Primerica Life Insurance: Is Cash Value A Feature?

Primerica is a multi-level marketing company that sells term life insurance. They are known for their buy term and invest the difference philosophy, which encourages customers to buy their term life insurance products and invest the difference in permanent life insurance. While Primerica is a legitimate company, their term life insurance rates are higher than those of many other companies. Additionally, their agents are often inexperienced and lack knowledge about life insurance and investing. Their policies also lack certain features, such as the option to convert to permanent coverage, which is offered by many other companies. Overall, while Primerica is not a scam, consumers can likely find better and more affordable options elsewhere.

Primerica's life insurance rates are higher than competitors

Primerica's life insurance rates are higher than their competitors. Primerica does not allow you to ask for quotes on its website, and they also don't allow independent life insurance agents or brokers to access their prices unless they are contracted directly with the company. This makes it difficult to compare their rates with other companies. If you want a quote for a term life insurance policy, you have to contact a Primerica representative directly.

Primerica's agents are captive, meaning they are dedicated to Primerica and cannot quote rates from multiple companies. Their inability to quote comparables makes it difficult for you to know if Primerica will give you a competitive rate for life insurance.

Primerica's "Term to 95" product, which most Primerica agents sell, is more expensive than similar products from competitors. For example, a 35-year-old smoker in the standard health class would pay an annual payment of $855, which is guaranteed until age 55. At age 55, the rates increase every five years until age 70, and then increase yearly after that. Compared to other companies, there are over 20 companies that offer lower rates for the same age, health class, and coverage amount. Many of these companies also include living benefits, which allow you to access the death benefit if you are diagnosed with a serious illness.

Primerica's rates are higher than their competitors, and their agents may not be able to provide you with the best advice or options for your needs. It is recommended to compare quotes from multiple companies before making a decision.

Primerica's agents are part-time and lack expertise

Primerica is a multi-level marketing company, which means its agents are primarily focused on recruiting new agents to sell Primerica products, rather than on selling the products themselves. This means that Primerica agents are often not experts in the products they are selling, and are more interested in getting new recruits to join their team.

Primerica agents are typically part-time and sell to friends and family, which is common in the world of life insurance. However, their focus on recruiting new agents means that they are not always qualified to give the best advice to their customers. Many Primerica agents have trouble passing the insurance exam, and the company has a high turnover rate, with a salesforce turnover rate of approximately 35% annually. This means that customers may not be getting the level of expertise and experience they would get from a full-time agent at another company.

Primerica agents are captive, meaning they are dedicated to Primerica and cannot quote rates from multiple companies. This means that customers may not be getting the most competitive rates, as Primerica agents are not able to shop around for the best deal. Primerica agents also only offer term life insurance, so they will not suggest permanent products even if these would be a better fit for the customer's needs.

Overall, while Primerica agents may be good people trying to protect families, their part-time status and lack of expertise may mean that customers are not getting the best possible service.

Primerica has a multi-level marketing structure

Primerica is a multi-level marketing company, or MLM. This means that Primerica agents are encouraged to recruit their customers to become agents themselves and sell Primerica products. Primerica is a legitimate company, but its multi-level marketing structure has been criticised for being like a pyramid scheme.

The company's focus is on recruiting new agents, rather than selling products. Agents are paid based on their level and the number of people in their team. The more people an agent recruits, the more money they make. Agents are also paid a commission on sales, but this is lower than at other organisations.

Some Primerica agents have said that the company does not require its new recruits to pay in, and that it is not illegal to be an MLM. However, others have said that the company is like a cult, and that they felt pressured to join. Some also said that they were misled about the benefits of signing up, and that they lost friends because of the job.

Primerica's agents are captive

Captive agents are those who work for only one life insurance organisation. They exclusively market and try to sell life insurance policies and other products from the insurer they represent. Primerica is a multi-level marketing (MLM) company, and its agents are captive.

The problem with captive agents is that they are limited to selling only one company's products and services. This means that they cannot present options from other insurers, which may be more comprehensive and affordable for current or prospective clients. Primerica agents are unable to sell or promote the fact that other policies may be a better fit for their customers.

Primerica agents are also incentivised to recruit customers to become agents themselves and sell for Primerica. This means that the agent who sells you a Primerica term life insurance policy will probably ask you to join their team so they can make money on the life insurance policies you sell. Once you are a part of the organisation, they will encourage you to do the same thing.

While Primerica is a legitimate company, its agents are more focused on recruiting than on providing expert advice. As such, it is recommended that customers do their due diligence before buying life insurance from Primerica.

Primerica's policies lack a conversion feature

Primerica's policies also lack living benefits, which are offered by many competitive term life insurance policies in the market. Living benefits allow you to access your death benefit if you are diagnosed with a critical illness, such as cancer, a heart attack, or a stroke, among other triggers. This benefit is becoming increasingly popular in the term life insurance market, as it provides valuable financial support during critical illnesses without costing much more than traditional term life insurance.

The absence of these two core features in Primerica's policies is a significant drawback, as they offer valuable flexibility and protection to policyholders. It is recommended that you carefully consider your needs and compare Primerica's offerings with other companies in the market to ensure you are getting the best value for your money.

Frequently asked questions