Primerica

Approximately100,000 licensed representatives Greater than 2 million clients maintain

investment accounts with us Over 4.3 million lives insured through our

company Primerica is the largest independent financial

services marketing organization in North America

Our Mission:

Help families become properly protected,

debt free and financially independent.

Primerica refers to Primerica and its affiliated companies.

How We Do What We Do:

We teach people how money works so they can make informed decisions about how to manage their finances.

We provide a Financial Needs Analysis to give clients a snapshot of their financial situation.

Primerica offers a variety of products and services designed to help people get properly protected, get out of debt and become financially independent.

Today’s Financial Crisis

“The average American family carries $8,000 to $10,000 in credit card debt.”

— CNNMoney.com, April 16, 2009

“Overall, 61% (of survey respondents) said they always or usually live paycheck to paycheck...”

— CNBC.com, September 16, 2009

“U.S. foreclosure actions shattered all records in 2009 and will do so again this year.”

— Reuters.com, January 14, 2010

Today’s Financial Crisis

43% of American workers say they have less than $10,000 in savings.

— Money.com, March 9, 2010

“Two in 10 American households have no life insurance, and among those that do, 40% say they need more.”

— INC.com, December 1, 2009

46% of workers feel “not too confident” or “not at all confident” that they will have enough money to live comfortably through retirement.

— Employee Benefit Research Institute 2010 Retirement Confidence Survey

Do you have a written program to get out of debt and retire financially secure??

How Money Works

Banks, Credit Unions, Insurance Companies = Historically Low Rates of Return

Traditional Financial Institutions

Your Money Global

Economy

CDs and savings accounts are generally FDIC insured up to $250,000. Cash value life insurance offers life insurance components in addition to the investment component.

$1.3 Million12% interest

3% interest $148,680

6% interest $286,370

“Compound interest is the most powerful force in the universe.”Albert Einstein, as quoted in Dow 40,000 by David Elias

(1999)

Rates of return are nominal rates, compounded monthly. Contributions are assumed to be made at the beginning of the month. The chart above is not indicative of any particular investment or savings vehicle. It does not take into consideration taxes or other applicable deductions, which would lower performance. This example uses constant rates of return. Actual investments will fluctuate in value.

The Power Of Compound Interest

$200 Monthly Savings for 35 Years (Age 30 - 65)

“U.S. consumer bankruptcy filings in the first half of 2010 reached the highest level since 2005.”

Reuters.com July 2, 2010

The Rule of 72

This simple calculation gives you the approximate number of years it will take to double your investment.

How many doubling periods do you have in your life??

$20,000

$10,000$10,000 $10,000

$20,000

$20,000

$40,000

$40,000

$80,000

$80,000

$160,000

$320,000

$640,000$1,280,00

0$2,560,00

0$160,000$40,000

0

6

12

18

24

30

36

42

48

Numberof Years 3% 6% 12%3

%12%

6%

Based on the Rule of 72, a one-time contribution of $10,000 doubles six more times at 12% than at 3%.The table serves as a demonstration of how the Rule of 72 works and is only an approximation of accumulations. It is not intended to represent any specific investment, which will fluctuate in value.

Invest the Difference$175 monthly savings invested at 10% for 30 years = $398,882 at age 65.

Buy Term and Invest the Difference

John $150,000 $300,000Mary $150,000 $300,000Children $0 $25,000Total Protection$300,000 $625,000Monthly Premium $298 $123

Death Benefit Before PrimericaChanged to Primerica’s

Term

Difference = $175/month!

Monthly premium is an average of whole life policies from three major North American life insurance companies for male, age 35, standard risk and female, age 33, standard risk. Cash value life insurance can be universal life, whole life, etc., and may contain benefits in addition to a death benefit, such as dividends, interest, or cash value available for a loan or upon surrender of the policy. Whole life usually has a level premium for the life of the policy. 2. Primerica monthly premium for age 35, non-tobacco use for 35 year Custom Advantage policy (C535) and spouse age 33, non-tobacco use for 35 year Custom Advantage rider (C5SR), both with rates guaranteed for 20 years, plus a child rider of $25,000 each on two children, underwritten by Primerica Life Insurance Company, Executive Offices, Duluth, GA. Term insurance provides a death benefit only and its premiums increase at certain ages. The accumulation figure reflects continued investment at the same rate over 30 years at a 10% nominal rate of return compounded monthly and does not take into consideration taxes or other factors, which would lower results. This example uses a constant rate of return, unlike actual investments, which will fluctuate in value. This is hypothetical and does not represent an actual investment.

More than double the coverage for $175 LESS per month!

“For most people, the right type of life insurance can be summed up in a single word: term.” www.SmartMoney.com, September 1, 2010

“Term insurance is a better investment than whole life, as it offers more coverage for your premium …”CNNMoney.com, January 8, 2009

Today1. Young children2. High debt3. House mortgage

Loss of income would be devastating

At Retirement1. Grown children2. Lower debt3. Mortgage paid

Retirement income needed

How Life Works

Installment LoansBank Accounts

Mort

gag

e

Cred

it Ca

rds

Mutual Funds

Savin

gs A

ccou

nts

401(

k)

Life Insurance

YOU

The Problem:

Traditional financial institutions sell you products.

They don’t provide you with a total solution.

Most People Don’t Plan to Fail, They Fail to Plan

The Solution:

A Financial Needs AnalysisA complimentary, confidential and customized program to help you achieve your goals and dreams.

The FNA provides solutions in these

areas:

Savings

Debt Solutions

Income Protection

Income Management

Most People Don’t Plan to Fail, They Fail to Plan

On a scale of 1–10, 10 being the highest, how would you rate your desire to become properly protected, debt free, and financially independent? _________?

Are you protected from identity theft?

The number of identity fraud victims in the United States increased 12% to 11.1 million adults in 2009.

Source: 2010 Identity Fraud Survey Report, Javelin Strategy & Research

Are You In The Know?

A credit score of 620 vs. a credit score of 720*

Types of Accounts Annual SavingsMortgage Loan: $200,000 $2,027Auto Loan: $20,000 $786Home Equity Loan: $20,000 $529Credit Card: $15,000 $1,185Auto & Home Insurance Premiums: $554

Potential Annual Savings of

$5,081

*The examples are for illustrative purposes only. FICO score® band and interest rate source: Equifax. Mortgage Loan: Credit Score 620 –Term: 30 Year, Interest Rate: 5.900%, Monthly Payment: $1,186.27; Credit Score 720 –Term: 30 Years, Interest Rate: 4.533%, Monthly Payment: $1,017.30. Auto Loan: Credit Score 620 –Term: 3 Years, Interest Rate: 12.358%, Monthly Payment: $667.71; Credit Score 720 –Term: 3 Years, Interest Rate: 5.305%, Monthly Payment: $602.16. Home Equity Loan: Credit Score 620 –Term: 10 Years, Interest Rate: 11.580%, Monthly Payment: $282.11; Credit Score 720 –Term: 10 Years, Interest Rate: 7.555%, Monthly Payment: $237.98. Credit Card and Auto and Home Insurance Premiums source: “Turning Your Credit Score into $100,000 Savings,” American Chronicle, George Boelcke, CCP, August 14, 2010. Credit Card – Average Annual Balance $15,000, Credit Score 620 – Interest Rate: 19.800%, Average Annual Interest $2,970, Credit Score 720 – Interest Rate: 11.900%, Average Annual Interest: $1,785. Auto Insurance Average Annual Premium – Credit Score 620: $1,577, Credit Score 720: $1,183. Homeowners Insurance Average Annual Premium – Credit Score 620: $638, Credit Score 720: $478.** The accumulation figure reflects continued investment at the same rate (monthly at $423) starting at age 35 over 32 years at a 10% nominal rate of return compounded monthly and does not take into consideration taxes or other factors, which would lower results. This example uses a constant rate of return, unlike actual investments, which will fluctuate in value. This is hypothetical and does not represent an actual investment.

Do you understand the importance of your credit score?26.5% of U.S. consumers — 43.3 million people — have credit scores of 599 or lower.

Investment News, July 19, 2010

Invest the annual savings monthly until age 67 — the total, given a 10% rate of return, is $1,178,100**

$353

$551

$303

$1,293

$2,720

$551

$303

$1,293

$2,720

$1,293

$1,293

$2,720

$2,720

The Debt Stacking Path*

* The above example is for illustrative purposes only. The Debt Stacking concept assumes that: (1) you make consistent payments on all of your debts, (2) when you pay off the first debt in your plan, you add the payment you were making toward that debt to your existing payment on the next debt in your plan (therefore you make the same total monthly payment each month toward your debts) (3) you continue this process until you have eliminated all of the debts in your plan. In the example above, when the retail card is paid off, the $220 is applied to credit card 2, accelerating its payment to $573. After credit card 2 is paid off, the $573 is applied to car loan for a total payment of $1,124. The process is then continued until all debts are paid off. Note that the total payment per month remains constant.

Retail Card

1

Credit Card

2

Car Loan

Credit Card

1

Mortgage

Total

$1,124

$1,427

$2,720

+ $220

+ $573

+ $1,124

+ $1,427

$220

$353

$551

$303

$1,293

$2,720

$573

$2,720

The Debt Stacking Path*

*The hypothetical interest rate is for illustrative purposes only and not indicative of a guaranteed rate of return on any investment. Illustrated rates of return are nominal, compounded monthly.

Payoff Date May 2034

Without Debt Stacking

Interest Saved $0

With Debt Stacking

March 2019182 Months Sooner

$130,643

Interest Paid $214,433

Monthly Payments $2,720

$83,789

$2,720

Once debts are paid off, invest $2,720 each month until age 67 – the total, given a 10% return, is $2.87 million.*

Makes available $1,367 a month4

Refinanced $215,000 for 25 years at $1,353 per month3 at age 35

The Smart Solution Path

The above example is for illustrative purposes only. 1. The above monthly payment does not include taxes and insurance. 2. Based on the assumption that the present payment program continues on three open-end credit card accounts with balances of $7,570, $8,830, and $5,500 respectively, each with an APR of 18%, 16% and 14.9% respectively, and combined minimum monthly payments of $876 ($303 and $353 and $220 respectively) and one fixed installment car loan with a balance of $15,764, an APR of 6%, a monthly payment of $551, and an original term of 60 months. 3. The above monthly payment does not include taxes and insurance. The client is responsible for the escrow and the payment of taxes and insurance. The payment reflects an annual percentage rate of 5.86% and a note rate of 5.75%. The loan in this illustration includes points and applicable closing costs, which are financed from the loan proceeds. Your actual closing costs and APR may differ. 4. Assumes no additional debt is incurred.

Original Loan APR: 7.50%Original Term: 30 yearsOriginal Loan Amount:$184,955Market Value of Home:$269,000

1st Mortgage$175,000 at

$1,2931

(for 25 more

years)

Personal Debt$37,664 at $1,4272

Total monthly payments = $2,720

The Smart Solution Path

5. The hypothetical interest rate is for illustrative purposes only and not indicative of a guaranteed rate of return on any investment. Illustrated rates of return are nominal, compounded monthly. 6. This illustration is based on a 25 year mortgage with a biweekly principal and interest payment of $676 plus an additional $148 towards the principal balance with each payment. The monthly payment does not include taxes and insurance. The client is responsible for the escrow and the payment of taxes and insurance. The payment reflects an annual percentage rate of 5.86% and a note rate of 5.75%. The loan includes points and applicable closing costs, which are finances from the loan proceeds. Your actual closing costs and APR may differ. Illustration assumes biweekly payments and the additional principal payments are made on time for 15 years so that all of the principal has been paid. Results of actual debt acceleration programs depend solely on your commitment and adherence to the proposed accelerated payment schedule. Biweekly payments mean payments toward principal and interest and are paid every 14 days. The effect of paying biweekly is to make one extra monthly payment per year.

$443,900 invested/home and all debt paid off in 15 years

Invest $1,071 a month at 10% for 15 years = $443,9005

Add $2966 a month toward payment of principal

Acceleration Bi-weekly payments plus paying additional principal may result in reducing total time and cost of your mortgage debt. (Reduces a family’s housing debt faster, possibly saves thousands of dollars in interest and may increase borrower cash flow.)

The total, given a 10% return = $3.86 million5

Take the $443,900 lump sum and invest with the $2,720 now available each month until age 67

District Leader $50 $645 $696 $222 $1,613

RVP $110 $1,290 $1,323 $394 $3,117

RVP Override $60 $645 $627 $172 $1,504

What You Would Have Earned

The Key: Recruit & Develop People

These estimated earnings are based on the following assumptions: Life – Custom Advantage 35 policy for primary insured, totaling $300,000 (C535) at 35-year-old non-tobacco rates and spouse, totaling $300,000 (C535) at 33-year-old non-tobacco rates, plus a child rider of $25,000 each on two children. Loan — $215,000 $.M.A.R.T. Loan®. Investment – 12 monthly savings of $1,071 and $175 monthly savings from the life insurance example into a mutual fund. Most representatives do not achieve these leadership levels and clients do not always buy every type of Primerica product. In order to become a District Leader and begin earning the level of commissions discussed above, you must become licensed to sell insurance as well as achieve certain sales levels. Reaching the other leadership levels is dependent on the size of the organization you build, the number of sales and override commissions you earn and the efforts of your downlines. RVP Override column reflects what an RVP would earn on sales by a District Leader.

+ + =+

PrimericaDebtWatchers Loan Insurance Investment Total

Since 1977 New Since 2000

A Track Record of Success

Cumulative Number of Earners

Personal Income

Over $50,000

Over $100,000

Over $1 million

Over $2 million

Over $5 million

5,3002,532

63171

2,7611,391

3261

These figures represent 12-month rolling cash flow levels, including advances, which have been achieved by Primerica representatives, past and present, at some point during their affiliation with a Primerica Company, beginning in 1977. The representatives are not necessarily achieving those levels at this time. Further, the numbers reflected in the “Cumulative Number of Earners” column are cumulative from level to level and, therefore, include all representatives who have ever achieved the stated cash flow figures. The cash flow categories are not intended to demonstrate earnings of typical representatives. In the 12-month period ending in December 2009, Primerica’s sales force consisted of approximately 100,000 life-licensed representatives, to whom the Company paid a total of $515,691,076 in compensation, an average of $5,156 per licensed representative. Most representatives do not reach the levels illustrated. Average RVP earnings are typically higher. Actual gross cash flow is, among other factors, dependent upon the size and scale of a representative’s organization, the number of sales and the override spread on each sale, and the ability and efforts of you and your downlines. Having said this, Primerica provides a tremendous opportunity for individuals who work hard and who desire to develop a business with strong income potential.

In 2009, Primerica paid $515 million to its sales force.With this track record, what would prevent you from pursuing this

opportunity??

Arizona: Loans solicited by Limited Partners in Primerica Financial Services Home Mortgages Limited Partnership of Arizona (Primerica Financial Services Home Mortgages, Inc., General Partner). 3100 Breckinridge Blvd., Duluth, GA 30099. Mortgage Banker License No. BK 15594. Loans originated by Citicorp Trust Bank, fsb. California: Primerica Financial Services Home Mortgages, Inc. Loans arranged pursuant to a Department of Corporations, California Finance Lenders License. Colorado: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), License status: Exempt, 3100 Breckinridge Blvd., Duluth, GA 30099, (770) 381-1000. Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm. Connecticut: Primerica Financial Services Home Mortgages, Inc., MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR MORTGAGE CORRESPONDENT LENDER. Delaware: Primerica Financial Services Home Mortgages, Inc., (PFSHMI): A Delaware Licensed Mortgage Loan Broker. Florida: Licensed Florida Mortgage Broker/Representing: Primerica Financial Services Home Mortgages, Inc., Licensed Mortgage Brokerage Business. Georgia: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), 3100 Breckinridge Blvd., Duluth, GA 30099: A Georgia Residential Mortgage Licensee, License #6078. Illinois: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), 3100 Breckinridge Blvd., Duluth, GA 30099: Illinois Residential Mortgage Licensee. Citicorp Trust Bank, fsb, the lender, would provide the funds for these loans. Citicorp Trust Bank, fsb, not PFSHMI, is the entity which affects the availability of funds. Interest rates or charges for loans are in no way recommended, approved, set or established by the State of Illinois. Kansas: Kansas Licensed Mortgage Company. Primerica Financial Services Home Mortgages, Inc. 3100 Breckinridge Blvd., Duluth, GA 30099. License No. MC.0002382. Kentucky: Representing Primerica Financial Services Home Mortgages, Inc., 3100 Breckinridge Blvd, Duluth, Georgia 30099. EQUAL HOUSING OPPORTUNITY. Maine: Primerica Financial Services Home Mortgages, Inc., Loan Broker License #CSO07173. Massachusetts: Primerica Financial Services Home Mortgages, Inc., Massachusetts Mortgage Broker License Number MB 0056. Minnesota: Representing: Primerica Financial Services Home Mortgages, Inc., Minnesota Residential Mortgage Originator. Missouri: Primerica Financial Services Home Mortgages, Inc. (PFSHMI): A Residential Mortgage Licensee. Montana: Primerica Financial Services Home Mortgages, Inc., 3100 Breckinridge Blvd., Duluth, GA 30099, license number 000381. Nebraska: Primerica Financial Services Home Mortgages, Inc. (PFSHMI): Licensed as a Mortgage Banker. New Hampshire: Licensed by the New Hampshire Banking Department. New Hampshire Mortgage Broker License Number 5367-MBR. New Jersey: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), 3100 Breckinridge Blvd., Duluth, GA 30099-0001, (770) 381-1000: Licensee, New Jersey Licensed Lenders Act, Licensed Mortgage Banker, Licensed by the New Jersey Department of Banking and Insurance (Certain Locations). PFSHMI does not make any mortgage loan commitments or fund any mortgage loans. PFSHMI arranges loans with 3rd party providers. Citicorp Trust Bank, fsb, the lender, would provide the funds for these FIRST OR SECONDARY MORTGAGE LOANS. New York: Representing Primerica Financial Services Home Mortgages, Inc. – New York State Banking Department, 3rd Party Mortgages arranged, Registered Mortgage Broker. North Carolina: Loans solicited by Representatives of Primerica Financial Services Home Mortgages, Inc. Ohio: Primerica Financial Services Home Mortgages, Inc., 3100 Breckinridge Blvd., Duluth, Georgia 30099, License Number: MB.803986.000. Oregon: Primerica Financial Services Home Mortgages, Inc. (PFSHMI), License Number: ML-131. Pennsylvania: PFSHMI - Licensed by the Pennsylvania Department of Banking as a Partially Exempt Mortgage Broker. Rhode Island: PFSHMI: A Rhode Island loan broker licensee. Texas: Primerica Financial Services Home Mortgages, Inc., Financial Services Company #71355, 3100 Breckinridge Blvd., Duluth, Georgia 30099-0001, 770-381-1000. Virginia: Primerica Financial Services Home Mortgages, Inc., Licensed as a Mortgage Broker by the Virginia State Corporation Commission, License #MC-368. Washington: Washington Mortgage Broker Practices Act Licensee. This document is not intended as an offer to extend credit nor a commitment to lend. The loan interest rates, fees, and terms presented herein are for illustrative purposes only and may not be currently available. This document has been prepared to assist real estate professionals in illustrating some of the financing options available to consumers.

Lender and Primerica Financial Services Home Mortgages, Inc. are affiliated companies of Citigroup. $.M.A.R.T. Loan® is a registered trademark of Citicorp Trust Bank, fsb. Loans secured by residential real estate. EQUAL HOUSING OPPORTUNITY.

NMLS Unique Identifier for Primerica Financial Services Home Mortgages, Inc. – 3073NMLS Unique Identifier for Primerica Financial Services Home Mortgages Limited Partnership of Arizona – 151315

Primerica DebtWatchers™ is a registered trademark of Primerica, Inc. Product not available for purchase by residents of Washington, D.C.

Life insurance is underwritten by the following affiliated companies in these respective jurisdictions: National Benefit Life Insurance Company, Home Office: Long Island City, NY, in New York; Primerica Life Insurance Company, Executive Offices: Duluth, GA, in all other U.S. jurisdictions; Primerica Life Insurance Company of Canada, in Canada. Securities offered by PFS Investments Inc.

© 2004-2010 Primerica / 41761 / 11.10 / 99PFS411-137

Endnotes