Primerica Life Insurance: A Smart Savings Strategy?

Primerica is a life insurance company that offers term life insurance, which provides coverage for a specific period of time. The company was founded in 1977 and has received high financial strength ratings, indicating superior financial stability. However, Primerica has been criticised for its multi-level marketing structure, where agents are compensated based on their sales and the sales of those they recruit. The company offers a range of term life insurance options, including TermNow and Custom Advantage, with terms ranging from 10 to 35 years. While Primerica's life insurance products provide a death benefit to beneficiaries, they do not accumulate cash value, and thus cannot be used as a savings account.

Primerica's life insurance coverage

Primerica has been offering term life insurance since 1977, providing families with the coverage they need at an affordable price. The company believes that term insurance is the best option for most families, as it is a cost-effective way to "buy time" until one accumulates savings.

Primerica's life insurance companies offer term life insurance protection ranging from 10-year to 35-year level premium policies. Their "Buy Term and Invest the Difference" philosophy encourages clients to invest the difference in premium for future financial security.

Primerica's term life insurance, TermNow, can be customized to meet specific needs. It offers fixed premiums and guaranteed insurability up to 95 years of age. The policy does not build cash value but provides a death benefit to the beneficiaries if the insured passes away during the policy term.

Primerica's life insurance is available in all 50 states, Washington, D.C., Puerto Rico, and Guam, as well as in Canada. The company has over 130,000 independent, licensed representatives in North America and has been recognized for its financial strength and low complaint volume.

Pros and cons of Primerica life insurance

Primerica is a term life insurance provider, meaning its policies provide coverage for a specific period of time. The company offers policies with terms ranging from 10 to 35 years, with the longest terms only available to buyers aged 18 to 45. Primerica's term life insurance is designed to be affordable, allowing clients to purchase more coverage for less money compared to other types of life insurance. The company encourages clients to invest the money they save through its "Buy Term and Invest the Difference" philosophy.

Pros:

• Primerica has a low volume of customer complaints compared to other companies of a similar size, indicating good customer satisfaction.
• The company has strong financial backing and has been rated "Superior" by AM Best with an A+ rating, the highest rating in the insurance industry.
• Primerica offers a range of add-ons or riders to its policies, such as the waiver of premium rider, the terminal illness rider, and the increasing benefit rider.
• The company provides a complimentary "financial needs analysis" to help customers determine the appropriate amount of coverage.
• Primerica offers policies with no medical exam requirements, which can be issued quickly.

Cons:

• Primerica has a limited choice of life insurance options, only offering term life insurance policies.
• The company's rates are reportedly high, and agents with access to Primerica's rates claim that they are not competitive.
• There is a lack of information about the policies on the Primerica website, making it difficult for prospective customers to make informed decisions.
• Primerica uses a multilevel marketing structure for sales, with agents who are independent contractors rather than full-time employees. This means you may be pitched to by friends or family members, which can create extra pressure to buy.
• Primerica's policies do not have a term life conversion feature, which is common among other life insurance companies, allowing policyholders to convert term life to permanent life insurance.
• The company's customer service line is designed for existing policyholders, and prospective customers may find it challenging to get detailed information without contacting a local representative.

In summary, while Primerica has strong financial backing and a low volume of customer complaints, the company's limited policy options, high rates, and lack of transparency on its website may be drawbacks for some customers. Additionally, the use of a multilevel marketing structure for sales can create pressure to buy from friends or family members who are agents.

Primerica's customer satisfaction

On the positive side, Primerica has been recognised by reputable organisations for its customer service and satisfaction. For example, Primerica was ranked as the #1 Most Trusted Life Insurance Company by Investor's Business Daily in 2022, based on relationships built with clients, quality, customer service, and innovation. Similarly, Forbes recognised Primerica as one of America's Best Insurance Companies in 2022, based on an online survey of 16,000 respondents considering overall satisfaction and recommendations. Primerica has also maintained an A+ rating with the Better Business Bureau, indicating a commitment to high standards and best practices in customer service, sales, and ethics.

However, there have also been reports of dissatisfied customers, with some experiencing issues with account closures, refunds, and customer support. For example, a customer on ConsumerAffairs shared their experience of difficulty closing their account and obtaining a refund, describing the process as a "nightmare". Another customer reported issues with unexpected charges and difficulty cancelling their plan.

In terms of customer satisfaction ratings, Primerica scored 13 out of 22 companies in the 2022 US Individual Life Insurance Study, indicating poor customer satisfaction. Similarly, in the J.D. Power 2022 US Life Insurance Study, Primerica ranked 13 out of 22 companies, scoring 766 out of 1,000, which is below the industry average of 774. This suggests that overall customer satisfaction with Primerica is lower compared to other major life insurance providers.

Primerica's life insurance policies have received positive feedback for their affordability and ease of acquisition, particularly for older individuals. The company offers a range of term life insurance options, including TermNow and Custom Advantage, with coverage amounts up to $5 million and terms up to 35 years. Primerica also provides additional riders for increased coverage, such as the increasing benefit rider, terminal illness benefit, and waiver of premium.

In summary, while Primerica has received recognition and awards for its customer service and satisfaction, there are also reports of dissatisfied customers and low ratings in industry studies. It is important for individuals to carefully review the terms, conditions, and customer feedback before making any decisions regarding life insurance or other financial services.

Primerica's financial strength

In addition to its strong financial strength ratings, Primerica has also been recognized by several other organizations for its business excellence. The company was named the "#1 Most Trusted" financial company by Investor's Business Daily in 2022 and was included in Forbes' list of "America's Best Insurance Companies" in 2021 and 2022. Primerica was also recognized in Newsweek's "America's Greatest Workplaces" ranking in 2024, including specific accolades for diversity and women in the workplace.

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 term insurance is the best option for most families, contrary to the common misconception that life insurance is a permanent need.

Primerica's life insurance companies offer a range of term life insurance policies, from 10-year level premium policies to 35-year level premium policies. The company's recognition in the industry, including being ranked #2 in North America for term life insurance coverage in 2020, reflects its dedication to delivering term life insurance products to its clients.

The company's term life insurance is available exclusively through its agents and cannot be purchased online. Primerica's website provides a list of life insurance representatives by state and ZIP code, along with their contact information. While the website offers limited policy information, speaking with an agent allows for a personalized assessment of coverage needs and helps determine the appropriate term length and riders.

In summary, Primerica's term life insurance policies offer affordable protection, customization options, and strong financial backing. The company's unique approach encourages clients to invest the difference, promoting financial security beyond just insurance coverage.

Frequently asked questions