Primerica's Term Life Insurance: Loan Options Explored

Primerica is a life insurance company that offers term life insurance policies, which provide coverage for a specific period of time or term of years. Unlike whole or universal life insurance policies, term life insurance does not accrue cash value and thus cannot be borrowed against. Primerica's term life insurance policies are available in a range of term lengths, from 10 to 35 years, and can be customized with various riders to meet specific needs. While Primerica's term life insurance policies do not offer the ability to borrow, the company does provide other financial products and services, such as auto and homeowners insurance, investment accounts, and identity theft protection.

Primerica's term life insurance policy options

Primerica has been offering term life insurance since 1977, providing coverage for families at an affordable price. The company believes that term insurance is the best option for most families, as it is a way to "buy time" until savings are accumulated, rather than a permanent feature of a financial program.

Primerica's term life insurance options include:

TermNow

The TermNow policy does not require a medical exam and can be issued quickly. Coverage is available up to $300,000, and the policy has three separate plans: select, nicotine, and non-nicotine. This policy uses a rapid data check to speed up the process of getting insured.

Custom Advantage

Custom Advantage applicants must undergo a traditional underwriting process but can qualify for up to $5 million or more in coverage. The minimum face amount varies by age, starting at $50,000 for older applicants and $150,000 for younger applicants.

Primerica also offers a range of riders to add to its term life insurance policies, allowing customers to customize their coverage:

Increasing Benefit Rider

This rider increases the death benefit over time to account for inflation.

Waiver of Premium Rider

This rider waives life insurance premiums if the policyholder can no longer work.

Terminal Illness Rider

This rider provides the policyholder with 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 term life insurance policies are available for a range of terms, from 10 to 35 years. The company also offers a complimentary "financial needs analysis" to help customers determine how much life insurance they need.

Primerica's term life insurance riders

Primerica's term life insurance policies can be customized with several riders. Primerica's riders include:

Child Rider

With this rider, all eligible children in the family are covered by the policy.

Increasing Benefit Rider

This rider allows you to increase your coverage amount by up to 10% per year over 10 years. This is a rare add-on, as most insurers only offer "decreasing" benefits due to the tendency for financial obligations to decrease with age.

Terminal Illness Rider

This rider gives you access to some or all of your death benefit if you are diagnosed with a qualifying terminal illness.

Waiver of Premium Rider

If you become unable to work, this rider waives your life insurance premiums.

Primerica's riders allow you to customize your term life insurance policy to meet your specific needs. However, keep in mind that adding riders will increase the price of your policy.

Primerica's customer complaints and satisfaction

Primerica has received a mix of positive and negative feedback from its customers. The company has an average consumer rating of 3 stars out of 5 on ConsumerAffairs, with 54% of 537 reviews being positive. On the Better Business Bureau (BBB) website, Primerica has received 225 total complaints in the last 3 years, with 99 closed in the last 12 months.

Positive reviews for Primerica mention affordable and easy-to-understand term life insurance policies, helpful representatives, and quick payouts for beneficiaries. Some customers also appreciate the company's financial planning services and investment opportunities.

However, there are also numerous complaints and negative reviews, with common issues including difficulty cancelling policies and receiving refunds, unauthorized charges, misleading information, and poor customer service. Some customers have also expressed concerns about the company's recruitment practices, alleging that they were misled about the nature of the job and pressured to make payments during the hiring process.

It is worth noting that Primerica's life insurance policies have received an A+ (Superior) financial strength rating from AM Best, indicating that the company has a strong ability to meet its ongoing insurance policy and contract obligations.

Primerica's customer experience

On the other hand, Primerica's sales approach may not appeal to everyone. The company uses a multilevel marketing structure, where agents are independent contractors who make commissions based on their sales and the sales of those they recruit. This structure may result in friends or family members pitching the products, creating extra pressure to buy. The company's website also offers limited information, making it challenging for prospective customers to make informed decisions about their options and pricing.

Primerica's customer service is accessible via phone and email. They have a customer service line for policy inquiries, changes, or cancellations, and a separate line for filing claims. However, the website lacks a live chat function, and the customer service line is primarily designed for existing policyholders. Prospective customers seeking information are directed to contact local representatives.

Primerica also offers a mobile app, MyPrimerica, which allows customers to manage their policies, make payments, change beneficiaries, and access policy documents and representative contact information.

Overall, while Primerica has strong financial backing and a low complaint volume, its sales approach and limited website transparency may impact the customer experience.

Primerica's financial strength

Primerica's A+ rating reflects its balance sheet strength, very strong operating performance, favourable business profile, and appropriate enterprise risk management. Primerica Life Insurance Company is one of the largest writers of term life insurance in the United States, with a strong market position attributable to its dedicated distribution affiliate, Primerica Financial Services, LLC. This integrated distribution and operating platform included over 130,000 life agents at the end of 2018.

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