2Traditional Career Path vs. PRI System 18-19 Years High SchoolCollege 2-5 yearsCost $10,000/yr public21-22 yrs of ageInternship: 6 monthsMin Wage or Pro bonoJOB: $30,000/yrBottom 90%Takes a very long-timeMight get lucky!100,000 Licensed Reps> 20,000 Securities Reps5,000 Financial Advisors> 4,000 Reg. Vice Presidents> 2,600 $100,000+ incomeTOP 10% of Income EarnersE-mentality/ B-mentalityCOACH SYSTEM: daysEducation->Training-> BusinessRVP in 9-18 Months
3Two Fundamental Questions: Why Financial Services?Why Primerica?
8Track Record of Success With Momentum Cumulative Number of EarnersPersonal IncomeOver $50,000Over $100,000Over $1 millionOver $2 millionOver $5 millionSince 1977New Since 20005,3922,562631712,8541,4403261What would interest you more?Starting your own part-time business, a complimentary financial game planOR BOTH?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 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. In the 12-month period ending in December 2010, Primerica paid a total of $503,115,928 in compensation to its sales force at an average of $5,296 per licensed representative. Most representatives do not reach the levels illustrated. 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.
9Primerica The largest independent financial services marketing organization in the world – over 100,000 representativesServes more than six million clients in the UnitedStates and CanadaIn business since 1977The largest mutual fund sales force in North America
10We Are a One-Stop Financial Supermarket Life InsuranceManaged Accounts1,4AnnuitiesDebt Solutions1,2Primerica DebtWatchers™Offered by Primerica Client Services, Inc. through contractual agreement with401(k) Plans1,3Auto & Home Insurance Referral ProgramMutual Funds3,5Quotes from such companies as:TravelersSafecoProgressiveLong Term CareLegal ProtectionSee endnotes pages forimportant disclosure.
11Listed on the New York Stock Exchange PrimericaListed on the New York Stock Exchange(PRI)
12Properly Protected and Financially Independent. Mission Statement:To Help Families BecomeDebt-Free,Properly Protected andFinancially Independent.
13The Headlines Tell The Story Six in 10 workers say that they are living paycheck to paycheck. CareerBuilder.com Survey“Average credit card debt among households with balances on their cards: $15,788.” AARP BulletinMore than half of Americans have no emergency savings. Time.comBankruptcies topped 1.5 million in CNNMoney.com68 million Americans have no life insurance. LifeHealthPro.comMore than half of all workers have less than $25,000 in savings and investments for retirement. Employee Benefit Research Institute 2012 Retirement Confidence SurveyHow Real and Serious are these problems?
14100 People After Working From Age 25 - Age 65 36%5%100 people at age 65:54% dependent36% working5% deceased4% OK ($1 million)1% wealthy ($5 million)4%1%54%Source: SmartMoneyWhy do 95% fail when it comes to their finances?1. No financial education2. No financial game plan3. No financial coach
15WHAT WE BRING TO THE TABLE 1- Knowledge & EducationWe Teach How Money WorksYou can’t win the money gameunless you know the rules!
16WHAT WE BRING TO THE TABLE 2- A Financial CoachLicensed and Trained Representatives use a Team approach to help families reach their goals
17WHAT WE BRING TO THE TABLE 3 - A Financial GPS…the FNAThe Problem:Traditional financial institutionssell you products, they don’t provide youwith a total solution.The Solution:A Financial Needs Analysis (FNA)A customized, confidential, complimentary program that helps achieve your goals & dreams.The FNA providesSolutions in…SavingsIncome ProtectionDebt EliminationIncome ManagementTax ManagementShouldn’t Everyone have an Financial Needs Analysis (FNA)?
18An Example of How We Help Families Bob Smith, Age 35 & Wife Susan, Age 33 Have Two Children BEFOREDebt24 years left on $165,000 1st mortgage$13,000 on 3 credit cards; payoff in 58 yearsLife Insurance2$150,000 coverage on Bob$150,000 coverage on SusanNo protection for kidsMonthly cost: $298*Auto & HomeBob & Susan paying $243 per month for Auto & Home InsuranceRetirement$20,000 in IRA at bank earning 3% with $100 per month contributionsAccumulation @ age 65 = $107,000AFTERDebt1Customized Primerica DebtWatchers™ Fast Pay Plan allows all debt to be paid off in 20 yearsSaves 4 years of mortgage payments and over $56,000 in total interest (with $0 extra in payment)Life Insurance3$300,000 coverage on Bob$300,000 coverage on Susan$25,000 coverage on each childTotal monthly cost = $123Saving $175 per monthAuto & HomeSaved them $65 per month for Auto & Home Insurance policiesRetirement3Roll over IRA into Mutual FundsMonthly contributions increased to $300Accumulated savings at 10% at age 65 = $1,080,000Offices, 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 30 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*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 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.1. Based on the assumption that the consumer makes minimum monthly payments, the APR for the mortgage is 6.0% and the APR on each of the three credit cards is 19.8%. Assumes no additional debt is incurred. 2. 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. 3. 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
19Our Challenge Our challenge is not our competitors. It is not a lack of market.Families are desperate “what we do”.Our Challenge:We need more people to serve this market and help these families.
20We Offer Three Ways to Make More Money: Non Licensed -Part-time$800+ per month $1600+/mo(Based on 2 families/wk)2. Part Time (obtain a License)$1600+ per month $3200+/mo3. Business Ownership (Fully Licensed)$6000-$10,000+ per month(Based on 2 personal families/wk with a team of 5 that also do 2 /wk each.)Fast Start BonusYou can earn a potential $500 getting started with us.In the 12-month period ending in December 2010, Primerica paid a total of $503,115,928 in compensation to the sales force at an average of $5,296 per licensed representative.
21Helping People = Making Money What You Would MakeProductDistrictRegionalRVPNon-Licensed (Pre-Launch)Primerica DebtWatchers™Life InsuranceAuto & HomeInvestmentsTotal$50$400$84$468$1002$52$560$93$568$1,273$57$760$127$829$1,773Override $ $Helping People = Making Money
23Primerica: Where Dreams Come True Take ActionComplete an FNA and put your own financial program in placeTake the first step toward financial independenceIf you like helping people and are willing to learn, find out what the next step is to qualify
24What’s the Next Step? Schedule a follow-up appointment with a manager At the follow-up interview you can expect:1. Review everything2. Answer your questions3. Ask you about your background, skills, & ambitions, etc.4. If there is a mutual interest, we will fill out background informationIs there anything in your background that would prevent you from qualifying?