referrals/earn your business/expansion © 2012 primerica/43876/3.12/cn

Referrals/Earn Your Business/Expansion

© 2012 Primerica/43876/3.12/CN

The Five Reasons People Get Involved

1. They don’t like their current job and are looking for a career change & better income potential.

2. They love what they do… but earning extra part-time income each month would make a positive difference.

3. They want to get a financial education so they can learn how to win the money game.

4. They love helping people and making a difference.5. They dream of having their own business.

Can you see how most people would beinterested in at least one of these areas?

* Part-time is not available in all jurisdictions. Where available, it may be subject to certain restrictions.

Who we are: • The largest independent financial services marketing

organization in North America• Listed on the New York Stock Exchange (PRI)• In business since 1977• More than 6 million clients

All of this without any national TV or radio advertising!

Figures represent the combined totals for Primerica Inc. and its affiliated companies; Primerica Life Insurance Company of Canada (Home Office: Mississauga, Ontario), National Benefit Life Insurance Company (Head Office: Long Island City, NY) in New York and Primerica Life Insurance Company (Home Office: Duluth, Georgia) in all other U.S. jurisdictions.

Who is Primerica?

Source: company filings and websites. Data as of December 31, 2010 unless otherwise noted(1) Size of life sales force as of March 31, 2011. Approximately 22,500 sales representatives are also licensed to sell mutual funds in North America as of December 31, 2010(2) Aflac U.S. licensed sales associates(3) Number of licensed sales professionals(4) Number of agents

(5) Total number of sales representatives as of September 30, 2010

(6) Number of producing exclusive and independent agents(7) Global representatives(8) Number of wealth advisors(9) Number of financial advisors

Aflac2 Allstate3 State Farm4

MetLife5 Torch-mark6

MSSB7 BAML8 Edward Jones9

Ameri-prise9

Raymond James9

Insurance Agents

Brokers

Financial Advisors

511131718

713

18

36

73

92

Sale

s Fo

rce

(in

thousa

nds)

1

Primerica Life

Licensed Reps

Primerica Mutual Fund

Licensed Reps

We Are the Largest Independent Financial Services Marketing Organization in North America

4

• More than 4.3 million lives insured through our life companies

• More than $33 billion in assets under management

*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, 770-381-1000.

Why are we the BEST!?

Primerica DebtWatchers™Offered by Primerica Client Services, Inc. through contractual agreement with

®

Life Insurance

Annuities1,3

Debt Solutions1,2

Legal ProtectionLong Term Care

Auto & Home InsuranceReferral Program

Mutual Funds3,5

Quotes from such companies as:

Travelers Safeco

Progressive

See endnotes pages for important disclosure.

Managed Accounts1,4

401(k) Plans1,3

Four Ways to Earn Income

The Cash Flow Quadrant*

*The Cash Flow Quadrant, CASH FLOW Technologies, Inc.; used with permission. The Cash Flow Quadrant and ESBI are trademarks of CASH FLOW Technologies ,Inc. For informational purposes only.

Which two ways to earn income appeal to you most?

Self-Employed Owns a job. Dentist, doctor, lawyer, hair stylist, real estate agent, salesperson.

Investor Has money working for him/her. Enjoys complete freedom and lives the dream.

EmployeeHas a job. Income based on position, not the person.

Business Owns a system. Has others working for him/her. Unlimited income potential via manufacturing, marketing, etc.

Do People Have Income/Career Challenges?

Revenues-

ExpensesProfits

Business 101

Most companies’ objective is to reduce labor costs.

10

How do they reduce labor costs?1.Layoffs

2.Replacing older workers with younger, lower paid ones

3.Outsourcing

4.Technology

Financial Independence

• When our company was founded in 1977, we had one main goal, and that was to give people a chance to build financial independence for their families.

• What is financial independence?• You achieve financial independence as

soon as your passive income exceeds your living expenses.

• There is no financial independence without passive income.

11

Two Primary Sources of Passive Income

1. Money Working for You

2. A Business Working for You

12

Definition of business opportunity?

Today’s Financial Challenges:

“Average credit card debt among households with balances on their cards: $15,788.”

AARP Bulletin, July-August 2010

U.S. foreclosure actions have shattered all records… and will do so again this year.

Reuters.com, January 14, 2010

68 million Americans have no life insurance.LifeHealthPro.com, June 14, 2010

43% of American workers say they have less than $10,000 in savings.Money.com, March 9, 2010

45% of workers feel “not too confident” or “not at all confident” that they will have enough money to live comfortably through retirement.

Employee Benefit Research Institute 2011 Retirement Confidence Survey

Nearly eight in 10 (77 percent) workers report that they live paycheck to paycheck to make ends meet.

Career Builder Survey, 2010

The typical American household made less money last year than the typical household made a full decade ago.

“A Decade With No Income Gains,” The New York Times, September 10, 2009

How real and serious are these problems?

We have the solutions!

People Don’t Plan to Fail, They Fail to Plan

The Problem:Traditional financial institutions sell you products. They don’t provide you with a total solution.

Installment LoansBank Accounts

Mort

gag

e

Cred

it Ca

rds

Mutual Funds

Savin

gs A

ccou

nts

401(

k)

Life Insurance

YOU

The Solution:A Financial Needs Analysis.A customized, confidential and complimentary program that helps you achieve your goals and dreams.

A Financial GPSIt helps you find answers to important questions.

The Rule of 72…Sometimes called the Bankers Rule

Divide your interest rate into 72 to find theapproximate number of years it takes for money to double!

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.

• 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?

Years 3% 6% 12%

Without introducing us to family and friends, how would they learn the “Rule of 72?”

$20,000

$40,000

$20,000

$40,000

$80,000

$160,000

$20,000

$40,000

$80,000

$160,000

$320,000

$640,000

$1,280,000

$2,560,000

6

12

18

24

30

36

42

48

$10,000 $10,000 $10,0000

3% 6% 12%

An Example of How We Help FamiliesBob Smith, Age 35 & Wife Susan, Age 33 Have Two

Children

BEFO

RE

AFT

ER

16

*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 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 30 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.

•24 years left on $165,000 1st mortgage

•$13,000 on 3 credit cards; payoff in 58 years

Debt

• $150,000 coverage on Bob

• $150,000 coverage on Susan

• No protection for kids

• Monthly cost: $298*

Life Insurance2

• Bob & Susan paying $243 per month for Auto & Home Insurance

Auto & Home

•$20,000 in IRA at bank earning 3% with $100 per monthcontributions

•Accumulation@ age 65 = $107,000

Retirement

• Customized Primerica DebtWatchers™ Fast Pay Plan allows all debt to be paid off in 20 years

• Saves 4 years of over $56,000 in total interest (with $0 extra in payment)

Debt1

•$300,000 coverage on Bob

•$300,000 coverage on Susan

•$25,000 coverage on each child

•Total monthly cost = $123

•Saving $175 per month

Life Insurance3

• Saved them $65 per month for Auto & Home Insurance policies

Auto & Home

•Roll over IRA into Mutual Funds

•Monthly contributions increased to $300

•Accumulated savings at 9%at age 67 = $1,022,000

Retirement3

17

What You Would Make

ProductDistric

tRegiona

lRVP

Primerica DebtWatchers™

Life Insurance

Auto & Home

Investments

TotalHow many people do you want to help?

$48$696$55

$693$1,492

$54$975$60

$842$1,931

$69$1,532

$85$1,228$2,914

Primerica DebtWatchers™ - One personal sale earned/annualized at $4 per month for District Leaders, at $5.75 per month for RVPs and at $1.75 per month for RVP overrides. 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. Auto & Home — one completed sale.

In 2011, Primerica paid a total of $504,514,944 to its life-licensed representatives, for an average of $5,544 per person.

The Real Estate Model

6% Broker Fee

$100,000 House =

$6,000 Fee

A Broker with 5 agents earning

$3,000/mo.earns $15,000/mo.

AGENTNo Time Freedom

No SecurityLimited Income

BROKER Time FreedomMore Security

Unlimited Income

Agent50%

Commission$3,000

Agent50%

$3,000

Agent50%

$3,000

Agent50%

$3,000

Agent50%

$3,000

50% Override: $3,000

Broker

18

19

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

$783• Your overrides on your team

$313• Personal production from other products*

$389

Total monthly cash flow

$1,485

District Leader

Distribution Builders Potential (in your first four months) $500 (cumulative)

*See POL or talk to your upline for more details on the Distribution Builders Bonus.In 2011, Primerica paid a total of $504,514,944 to its life-licensed representatives, for an average of $5,544 per person.**Personal production of three auto referrals, one PLPP and three Primerica DebtWatchers™ subscriptions.

20

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

$1,096• Your overrides on your team

$1,409• Personal production from securities, auto

& homeowner’s insurance referrals, etc.*

$904


$3,409

Regional Leader

In 2011, Primerica paid a total of $504,514,944 to its life-licensed representatives, for an average of $5,544 per person.*Personal production of two auto referrals, two PLPP, two Primerica DebtWatchers™ subscriptions, and securities trades of $26,000 with an average commission of 1.83%.See Additional Notes on end page.

21

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


$2,505• Total in bonuses1

$700• Other income from securities, auto

& homeowner’s insurance referrals, etc.

$3,641


$8,568Total annual cash flow*

$102,816

RVP

In 2011, Primerica paid a total of $504,514,944 to its life-licensed representatives, for an average of $5,544 per person. See Additional Notes on end page.*Annual cash flow assumes the same level of activity over a 12-month period.

22

Regional Vice Presidentwith One Direct RVP

You are an RVP doing $5,000 in personal life premium per month.

You override downlines that produce $10,000 in base shop premium

and $10,000 at first generation.• Your personal life insurance business



$1,750• Other Income from securities, auto


$7,225



$201,624

RVP


23

Senior Vice Presidentwith a $20,000 Base Shop and Three Direct RVPs

You are an SVP doing $5,000 in personal life premium per month.

You override downlines that produce $15,000 in base shop premium

and $30,000 at first generation.• Your personal life insurance business



$4,970• Other income from securities, auto


$9,047



$301,572

SVP


What Are Your Dreams?

In the 12‑month period ending in December 2011, Primerica paid a total of $504,514,944 in compensation to the sales force, an average of $5,544 per licensed representative.

24

Education for your children

What Are Your Dreams?

Charitable contributions to your favorite causeIn the 12‑month period ending in December 2011, Primerica paid a total of $504,514,944 in compensation to the sales force, an average of $5,544 per licensed representative.

25

Would You Like A Home?


26

Would You Like A Pool?


27

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)

28

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.

29

Cost of Going Into Business

1. Hampton Hotels $3.7 – 13 million

3. McDonald’s $1.1 – 1.9 million

4. Supercuts $120,000 – 197,000

7. Subway $84,000 - 258,000

28. Jiffy Lube $194,000 – 323,000

1. Entrepreneur, Franchise, A Guide to World Domination, October 2011

An estimated 800 companies are franchising internationally.

Business Start Up Costs1

30

What is the cost in terms of money, time and effort to become a

doctor, dentist, lawyer or CPA?

The Primerica Business Opportunity

31

$99Plus $25/month

• No risk to your net worth*

• No risk to your current income because we recommend you start part-time

Everything You Need

To Get Started• Life insurance license• Qualify to have securities

license paid• Classes and study

materials• Training and leadership

development • Home Office support • Cutting edge marketing

& technology

*Unless you consider $99 a risk.

Track Record of Success With Momentum

What would interest you more?Starting your own part-time business, a complimentary financial game plan

OR 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 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. In the 12-month period ending in December 2011, Primerica paid a total of $504,514,944 in compensation to its sales force, at an average of $5,544 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.

Since 1977 New Since 2000Cumulative Number of Earners

Personal Income

Over $50,000Over $100,000Over $1 millionOver $2 millionOver $5 million

5,5012,632

63171

2,9631,510

3261

Should You Try?

• There are only two things that can happen if you try anything new:

- You will either succeed or fail.• Worst case scenario: learn how money

works.• Best case scenario: not only learn how

money works, but also grow your income.• Can you see any logical reason why you

shouldn’t get started with our company?

33

Brief Summary

• Financial independence• The dire market need• We fill an incredible void• Part-time income/full-time career• Successful company• Proven opportunity

34

Your Next Step!!

•Set up a follow-up appointment

•Fill out qualifying paperwork - The IBA

Endnotes

For slide 30:

1. Bob and Susan are hypothetical clients. For illustrative purposes only. Each debt situation will vary. Primerica does not deal in mortgages. Representatives refer clients to AGF Trust Company for debt consolidation loans. Based on the assumption that the consumer makes minimum monthly payments, the COB for the mortgage is 5.49%, the COB on each of the two credit cards is 22% and the COB for the fixed installment loan is 13%. Assumes no additional debt incurred.

2. Monthly premium is an average of whole life policies from five Canadian life insurance companies (as viewed on www.insurecan.com on May 31, 2011) for male, age 35, standard risk and female, age 33, standard risk. Term insurance provides a death benefit only and its premiums can increase at certain ages. Cash value life insurance can be universal life, whole life, etc., and contains benefits 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 their initial premium periods.

3. Using Primerica’s Custom Advantage 35 (form ZC5G 35); Primary: male, aged 35, non-tobacco use and spouse: female, aged 33, non-tobacco use (form ZC5SRG35), both with rates guaranteed for 35 years, plus a child rider of $25,000 each on two children, underwritten by Primerica Life Insurance Company of Canada, Head Office, Mississauga, ON.

4. $25.00 per month (plus applicable taxes).

5. The accumulation figure is based on the assumption that the consumer invests their $20,800 into an investment fund and adds $455/month to their existing $125 monthly investment contributions for 30 years at 9% and does not take into consideration taxes or other factors, which would lower results. Hypothetical examples are used only to illustrate the effects of the compound growth rate and are not indicative of a guaranteed rate of return on any investment and not intended to demonstrate the performance of any actual investment. Unlike actual investments, the illustrations use a constant rate of return of 9% without any fees or charges and will fluctuate in value. Tax-deferred growth and tax-deductible contributions are taxed upon withdrawal. Assumptions are made about the beginning of the compounding period and the rate of return.

For slides 31, 33 and 34:

These estimated earnings are based on the following assumptions: Life - $300,000 Custom Advantage policy form ZC5G 35 at 35-year-old non-tobacco use, $300,000 spouse rider form ZC5SRG 35 at 33-year-old non-tobacco use, plus a child rider of $25,000 each on two children. Loan - $174,250 SMART Loan. Investment - $20,800 into an investment fund. Most representatives do not achieve these leadership levels and clients do not always buy every type of Primerica product. In order to become a District Leader and begin earning the level of commissions discussed above you must become licensed to sell insurance as well as achieve certain sales levels. Reaching the other leadership levels is dependent on the size of the organization you build, the number of sales and override commissions you earn and the efforts of your downlines. RVP Override column reflects what an RVP would earn on sales by a District Leader.

Representatives of Primerica are independent contractors and are paid commissions on sale of products. Life Bonus is based on 67% QBI and 30% Bonus Rate, assuming average premium per policy of $1,478.

Primerica representatives market term life insurance underwritten by Primerica Life Insurance Company of Canada.

Mutual funds offered by PFSL Investments Canada Ltd.

DebtWatchers™ is a trademark of Primerica, Inc. Primerica, representatives of Primerica, Equifax and DebtWatchers™ will not act as an intermediary between 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 use of the DebtWatchers™ product. DebtWatchers™ is only available in British Columbia, Ontario and Quebec. See www.primericacanada.ca for additional Important Disclosures.

Pre-Paid Legal Services: Primerica reps refer clients to PPL Legal Care of Canada Corporation, a subsidiary of Pre-Paid Legal Services, Inc. Clients should contact PPL Legal Care of Canada Corporation for questions regarding any legal services PPLS is only available in British Columbia, Alberta, Manitoba and Ontario.

© 2012 Primerica/43876/3.12/CN

referrals/earn your business/expansion © 2012 primerica/43876/3.12/cn

Documents

life insuranceannuities1

life companiesmore

primericas term life

company filings

cash flow quadrant

parttime income

financial education

reasons people