Primerica Life Insurance: Borrowing Options And Benefits

Primerica is a life insurance company that was founded in 1977 and is based in Duluth, Georgia. The company offers term life insurance, which provides coverage for a specific period, typically ranging from 10 to 35 years. Unlike other types of life insurance, term life insurance does not accumulate cash value and cannot be borrowed against. Primerica's term life insurance products are designed to be affordable and accessible, encouraging clients to invest the difference for the future. While the company has strong financial strength ratings and a low volume of customer complaints, it has been criticized for its lack of transparency, limited policy information, and low customer satisfaction ratings.

Primerica's term life insurance policies

Primerica's life insurance companies offer term life insurance protection ranging from a 10-year level premium policy to a 35-year level premium policy. The 35-year term limit is one of the longer options available in the market. The company's "Buy Term and Invest the Difference" philosophy encourages clients to invest the difference in premium for the future.

Primerica's term life insurance policy, TermNow, can be customized to meet specific needs. Terms can last up to 35 years with fixed premiums and guaranteed insurability until the age of 95. The policy does not build cash value and does not allow policyholders to invest. It only provides a death benefit to the beneficiaries.

Primerica's term life insurance is available with several riders, allowing customers to customize their coverage. The available riders include:

• Increasing benefit rider: The death benefit increases over time to account for inflation.
• Waiver of premium rider: The rider waives life insurance premiums if the policyholder can no longer work.
• Terminal illness rider: The policyholder can receive up to 70% of the face amount of the terminal illness benefit.
• Child rider: This rider covers all eligible children in the policyholder's family.

Primerica's financial strength

Primerica has been in the business of offering financial services to families for over 45 years. The company has a strong financial strength rating of A+ (Superior) from AM Best, the leader of credit raters for insurance companies. This rating is attributable to only a small percentage of other life insurers in the United States and indicates Primerica's superior ability to pay claims.

Primerica's customer satisfaction

However, Primerica's customer satisfaction rating is remarkably low in other assessments. For example, it scored 13 out of 22 companies in the 2022 U.S. Individual Life Insurance Study, indicating poor customer satisfaction. Similarly, Primerica was one of the lowest-scoring life insurance companies in the J.D. Power 2022 U.S. Life Insurance Study, receiving a score of 766 out of 1,000, while the industry average was 774.

Primerica's sales approach may also be a factor in customers' satisfaction. The company uses a multilevel marketing structure, where agents are independent contractors who start by selling to family members, friends, and coworkers, encouraging them to join the business. This strategy may create extra pressure on prospective customers to buy from Primerica and potentially become part-time agents.

Primerica's website also lacks transparency, providing minimal information about term lengths, coverage limits, and riders. This lack of detailed information may impact customers' satisfaction, as they may need to contact an agent for simple inquiries and quotes.

Primerica's policy riders

Increasing Benefit Rider

This rider allows the death benefit to increase over time to account for inflation. This option is available to applicants under 56 years of age who are issued non-rated coverage.

Waiver of Premium Rider

This rider waives life insurance premiums if the policyholder can no longer work. It typically allows for a pause in premium payments if the policyholder becomes totally disabled and unable to work.

Terminal Illness Rider

This rider provides financial support in the event of a terminal illness diagnosis. The policyholder can receive up to 70% of the face amount of the terminal illness benefit. If the policyholder also has the Waiver of Premium Rider, they can access up to $400,000 or 70% of the death benefit in advance of their death.

Child Rider

This rider extends coverage to all eligible children in the policyholder's family.

Primerica's life insurance riders offer flexibility andsection customisation to meet the diverse needs of its customers. By adding these riders, policyholders can enhance their coverage and ensure that their families are protected in a range of circumstances.

Primerica's sales approach

Primerica's sales strategy involves recruiting people to sell its policies, starting with their family, friends, and co-workers, and encouraging them to join the business. Primerica agents are independent contractors, not employees, and they make money based on their own sales as well as the sales of the agents they recruit, which is known as multilevel marketing (MLM).

The company's website provides a list of life insurance representatives by state and ZIP code, along with their contact information. Primerica's term life insurance is available exclusively through these agents and cannot be purchased online. The website also offers a “Find a Rep” tool, where prospective customers can input their zip code or search for an agent to schedule an appointment or phone call.

Frequently asked questions