#017 – On this episode, I review if MLM’s like Primerica, World Financial Group, Family First Life, or similar companies are the best choice for Life Insurance needs. These financial professionals seem to be everywhere.
Transcription
[0:00] Life Insurance. Most people that need it, don’t have it, and you should. However, you should be very careful who you buy it from. You don’t want to miss this episode, where I’m going to touch on the things you need to ask your life insurance agent.
[0:21] Welcome to Debt-Free Latina, the podcast where you can finally realize your dream of being debt free and feeling peace about your financial future. And now your host, Mayra Alejandra Garcia.
[0:40] Hola, hola. Thank you so much for being here. I am excited to talk about this topic because I’m super passionate about everybody should have life insurance. It is a very important thing to have in place. However, you should buy it from a reputable person. It seems like everywhere you turn, someone is a financial professional selling life insurance now. And let me tell you how this financial professional gets their licensing. So they still have to go through the state, they still have to get, I think it’s like a weekend seminar that they have to go to and pass a test, in order to get licensed. It’s not rocket science. However, the companies that they are representing are not looking out for you.
[1:38] Two of the most common types of policies is the whole life life insurance and there’s term insurance, and there’s a huge difference between the two. One tends to be very expensive and the other tends to be inexpensive. And I want to touch on how these people are making money and why they’re pushing the services. Now whole life life insurance tends to be more expensive if it has some sort of cash value, where they either pay you all your money back at the end, or you can use it as some sort of savings in the future. Stay away from that. You do not need to be investing in your life insurance policy. It’s just not wise. And it is much more affordable to get term insurance for the term that you’re going to need life insurance for. So for example, if you are currently a parent of minors, you’re going to need insurance for at least 10-20 years. I would recommend you to get 20-30 years of Term insurance and then you will self insure. If you are on a path to financial freedom, you should only need term insurance. So 20, 30 years term, it will cost you roughly under $100 a month. That’s what the going rate is. And it all depends on your health and a lot of little factors.
[3:26] However, I recommend that you look at the company that is selling the insurance. There are companies like Primerica, World Financial Group, that honestly don’t have a good reputation. They’re really a multi-level marketing company and they make their money by getting you to also become an agent and sell insurance. That’s how you make them money. So if you’re into recruiting and you want to recruit for the rest of your life, then maybe that’s a good opportunity for you. But a lot of these people are learning sales tactics that are so slimy and I see them on Instagram often. I had someone forwarded me an Instagram post that I was like, oh my goodness. I’ve been approached by these people. You’re a financial person, you should be selling life insurance, and like no, I don’t want to. I am here to educate so that you can make a informed decision. But these companies are really into recruiting. Kinda like if you sell Herbalife or if you sell any of the other MLMs. The money is in building a team. And that’s how these little pyramid companies work. It’s not a pyramid scheme, because schemes are actually illegal. However, they have that built into them. It’s a pyramid. The person at the top makes the most money, and the more you recruit the more you make. So stay away from these Primerica and the World Financial groups. They’re not the best out there.
[5:23] You can go to a broker, you can go to somebody that can shop your insurance. I know State Farm also offers term insurance. Theirs is pretty good. I’ve actually looked into it myself. But I feel like an independent broker has a better deal for you. And if you don’t know anyone that that does that in your area, I would suggest that you Google it and then you ask these questions. Are you a broker? Can you shop this around? I don’t want you to go to just one company. So for example, when I went to State Farm to get a quote, they were only giving me State Farm’s rate. That’s it, that’s all they could quote me, and I was looking for somebody that could shop it for me, go to several different insurance companies, see what is the best deal for my husband and I. And that’s the best way to do it. When you go to the World Financial Group or you go to Primerica, they’re stuck to their own company. They that’s their only option. They just sell that. So shop it, just like you shop, car insurance, right? You can go to Geico, you can go to, what is it, progressive and State Farm and shop it. The thing is that not a lot of people know that this is even an option, that you can shop life insurance. Yes, you can. It’s going to take a while.
[6:58] Now, if you have a whole life insurance policy right now, and you’re thinking, oh my goodness, I want to get a term life insurance policy, because I know that’s the better and wisest choice. Well, I would recommend that you wait until you have a term life insurance policy in place before you get rid of your whole life policy because you don’t want to have a lapse, and God forbid something happens, you at least have some sort of coverage. So once again, stay away from the slimy people, they are so pushy. It’s so annoying. It’s like they they are trained. Really these MLMs train you on how to sell and how to be pushy and how to not take no for an answer and just constantly ask you all kinds of questions. And it’s like, no. Actually had somebody in my DMs, and I’ve had several, that was like, well, why not? Because I don’t want to. Well, it would be a great asset to add to your business. And I just said, I am focused on my passion and this would be a distraction. And she couldn’t say anything else. She didn’t have a comeback for me because it’s true. My passion is to educate my community. Personal finance is personal. However, I can share my story of how I was able to get financially stable and get out of debt. And I know that a lot of people are hurting in that area. So that’s what I want to do. I want to help you become debt free so that you can start building wealth, because when you have a lot of debt, your hands are tied, and you don’t have enough to go around, and it’s hard to build wealth when there’s a whole lot of weight on your shoulders. That’s my mission. Now, if you have any questions about life insurance, please feel free to DM me. I am always willing and able to answer your questions. If I didn’t touch on something that you want to know about, I’d love to hear from you.
[9:30] Thanks for listening to Debt-Free Latina. Make sure you hit that subscribe button so you can take Mayra with you on your journey to become debt free as you build financial wealth. Looking for more? Follow Mayra on Instagram @debtfree.latina, on Facebook @debtfreelatina, and online at debtfreelatina.com.