Primerica Life Insurance: Is It Worth The Price?

Primerica Life Insurance Company is a strong option for individuals seeking term life insurance, with policies ranging from 10 to 35 years. The company has received high financial strength ratings, indicating superior financial stability and a high likelihood of being able to pay out claims. However, Primerica has been criticised for its sales tactics and lack of transparency, with limited information available on its website.

Primerica's financial strength rating

Primerica has received an A+ (Superior) financial strength rating from AM Best, indicating that the company has a superior ability to pay claims and meet its financial obligations. This is the second-highest rating possible, with A++ being the highest. An A+ rating is considered exceptional and indicates that Primerica has strong financial stability.

In addition to its financial strength rating, Primerica also has a low volume of consumer complaints relative to its size, according to the National Association of Insurance Commissioners (NAIC). The company's complaint index was 0.28 in 2022, which is lower than the expected 1.00, indicating fewer complaints than expected.

While Primerica's financial strength rating is a positive indicator, it is important to consider other factors as well, such as the company's products, services, and customer satisfaction ratings, to get a comprehensive understanding of their offerings.

Primerica's customer satisfaction rating

Primerica's sales and recruitment practices have been criticised, with the company's agents encouraged to sell policies to friends and family and recruit them as new agents. Many agents are inexperienced, and customers have complained about the company's sales tactics and processes. Primerica's website also lacks transparency, with limited information available about term lengths, coverage limits, and riders.

However, Primerica's complaint level for individual life insurance is very low, indicating good customer satisfaction. The company's financial strength rating from AM Best is also high, indicating a superior ability to pay claims.

Primerica's term life insurance policies

Primerica has specialised in term life insurance since 1977. The company offers a range of term life insurance policies, including its TermNow and Custom Advantage policies, with terms ranging from 10 to 35 years.

• Guaranteed insurability up to the age of 95, allowing policyholders to renew their policies without a new health exam.
• A wide range of riders, including the increasing benefit rider, waiver of premium rider, terminal illness rider, and child rider, providing customisation options to meet specific needs.
• No medical exam requirement for some policies, such as the TermNow policy for coverage up to $300,000.

However, it's important to note that Primerica's term life insurance policies also have some limitations. The company's rates are reportedly higher than average, and there is no option to purchase a policy online. Additionally, Primerica does not offer permanent life insurance policies such as whole life or universal life insurance.

Primerica's sales and recruitment practices

Primerica has been criticised for its sales and recruitment practices, which have been described as multilevel marketing (MLM). Primerica agents are captive, meaning they are not allowed to represent other insurers. Agents are encouraged to sell policies to their friends and family and recruit them as new agents. The recruiting agent then receives a portion of the commission from each sale made by their recruits.

Many agents receive poor ratings because they lack experience with life insurance. Primerica's agents are independent contractors, not employees, and critics argue that life insurance buyers are better off working with a full-time agent who is familiar with a range of products and companies.

Primerica's website also falls short when it comes to policy details, with limited information available. This lack of transparency makes it difficult for consumers to make informed decisions about their purchases.

Primerica's claims process

The claimant will need to submit a claim form, along with the following documents:

• A certified death certificate
• A copy of the beneficiaries' state or federal-issued identification
• Any other requested documents

The claim form and requested documentation should be submitted to the Primerica Claims Department by mail or fax. The mailing address is:

Primerica Life Insurance Company

Attn: Claims Department

Executive Office: 1 Primerica Parkway

Duluth, GA 30099-0001

The fax number is: (470) 564-7662.

Once the claims process is started, a claims specialist will assist the claimant throughout, informing them of any additional information that is required.

Primerica states that 91% to 94% of claims are paid within 14 days.

Frequently asked questions