About The Company
Primerica started in 1977 so they have a history behind them which is an important factor to consider as you want a financially stable company that will still be solvent when you pass.
They are known for their slogan ‘buy term and invest the rest’ because they believe permanent life insurance is too expensive and not worth it.
They focus only on term life insurance and help clients secure a death benefit to protect their loved ones while encouraging them to invest the money they’d save by not buying a permanent life insurance policy.
Primerica offers a variety of other investment vehicles as well.
Multi-Level Marketing
Primerica’s business structure is different from most insurance companies.
Besides being a legitimate insurance company, they are also a multi-level marketing company. They want their customers to be agents, and for those agents to recruit more agents.
Your ‘agent’ might be a family member or a friend rather than a licensed agent but they will earn a commission when you purchase a policy, which gives them an incentive to convince you.
Pros & Cons
Pros:
Primerica is a financially stable company
Primerica’s A+ superior A.M. Best rating speaks for itself.
They pay their benefits and there isn’t any evidence of unpaid claims in their 40+ years of service.
There’s an option for no medical exam
The premiums are higher, but that’s the case with any insurance company.
If you have any health issues that prevent you from securing insurance from another company, this provides a good alternative.
Primerica offers a large number of riders
The riders they offer help make your policy more effective, they have many riders that are unique to them, including one that allows you to add insurance for your children.
Primerica offers a wide selection of terms
They have 10, 15, 20, 25, and 35-year terms.
Cons:
Can’t convert the policy
You can’t convert the policies to a permanent policy, but the premiums are comparable to most whole life policies. If you renew, your premiums increase each year.
Untrained agents
You buy the policy from an untrained ‘agent,’ usually a family member or friend.
You may not get the full benefit of working with a true agent who can point you in the right direction based on your financial needs.
No-exam policy is expensive
You may have a hard time getting approved for the ‘standard’ policy with underwriting if you have any health issues and the no-exam policy is expensive.
Term Life Insurance
Primerica only offers term life insurance, they have no permanent insurance options.
You buy a policy for a specific term between 10 and 35 years with two options, Term Now and Custom Advantage.
The term you purchase depends on your age:
- 10-year terms are available up to 70 years old
- 15-year terms are available up to 65 years old
- 20-year terms are available up to 60 years old
- 25-year terms are available up to 55 years old
- 30-year terms are available up to 50 years old
- 35-year terms are available up to 55 years old
If you choose a policy longer than 20 years, your premiums are fixed only for the first 20 years, they then increase annually based on your age.
So your already high premium increases after 20 years.
Term Now Policies
Term Now is the equivalent of a no-medical-exam life insurance policy.
You choose a term between 10 and 35 years but get only up to $300,000 coverage. Primerica protects themselves by limiting payouts and increasing the premiums.
Rather than a medical exam, Primerica looks at your Medical Information Bureau and DMV records. If you pass, they’ll start coverage immediately.
Custom Advantage Policies
Custom Advantage is a fully underwritten policy with terms between 10 and 35 years, but with no coverage limit (more than $1 million is possible).
Coverage doesn’t start right away (it may take up to 6 weeks), and you undergo a medical exam, which takes less than an hour and is a check of your vitals and overall health.
Not surprisingly, premiums on Custom Advantage are much lower than Term Now because Primerica knows the risk you pose.
Riders
Like most companies, Primerica has a few rider options:
Increasing benefit rider
You may increase your death benefit up to 10 percent for the first 10 years or up until age 55, whichever happens first.
Waiver of premium
If you become disabled or chronically ill, you may waive your premiums, but keep coverage. This is dependent on approval from Primerica.
Guaranteed insurability
All term life insurance holders may renew their policies up to age 95 with no medical exam. The premiums increase based on age alone.
Child rider
You may add coverage for your children at a flat rate and equal coverage for each child (for example $25,000 per child at one flat premium).
If your children still have the policy at age 25, they may convert it to their own policy at 5 times the death benefit amount with no medical exam.
Costs
As assumed, Primerica’s premiums are higher than most other companies by as much as 29 percent.
Most multi-level marketing companies charge higher prices to cover the agents’ commissions while making the company a profit.
Primerica has a minimum monthly premium of $15 for any age bracket, gender, or health condition.
For example, a 35-year old male pays $15.96 per month for $150,000 coverage over 10 years and $240 a month for $500,000 in coverage for 10 years.
What Customers Say
Despite its unique structure, Primerica has an A+ A.M. Best rating, and customers say they payout within 14-days of a claim almost 95 percent of the time.
Many people love the unique option they have to increase coverage during the first 10 years of the policy as most companies only offer the ability to decrease, not increase. This benefit sets Primerica apart from others.
However, some customers complain about their sales tactics. Especially because buying the policy from someone who isn’t an actual agent means that you have to do more research before you buy.
Common Questions
Is Primerica legit?
While it has a different business model than most life insurance companies, Primerica is legit.
They are a publicly-traded company, have an A+ BBB rating, and have more than 130,000 independent agents throughout the country.
How can you cancel a policy?
If you no longer want your Primerica policy you can call customer service and let them know you want to cancel.
You’ll need your 10 digit policy number and personal identifying information to proceed, but anyone can cancel their policy at any time.
Do they require a medical exam?
Primerica has two policies. The Custom Advantage policy does require underwriting and a medical exam.
The Term Now policy doesn’t require a medical exam, but it has higher premiums and lower coverage amounts, with a maximum of $300,000.
Is whole life insurance available?
Primerica only sells term life insurance – they do not sell whole life policies.
They do, however, sell mutual funds, annuities, and managed investments to help clients prepare for retirement and/or leaving a legacy for their loved ones.
Does Primerica offer living benefits?
Yes, Primerica offers early payouts should you get diagnosed with a terminal illness and need financial support to cover the treatments and medical costs.
Can you get an online quote for Primerica premiums?
No, the only way to get a quote for Primerica insurance is to engage with an agent.
If you’re looking to shop around and get estimated quotes before talking with an agent, you won’t find it at Primerica.
Should You Choose Primerica?
Primerica is a unique life insurance company that doesn’t offer any products you can’t find elsewhere.
However, if you have medical issues and want a no-exam policy or you want to buy a policy from a financially secure company, Primerica is a suitable option.
Just make sure you shop around to compare the premiums as they are often as much as 29 percent higher than the average premiums available.
Reviewed by Adam Binstock On August 4, 2020
