Post by @owunnavictor

I recently researched Primerica, and there’s one thing I want immigrants in our communities to understand. The “Buy Term and Invest the Difference” strategy sounds reasonable on the surface. And to be fair, the basic concept is simple: Buy affordable term life insurance for the period you actually need coverage, then invest the money you might otherwise have spent on more expensive insurance. Primerica itself says this is the philosophy the company was built around. But that doesn’t mean you should automatically buy what their agent is selling you. Especially as an immigrant. Many of us come into the U.S. or Canada still learning how the financial system works. Credit. Insurance. Retirement accounts. Investments. Taxes. Mortgages. And sometimes the person explaining all of this to you is someone from your own community. You already trust them. They speak your language. They understand your culture. They may even be someone you know from church, work, or your social circle. That trust can make you move faster than you normally would. Don’t. Before you sign anything, understand exactly what you’re buying. How long is the term of the policy? How long is the coverage? What happens when the term ends? Where exactly is the “difference” being invested? What investment products are being recommended? What are the fees? How is the person selling or recommending the products compensated? And most importantly: What would this same financial plan look like if you got a second opinion? Primerica is a legitimate, publicly traded financial-services company, and its agents offer term life insurance, investment products, and other financial services. Still, they rely heavily on a recruitment process that falls under Multilevel marketing, which ends up costing more than it should for the policyholder. A simple, low-cost temporary life insurance policy should cost under $100, be fixed for 30 years, and let you build your own assets without complicating it with a life insurance company. “Buy term and invest the difference” is a strategy. It is not a reason to stop asking questions. Your immigrant story is about building wealth. Don’t let your trust become someone else’s sales opportunity. Do your research. Compare. Understand the numbers. Don’t rush because someone from your community told you this is how we build wealth. #financialliteracy #investing #moneytips #primerica