World Financial Group (WFG) is a multi-level marketing financial and insurance company that sells investments, insurance, and other financial products through its network of distribution in the US, Canada, and Puerto Rico.
If you’re looking for an unbiased review on whether the World Financial Group (WFG) is a scam or not, welcome to the right place. The debate on whether World Financial Group (WFG) is legit or a scam has continued because of the mixed nature of WFG operations and the varying level of customer experience.
As a result, you may find yourself wondering whether or not to work for WFG amidst the pool of confusing ideas. This review presents an unbiased analysis of the World Financial Group Scam. You will also learn the legit alternatives to WFG should you decide not to use the company.
What is World Financial Group (WFG)?
WFG is a multi-level marketing company which sells insurance, investment and other financial products in the United States, Canada, and Puerto Rico. Transamerica, a subsidiary of Aegon, owns it.
Transamerica and Aegon are legit insurance companies, but many people still refer to the selling practices of WFG as a scam.
WFG offers a wide range of financial products and services through its over 50,000 licensed members. These products include Financial Strategies Services, Insurance Protection, Retirement Strategies, Business Strategies, College Funding Plans, and Estate Preservation.
WFG associates earn a commission upon selling partner products and services. However, the amount of commission associates earn depends on their level and efforts. The company recruits students fresh out of high school or college.
WFG has no products of its own. Instead, it promotes the products of over 300 companies in the US and over 60 companies in Canada. Some of the companies it partnered with include:
- Transamerica (US)
- Crump (US)
- Everest (US)
- Nationwide (US)
- Pacific Life (US)
- Ivari (Canada)
- Equitable Life of Canada (Canada)
- BMO (Canada)
- iA Financial Group (Canada)
WFG: A Multi-Level Marketing Company
Multilevel marketing (MLM) is a type of marketing that involves generating direct sales by selling products and services through networking. MLM companies recruit associates or distributors to promote and sell their products and services in exchange for commissions.
New associates, distributors or recruits are encouraged to promote and sell the products and services in order to earn more commissions.
WFG is one of the companies that employ the MLM business model for its hiring process. When you are hired into WFG and pass all the licensing exams, you will recruit new associates.
At WFG, recruits are known as “Associates” and must pay $100 as a joining fee.
WFG Associate Levels
The World Financial Group sells its partner products and services through associates who are categorized into four levels.
Level | Commission Rate | Requirements |
Training Associate | 25% | > Recruit three partners > Making 3 sequential sales within 30 days. |
Associate | 35% | > Have 40,000 net points in 3 sequential months > Recruit 3 direct associates through the personal recruits, > Have 5 life licensed associates in your team |
Marketing Director | 50% | > Have $35,000 cash flow in 12 consecutive months or $20,000 in 6 consecutive months. > Your team should have 10 associates, and 6 must be life licensed. > Have 3 branches of personal recruits, 1 must reach Marketing Director level. > Accumulate 75,000 net points in 3 consecutive months. |
Senior Marketing Director | 65% | > Have 3 direct recruits > Have all Senior Marketing Directors in your team > Accumulate 500,000 net points in 6 consecutive months or 750,000 net points in 12 consecutive months. |
Obviously, the logic of WFG associate categorization is to encourage more recruits and sales from its members.
What Are People Saying About WFG?
It’s essential to know what others are saying about WFG when evaluating whether it’s legit or a scam.
The truth is, different users have different experiences with WFG. So it’s not fair to conclude without hearing from both sides.
Here are a few quotations on the good and ugly sides of WFG. (Note: Names were withheld to protect the user’s identity).
The Good
“It was great working with this company. they [sic] are very professional and love helping others. The mission of helping people become financially independent truly does come before their commission.” (Anonymous)
“I love working for myself and being my own boss. WFG has the platform and training necessary to help me to become a successful life insurance agent with the company.” (Anonymous)
“I love the flexibility and the opportunity to make as much as I’m worth. I love the variety of financial products and companies available for our clients. I don’t feel like I’m selling; instead, I feel like I’m actually helping and making a difference in the person’s life.” (Anonymous)
The Ugly: World Financial Group Complaints Terrible Experience
“I don’t think the actual products or system of WFG is bad, but the sales tactics/recruitment methods are highly questionable and distasteful! I absolutely would not buy a financial product from this company just because the quality and ethics of the agents I have come across are so questionable.” (Anonymous)
“Very little support if you new [sic] to insurance. Felt more Iike an MLM situation when it came down to how you make money with this company versus selling policies.” (Anonymous)
“A lot of money is spent every year on maintaining licenses and occupational insurance. Also, spend a lot of money to participate in conventions across the country. Pay for air tickets, accommodation, food, and conference tickets.” (Anonymous)
World Financial Group Regulation Issues
Besides what other people are saying about WFG, we can also rate the company using the volume of regulatory bodies’ sanctions on it.
The following are just a few among other regulatory sanctions on World Financial Group:
- The World Group Securities (WGS), the broker-dealer of World Financial Group (WFG), was penalized by the Manitoba Securities Commission for lacking the capacity to supervise leveraged accounts in 2008.,
- WFG was charged $700,000 in 2014 by the Financial Industry Regulatory Authority for not supervising Dallas’ registered reps.
- The Mutual Fund Dealers Association fined WFG Securities $60,000 for bridging its Rules, By-Laws and Policies.
- 12 ex-WFG agents in Mississauga were charged $865,000 in 2018 for providing wrong KYC information in addition to other offences on investment facilitation.
Is WFG a Scam?
No! World Financial Group (WFG) is a legit multi-level marketing company offering real products and services. However, the following are the key factors that make some people see World Financial Group as a scam.
1. Focuses Primarily on Agents
The first feature of a pyramid scheme is the focus on recruiting members instead of selling products or services.
This is the case with WFG. Consumers can only buy partner products or services through its agents.
2. High Pressure to Recruit Others
Since WFG focuses on recruiting members instead of promoting products or services, it pressurizes its members to recruit others.
This is evident with the promotional requirements that make it more of a pyramid scheme. In the end, only a few members benefit at the expense of the majority.
3. Non-Refundable Registration Fee
WFG charges a $100 non-refundable registration fee. This explains why many former members call it a scam upon failing to get their money back after quitting.
4. Fund-Generating Meetings
WFG hosts several meetings with the aim of training members, which in reality, is a money-making opportunity. Like the registration fee, the meeting fees are also non-refundable.
5. Marketing and Sales Commission
WFG offers up to a 65% commission rate to its members. However, members must remit 35% of their earnings to WFG.
Is World Financial Group Legit?
Yes! World Financial Group is legit due to the following factors:
1. Parent Company
While WFG is a subsidiary of Aegon, Transamerica is its parent company. Aegon and Transamerica have recognized insurance companies that offer legit products and services.
Even though WFG enjoys the backing of these big companies, it operates separately and has attracted several penalties and fines in the past.
2. Partner Companies
WFG partners with legit and recognized financial companies in the US and Canada, such as:
- Transamerica (US)
- Crump (US)
- Everest (US)
- Nationwide (US)
- Pacific Life (US)
- Ivari (Canada?
- Equitable Life of Canada (Canada)
- BMO (Canada)
- iA Financial Group (Canada)
However, WFG doesn’t sell its partner products and services directly to customers; instead, it sells through its members, who are legit and licensed insurance advisors.
3. Legit Products
The company promotes legit products of its partner companies. Unlike a typical pyramid scheme, customers receive real products and services after buying them.
4. Earn Income
You will actually earn real money upon selling partner products or services. In fact, WFG has disbursed to its associates more than $792 million in commission since 2018.
However, you can’t rely on WFG for a stable income because it’s 100% commission. The truth is, it’s often challenging to convince many people to patronize such products and services.
But if you’re good at networking, you can earn a lot of passive income from WFG. You will even earn more if you combine WFG with your main job.
World Financial Group (WFG) Alternatives
Most people looking to join WFG are probably looking for money-making opportunities, whether full-time or part-time.
Though WFG appears to be an attractive option, in reality, only a few of the associates benefit at the expense of the majority of members.
So if your aim of joining WFG is to earn passive income or replace your full-time job, consider the following ideas.
1. Become an Insurance Agent or Broker
If you’re interested in selling insurance products, you can get licensed to start selling on your own.
Depending on your need and capacity, you can become an insurance agent or broker and earn as much as you worked for.
2. DIY Investing
Do-It-Yourself investing is one of the ways to earn money while sleeping. All you need is significant knowledge of the investment industry and hit the ball rolling.
This investing saves you from investment broker fees and commissions, helping you earn more.
However, ensure you diversify your portfolio with the right assets to minimize risks.
RECOMMENDED: Safe Investments with High Returns in Canada
3. Lend on Peer-to-Peer Platforms
If you’ve built enough savings and want to invest in a high-yield portfolio, peer-to-peer (P2P) lending could be ideal.
Platforms like goPeer help you earn attractive returns by matching you with loans that suit your risk profile.
When you lend on P2P platforms, you will earn monthly interest rates while receiving the loan repayment.
Learn more about other passive income ideas in Canada.
Final Thoughts on World Financial Group Scam Review
The ultimate decision on whether or not to join WFG is yours to make. After reading this World Financial Group Scam review, you should be able to make an informed decision.
But if you’re still in doubt, don’t hesitate to comment below. Alternatively, if you are looking for other ways to gain financial independence, you should consider any of the WFG alternatives discussed above.
FAQs on World Financial Group Scam Review
Is WFG a Pyramid Scheme?
No! WFG is not a pyramid scheme because it offers legit products and services to customers.
Is WFG Legal in Canada?
Yes. WFG is legal in Canada as in the US.
How Do I Quit World Financial Group?
WFG doesn’t provide any information on how to quit. However, the company can terminate your account at any time, making your agent code useless.
Who is the CEO of World Financial Group?
Thomas Dempsey doubles as the CEO of World Financial Group Insurance Agency of Canada Inc. and President of World Financial Group Insurance Agency.
How Much Does it Cost to Join WFG?
It cost $100 to join WFG. This is regarded as an administrative fee that every potential member must pay to join the company.
Can I Get My Money Back from WFG?
Most payments to WFG are non-refundable. For example, the $100 registration fee and the fee for training or conventions are non-refundable.
Have more questions on this World Financial Group scam review? Drop them in the comment section.
“However, you can’t rely on WFG for a stable income because it’s 100% commission.” – Please do your research properly before publishing an article. Do you know that WFG advisors enjoy passive income such as royalty, dividends and capital gains that is not available in any other MGA or insurance companies.
It’s a horrible company! They push a the IUL as a safe investment product, but in actuality is an overpriced life insurance that nobody needs, causing people to lose their entire life savings.