Is WFG a Scam or Legit?: World Financial Group Scam Review 2024
World Financial Group Scam Review Rating: 2.0/5
Let me start with the conclusion that World Financial Group (WFG) is not a scam.
However, the marketing strategy of the company makes it unreliable for anyone looking for sustainable income.
My justification will take me deep into discussing what WFG entails, how it works, its products and services, clients’ reviews, regulation issues and other related matters.
In the end, I provide a breakdown of my World Financial Group Scam review methodology to justify my 2.0/5 rating of the company.
With this poor rate, I couldn’t recommend World Financial Group at the end of the review.
In order not to make you wonder where to go from here, I concluded the review by providing legit alternatives to World Financial Group.
Kindly stay with me on this long journey as I provide an unbiased review of World Financial Group.
Overview of World Financial Group Scam Review
Here is a comprehensive overview of World Financial Group including the summary of my review.
| Name | World Financial Group |
| Year founded | 2001 |
| CEO | Tom Dempsey |
| Parent company | Aegon |
| Headquarters | Johns Creek, Georgia, US & Toronto, Ontario, Canada |
| Products & services | Insurance Protection | Retirement Strategies | Financial Strategies Services | College Funding Plans | Business Strategies | Estate Preservation |
| Marketing strategy | Multilevel Marketing (MLM) |
| Target audience | New graduates and unemployed |
| No. of employees | 500+ |
| No. of agents | 70,000+ |
| No. of clients | 4.6+ million (gotten through WFG agents) |
| Contact | 770-453-9300 (US) | 416-225-2121 (Canada) |
| Website | www.worldfinancialgroup.com |
| Pros | Easy to get started |
| Cons | Time-consuming with no guarantee of earning income |
| Overall rating | 2.0/5 |
| Recommendable? | No |
| Alternatives | Become an insurance agent | Take a side hustle | Invest | Buy products directly from product owners |
With the above overview, we can easily dive into the in-depth review of World Financial Group.
Who is World Financial Group?
World Financial Group (WFG) is a multi-service financial company operating a multi-level marketing (MLM) strategy.
The company was founded in 2001 by Aegon, a Dutch publicly-traded multinational insurance company.
WFG operates under Transamerica, a subsidiary of Aegon based in the US.
With headquarters in the US and Canada, WFG offers a wide range of third-party financial products and services to help North Americans achieve financial security and independence.
These products and services are administered by WFG agents who have helped more than 4.6 million clients across the US and Canada.
In light of this, you may be wondering why so many people see WFG as a scam despite helping millions of families.
Is WFG truly a scam or legit? We’ll get into that shortly.
Let us now turn to the operational framework of WFG as we unveil its true identity.
How Does WFG Work?
To understand how WFG works, we need to, first of all, know what multi-level marketing (MLM) entails.
MLM refers to a marketing strategy whereby sales are generated through networking.
The sales could be generated directly from consumers or indirectly through agents.
When agents sell third-party products or services, they earn a commission in return. This is the category of the World Financial Group.
The company partners with more than 360 companies in the US and Canada which includes:
| US Companies | Canadian Companies |
| •Transamerica •Nationwide •Crump •Pacific Life •Everest | •BMO •Equitable Life of Canada •Canada Protection Plan •iA Financial Group •Ivari |
When you join WFG, you will be responsible for selling the products and services of its partner companies. These products and services include:
- Insurance Protection
- Financial Strategies Services
- Business Strategies
- Retirement Strategies
- College Funding Plans
- Estate Preservation
After every successful sale, you will earn a predetermined commission depending on your level. More on this later.
To help associates earn more, WFG encourages them to recruit and train others so as to build a large network.
WFG Products and Services
In this section, we shall take a brief look at the third-party products and services of WFG.
There we go!
1. Insurance Protection
Insurance protections are the popular products of WFG. The protections are available for people with different insurance needs.
The following are the insurance protections that are accessible through WFG agents:
- Life Insurance
- Disability Insurance
- Long Term Care Insurance (available only in the US)
- Guaranteed Interest Accounts (available only in Canada)
- Segregated Funds (available only in Canada)
2. Financial Strategies Services
WFG agents offer a wide range of financial strategies to individuals looking to improve their finances. These services include:
- Financial needs analysis
- Goal Setting
- Goal achievement strategies
3. Business Strategies
Small business owners can access customized financial strategies from WFG agents. These strategies include:
- Executive Compensation (available only in the US)
- Business Continuation Programs (available only in the US)
- Insurance Strategies
- Retirement Strategies
4. Retirement Strategies
WFG agents can also help clients prepare for their retirement strategies especially on:
- Registered Retirement Savings Plans (available only in Canada)
- Tax-Free Savings Accounts (available only in Canada)
- Annuities
5. College Funding Plans
US parents or guardians looking to send their children to college or university can get fund plans through WFG agents.
6. Estate Preservation
Individuals looking to preserve their estate can count on WFG tax and legal professionals to help them design a strategy. These could be on:
- Annuities (available only in Canada)
- Life Insurance (available only in Canada)
- Life Insurance Trusts (available only in the US)
- Charitable Strategies & Trusts (available only in the US)
- Wealth Replacement Trusts (available only in the US)
How Much Do WFG Agents Make?
The earning rate of a WFG agent depends on their level and investment with the company.
WFG agents are categorized into four levels with varying eligibility and commission rates as shown below.
Level 1: Training Associate
- Commission Rate: 25%
- Eligibility:
- Recruit 3 partners
- Make 3 sales in a row within 30 days
Level 2: Associate
- Commission Rate: 35%
- Eligibility:
- Recruit 3 direct associates
- Get 40,000 net points in 3 consecutive months
- Your team should have at least 5 life licensed associates
Level 3: Marketing Director
- Commission Rate: 50%
- Eligibility:
- Have 10 associates in your team with at least 6 life licensed associates
- Have at least 1 Marketing Director in 3 branches of personal recruits
- Have $20,000 cash flow in 6 consecutive months or $35,000 for 12 consecutive months
- Get 75,000 net points in 3 months consecutively
Level 4: Senior Marketing Director
- Commission Rate: 65%
- Eligibility:
- Have 3 direct recruits
- Your team should include all Senior Marketing Directors
- Have 750,000 net points in 12 months or 500,000 net points in 6 months consecutively
Is WFG a Scam?
World Financial Group (WFG) is not a scam in the true sense of the term. This is because the company promotes the products and services of legitimate companies in the US and Canada.
WFG also pays its agents a commission on every successful sale of products and services. Agents that invest with its are also offered proportional returns.
However, there are many factors that make WFG unreliable to work with. This includes:
1. Pyramid Strategy
WFG uses a similar marketing strategy as pyramid schemes – multilevel marketing.
By giving agents up to 65% commissions, it means the product provider will be left with only 35%.
Agents may have to go against their moral conscience to sell those products in order to earn a commission.
This only shows the level at which WFG sets outrageous prices to scam both its agent and customers.
2. Recruitment Pressure
WFG makes money when agents sell more products and services.
Consequently, it mandates agents to expand their network by recruiting more people to their teams.
As shown in the above WFG associate levels, agents are required to recruit a given number of people before being promoted.
The aggressive requirement process is often fruitless as most recruits have nothing to show in the long run.
3. Non-Refundable Policy
WFG doesn’t refund fees on administrative services including registration fees and convention fees.
So even if you join the company today and wish to exit tomorrow, your funds will not be returned.
This is one of the major reasons why some ex-WFG agents call the company a scam.
4. Money-Making Meetings
WFG trains its agents regularly through conventions. These meetings are usually hosted for the purpose of generating funds from unsuspecting agents.
Coupled with the non-refundable convention fees, disappointed agents often feel scammed after attending such meetings.
5. World Financial Group Regulation Issues
WFG has received numerous sanctions from different regulatory bodies in Canada and the US. Below are some of the major sanctions by year:
- 2023: The Financial Services Regulatory Authority of Ontario (FSRA) initiated enforcement action against WFG Insurance Agency in Canada due to license issues.
- 2018: Mutual Fund Dealers Association of Canada (MFDA) charged 12 ex-WFG agents in Mississauga $865,000 for using false KYC information to secure loans in addition to other offences.
- 2014: Financial Industry Regulatory Authority (FINRA) charged WFG $700,000 for its failure to supervise registered representatives in Dallas.
- 2008: Manitoba Securities Commission sanctioned WFG broker, World Group Securities (WGS), for its incapacity to leveraged accounts.
- 2007: The State of Utah fined WGS $50,000 for not supervising its representatives in the state.
- 2006: Missouri’s commissioner of securities charged WGS $150,000 for inappropriate sales of annuities.
Is World Financial Group Legit?
Short answer, yes! World Financial Group (WFG) is legit as a reseller/middleman because it offers access to real financial products and services.
Below is a summary of the key factors that prove that the World Financial Group is legit.
1. Legit Parent Company
World Financial Group is owned by Aegon, a multinational insurance company that has been in existence since 1983.
As of 2020, Aegon N.V. had €444,868 million in total assets and 30.4 million members.
With legit life insurance, asset management, and pensions products and services, Aegon is recognized as a legitimate company across different jurisdictions.
2. Legit Merchants
WFG partners with over 360 companies in the US and Canada. Some of these companies are reputable and popular in the industry.
By partnering with these reputable companies, consumers can be sure that they’re buying legit products and services through WFG.
4. Commission Payments
World Financial Group (WFG) pays its associates a commission upon every successful sale. No doubt about that!
Below is a breakdown of the total amount paid by WFG to its associates from 2011-2021:
- 2011 = $299.9M
- 2015 = $732.6M
- 2020 = $965M
- 2021 = $1.1B
So in reality, individuals have been making income through WFG for years.
What Others Are Saying About WFG
Before I provide my personal rating on the World Financial Group scam review, it’s worth sharing what other people are saying about WFG.
As expected, some people had positive and bad experiences with WFG. The following is a highlight of a few of them.
World Financial Group Positive Experience
“It’s a great platform for a person who is looking to expand their business in financial industry because it’s a system driven business and multi handed company. Very blessed to a part of world financial company.”
(Anonymous)
“I work for WFG. It’s an awesome company. I’ve help family members, friends and friends of friends. True, I didn’t come to the business with a financial background, but the training from TransAmerica, Nationwide, other providers and of course our leadership has been awesome!! Many employee minded people don’t like the ‘hybrid’ model as stated above, but in no other place can I learn fast, become a broker and control my financial future. I’d rather have my own business, then work my old full-time… “
(Anonymous)
“Not a bad company, welcome to recruiting! This is how it works with most companies. Everyone wants a piece of the pie and now, WFG is just publicly known on how you get paid.”
(Anonymous)
World Financial Group Complaints Terrible Experience
“Its a big scam, multilevel marketing similar to Amway but worse than it. In this scam, they forget the value of friendship or family. Everyone is targeted in the name of helping someone.”
(Anonymous)
“It is a pyramid scheme and when you ask them if its a pyramid they will say no pyramid’s are illegal. But essentially they are a legal pyramid scheme, they recruit people to sell over priced life insurance and the person that recruited them and the person that recruited them above them and so on gets a piece of the sale. Problem is they are financially illiterate and claim to teach financial literacy when in reality all they teach you is how to purchase over priced life insurance called universal life with a shit investment performance.”
(Anonymous)
“The people at the top are making tons of money by ripping the people off at the bottom and selling the dream that they could be at the top one day if they rip off enough people like they did. But they won’t say there ripping people off they will lie and say they are helping them.”
(Anonymous)
“I don’t think that they are selling insurance. What World Financial Group is selling is recruitment and that is what MLMs are: A scammy way to get more people into thinking that they can get rich off your product. The only people making money in World Financial Group are those who set up this system in the first place. I have been approached by them online. That’s where they are right now.”
(Anonymous)
My World Financial Group Scam Review Rating
I rate My World Financial Group 2 out of 5 stars based on comparative analysis and the total rating of the following features.
World Financial Group Scam Rating Methodology
Overall Rating
With this, I can’t recommend World Financial Group (WFG) to individuals looking to make income, invest in a reliable company or access affordable financial products and services.
Is It Worth Joining WFG?
By now you should have noted that I’m not in support of anyone joining World Financial Group (WFG) be it as an employee, investor or customer.
My reasons are so obvious and common to what many have been saying over the years.
Most importantly, the chances of achieving financial stability through WFG are lower than the chances of being financially stagnant or backward.
The marketing strategy of WFG is already associated with a scam by many people.
For employees, it is a difficult bulk game to convince and recruit as many people to scale the promotional ladder of WFG.
As an investor or product owner, you can’t afford to have up to 65% of a product price cut off for a commission.
In addition, you may not be interested in seeing your standard product price increase outrageously to cover commissions and administration fees.
And as a customer, you can access the products and services of WFG at a lower price directly through the owners rather than buying through a third party.
Overall, it is not worth joining World Financial Group whether as an employee, investor or customer.
World Financial Group Scam Alternatives
There are different alternatives to World Financial Group depending on what you’re looking for.
Below I provide World Financial Group (WFG) scam alternatives for employees, investors, and customers.
- For Employees
One of the best alternatives to WFG for employees is to become an insurance agent or broker.
By becoming an insurance agent or broker, you will be licensed to sell insurance products for a higher commission.
If you don’t have an interest in becoming an insurance agent or broker, then you need to examine your skillset to determine the best alternative.
In that case, it’s worth considering some of the profitable passive income ideas out there as discussed in the following recommended post.
• Learn how to start and make money blogging (FREE course)
• Learn how to start a print-on-demand business for free with Printify Canada
• You might be interested in any of these 15 Profitable Passive Income Ideas in Canada
- For Investors
If you’re an investor, you know how fees and company reputation can impact investment returns.
For your long-term financial security, I recommend you consider other investment vehicles against World Financial Group.
Whether you’re a self-directed investor or a passive investor, it’s worth investing in companies with good reputations and performance.
- For Customers
WFG’s unfair market strategy doesn’t spare customers.
By fixing outrageous prices on products and services, WFG charges customers beyond the standard prices.
To save costs, I recommend buying insurance products or other products directly from the product owners instead of through a middleman like WFG.
If you have already purchased insurance from a WFG agent, you may find it worth cancelling it to avoid the high premium payments.
Is WFG a Scam?: An Update
Following several honest negative reviews on WFG, the company decided to write its own review on the same topic: “Is WFG a Scam?”
As expected, the WFG review is a self-glorious piece that dismisses the negative claims out there and positions WFG in a positive light. That’s another red flag. 🚩
Who does that? Why not allow its over 50,000 licensed professionals to defend it?
Only a scam and a pyramid scheme guilty company would take such a move.
And from the WFG’s review, the company didn’t fail to expose some of the popular scam signals pointed against it.
For instance, under the heading “Are We Hiding Our Fees?” The company claimed that it only charges a $100 ($125 CAD) max. upfront. It has now increased to $125 ($(150 CAD).
It then provided a Call-To-Action button under the heading for readers to see their full costs (as shown in the above image).
But when you click on that button, you would be directed to a “Connect with an Agent” page instead of the “Fees and Other Business Expectations” page.
The article ended without discussing the complete costs of using the company. Yet, WFG claims that it has “Nothing to hide here.” Hilarious indeed!
Update: Following my exposal of this dubious act, WFG updated the above page to include the fees and other business expectations.
But what are the implications of the WFG’s review? Unsuspecting individuals could erroneously rely on the WFG’s review if they don’t read third-party reviews out there.
And it’s easy to get to the WFG’s review because it ranks on the top pages of Google even though it was recently published compared to the oldest reviews.
This update aims to help you understand that WFG still has scam and pyramid scheme elements regardless of its self-glorification review.
World Financial Group Scam Review: The Bottom Line
The bottom line is that World Financial Group is not a scam.
However, its legitimacy doesn’t make it recommendable for employees, investors and customers.
As World Financial Group continues to operate a multilevel marketing strategy, it is likely to keep appearing as a pyramid scheme to many dissatisfied agents and clients.
To save yourself from such a terrible experience, I recommend you consider the WFG scam alternatives above that apply to you.
Above all, you should avoid WFG by all means.
Have you been scammed by WFG or any other pyramid scheme in the past? Kindly share your thoughts with me in the comment section.
FAQs on World Financial Group (WFG) Review
The CEO of World Financial Group is Tom Dempsey, an insurance industry leader with over 20-year experience.
Yes. WFG operates legally in Canada even though it had regulatory issues in the past.
WFG is not a pyramid scheme. However, WFG uses a multilevel marketing strategy like typical pyramid schemes.
Your earning rate as a WFG agent depends on your level. You can earn from 25% commission rate as a Training Associate up to 65% as a Senior Marketing Director.
WFG doesn’t have a refund policy. As a result, you can’t get your registration fee or convention fee back.
WFG makes money by selling the products and services of its partner companies. It also makes money by charging investors, partners and marketers administrative fees.
If you have more questions or concerns, kindly drop them in the comment section.
World Financial Group Scam Review
Summary
World Financial Group is not a scam. However, its legitimacy doesn’t make it recommendable for employees, investors and customers.
My landlord is a bartending business owner and a single mom. She got me into the business and she made me become a licensed insurance agent for the purpose of making passive income. She also got me into setting up my own universal life insurance policy which is mind you has a very high premium insurance with the promise of having some hefty ROI as long as you keep paying your premium instead of putting my money to a savings account. I love my landlord/ roommate to death. But after realizing that this business will not work out for me nor paying a high premium life insurance, I decided I want out. But this people don’t make it easy. I also just recently received an email from WFG collecting money ($96) due to chargebacks while I am still “registered” to their company as an associate. For the record, I never really did anything. They set me up for an account on their website with basic information and now I owe money. I felt very scammed. I just want out!!!
Sorry for that experience. So many people share the same experience as you, reason why WFG appears more as a scam than legit. Contact them ASAP to cancel your account without the consent of your landlord.