting if they wait?
Rates of return are constant and nominal rates, compounded monthly. Contributions are assumed to be made at the beginning of the month. The chart above
is not indicative of any particular investment or savings vehicle where rates of return fluctuate. It does not take into consideration taxes or other applicable
deductions, which would lower results.
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
What life insurance company do you know of that teaches people how to
eliminate the need for life insurance?
Economic
Impact
an Unexpected
Death
Economic
impact
ofof
Protecting
your Income?
Loans Paid
Mortgage
Paid Auto Loan
Renting
165,000
35,000 45,000
Immediate
Income Impact
House
hold income
replaced
cut by 55%
Year 2
Year 3-5
15,000 in funeral
Funeral paid
costs
Forced to sell
car at a loss
Year 1
Can not afford house –
have to move school districts
Have to move again
0 in in
savings
300,000
10,000
insavings
savings
25,000
Can not afford
repairs on car
Savings are gone
Solution: Build Your Financial House
Other Goals and Dreams
College Savings
Debt Elimination & Retirement
Emergency & Short term Savings
Term Life Insurance & Will
“A good rule of thumb is that you need
between eight to ten times your annual
salary in life insurance coverage.”
— The Wall Street Journal, April 12, 2006
* Primerica Legal Protection program. Exclusions and limitations may apply. See plan for details.
Primerica representatives do not provide legal, tax or estate planning advice.
On a scale of 1-10,
10 being the highest,
how would you
rate your desire to become
properly protected, debt
free and financially
independent?
Cash Value Life Insurance vs.
Buy Term and Invest the Difference
SAME
$298
$298
?
?
?
Monthly
Cash
$150,000 $150,000
John
age 35
Mary
age 33
Premium
Value
Buy Term and Invest
the Difference
$518,673
Cash Value Life Insurance
Whole Life, Universal Life, Variable Life
$300,000 $300,000
$175
@9%
$25,000
John
age 35
Mary
age 33
Kids
to age 25
$123
Monthly
Premium
Investment
at 70
(35-year Level Term; Guaranteed Renewable to age 95)
Which program would you want?
Monthly premium for cash value policies 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 or variable life, 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. Primerica monthly premium for age 35, non-tobacco 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, Executive Offices: 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. It is unlikely an investment would grow 10% on a consistent basis, given current market conditions.
Solution: Debt Stacking
Age 35
As each debt is paid off, you
apply the amount you were
paying to that debt to the
payment that you were making
on the next target account.
Retail Card 1
$220
$220
+ $220
Credit Card 2
$353
$353
$573
+ $573
Car Loan
$551
$551
$551
$1,124
+ $1,124
Credit Card 1
$303
$303
$303
$303
$1,427
+ $1,427
Mortgage
$1,293
$1,293
$1,293
$1,293
$1,293
$2,720
Total
$2,720
$2,720
$2,720
$2,720
$2,720
23 years to pay off debt and $214,442 in interest paid
Paid off in 9 years, Age 44 (14 years sooner) Interest saved $130,643
(Age 44) Once debts are paid off, invest $2,720 each month at 9%
@ Retirement … Age 67 = $2.4 million
Do Financial Companies Want You To Know This?
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 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 the ca r 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. The hypothetical assumes a constant nominal 9% rate of return compounded monthly, unlike actual investments which will fluctuate in value, and does
not include taxes or fees, which would reduce returns. Investing begins once debts have been paid off (at age 44).
The “Time Value” of Money
Investor A
Individual A:
Started
contributing
At Age 22
When is
$44,000
more than
$209,000?
Individual A:
Stopped
contributing
At Age 29
The hypothetical 9% nominal rate of return,
compounded monthly, and tax-deferred
accumulation shown for both IRA accounts
are not guaranteed or intended to
demonstrate the performance of any actual
investment. Unlike actual investments, the
accounts show a constant rate of return
without any fees or charges. Any taxdeductible contributions are taxed and taxdeferred growth may be taxed upon
withdrawal. Withdrawals prior to age 59 1/2
may be subject to a 10% penalty tax.
Assumes payments are made at the
beginning of each year. Investing entails
risk, including loss of principal. Shares,
when redeemed, may be worth more or less
than their original value.
Total
Contributions
Age
Annual
Payment
22
23
24
25
26
27
28
29
$5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Investor B
End of Year
Accumulation
Age
Annual
Payment
End of Year
Accumulation
$5,470
12,600
19,790
27,670
36,280
45,700
56,000
67,270
22
23
24
25
26
27
28
29
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
73,580
80,480
88,030
96,290
105,320
115,200
126,010
137,830
150,760
164,900
180,370
197,290
215,790
239,040
258,180
282,400
308,890
337,870
339,560
404,230
442,150
483,620
528,990
578,610
632,890
692,260
757,200
828,230
905,920
990,900
1,083,860
1,185,530
1,296,740
1,418,380
1,551,440
1,696,970
1,856,160
2,030,280
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
$5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
5,500
$6,020
12,600
19,790
27,670
36,280
45,700
56,000
67,270
79,590
93,080
107,820
123,950
141,600
160,900
182,010
205,100
230,350
257,980
288,190
321,240
357,390
396,930
440,190
487,490
539,240
595,840
657,750
725,470
799,540
880,560
969,170
1,066,110
1,172,130
1,288,100
1,414,950
1,553,700
1,705,460
1,871,460
$209,000
$44,000
Total Accumulation
At Age 67
$2,030,280
$1,871,460
Individual B:
Started
contributing
At Age 30
Individual B:
Stopped
contributing
At Age 67
Total
Contributions
Protection & Asset Management
Bob & Mary Smith 35 & 33 years old with 2 children.
Before
Primerica
After
Primerica
Whole Life Insurance
Bob’s Coverage
$150,000
Mary’s Coverage $150,000
Children’s Coverage
$0
Monthly Premium $298
Term Life Insurance
Bob’s Coverage
$300,000
Mary’s Coverage $300,000
Children’s Coverage $25,000
Monthly Premium $123
Retirement
Bank IRA @ 1.5% Interest
$25,000 + $100/mo
$398 per
Month
Savings at 65 = $94,800
Retirement
Rollover IRA – Investment
$25,000+$100+$175/mo
Savings at age 67 @ 9%
$1,230,000
Same $398
per
Month!
Monthly premium for cash value policies 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 or variable life, 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.
Primerica monthly premium for age 35, non-tobacco 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, Executive Offices: 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 34 years at a 9% 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. It is unlikely an investment would grow 9% on a consistent basis, given current market conditions.
What You Would Earn
Product
Life Insurance
Investments
Total
District
$700
$438
$1,138
RVP
$1541
$775
$2,316
Overrides
$841
$338
$1,178
** Override 10 Districts as above: $11,780/m or $141,360/yr
+ ( bonuses $17,710, trips, stock and ownership potential )
What would interest you more?
Starting your own part-time business, a complimentary financial game plan
OR BOTH?
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. Investment — Lump sum of $50,000 and $175 monthly saving from the
life insurance example into an Equity Mutual Fund for 12 months. ** This is an example client. An actual client may result in higher or lower commissions and overrides.
Getting Started
1. Fill out your Independent Business Application (IBA) — $99
Value includes:
State license fee
Exam fee
Fingerprint/background check
PFSU pre-licensing
Total:
Total fees vary for each state
worth approximately —
$400
2. Optional $25/month for your — Online Business Support System
Value includes:
Cell phone discount
Your own website and business reports
Access to live and on-demand video training
Qualify to have securities license paid for
Morningstar financial analysis software*
Total:
$100-$250/year
$600
$400
$500
$4,000/year
worth approximately — $6,000
3. Get off to a fast start! Qualify for a $300 bonus + iPad when you get trained,
licensed and producing.
4. Keys to success
• Schedule an Orientation with a trainer
• Show up to all training meetings
• Attend pre-licensing and get insurance licensed
• Go on 10-15 Field Training Observations in your first 30 days
• Complete a Financial Needs Analysis to get your family’s financial game plan started
Primerica representatives market term life insurance underwritten by the following companies in these respective jurisdictions: 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 US Jurisdiction. Primerica Life Insurance Company of Canada, Home Office: Mississauga, Ontario, in Canada.
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.
Using Primerica’s Custom Advantage 35 (form CS35); Primary: male, age 30, preferred plus, Spouse: female, age 30, preferred plus.
This example is for illustrative purposes and does not represent an actual investment. This example shows a constant rate of return, unlike actual
investments which will fluctuate in value. It does not include fees and taxes, which would lower results. Distributions before 59 ½ may be subject
to a 10% tax penalty. Consult your tax advisor with any questions.
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 10% nominal rate of return compounded monthly and do not take into consideration taxes or other factors.$25.00 per month.
Compensation examples are based on 2-year advances in full-benefit states for the PLPP product. Representatives of Primerica are independent
contractors and are paid commissions on sale of products. Life commissions are based on a 75% advance. Life Bonus is based on 67% QBI.
Primerica Life Insurance:
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, etc., and may contain benefits in addition to a death benefit, such as
dividends, interest, whole life, 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, non-tobacco 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.
11. Term insurance provides a death benefit and its premiums can increase at certain ages. Cash value life insurance can be universal life, whole life,
etc., and may contain certain features in addition to death protection, such as dividends, interest, or cash value available for a loan or upon surrender
of the policy. Cash value insurance usually has level premiums for the life of the policy; term insurance premiums increase after initial premium
periods. This example is for illustrative purposes and does not represent an actual investment. This example shows a constant rate of return, unlike
actual investments which will fluctuate in value. It does not include fees and taxes, which would lower results. Distributions before 59 ½ may be
subject to a 10% tax penalty. Consult your tax advisor with any questions. 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 10% nominal rate of return compounded monthly and
do not take into consideration taxes or other factors. Primerica Legal Protection Program. Exclusions and limitations may apply. See plan for details.
These figures represent 12-month rolling cash flow levels, including advances, which have been achieved by Primerica representatives, past and present, at some point
during their affiliation with a Primerica Company, beginning in 1977. The representatives are not necessarily achieving those levels at this time. Further, the numbers
reflected in the “Cumulative Number of Earners” column are cumulative from level to level and, therefore, include all representatives who have ever achieved the stated
cash flow figures. The cash flow categories are not intended to demonstrate earnings of typical representatives. From January 1 through December 31, 2012, Primerica
paid a total of $509,277,049 in compensation to its sales force, at an average of $5,513 per life licensed representative. Acual 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 a
representative and their downlines. Having said this, Primerica provides an opportunity for individuals who work hard to develop a business with unlimited income potential.