Primerica Life Insurance Review
Life insurance with smart money management ideas
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Primerica Life Insurance, founded in 1977, is a life insurance company that only sells term life insurance. In our Primerica Life review, we look at things like the coverage Primerica offers as well as riders, pricing, and ratings for customer satisfaction and financial stability. The company is known for encouraging customers to buy term life insurance and invest the money they save by not investing in permanent coverage.
Read the full review to see if a Primerica Life policy is the right choice for your family.
What We Like
Large network of local licensed agents
The company follows up on any customer complaints
Multiple riders available to help provide flexible coverage
Cancel your policy whenever you want
What We Don't Like
Coverage is reportedly more expensive than competitors
Complaints about misrepresentations of company products
Only term life is available
Maximum policy size is $400,000
Company Overview: A Multi-Level Marketing Insurer
Primerica Life Insurance is a multi-level marketing company that sells life insurance, annuities, and other financial services. The company was founded in 1977 as A.L. Williams & Associates and popularized the strategy to “buy term and invest the difference.” Primerica is headquartered in Duluth, Georgia and has $781 billion of life insurance in force. The company also offers other types of insurance including home, auto, and identity theft.
Available Plans: Term or Nothing
Primerica only sells term life insurance. In fact, the company created and popularized the idea that people should buy term life insurance instead of permanent coverage and invest their savings. There are reports of Primerica making other types of insurance available by brokering policies out, but there are no other life insurance offerings listed on its website in addition to term life.
Term life insurance provides a set death benefit for a predetermined period of time. Once a policy’s term is over, policyholders have to renew or find other coverage. Permanent life insurance lasts as long as premiums are paid. Permanent policies also have cash value components that grow over time.
Policyholders with permanent life insurance can often borrow against their cash value or sometimes even access benefits early if they meet certain criteria. It also has additional riders such as living benefits in the event of a qualifying illness. However, it’s also more expensive that term. Consumers should take the time to consider what type of policy best meets their long-term financial needs.
Customers who buy term life insurance from Primerica get a defined amount of coverage for a preset period of time. Customers can purchase up to $300,000 in coverage without a medical exam and $400,000 with a medical exam. Policies start at $15,000 in face value or $15 per month in premium and are available 10-, 15-, 20-, 30-, or 35-year terms, with issue ages available varying by term.
Primerica’s term life option also offers guaranteed insurability until age 95—policyholders are guaranteed to be able to renew their policy without going through another medical exam.
Available Riders: A Few Optional Add-Ons
For customers who are looking for terms slightly different than those included in a standard term life policy from Primerica, the company also offers several options that customers can buy with their policy. Riders are additions to policies that help improve benefits. These riders can be added to policies for an extra fee if customers want other benefits.
Some of the riders available with Primerica life insurance policies include:
Increasing Benefit Rider
An increasing benefit rider allows policyholders to increase the death benefit of their policies for a certain period of time. With Primerica, policyholders can increase the values of their policies by up to 10% per year for 10 years capped at the maximum policy amount of $400,000.
Waiver of Premium
A waiver of premium rider allows policyholders to skip their premium payments if they meet certain criteria. For example, the rider kicks in if the policyholder diagnosed with a qualifying chronic illness or becomes disabled.
Guaranteed insurability riders guarantee that policyholders can renew policies up to a certain age without reapplying or going through another health exam. Primerica includes guaranteed insurability riders with all of their term life policies, guaranteeing renewals until age 95. For policyholders who renew, their premiums only increase due to their age.
Primerica offers a child rider that can be added to term life policies. Primerica’s child rider adds a set amount of term life coverage that covers all the children in a family for a single flat rate, regardless of how many children are.
For example, Primerica customers can add $25,000 of coverage for each of their kids for $15.44 per month, regardless of whether they have one or five. Children who are covered by a child rider are also guaranteed insurability and have the option at age 25 of getting five times the coverage they had under the child rider with no medical questionnaire or exam.
Customer Service: Get Help From Friends & Neighbors
Customers who need help from Primerica can call 1-800-257-4725 or email firstname.lastname@example.org. Those who need to file a claim can call 1-888-893-9858 or email email@example.com. There is no live chat through Primerica’s website. However, it's best to reach out to your Primerica agent who wrote your policy if you need assistance. Primerica claims that 94% of claims are paid within 14 days. It’s not clear from Primerica’s disclosures or other customer reviews what accounts for delays with the other 6% of claims.
Customer Satisfaction: Reports of Misrepresentations
Primerica has an A+ rating from BBB. The company also has over 100 registered complaints but appears to make an effort to respond to complaints as they come in. Common complaints include not receiving expected refunds and Primerica agents misrepresenting products—not just term insurance, but also other products that Primerica offers as a broker.
Financial Strength: As Good As It Gets
Primerica has an A+ (“Superior”) rating from A.M. Best and is rated A2 by Moody’s. This rating is based on the strength of Primerica’s balance sheet, its risk management practices, and other factors. It suggests that the company is stable and able to pay benefits.
Cancellation Policy: Just Quit Paying
Primerica only offers term life insurance, so policyholders are able to cancel whenever they want by simply not paying premiums. With term life, there’s no cash value to get back and no surrender fees. However, customers who cancel will lose their death benefit, any premiums they’ve paid to date, and their right to renew their policy.
Price: No Transparency But Reportedly Not Cheap
There is almost no pricing information about Primerica available online. The company has no online quote tool—you have to speak with an agent to get a quote. Primerica also has minimum policy requirements, with customers having to spend at least $15 per month in total premium. Premiums for Primerica term life do not vary between men and women with equivalent health ratings.
Estimated Monthly Premium for $150,000 in 10-Year Term Life
*Increased to $160,000 in coverage to meet the minimum premium requirements
Competition: Primerica Life vs. New York Life
Customers who are debating between Primerica and New York Life should work with New York Life because customers can utilize the online quote tool to get an idea of what life insurance will cost. New York Life also offers other life insurance products including multiple types of permanent coverage.
Final Verdict: You Can Find Better
Primerica Life offers term life insurance and other financial services using a multi-level marketing model. While this model allows customers to work with friends and neighbors to get coverage, this also leads to several complaints from customers who accuse Primerica agents of misrepresenting products, since many of them might not get the proper training to sell insurance as a multilevel company. Customers thinking about buying insurance from Primerica should look elsewhere, as they can find other types of insurance and probably lower premiums with other providers.