Answer 1:

There are different sales levels in Primerica and every person who joins Primerica starts at the beginning.

The first level is Representative. Reps earn 25% commission on life insurance sales. If the average annual premium that a client pays is $1000/year, you will earn $250.

The second level is Senior Representative. Senior Reps earn 35% commission on personal life insurance sales and 10% overrides on all sales made by Representatives. If you did the work by yourself, you earn $350. If you have a Rep who did the work, the Rep will earn $250 and you will earn $100.

The third level is District Leader. Districts earn 50% commission on personal life insurance sales, 15% override on Senior Reps, and 25% override on Reps.

The forth level is Division Leader. Divisions earn 60% commission on personal life insurance sales, 10% override on Districts, 25% override on Senior Reps, and 35% override on Reps.

The fifth level is Regional Leader. Regional Leaders earn 70% commission on personal life insurance sales, 10% override on Divisions, 20% override on Districts, 35% override on Senior Reps, and 45% override on Reps.

The sixth level is Regional Vice Presidents. RVPs earn 95% commission on personal sales plus bonuses. They also earn 25% override on Regional Leaders, 35% overrides on Divisions, 45% overrides on Districts, 60% overrides on Senior Reps, and 70% overrides on Reps.

Higher levels include Senior Regional Vice President (which mean they override at least 2 RVPs), National Sales Director (which overrides at least 3 RVPs), and Senior National Sales Director (which overrides at least 6 RVPs). Every RVP that earns $120k/year gives you annual income between $50,000 to $70,000 from each RVP.

I only went over the life insurance structure. Primerica also does mortgages, debt elimination loans, investments, individual retirement plans, business retirement plans, education funds, prepaid legal, auto & homeowner's insurance, and long term care. All which you can also earn overrides as well.

Answer 2:

RVPs earn 95% commission on personal sales? So that $1,000 per year life insurance policy spoken of is only worth $50 a year? With the other $950 free to go to the RVP?

The point of life insurance is that your loved ones are cared for when you die. Not that they get a rejection letter from a company that probably doesn't want to pay out $100,000 for a policy that only earned them $50 a year for five, ten or even twenty years!

I mean, really, they would either have to have a fantastically high rejection of claims rate, or rapidly go out of business! And guess what? They're still in business!