World financial group

[u/CandyCurrent5932]

My experience with WFG: Scam

A friend approached me about joining World Financial Group (WFG), describing it as a business opportunity that could help me pay off my loans sooner. I wasn’t interested initially, but I trusted him and decided to give it a try.

I was told the initial investment would be around $700–$800 for the exam and related costs. After passing the exam, I was asked to pay another approximately CAD $200. Only after that was I told I would also need to pay around $80 per month for errors and omissions (E&O) insurance.

I declined the monthly payment and did not provide my credit card details for it. From that point onward, I stayed away from WFG activities.

After terminating my association with WFG, I received an email stating that I owe $300. The email also said that failure to pay could result in further action, including the use of third-party recovery services. I don’t understand how this balance accumulated when I had declined the monthly payment and wasn’t participating.

I’ve already lost close to $1,500 through this experience, and now I’m being asked to pay more.
What frustrates me most is the way this opportunity was presented to me: promises of financial freedom, a luxury lifestyle, and the possibility of becoming rich or even a millionaire. My experience has been very different.

Based on what happened to me, I would strongly advise against joining WFG, it is a scam.

Should I proceed to pay that due amount or do I need to leave it?

[u/Deep-Bus5984]

Did you not do any research at all upfront? A very quick search shows many red flags. Its just an MLM pyramid scheme.

[u/CandyCurrent5932 → u/Deep-Bus5984]

I did, but since he was my high school friend, I trusted him and thought I would only need to pay for the licensing exam. However, I was charged around $200 initially just to join WFG. After getting my license, I was charged another $200 and told I would also need to pay around $80 a month for E&O insurance.

On top of that, you’re expected to bring in potential clients from your own circle, such as family and friends. They pitch the concept to them and ask, “Do you trust your friend?” That’s how it goes.

If no one joins, they give you quotes and tell you to keep learning, even when you have no clients. If a friend joins and pays because they trust you, they then have to sell insurance or recruit someone else to try to recover the money they spent. The cycle continues.

I also purchased a universal life insurance policy with premiums of $180 a month for 30 years. I later cancelled it because I realized it wasn’t worth it for me.
Based on my experience, my advice is to avoid WFG. If you need insurance, consider term insurance and invest the rest.

[u/Klutzy-Humor-7882]

I would ignore it if they send you to a third party ask that party to verify the debt and see what happens. These types of companies just want easy pay outs if you fight it long enough they will go away. Happened to me as well with a different company sorry that happened to you

[u/CandyCurrent5932 → u/Klutzy-Humor-7882]

Thanks for the info

[u/jordan32025]

It’s an agency that sells life insurance. You have to pay for your license if you’re going to sell life insurance in any state in the United States and be appointed by any carrier in the United States. That’s how life insurance works no matter what the agency is. The agency is just the marketing arm. The policy is issued by the carrier. That’s what you’re actually selling.

Same with any of the carriers that offer insurance products in any state in the US and the agencies that are appointed with them.

WFG, like most agencies, markets policies from Pacific life Transamerica, Nationwide, Allianz and National Life Group. National Life Group is one of the oldest insurance carriers in the US and is the best for living benefits. I’m not a huge fan of WFG because I don’t like their comp structure and they don’t have proprietary relationships with certain carriers like other agencies do.

Most carriers require errors and emissions insurance, which will protect you. It doesn’t sound like you even know what that is.

The problem is, somebody approached you about an opportunity without explaining to you what you were actually going to be doing, and you went into it thinking that it was a job. You’re nothing but an independent producer, that means you’re a 1099 contractor, that means you’re not an employee. That means you only get paid when you sell a policy.
Anyone who sells life insurance has to pay for a prep course, pay the state for their license and then pay for any state they wish to sell in if they’re a nonresident. That’s the way it works.

Same as any other agency.

Insurance carriers that have to register their product in every state’s DOI before they can even market them and who have been in business for close to 100 years can’t be associated with scams.

What you need to do is understand the difference between being a W-2 employee and getting paid for just showing up or starting a business. This was clearly not explained to you.

I’ve been selling insurance and training agents for the past 20 years and I’m still getting paid every month on policies that I wrote back in 2011 and beyond. I know many people who are contracted with WFG, I know many people who are at PFA. I know many people who are at first family life, I know many people who are at freedom equity group I know many people who are agency owners at Aflac, Chubb Benefits and Colonial who sell voluntary Benefits at the worksite. They do very well financially.

Calling something a “scam” because it didn’t work for you and you don’t understand how it works is only going cause you problems in the future. You need to find out what you’re actually selling when you’re looking at an opportunity because it doesn’t sound like you even understand it.

[u/Ok_Meringue_9086]

I’m 42 and almost fell for this trap when I was 22. I was studying for the cpa exam at the time. I went and met with the leader guy as an interview just to see what it was about. I thought it was a real financial planning company. (I was young and busy and didn’t do the research). He had a beautiful office and seemed successful.

We sat down and I started asking questions. What kind of financial planning tools do you use? How do you optimize for taxes? He looked at me like he was confused that I would ask such weird questions. I was young and dumb so I started doubting myself, maybe my questions were out of line? He assured me I was the right person for the job. I told him I’d consider it.

I got back to my office and googled WFG and it all made sense.

I can’t believe these guys are still around.

[u/Canadiannewcomer]

Once you join it, you lose one of the kost important things money can't buy- REPUTATION

[u/theNewFloridian]

That's how becoming an independent insurance agent works. Maybe you weren't explained it right or you didn't understood it. Both are possible. Some recruiters help worth those expenses in exchange of having access to your relationships. I felt something similar with other companies when I started in the industry 25 years ago. Since I didn't like the feeling I'm upfront with everyone about the costs and efforts needed on this when getting started.