Primerica Life Insurance: Am Best Rating Explained

Primerica Life Insurance Company has received an A+ rating from AM Best, indicating superior financial strength. The company offers term life insurance coverage to middle-income Americans through its licensed representatives. Primerica also provides auto and homeowner's insurance, pre-paid legal and identity theft protection, as well as annuities and other investment products. Their term life insurance policies are available in all 50 states and Washington, D.C., with coverage also available in Canada. Primerica's term life insurance options include TermNow and Custom Advantage, with terms ranging from 10 to 35 years. While Primerica has strong financial stability, it has received low scores in customer satisfaction due to a lack of transparency and limited information available online.

Primerica's AM Best rating of A+

Primerica Life Insurance Company has received an impressive "A+ rating from AM Best, indicating superior financial strength and performance. This rating, reaffirmed in 2020, reflects the company's strong financial position and ability to meet its financial obligations. AM Best, a leader in credit rating organisations for insurance companies, lists Primerica Life as "very strong", with a strong operating performance, a favourable business profile, and appropriate enterprise risk management.

The "A+" rating places Primerica among the top-rated insurance companies by AM Best, which include only a handful of organisations with the highest ratings. This superior rating is a testament to Primerica's financial stability and its ability to provide reliable coverage to its customers.

Primerica's financial strength is further demonstrated by its ability to pay claims. The company claims to pay 91% to 94% of claims within 14 days, which is an impressive record in the industry. This prompt claims settlement adds to the assurance that Primerica's financial strength provides to its policyholders.

In addition to its superior financial strength rating, Primerica also boasts a strong business profile. The company was founded in 1977 and has its executive offices based in Duluth, Georgia. Primerica offers a range of financial products and services beyond life insurance, including auto insurance, home insurance, investment services, and identity theft protection.

Primerica's life insurance products are tailored to meet the needs of middle-income Americans, providing them with term life insurance coverage through licensed representatives. The company's TermNow product offers custom term lengths of up to 35 years, with fixed premiums and guaranteed insurability up to age 95.

Overall, Primerica's AM Best rating of "A+" reflects the company's strong financial position, stable operating performance, and ability to meet its financial commitments. This rating provides confidence to customers that Primerica is a reliable and stable insurance provider.

Primerica's financial strength

Primerica Life Insurance Company has received high financial strength ratings from several third-party agencies, including AM Best, Moody's, S&P, and Fitch.

In 2020, AM Best reaffirmed Primerica's Financial Strength rating as A+ (Superior), the second-highest rating possible. AM Best lists Primerica Life as "very strong, as well as its very strong operating performance, favourable business profile, and appropriate enterprise risk management." An A+ rating indicates superior financial strength and a high ability to pay out claims.

Primerica's financial stability and historical ability to meet financial obligations are reflected in its high ratings from credit rating agencies. The company's strong financial position makes it a reliable choice for those seeking life insurance coverage.

Primerica's insurance products

In addition to life insurance, Primerica offers a variety of other financial products and services, including mutual funds, managed investment accounts, annuities, 529 educational savings plans, business retirement plans, mortgage products, and auto and home insurance referral programs.

Primerica's customer satisfaction

Primerica's customer complaint index from the National Association of Insurance Commissioners (NAIC) supports its strong financial stability claims. The company's complaint index has remained below the baseline over the last three years, indicating that policyholders are filing relatively few formal complaints.

Trustpilot and Reddit reviews offer a range of opinions, with some users criticising Primerica's business model as a multi-level marketing (MLM) scheme or scam, while others share positive experiences and emphasise the legitimacy of the company's services and products.

Primerica's insurance riders

Primerica offers a range of insurance riders to supplement its term life insurance policies. These riders provide additional benefits and protection, allowing customers to customise their coverage to meet their specific needs. Here is a detailed overview of the insurance riders offered by Primerica:

Child Rider

This rider provides coverage for all eligible children in the policyholder's family. It ensures that the eligible children are covered by the policy, offering financial protection for their future.

Increasing Benefit Rider

This rider is available to applicants under the age of 56 who have been issued non-rated coverage. It allows the policyholder to increase their coverage amount by up to 10% per year over a period of 10 years. This helps to account for inflation and ensures that the coverage keeps pace with the policyholder's changing needs.

Terminal Illness Rider

The Terminal Illness Rider is a living benefits rider that provides financial support in the event of a terminal illness diagnosis. It offers access to a portion of the death benefit while the policyholder is still alive. Specifically, it provides the lesser of 40% of the death benefit or $250,000. If the policyholder also has the Waiver of Premium Rider, they can receive up to 70% of the death benefit in advance.

Waiver of Premium Rider

This rider typically allows policyholders to pause or waive their premium payments if they become totally disabled and unable to work. While Primerica offers this rider, specific details about its functioning are not readily available on their website.

Primerica's range of insurance riders provides customers with the flexibility to tailor their life insurance coverage to their unique circumstances. However, as noted in the reviews, Primerica's website lacks transparency and detailed information about these riders, making it challenging for prospective customers to make fully informed decisions.

Frequently asked questions