Our Complete Primerica Life Insurance Guide
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The Origin Of Primerica Life Insurance Burial Insurance
Primerica’s origin is a collective group of companies acquiring and requiring each other until finally culminating to create the Primerica we are familiar with today.
Starting in 1980, just 3 years after the first company in this chain of command was created, A.L. Williams entered a contract with Boston-based MILICO, beginning a chain of events ultimately leading to the company/companies going public in 1983 where the company was listed under the symbol, ALWC.
After merging with American Can Company in 1983, the group of companies and their subsidiaries would rebrand to the Primerica we’re familiar with. Primerica online would again, continue to be acquired/reacquired throughout the years to where it stands today.
Primerica Life Insurance products boast over 16 billion in assets, over 100,000 employees and they have paid out over $1.8 billion in death claim benefits to beneficiaries of their life insurance policies last year.
What is Primerica?
Primerica is an insurance provider based in Duluth, GA. The company was founded in 1977 and provides insurance, investment, and financial services. Today, Primerica is one of the leading term life insurance providers with a structure unlike most insurance carriers. Primerica has over 100,000 independent insurance agents working to reach more customers.
Primerica exclusively provides Term Life Insurance, setting them apart from other insurance companies. Other than offering term life insurance, Primerica offers annuities, retirement plans, mutual funds, car insurance, homeowners insurance, long-term care insurance, and health insurance.
Is Primerica a Pyramid Scheme?
No, Primerica is not a pyramid scheme. However, just because Primerica is not a pyramid scheme in legal terms does not mean the company structure is not shaped like a pyramid. Those at the top of the company are making a cut off of the people below them and this system continues as more individuals are recruited. If you work for Primerica, your income will depend on getting others to sign up for insurance.
Primerica utilizes multi-level marketing (MLM), as they believe this allows their sales agents to reach a client base they may have yet to be able to contact on their own. The agents are encouraged to bring in new clients, such as family and friends, and market Primerica’s life insurance policies through their social media channels.
While this is not necessarily a bad thing, agents work on commission and fees, which may encourage agents to push a sale that may not be in the best interest of the consumer.
Is Primerica Legit?
While Primerica is widely considered a multi-level marketing company (MLM), it operates legally and is recognized by various companies. Primerica is publicly traded on the New York Stock Exchange and has been given an A+ from the Better Business Bureau (BBB). The company specializes in term insurance and offers legitimate insurance plans to customers.
Your Coverage Options With Primerica Life Insurance
Primerica Life Insurance technically only has one form of insurance, with that being term insurance, although they have multiple forms of term life insurance, it ultimately boils down to the same parent policy.
Primerica Term Life Insurance
Standard Coverage, or “pure” life insurance. Generally, you’re provided with a term, such as 20 years, wherein you’re guaranteed payment as stated by the death benefit if the policyholder dies within the stated term. If alive at the end of term, one may renew for an additional term, or convert the existing coverage to permanent coverage. The perks of this coverage involve the introductory price point, which is generally the most budget-friendly option for the relative amount of coverage received. Depending on whether it’s simplified or guaranteed, this form of insurance usually requires a medical examination.
Primerica TermNow Insurance
TermNow does not require a medical exam and is a life insurance option from Primerica that offers customers coverage maximums of up to $250,000 (or $300,000 for those under the age of 45). Their TermNow policy utilizes an optimized data compilation system to gauge your qualifications and to insure you faster.
Primerica Custom Advantage Insurance
The Custom Advantage Term policy is meant for those who seek large coverage amounts. Maximums can reach up to $5,000,000 in coverage and involve a more rigorous underwriting procedure compared to the other term policies.
Primerica Life Insurance, a medley of companies and underwriters, has provided insurance coverage to Americans for over 50 years, but what does this mean for you? We don’t particularly care how long you’ve been providing insurance, rather we care about your claim services, customer relations, and ability to provide adequate and complete coverage to those in need.
Best $10,000 Burial Insurance Companies
If you’re looking for a policy with $10,000 in coverage that remains instated throughout the remainder of your life at the premium you are locked in at, we will recommend a few names that may interest you and your wallet.
| Company | 50 y/o Male | 50 y/o Female | 60 y/o Male | 60 y/o Female | 70 y/o Male | 70 y/o Female |
|---|---|---|---|---|---|---|
|
$34 |
$27 |
$50 |
$40 |
$70 |
$56 |
|
|
$31 |
$26 |
$43 |
$35 |
$71 |
$53 |
|
|
$31 |
$24 |
$44 |
$33 |
$75 |
$53 |
|
|
$34 |
$29 |
$45 |
$35 |
$79 |
$59 |
|
|
$33 |
$26 |
$48 |
$36 |
$82 |
$58 |
These figures were obtained from the NFDA and are estimates only. For a detailed quote, please contact an agent.
Primerica Life Insurance Funeral Insurance
Final expense insurance is the type of insurance that’s in place to cover the funeral costs after your passing. While final expense coverage is generally used to cover funeral/burial costs, one may use the funds in any way desired.
Final expense coverage usually exists as a simplified issue plan, meaning that you are approved regardless of any previous medical conditions, 99% of the time. The premiums are also generally low (depending on the applicant’s condition) and whole life, meaning your rate does not change within your lifetime.
Additionally, these plans can coexist with Medicaid, depending on your total assets. If said assets are too high to qualify, one may withdraw and use these funds to purchase additional coverage, maximizing your beneficiaries’ payout. Surprisingly, Primerica does not offer any whole life policy or final expense insurance, choosing only to procure their term products.
Is Primerica Life Insurance A Legitimate Life Insurance Company?
Absolutely. Without question, Primerica Life Insurance is a legitimate company. They boast an A+ rating as surveyed by AM’s Best and, according to their yearly report, have paid out over $1.8 billion in death claim benefits to beneficiaries of their life insurance policies in 2023. They also specialize in term insurance, furthering their skill set and differentiating them from other like-minded term policies. Many are wary of Primerica due to their use of multi-level marketing, but they are a legitimate company.
The question now becomes, is Primerica Life Insurance worth your time and money? While they are a legitimate insurance carrier, you must compare Primerca’s prices with other insurance carriers. Primerica may serve a purpose for your circumstance, but unless you need a term policy with a maximum of $5,000,000 it’s hard to justify this option.
Ratings For Credit And Customer Service Satisfaction
A.M. Best Rating
They utilize a rating, similar to the letter ratings placed on restaurants, meant to help you discern their overall quality. This organization is overseen by the chief insurance regulators regarding any US-affiliated territory, and many factors, such as performance, management, financial flexibility, shareholder safety, etc affect the rating itself.
The rating given to Primerica was A+, as of 2023. This indicates high financial accuracy.
NAIC Rating
The NAIC, or The National Association of Insurance Commissioners, is a regulation standard support organization based in America meant to add credibility to insurance companies. Essentially, the goal of this organization is to protect consumers and to mandate that insurers deliver on their promises. The rating used within the NAIC, involves a numerical value usually ranging from 1 – 10. One implies average customer complaints, anything above this is above average, and so on.
As of 2023, Primerica online scored 0.37 indicating almost 3x fewer complaints than the industry standard of 1.0.
J.D Power
J.D. Power ratings are nationwide surveys that provide consumers an unbiased opinion of a company based on what other consumers say about said company. Generally, these surveys take a group of companies, usually around 21, and rate the companies to each other. This is done through focus groups, paid calls, or what have you. J.D. Power spends large sums of money annually on data, specifically for this reason.
Primerica was ranked 20th out of the 21 companies surveyed, implying an overall low amount of customer satisfaction.
Primerica Life Insurance Pros & Cons
Pros
- Few complaints, as outlined by their NAIC rating. The rating given to Primerica online was 0.35, which is a good sign when mapping out your options, as this indicates far fewer (recorded) customer complaints than the average insurance company may face.
- Superior financial strength. Superior financial strength. An A+ from AM’s Best indicates a solid track record regarding the timely payment of claims.
Cons
- No online quote tool. Most of the time, insurance providers/brokerages will detail their homepage with a quote tool to loosely give you an idea of what to expect when applying for insurance through said company. The fact that Primerica doesn’t have one is surprising considering most insurance companies have an online quote tool.
- Lack of information. No online quote tool aside, there is still a lack of information available regarding what your policy might entail when qualifying with Primerica – no term lengths, coverage maximums, etc.
- Low J.D. Power ranking. Scoring 20 out of 21 companies is a bad sign, demonstrating that Primerica is one of the bottom tier companies when it comes to customer satisfaction.
Primerica Reviews
Our Review and Final Thoughts
From our findings, Primerica is a legitimate insurance company, but there are negative connotations associated with the company.
Primerica is more expensive than other insurance companies. With Primerica Life Insurance, you can renew your plan, but costs skyrocket yearly. Not only are the prices for Primerica much higher than other carriers but there is a general lack of information online regarding what your policy might entail should you qualify for a plan with Primerica. Additionally, Primerica has a very low J.D. Power score, meaning that customers aren’t satisfied with the support they have received.
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Call our talented agents Monday through Friday, 9 A.M. – 5 P.M. ET at (866) 786-0725. Get started now with our free quoting tool and find the best insurance policy for you and your loved ones.
Frequently Asked Questions
Is Primerica A Pyramid Scheme?
Primerica is not a pyramid scheme, however it is widely considered to be a multi-level marketing (MLM) company. Primerica does not consider itself to be a MLM and states that it pays representatives based on an insurance agency model.
Is Primerica Legit?
Primerica is a legitimate company and is a publicly-traded company on the stock market.
How are Primerica Reviews?
Reviews are mixed. According to J.D. Power, Primerica ranks low for customer satisfaction. In comparison, AM’s Best has given Primerica an A+ indicating timely payment of claims.