Primerica's Permanent Life Insurance: What You Need To Know

Primerica is a life insurance company that offers term life insurance, which provides coverage for a specific period of time or term of years. The company was founded in 1977 and has since offered affordable term life insurance to families, giving them the coverage they need at a price they can afford. However, Primerica does not offer permanent life insurance options such as whole life insurance or universal life insurance. Instead, it encourages clients to invest the difference between the cost of permanent and term life insurance for the future.

Primerica's term life insurance products

Primerica has offered 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, and that life insurance is a way to "buy time" until you accumulate savings, rather than a permanent need.

TermNow is available in term lengths of 10, 15, 20, 25, 30, and 35 years, but older buyers won't qualify for the longest lengths. For example, the 35-year term policy is only available to buyers aged 18 to 45. After the level term period ends, Primerica policyholders can continue to renew their insurance until age 95, with rates increasing at each renewal.

• Increasing benefit rider: The death benefit increases over time to account for inflation.
• Waiver of premium rider: The premiums are waived 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: Covers all eligible children in the policyholder's family.

Primerica's financial strength and industry ratings

Primerica has received high ratings from AM Best, a global credit rating agency specializing in assessing insurance companies. In 2020, AM Best affirmed the Financial Strength Rating of A+ (Superior) for Primerica Life Insurance Company and its affiliates, National Benefit Life Insurance Company and Primerica Life Insurance Company of Canada. This rating indicates Primerica's strong balance sheet, very strong operating performance, favorable business profile, and appropriate enterprise risk management.

Primerica's financial strength is further reflected in its ability to pay out over a billion dollars in life insurance benefits to clients' families annually. In 2020, the company paid out $1.7 billion in benefits, with an average payout of around $4 million every day.

Primerica's ratings by AM Best also acknowledge the company's status as one of the largest writers of term life insurance in the United States. This position is attributed to its dedicated distribution affiliate, Primerica Financial Services, LLC, which has a vast network of life agents and mutual fund-licensed representatives across the country.

Primerica's financial strength and stability are further evidenced by its ability to maintain strong liquidity, positive financial flexibility, solid financial leverage, and interest coverage ratios that meet AM Best's guidelines for superior ratings. The company's financial performance has been consistent with AM Best's expectations, generating solid levels of net income and successful sales pivoting during the COVID-19 pandemic.

Primerica's financial strength rating by AM Best is the highest rating in the insurance industry, indicating superior financial stability and the company's ability to meet its insurance obligations.

Primerica's customer complaints and satisfaction

Primerica has been the subject of numerous customer complaints, with some common issues including:

• Difficulty cancelling policies and receiving refunds, with customers reporting being given the run-around and not receiving timely responses.
• Misrepresentation of policies and fraudulent practices, with some customers alleging they were signed up for incorrect policies or misled about the terms of their insurance.
• Issues with unauthorized charges and unexpected fees, including recruitment fees and subscription services.
• Poor customer service, with long wait times and a lack of responsiveness from representatives.
• Concerns about the company's recruitment structure, with allegations that it resembles a multi-level marketing scheme.
• Lack of transparency and limited information available on the website, making it difficult for customers to make informed decisions.

However, it is important to note that Primerica has responded to some of these complaints and taken steps to resolve them. Additionally, the company has a low level of complaints for individual life insurance, indicating overall customer satisfaction in this area.

Primerica offers term life insurance and has been in the industry for over 40 years. The company provides coverage until the age of 95 and offers policies without a medical exam. Primerica has received a superior financial strength rating and is known for its affordable prices.

Primerica's sales approach and agent structure

Primerica's sales approach is multi-level marketing (MLM)-oriented. The company encourages new recruits to bring in friends, family, and co-workers into their downline, creating a passive income stream through commissions on sales made by their recruits. This approach has been criticised for its emphasis on recruitment over skill development, potentially leading to a lack of expertise in insurance sales.

Primerica's agent structure consists of independent contractors who are not salaried employees. They are licensed representatives, who obtain required state and/or federal financial licenses to offer Primerica's products and services. These representatives are supported by corporate employees and have the freedom to set their own schedules and work at their own pace. The company provides training, marketing, sales tools, and business management systems to its representatives, who can focus on building their independent financial services businesses.

Primerica's policy application process

Primerica offers a range of term life insurance options with custom term lengths available, from 10 to 35 years. The company's TermNow policy does not require a medical exam and can be issued quickly, with coverage available up to $300,000. On the other hand, the Custom Advantage policy requires a life insurance medical exam and has a minimum coverage amount of $150,000.

Primerica's life insurance policies can be customized with several riders, including:

• Increasing benefit rider: This rider lets you increase your coverage amount by up to 10% per year over 10 years.
• 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: With this rider, the life insurance company will waive part of your premiums if you become disabled and can’t work.
• Child rider: With this rider, all eligible children in your family are covered by the policy.

Primerica's life insurance products are available in all 50 states, Washington, D.C., Puerto Rico, and Guam, as well as in Canada.

Frequently asked questions