Are you considering a career in finance and wondering if World Financial Group (WFG) is a great place to work?
With a number of reviews and heated discussions on WFG's legitimacy, it's important to have a full picture of the company before you join.
In this review, we'll cover WFG's way of doing business, its products, the good and the bad, and its reputation in the insurance industry. This post will help you make a well-informed decision about whether WFG is the right fit for you.
- World Financial Group (WFG) is a multi-level marketing company offering financial services including life insurance.
- WFG has been met with controversy and criticism due to its MLM structure, sales tactics, and accusations of being a pyramid scheme.
- Joining WFG can have potential benefits but also drawbacks - so it’s important to consider the risks before joining
What is World Financial Group?
World Financial Group, known as WFG, is a multi-level marketing business. They're all about financial education, services and products. Think life insurance and investments. The company's founder, Hubert Humphrey, wanted to help more people reach financial security and independence by improving their understanding of finance.
With some expert advice, WFG has expanded to places like Puerto Rico, Canada, Mexico, the Philippines, Guam, and Taiwan. Sometimes, they go by the name World Group Securities.
At WFG, they offer several insurance and mutual fund options from various sources. Their key to success? They use what they call "warm" leads, giving independent agents on their team the chance to run the show. But, be aware, WFG agents might nudge you towards more expensive products like permanent life insurance or segregated funds because of their close ties with the insurance and mutual funds business.
AEGON, a big name in the financial services industry, bought some of WFG's assets over a decade ago. Now, WFG is part of the AEGON family. The link between these two is often a hot topic in World Financial Group reviews.
The Controversy Surrounding WFG
WFG's multi-level marketing structure, occasionally pushy sales methods, and claims that it's a pyramid scheme have stirred up some talk in the industry. Also, there's been some backlash about WFG team members billing new recruits for things like background checks, access to online resources, training materials, and even meetings.
Some customers who aren't too happy with their experiences, ex-agents, and those looking out for consumers have all chimed in about their issues with WFG in different reviews. A big problem with WFG's MLM setup is that how much commission you make depends on how many people you have working under you. This often results in more focus on recruiting compared to working with customers.
WFG's Business Model
At the core of WFG's business model, they count on team members to both sell financial products and bring on new team members. They then make money from a slice of the sales commissions made by new associates and the team members they bring on. This is pretty standard in the insurance world.
Yet, the second bit of this setup - the part where agents get other people to work under them - has caught some flack in the finance world. Some people reckon WFG focuses too much on big promises. This could lead to a sort of culture where employees do whatever it takes to get others working under them, even if it means being a bit dishonest about the work. The push to recruit can put a hefty load of pressure on team members to pull in new agents.
Recruitment and Training at WFG
Joining the WFG team usually involves a few steps. First, you'll need to fill out an online application. Then, you'll likely have a phone call with an employee before you're invited to an in-person meeting. You'll also be part of a presentation. As a fresh recruit, they'll nudge you to sell to your 100 closest friends and family members as part of WFG's Fast Start process.
But a heads up - WFG's training tends to focus more on the art of the sale and recruiting tactics. They don't always dig deep into the nitty-gritty of financial products.
How Much Money Can You Make At WFG?
How much you make at WFG can depend on each individual. On average, agents are pulling in somewhere between $50,000 and $100,000, but it really comes down to how well you recruit and sell.
If you're a Senior Marketing Director with three or fewer years of experience, you might be looking at an annual salary of around $88,075. However, making money in this business model can be difficult.
WFG often talks about earning passive income by getting others to spend money to join your team. But let's be real, the average new recruit at WFG isn't going to be seeing $88,075 a year. In fact, many might not earn any money at all. The churn is very high in their business model as well.
WFG deals with a good number of financial products, one of them being universal life insurance.
Their insurance agents are equipped to sell indexed universal life products, which are a combination of life insurance and investment products. With their financial planning services, they aim to help clients build their wealth by investing their assets.
Universal life insurance is a key focus for WFG. It offers protection a life insurance death benefit, as well as the ability to borrow money tax-free while you're alive.
Criticisms of WFG's Products
There's some debate that WFG's products, particularly universal life insurance products, may not always be the best fit for clients.
It's suggested that these products are promoted more for their high commission potential than for the client's benefit. For most people, there's better value in investing in low-cost funds and buying term life insurance, instead of getting universal life insurance.
Overall, if you're looking to create a financial legacy, you might want to shop around for alternatives to universal life insurance.
Pros and Cons of Joining WFG
Joining WFG comes with its own share of pluses and minuses. A big plus about joining the WFG team is the flexible lifestyle it promises, not to mention the chance to earn some passive income. It's all about setting your own pace and carving out your own business, which is an enticing offer for those eyeing a career in finance or insurance.
On the flip side, WFG's commission rates tend to be lower than the industry average, and the company seems to put more energy into recruitment than in satisfying its clients' financial needs. There's also the touchy subject of WFG's MLM setup, with its emphasis on hard-sell tactics.
WFG might have mixed reviews, but let's be clear: it's a legitimate company, and there are agents who've built successful careers there. But it's wise to weigh up the potential risks and challenges tied to a WFG agent's business model before you join the company.
WFG's Reputation and Legal Issues
World Financial Group, or WFG for short, has faced some legal challenges and penalties both in the United States and Canada. This has given WFG a bit of a reputation in the finance world.
Case in point - back in 2006, the Missouri Securities Commissioner gave WFG a fine for $150,000. Then, in 2007, Utah followed suit, fining WFG $50,000. In 2016, Canada's Mutual Funds' Dealer Association added to WFG's penalty pot with a $60,000 fine.
WFG's has a clear motto - it's all about the network. But the culture that comes with it might not be as clean as it seems, possibly discouraging folks from reporting any wrongdoing. With more serious regulatory issues and red flags potentially on the horizon, it's important to weigh out the pros and cons before jumping into the WFG bandwagon.
Alternatives to World Financial Group
Got cold feet about teaming up with WFG? No worries, there are plenty of other paths to choose from.
One idea? Brush up on a skill you're passionate about and become an independent insurance and financial advisor. You can be your own boss offering your expertise to clients. It gives you more control over your business, and you can avoid all the debates that come with WFG.
Or, consider diving into the world of brokerages or other financial service companies with top reputations and better commission setups. Some names to keep in mind are Manulife, Empire Life, and even Dundas Life.
Choosing these alternatives could pave a more steady, ethical path in the finance business, helping you build a successful career without getting tangled up in the potential pitfalls linked to WFG's business model and reputation.
To summarize, World Financial Group has mixed reviews and relies more heavily on recruitment and sales methods than other financial brokerages. Yes, it offers flexibility and an opportunity for passive income, but its mixed track record and past legal issues often raise eyebrows.
Before you make the jump, consider other insurance brokerages (like Dundas Life) that provide opportunities to earn more income, offer personal independence, and help achieve your career aspirations.
Frequently Asked Questions
How legit is World Financial Group?
World Financial Group is a legitimate brand of financial and insurance advisors with many satisfied clients. For over 30 years, they have helped individuals, families, and businesses plan for their financial futures.
WFG is comprised of World Financial Group Insurance Agency (WFGIA), Transamerica Financial Advisors, and WFG Canada.
Is it safe to invest with World Financial Group?
It seems that World Financial Group is a legitimate insurance company now, with thousands of satisfied employees across Canada and the United States.
However, opinions may differ depending on who you talk to; so use caution when investing with WFG.
Is World Financial Group present in countries outside the US?
Yes, WFG has operations in Puerto Rico, Canada, Mexico, the Philippines, Guam, and Taiwan.
Is training provided to new WFG associates?
Yes, but it tends to focus more on sales and recruitment strategies, not in-depth financial product knowledge.
Does WFG offer other products aside from life insurance?
While the life insurance policy is their main product, they also offer a variety of investment products.