Primerica life insurance review 2020
You can only get term life insurance policies sold through this broker's dubious MLM model.
Bottom line: Primerica’s agents sell basic term life with few riders or options. Because its sales model is reminiscent of an MLM, agents may not have your best interest at heart.
18 to 45
N/A to $400,000
No medical exam for less than $300K coverage
Medical Exam Required
|Monthly cost||Not listed|
|Term lengths||10, 15, 20, 25, 30 or 35 years|
|Riders||Accelerated death benefit rider, Accidental death benefit rider, Waiver-of-premium rider|
|Medical exam required||No medical exam for less than $300K coverage|
|Available states||All states|
|Issue age||Not listed|
- Strong financial stability.
- Offers educational resources.
- Quick claims.
- Appears to operate under MLM structure.
- Strict underwriting.
- No permanent policies.
Peter Carleton is a writer that covers banking and investing, breaking down what you need to know about where you put your money. When Peter's not thinking about cutting-edge banking apps and robo-advisors, he runs a creative agency and spends his spare time cooking or reading.
Established in 1977, Primerica has sold more than 5 million active life insurance policies. Operating on the mantra of maximum coverage for minimum cost, this insurer offers full-service term life insurance.
But Primerica operates under what appears to be a multilevel marketing business model, which allows anyone to become a full-service, licensed agent. These agents help you decide on your policy and options, and they’re paid commission on any sales. Because they can sell you Primerica insurance only — and not another brand — we suggest shopping around to make sure you get the right policy.
What life insurance coverage does Primerica offer?
Unlike most insurance providers of its size, Primerica sells term life insurance only. Operating on the principle of maximum coverage for minimum cost, the company encourages its customers to “buy term, invest the difference.” While it offers other financial services like mutual funds and annuities, you’ll need to look elsewhere for permanent life insurance policies.
Primerica doesn’t underwrite its own life insurance policies. Instead, it’s a broker whose policies are underwritten by a subsidiary, National Benefit Life Insurance Company. Because of this, its site offers limited details about coverage and options. You’ll need to call customer service at 800-257-4725 for details.
However, a few things are clear about its policies:
- Agents offer a financial-needs analysis to better understand your financial situation.
- Term life insurance is not convertible to a permanent policy.
- Policies are available in different term lengths and feature level premiums.
- If your policy expires, the renewable policy does not offer level premiums.
What riders can I get?
- Accidental death benefit rider. Your beneficiaries will receive an increased death benefit if you die in an accident, like a car accident.
- Accelerated death benefit rider. Access up to 70% of your death benefit if you’re diafnosed with a terminal illness.
- Waiver-of-premium rider. Waive your premium for a set time if you become terminally ill or are unable to work.
How can I get a low rate from Primerica?
Primerica offers two rate classes that reward nearly perfect health with the lowest rates — Preferred and Preferred Plus. But unlike its competitors, this provider doesn’t advertise how you can qualify for these rates.
To get the lowest rates, you typically must meet general health and lifestyle guidelines that include:
- No tobacco use in the past five years.
- A low-risk occupation.
- Height and weight guidelines.
- No diagnosis or treatment for a cardiovascular disorder, diabetes, cancer or any other substantial medical condition.
- No diagnosis or treatment for high blood pressure in the past five years.
- No parental death from cardiovascular illness or cancer prior to age 65.
- No flight as a pilot, student pilot or crew member of any aircraft other than commercial aircraft in the past three years.
- No engagement in any hazardous sports in the past three years.
- No more than three moving violations in the past three years and no DUI, DWI or license suspensions.
Primerica optimal height and weight chart
Compare life insurance ratesCompare quotes for life insurance policies starting at $15/month.
Is Primerica legit?
While Primerica hasn’t been around as long as other insurance providers, it’s made a name for itself in the past 40 years. Known for its alternative approach to selling policies, Primerica is the largest financial service marketing company in North America.
Its alternative structure allows independent contractors to become licensed insurance agents to sell its policies. The only agents that aren’t licensed are Primerica’s trainees. Still, the representative we spoke to did not divulge exactly what it means to be a trainee or how they get paid.
Although this business model may allow for a more personal experience, it’s scrutinized by industry professionals who cite the appearance of a conflict of interest between its limited products and commission-based multilevel marketing structure. Despite the controversy, this provider offers comprehensive term life insurance and other financial services.
Unless you’re signing up to help out a friend or family member selling Primerica products — which we don’t recommend — there’s little that stands out about this company.