Primerica Whole Life Insurance: Is It Worth The Investment?

Primerica is a life insurance company that offers term life insurance products, including its TermNow and Custom Advantage policies. However, Primerica does not offer whole life insurance or universal life insurance policies, which are permanent life insurance options. Instead, the company follows the philosophy of buy term and invest the difference, encouraging clients to invest the difference in premium costs for greater future returns. While Primerica's term life insurance provides coverage for a specific period, whole life insurance offers lifelong protection and often includes a savings component, accruing cash value over time.

Primerica's term life insurance products

Primerica offers term life insurance products with terms ranging from 10 to 35 years. The company encourages clients to purchase more coverage for less money upfront and invest the difference for the future.

Primerica also offers several riders, or add-ons, to its term life insurance products, including:

• Increasing benefit rider: The death benefit increases over time to account for inflation.
• Waiver of premium rider: The insurance company waives your premiums if you can no longer work.
• Terminal illness rider: Receive up to 70% of the face amount of the terminal illness benefit.
• Child rider: Covers all eligible children in your family.

Primerica's term life insurance is available in all 50 states, Washington, D.C., Puerto Rico, and Guam, as well as Canada. The company has a large network of local agents, but there is no online purchase option. Primerica's term life insurance costs are higher than average, and the company has been criticised for its sales tactics and lack of transparency.

Primerica's financial strength

Furthermore, Primerica has received recognition from various organisations for its financial services. The company has been named the "#1 Most Trusted" by Investor's Business Daily and has been included in Forbes' list of "America's Best Insurance Companies." Primerica was also recognised in Newsweek's "America's Greatest Workplaces" ranking in 2024, which is based on employee satisfaction measures such as competitive salaries, benefits, commitment to equality and diversity, and company culture.

In summary, Primerica's financial strength is reflected in its superior ratings from A.M. Best, its position as a leading provider of term life insurance in the United States, its ability to meet financial obligations, and its recognition from reputable organisations for its financial services.

Primerica's sales tactics

The company's sales process has been described as "hype and rah rah" by a former national training director, David Stephenson. Stephenson suggests that the focus of the training is on recruiting people rather than on making sales and building a client base. This is achieved through motivational sales productions laced with Biblical imagery and hyperbole.

Primerica's sales agents are captive, meaning they can only sell Primerica products and those of companies with which it has distribution agreements. This restriction has been criticized as limiting consumer choice and preventing agents from providing unbiased advice. The company's rejection of credible professional designations and reliance on in-house training have also been cited as concerns.

Overall, while Primerica's sales tactics have been successful in generating business and building a large distribution network, they have also drawn criticism for their aggressive nature, potential conflicts of interest, and limited product offerings.

Primerica's customer satisfaction

On the positive side, Primerica was recognized as the #1 Most Trusted Life Insurance Company by Investor's Business Daily in 2022. This award was based on the relationships its licensed representatives build with clients, as well as the quality, customer service, and innovation offered. Forbes also recognized Primerica as one of America's Best Insurance Companies in 2022, based on an online survey of 16,000 respondents considering overall satisfaction and recommendations. Primerica has also maintained an A+ rating with the Better Business Bureau (BBB), indicating a commitment to high standards and best practices in customer service, sales, advertising, data privacy, and ethics.

However, there are also negative reviews and complaints from customers. Primerica's sales and recruitment practices have been criticized, with agents encouraged to sell policies to friends and family and recruit them as new agents. Many agents are also inexperienced, leading to poor ratings. There are also complaints about the company's customer service, with reports of difficulty cancelling policies and issues with slow payouts.

Primerica's claims process

Primerica states that 91% to 94% of claims are paid within 14 days, and the process typically takes around two weeks once all the required documents are received. If the policy is over two years old, it is considered incontestable and will be processed promptly. However, if it is less than two years old, it is considered contestable, and additional information may be required, including a beneficiary interview, a signed medical authorization form from the next of kin, a tobacco use affidavit, and medical or driving records.

If the insured person passes away within the first two years of coverage, additional information may be necessary, such as a Foreign Death Questionnaire. In the case of a beneficiary under the age of 18, a person empowered to act on their behalf must sign the claim form and provide supporting documents, including a letter of financial guardianship.

It is important to note that Primerica representatives are not financial, estate, or tax advisors, and individuals should consult appropriately licensed professionals for such advice.

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