Primerica Life Insurance: Is It A Smart Choice?

Primerica is a life insurance company that offers term life insurance products. It was founded in 1977 and has received a financial strength rating of A+ (Superior) from AM Best. The company offers a range of term life insurance policies with different term lengths and coverage options. However, it does not offer permanent life insurance policies such as whole life or universal life insurance. Primerica's life insurance products are available through its representatives and cannot be purchased online. The company has received some criticism for its sales tactics and recruitment practices, but it has a low volume of customer complaints and is known for paying claims quickly. Overall, Primerica's life insurance may be a good option for those seeking term life insurance, but individuals interested in permanent life insurance may need to consider other providers.

Primerica's term life insurance policies

Primerica has been offering term life insurance since 1977, providing families with the coverage they need at an affordable price. The company believes that inexpensive term insurance is the best option for most families.

Primerica's term life insurance is highly customizable, with several riders available to meet specific needs. These include the increasing benefit rider, which increases the death benefit over time to account for inflation; the waiver of premium rider, which waives premiums if the insured becomes unable to work; the terminal illness rider, which provides access to a portion of the death benefit if the insured is diagnosed with a terminal illness; and the child rider, which covers all eligible children in the family.

Primerica's life insurance products are available in all 50 states, Washington, D.C., Puerto Rico, and Guam, as well as Canada. The company has a strong financial backing, with an A+ rating from AM Best, indicating superior financial strength.

However, it's important to note that Primerica's sales approach may not be for everyone. The company uses a multilevel marketing structure, where agents are independent contractors who are encouraged to sell to their friends and family and recruit them into the business. As a result, you may feel extra pressure to buy from Primerica if approached by a friend or family member. Additionally, Primerica's life insurance rates are reportedly higher than average, and there is limited information available on the website.

Pros and cons of Primerica life insurance

Pros of Primerica Life Insurance

Primerica has been offering term life insurance since 1977, providing families with the coverage they need at an affordable price. Here are some advantages of Primerica life insurance:

• Primerica Life Insurance Company has been rated "Superior" by AM Best with an A+ rating, indicating superior financial strength. There is no higher rating in the insurance industry.
• Primerica pays out a significant amount in life insurance benefits to clients' families annually and has a high percentage of claims paid within 14 days.
• Primerica offers a range of term life insurance options, including TermNow and Custom Advantage, with terms ranging from 10 to 35 years.
• The company provides a "buy term and invest the difference" philosophy, encouraging clients to invest the difference in premium for future financial goals.
• Primerica offers a complimentary "financial needs analysis" to help customers determine the appropriate amount of life insurance coverage.
• Primerica has a low volume of consumer complaints compared to companies of similar size, indicating good customer satisfaction.
• Primerica offers a variety of riders, allowing customers to customize their coverage, such as the increasing benefit rider, waiver of premium rider, terminal illness rider, and child rider.
• The company provides policies that do not require a medical exam, making it convenient for individuals with pre-existing health conditions.

Cons of Primerica Life Insurance:

While Primerica has some attractive features, there are also some drawbacks to consider:

• Primerica only offers term life insurance and does not provide permanent life insurance options such as whole life or universal life insurance.
• The company's rates are reportedly higher than average, and agents with access to Primerica's rates suggest that it does not offer competitive pricing.
• There is limited information available on the Primerica website, making it challenging for potential customers to make informed decisions.
• Primerica utilizes a multilevel marketing structure for sales, with agents who are independent contractors rather than full-time employees. This approach may create extra pressure to buy from friends or family members selling the products.
• Primerica's sales tactics and recruitment practices have been criticized, with agents encouraged to sell policies to friends and family and recruit them as new agents.
• The company does not offer an online purchase option or provide quotes online, requiring customers to speak to an agent to determine coverage levels and costs.

Primerica's financial strength rating

Primerica Life Insurance Company has been rated "Superior" by AM Best with an A+ rating. There is no higher rating available in the insurance industry. The A+ rating indicates superior financial strength.

AM Best's ratings reflect Primerica Life's balance sheet strength, which is categorised as very strong, as well as its very strong operating performance, favourable business profile and appropriate enterprise risk management.

Primerica's ratings also recognise its status as one of the largest writers of term life insurance in the United States. The company has a dedicated distribution affiliate, Primerica Financial Services, LLC, which includes over 130,000 life agents and almost 26,000 mutual fund-licensed representatives across the country.

Primerica's business profile in the US and Canada is further reinforced by its experienced management team, which has successfully built and supported its sizable sales force.

Primerica's customer complaints and satisfaction

Primerica has received a multitude of customer complaints, with a total of 107 complaints on the Complaints Board website, of which 45 have been resolved and 62 remain unresolved. The company has also received 225 total complaints over the last three years, with 99 of those coming in the last 12 months.

Complaints against Primerica include issues with refunds, unauthorized charges, poor customer service, and misleading information. Some customers have also accused the company of operating as a multi-level marketing scheme, or MLM, that focuses on recruiting new members rather than selling insurance products.

However, Primerica has also received positive reviews from customers who appreciate the company's affordable and easy-to-understand insurance policies, as well as the personalized service provided by its agents.

In terms of customer satisfaction, Primerica has been recognized by Investor's Business Daily as the "#1 Most Trusted Life Insurance Company" in 2022 and was included in Forbes' list of "America's Best Insurance Companies" for the same year. The company has also received an A+ rating from AM Best, indicating superior financial strength.

Primerica's sales approach

Primerica's agents are "captive," meaning they can only represent Primerica and no other insurers. The company's agent material promotes the idea that agents can have other full-time jobs and sell Primerica products for extra part-time income. Primerica's website provides a list of life insurance representatives by state and ZIP code, along with their contact information.

Primerica's sales tactics have received criticism, with complaints focusing on the company's sales process and the inexperience of its agents. Due to the MLM structure, Primerica agents are encouraged to sell policies to people in their network and recruit them as new agents. This can create extra pressure to buy from Primerica and potentially join as a part-time agent.

Primerica's life insurance products are only available through its agents and cannot be purchased online.

Frequently asked questions