Primerica life insurance review 2018 | finder.com

Primerica life insurance review

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Term life insurance policies sold through what might be an MLM model.

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 only sell you Primerica insurance, and not another brand, we suggest you shop around to make sure you’re getting the right policy for your needs.

Minimum coverage N/A
Terms available 10, 15, 20, 25, 30 or 35 years
Payment methods N/A
Medical exam required No medical exam for less than $300K coverage
Temporary underwriting coverage N/A

Pros

  • Strong financial stability.
  • Simple.
  • Educational.
  • Quick claims.

Cons

  • Appears to operate under a multilevel marketing structure.
  • Strict underwriting.
  • No permanent policies.
Primerica has been accredited by the Better Business Bureau (BBB) since 1990 and has an A+ rating. As of this writing, the reviews on the BBB website are a bit of a mixed bag: Of 17 total reviews, 10 are positive, one neutral and six are negative. However, there are 130 official consumer complaints, mostly regarding issues with policies and pushy sales tactics.

Primerica is considered financially stable, capable of fulfilling its debt obligations. It received an A+ rating from A.M. Best, which is the most relevant ratings agency in the insurance industry. If you file a claim, you can be confident that the company has the ability to pay.

A.M. Best A+

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What is Primerica known for?

While Primerica hasn’t been around as long as other insurance providers, it has 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 ones that aren’t licensed are Primerica’s trainees. But 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 allows for a more personal experience, it’s been scrutinized by industry professionals. There’s a conflict of interest between its limited products and commission-based multilevel marketing structure. Despite the controversy, this provider offers comprehensive term life insurance among other financial services.

Despite Primerica’s unconventional business model, millions of customers are satisfied with their term life policies.

Pros

  • Financial stability. Primerica is rated A+ from A.M. Best, the most trustworthy ratings agency for the insurance industry.
  • Simple. Because there’s only one type of insurance, deciding which plan you need is easy.
  • Educational. Primerica’s website offers a wide range of resources helping customers learn about personal finance.
  • Quick claims. Primerica is proud of its ability to pay claims quickly and states on its site that more than 94% of all claims are paid within two weeks.

Cons

  • Possible MLM. While all Primerica agents are licensed, the company is often accused online of being a multilevel marketing scheme. Shop around to find the right life insurance policy and rates for your situation.
  • Strict underwriting. The underwriting for term life insurance at Primerica is stricter than other providers. If you’re in poor health or have a pre-existing condition, you’re better off looking elsewhere.
  • No permanent policies. You can’t convert your term life policy to a permanent option. However, after your policy expires, you can renew your term policy without going through another medical exam. But choosing to forgo a medical exam does not mean that your premiums stay the same — they’ll likely increase unless you reduce your coverage.

Life insurance companies like Primerica

Name Product Issue Ages Minimum Coverage Maximum Coverage
21 - 54 years old
$50,000
$1,000,000
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
18 - 85 years old
$10,000
$10,000,000+
Compare quotes from 16 life insurance companies side by side.
Ethos
Ethos
18 - 75 years old
$25,000
$10,000,000
Term life insurance with no medical exams for $1 million of coverage or less. Online application gets you a decision in 10 minutes.
20 to 60 years old
$100,000
$8,000,000
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
18 - 80 years old
$50,000
$25,000,000
Get a quote within minutes from more than a dozen insurers.
JRC Life Insurance
JRC Life Insurance
20 - 80 years old
$25,000
$10,000,000
Quickly get a quote for coverage with this marketplace, which compares term life insurance policies from 45+ carriers.

Compare up to 4 providers

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.

Term life insurance

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.

Riders

  • Increasing benefit. Receive an increased death benefit if the insured dies by accident.
  • Terminal illness. Receive a payout of up to 70% of face value before you die to help cover related expenses.
  • 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 the best rates with Primerica?

Primerica offers two rate classes that reward nearly perfect health with the best rates — Preferred and Preferred Plus. But unlike its competitors, this provider doesn’t advertise how you can qualify for these rates.

To get the best 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

Primerica life insurance chart

How do I file a life insurance claim with Primerica?

Unfortunately, you can’t file a claim online with Primerica. Email the claims department at us_lifeclaims@primerica.com for more information, or call the claims office at 888-893-9858.

You may be able to access some claims documents by logging in to your online Primerica account.

What other services does Primerica offer?

Primerica specializes in annuity and life insurance products, but offers a wide range of others:

  • Mutual funds
  • Managed investments
  • Annuities
  • Business retirement plans
  • Auto and home insurance
  • Long-term-care plans
  • Legal and identity theft protection
  • DebtWatchers program

Bottom line

If you’re looking for term life insurance, you might find a better option elsewhere. Unless you’re signing up to help out a friend or family member selling Primerica products — which we don’t recommend — there’s nothing that stands out about this company. Prices are average for the coverage you receive.

As always, shop around for the right life insurance policy for your current situation before signing up with a provider.

Find a life insurance policy today

Use our magical comparison tool to find the best rates in your area.

Your information is secure.

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