Debunking the Myth – Is Family First Life Insurance a Pyramid Scheme?

Is Family First Life Insurance a Pyramid Scheme?

Family First Life Insurance has amassed a reputation for offering its clients superior customer service and high-quality products thanks to its more than 20 years of experience in the field. Additionally, the business adheres to a stringent code of ethics that focuses on honesty and client happiness. So, while it may seem like a pyramid scheme, Family First Life Insurance is a legitimate business.

What is Family First Life Insurance?

You will find various options available on life insurance. However, one company that has been getting much attention lately is Family First Life Insurance.

So, what is Family First Life Insurance?

Family First Life Insurance is a life insurance provider offering a range of unique plans to serve its clients better. The corporation has its headquarters in Los Angeles, California, and has operated for over 20 years. Family First Life Insurance’s emphasis on families is one of the factors that sets it apart from other life insurance providers. The company aims to “provide the best life insurance products and services to families across America.”

To that aim, Family First Life Insurance provides a range of family-friendly life insurance policies. For instance, the business includes term life, whole life, and universal life insurance. Family First Life Insurance provides a range of other goods and services in addition to life insurance that can be helpful to families. These include long-term care insurance, college savings plans, and retirement preparation. So, if you’re searching for a family-oriented life insurance provider, Family First Life Insurance is unquestionably a company to consider.

How does Family First Life Insurance work?

Family First Life Insurance is primarily a life insurance provider that sells its policies via insurance brokers. These agents, who are independent contractors, assist individuals and families in locating the appropriate life insurance plan for their requirements. Paul Reddam, the company’s CEO and president, launched it in 2013. Family First Life’s corporate offices are in Newport Beach, California. Over 200,000 insurance brokers work for the organization across the country. Term life, whole life, universal life, and indexed universal life are just a few of the life insurance products offered by Family First Life. Additionally, the business provides final expense insurance and annuities.

Family First Life’s insurance representatives are independent contractors. This indicates that they need to be fixed for the business. Instead, they carry out independent companies to offer families and individuals life insurance plans. Independent contractors receive commission payments. In other words, they receive a commission for each life insurance policy they sell. The kind of insurance sold determines how much commission an agent will receive. Family First Life does not require its agents to be licensed to sell life insurance. Most states do, however, need insurance agents to have a license.. You must pass an insurance exam to become a licensed insurance agent.

The agents of Family First Life Insurance need to possess training. However, The business provides a free online training course that goes through the fundamentals of life insurance. Family First Life is an honest life insurance business that uses independent contractors to market its goods. The company is not a pyramid scheme; no fees are associated with joining the organization as an agent. 

Is Family First Life Insurance a pyramid scheme?

Not at all, claims Family First Life Insurance. A pyramid scheme is a dishonest investment strategy in which new investors are lured in with the promise of big profits in exchange for payments to earlier investors. Many nations, including the United States, forbid pyramid schemes. Whole life insurance, term life insurance, and universal life insurance are just a few of the life insurance options that Family First Life Insurance provides. 

Although Family First Life Insurance agents can indeed receive commissions for signing up new agents, this is a common practice in the insurance industry. Numerous other insurance companies and other business kinds use similar organizational structures. Family First Life Insurance is not a pyramid scheme because it sells life insurance and does not compel agents to pay back prior investors.