Primerica's Life Insurance: Serving Millions Of Clients

Primerica is a life insurance company that was founded in 1977 and is based in Duluth, Georgia. The company offers term life insurance to more than 5.7 million policyholders in the United States and Canada. Primerica does not disclose the exact number of clients it has, but it is one of the biggest sellers of term life insurance in the US. The company has a strong financial strength rating and has received an A+ rating from AM Best, indicating a superior ability to pay claims. Primerica also has a low volume of consumer complaints relative to its size. However, it has a low customer satisfaction rating and limited information about its policies is available online. Overall, Primerica is a reputable company with a large customer base, but its sales approach and lack of transparency may be turn-offs for some consumers.

Primerica's term life insurance products

Primerica has been offering term life insurance since 1977, providing families with affordable coverage. The company believes that term insurance is the best option for most families, as it is a tool to "buy time" until one accumulates savings. Primerica's term life insurance products include:

Custom Advantage

Custom Advantage is a term life insurance policy that requires a medical exam and has a minimum coverage amount of $150,000. The policy offers a guaranteed insurability option, allowing policyholders to renew without a new health exam until the age of 95. While the premium may increase due to age, the policy provides valuable protection for those who may develop health issues.

TermNow

TermNow is a no-medical-exam life insurance option, providing coverage of up to $300,000. This policy can be issued quickly, making it ideal for those seeking immediate coverage. However, TermNow premiums are typically higher than those of Custom Advantage.

• Increasing Benefit Rider: This rider allows policyholders to increase their coverage amount by up to 10% per year over a period of 10 years.
• Terminal Illness Rider: This rider provides access to a portion or the entirety of the death benefit if the insured is diagnosed with a qualifying terminal illness.
• Waiver of Premium Rider: If the insured becomes disabled and unable to work, this rider waives part of the life insurance premiums.
• Child Rider: This rider extends coverage to all eligible children in the policyholder's family.

Primerica's customer satisfaction ratings

Primerica has also received positive reviews from its customers, with many praising the affordability and ease of its services, as well as the helpfulness and knowledge of its representatives. The company's life insurance policies are also well-regarded, with customers highlighting the quick payout times and comprehensive coverage.

However, there are also some negative reviews, with some customers expressing dissatisfaction with Primerica's customer service and issues with refunds and account closures. There are also complaints about the company's recruitment strategies, with some former recruits feeling misled about the nature of the business and the fees involved.

Overall, while Primerica has received positive recognition and awards for its services, there is a mix of customer reviews, indicating that the company's customer satisfaction may vary depending on individual experiences.

Primerica's financial strength

Primerica has a strong market position, with over 130,000 life agents as of 2018, and a dedicated distribution affiliate, Primerica Financial Services, LLC. The company's experienced management team has successfully built and supported its large sales force. Primerica's financial strength is further demonstrated by its ability to pay out substantial amounts in life insurance benefits to clients' families, totalling over $1 billion annually, with an average of around $4 million paid out every day.

In addition to its superior financial strength rating, Primerica has also been recognised as the #1 Most Trusted Life Insurance Company by Investor's Business Daily in 2022. This recognition highlights the quality of its services, customer satisfaction, and innovation. Primerica has also been included in the Bloomberg Gender-Equality Index for its commitment to transparency, policy development, and representation in supporting gender equality. The company has received numerous other awards and accolades, reflecting its dedication to excellence and its strong reputation in the industry.

Primerica's sales approach

Primerica's sales representatives are independent contractors, and the company does not pay them a salary. Instead, agents earn commissions based on their sales and the sales of their downline. In 2017, Primerica disclosed that the average annual commissions for a North American agent were $6,030, including a 25% direct commission from selling policies and commissions from their downline. However, this amount is not considered a livable wage.

In summary, Primerica's sales approach relies on a multi-level marketing strategy that emphasises recruitment and leverages personal connections. While some agents have found success, others have criticised the lack of support and training provided by the company.

Primerica's policy purchase process

Firstly, it is important to note that Primerica only provides term life insurance and does not offer an online purchase option. Therefore, to purchase a Primerica life insurance policy, you must speak to one of their representatives. The company's website provides a list of life insurance representatives by state and ZIP code, along with their contact information. Their life insurance is available in all 50 states, Washington, D.C., Puerto Rico, Guam, and Canada.

When speaking to a representative, you will need to discuss factors such as pre-existing health conditions, whether a medical exam is required, the amount of death benefit needed, and which policy riders are most suitable.

Primerica offers a range of riders to customise coverage, including:

• Increasing benefit rider: The death benefit increases over time to account for inflation.
• Waiver of premium rider: This waives your life insurance premiums if you can no longer work due to disability.
• Terminal illness rider: This allows you to receive up to 70% of the face amount of the terminal illness benefit.
• Child rider: This covers all eligible children in the policyholder's family.

The cost of Primerica's life insurance policies will depend on various factors, including age, gender, location, and health condition. Additionally, the type of policy, the amount of coverage, and the addition of riders will impact the price.

After deciding on the specifics of the policy, the representative will assist in finalising the purchase process. It is important to note that Primerica's agents can also earn commissions based on the sales of those they recruit, so they may have an incentive to encourage friends and family to buy policies.

Frequently asked questions