Alyssa Lane
Primerica, founded in 1977, is one of the biggest sellers of term life insurance in the US. It sells two types of term life insurance policies: Custom Advantage and TermNow. The company does not offer permanent policies such as whole life insurance or universal life insurance. Primerica's term life insurance policies are available in most states for a period of 10, 15, 20, 25, 30 or 35 years, with the maximum term length being 35 years. The company also offers a range of add-ons, such as the waiver of premium rider, terminal illness rider, and child rider.
| Characteristics | Values |
|---|---|
| Type of insurance | Term life insurance |
| Term length | 10, 15, 20, 25, 30 or 35 years |
| Maximum term length | 35 years |
| Minimum coverage amount | $15,000 to $250,000 (ages 18 to 45) |
| $15,000 to $200,000 (ages 46-50) | |
| $15,000 to $10 million (age 51+) | |
| Maximum coverage amount | Unlimited |
| Riders | Waiver of premium rider, terminal illness rider, child rider, freedom accumulation benefit rider, increasing benefit rider |
| Add-ons | Waiver of premium rider, which pauses your premiums if you become disabled and can't work |
| Availability | All 50 states, Washington, D.C., Puerto Rico, Guam, Canada |
| Customer satisfaction ranking | Ranked No. 20 out of 21 companies for customer satisfaction in J.D. Power's 2024 U.S. Individual Life Insurance Study |
| National Association of Insurance Commissioners’ Complaint Index Report shows Primerica as having a lower rate of customer complaints than the industry average in 2021 | |
| Consumer Affairs rating: 2.9 stars out of five | |
| NerdWallet rating: 3.5 stars out of 5 for overall performance |
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What You'll Learn
Primerica sells term life insurance
Primerica offers two term life policies: Custom Advantage and TermNow. Custom Advantage requires a health interview and medical exam, with death benefits ranging from $150,000 to $400,000. The terms available are 10, 15, 20, 25, 30, or 35 years. On the other hand, TermNow policies do not require a medical exam and can be issued quickly, with coverage available up to $300,000. Due to the lack of a medical exam, TermNow policies typically have higher rates than Custom Advantage policies.
Primerica's term life insurance policies are available in most states for terms of 10, 15, 20, 25, 30, or 35 years. The maximum term length is 35 years, and the policies are available to policyholders up to the age of 95. Primerica's policies are unique in that they offer terms of more than 30 years, which is not commonly offered by other insurers. The company also offers a complimentary "financial needs analysis" to help customers determine the appropriate amount of life insurance for their needs.
Primerica's term life insurance provides coverage until age 95, as long as the policyholder maintains their premiums. The company's Buy Term and Invest the Difference philosophy encourages clients to invest the difference in premium for future financial security. Primerica's term life insurance is underwritten by the National Benefit Life Insurance Company, with executive offices in Long Island City, New York.
Primerica's website may be confusing for visitors seeking life insurance, as the homepage emphasizes a "financial education guide" rather than providing direct links to insurance products. The company also does not provide online quotes or transparent rates, requiring interested individuals to contact a representative for policy details and pricing information.
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It does not sell whole or universal life insurance
Primerica is one of the biggest sellers of term life insurance in the US. It offers two types of term life insurance policies: Custom Advantage and TermNow. Custom Advantage requires a health interview and medical exam, with death benefits ranging from $150,000 to $400,000, and terms available from 10 to 35 years. On the other hand, TermNow does not require a medical exam and can provide coverage of up to $300,000.
Primerica does not sell whole or universal life insurance policies. Whole life insurance typically includes dividends and a cash value component, which allows policyholders to borrow against the policy. In contrast, term life insurance does not include these features and only provides coverage for a specific number of years, after which the policy expires. As a result, term life insurance is generally more affordable than whole or universal life insurance, which lasts until the policyholder's death as long as premiums are paid.
Primerica's "Buy Term and Invest the Difference" philosophy encourages clients to invest the difference in premium costs between term and permanent life insurance options for the future. Term life insurance is often seen by financial experts as a temporary tool to provide coverage until individuals accumulate sufficient savings. It is important to note that Primerica's term life insurance policies do not have a term life conversion feature, which is common among other life insurance companies and allows policyholders to convert their term life policies into permanent life insurance policies.
Primerica's website may be confusing for visitors seeking detailed information about its life insurance offerings. While the site emphasizes a financial education guide, finding specific details about Primerica's policies, such as available riders and premium amounts, can be challenging. Therefore, those seeking whole or universal life insurance coverage will need to look beyond Primerica.
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Primerica uses multilevel marketing for sales
Primerica is one of the biggest sellers of term life insurance in the U.S. and claims to be the leading provider. It also offers additional financial products outside of the realm of life insurance. Primerica's life insurance companies offer affordable term life insurance protection ranging from a 10-year level premium policy to a 35-year level premium policy. The company's ""Buy Term and Invest the Difference" philosophy encourages clients to invest the difference in premium from other types of life insurance.
Primerica uses a multilevel marketing structure for sales, also known as MLM. Its agents are not employees but independent contractors. Primerica recruits people to sell its policies, encouraging them to start by selling to family members, friends, and coworkers, and to join the business. Primerica agents make money based on their sales and the sales of agents they recruit. Primerica's agent material promotes the idea that agents could have other full-time jobs and sell Primerica products for extra part-time income.
Primerica's website may be confusing for visitors seeking life insurance. The homepage emphasizes a "financial education guide", and the term life insurance page outlines basics but provides few specifics about the company's policies. While Primerica has a low volume of complaints compared to similar-sized companies, its sales approach may not be for everyone. The company's website falls short when it comes to policy details, and its sales tactics may be off-putting to some consumers.
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The company has a low volume of complaints
Primerica is one of the biggest sellers of term life insurance in the U.S. and offers a range of add-ons, such as a waiver of premium rider that pauses your premiums if you become disabled and can't work. The company also provides a complimentary "financial needs analysis" to help its customers determine how much life insurance to buy. Despite this, Primerica's website falls short when it comes to policy details, and its sales tactics may turn off some consumers.
However, one of the standout features of Primerica is its low volume of complaints compared to companies of a similar size. The company is financially stable and draws relatively few consumer complaints. This is reflected in its strong ratings from reputable sources. For instance, Primerica was ranked No. 1 Most Trusted Life Insurance Company in 2022 by Investor's Business Daily. Additionally, the company paid out $1.7 billion in life insurance benefits in 2020 alone and pays an average of $4 million in benefits every day, with over 90% of claims filled within 14 days.
Primerica's low complaint volume can be attributed to several factors. Firstly, the company offers a unique 35-year term life insurance option, which is not commonly available from other insurers. This extended term length provides customers with added flexibility and peace of mind. Secondly, Primerica's term life insurance policies are known for their affordability, especially when compared to whole or universal life insurance. The company's "Buy Term and Invest the Difference" philosophy encourages clients to invest the savings from their lower premiums for the future. This approach can be particularly attractive to those seeking cost-effective coverage.
Furthermore, Primerica's term life insurance policies are designed to be straightforward and easy to understand. The company utilizes advanced technology to provide underwriting decisions and actual rates in real time. Additionally, its policies are written in plain language, ensuring that customers can easily comprehend the terms and conditions. This clarity can help reduce misunderstandings and disputes.
While Primerica's low volume of complaints is notable, it is important to consider that the company's customer service and satisfaction ratings are mixed. J.D. Power ranked Primerica below the industry average for overall customer satisfaction in its 2021 U.S. Individual Life Insurance Study, and the company's Consumer Affairs rating is relatively low at 2.9 stars out of five. However, despite these mixed reviews, Primerica's low complaint volume indicates that customers generally have fewer issues or grievances with the company compared to similar organizations in the industry.
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Primerica offers two term life insurance policies
Primerica is one of the biggest sellers of term life insurance in the US. It offers two term life insurance policies: Custom Advantage and TermNow. The company does not offer permanent policies, such as whole life insurance or universal life insurance.
Custom Advantage is a term life insurance policy that requires a health interview and a medical exam. Death benefits range from $150,000 to $400,000, and terms are available in 10, 15, 20, 25, 30 or 35 years. Most life insurance companies do not offer terms of more than 30 years, so Primerica's 35-year option is unique and may appeal to some customers.
TermNow policies do not require a medical exam and can be issued quickly. Coverage is available up to $300,000. As TermNow is a no-exam life insurance policy, customers can expect rates to be higher than a Custom Advantage policy.
Primerica's term life insurance policies are available in all 50 states, plus Washington, D.C., Puerto Rico, Guam and Canada. The company does not provide online quotes for its life insurance policies, so customers will need to contact a company representative to get information about pricing.
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Frequently asked questions
Primerica sells term life insurance. This type of insurance provides coverage for a specific period of time, or "term" of years. After the term period ends, the policy expires and coverage ends.
Primerica's term life insurance offers coverage for a longer period than most other insurers. It also has generous age limits and no-exam options. The company also offers a complimentary "financial needs analysis" to help customers determine how much life insurance to buy.
Primerica does not offer permanent life insurance options, such as whole life insurance or universal life insurance. The company's website also falls short when it comes to policy details, and its sales approach may not be for everyone.
