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.
Below, we detail what we find regarding Primerica Life 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 nearly a billion in claims paid in 2021.
1977: A.L. Williams is founded (first parent company of the chain)
1980: A.L. Williams and MILICO form a joint contract.
1983: Company is listed under ALWC on the NASDAQ after going public.
1983: Joint venture finalizes a merger with American Can Company.
1986: Triangle industries purchases American Can Company, and the other two as a result.
1987: American Can changes their name to the Primerica we’re familiar with today.
1988: Sanford Weill’s commercial credit acquired Primerica for $1.54 billion, retaining the name.
1993: Primerica acquires Travelers Insurance Corporation.
2008: Deal was finalized to sell Primerica for 7 billion, but was voided for undisclosed reasons.
2020: Primerica pays out over 1.7 billion in claims during the covid-19 pandemic.
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.
Standard Coverage, or “pure” life insurance. Generally, you’re provided with a term, such as 20 years for example, 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 if it’s simplified or guaranteed, This form of insurance usually requires a medical examination.
Term now is Primerica’s no medical exam life insurance option offering customers coverage maximums of up to $250,000 (or $300,000 for those under the age of 45). Their Term Now policy utilizes an optimized data compilation system to gauge your qualifications and to insure you faster.
The Custom Advantage Term policy is meant for those that seek very large coverage amounts. Maximums can reach up to $5,000,000 in coverage and involves a more rigorous underwriting procedure compared to the other term policies.
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 locked in at, then we’d like to recommend a few names that may be of interest to you and your wallet.
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 condition of the applicant) and whole life, meaning that your rate does not change within the span of 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 or what have you, maximizing your beneficiaries’ payout. Surprisingly, Primerica online does not offer any whole life policy or any form of final expense insurance, choosing only to procure their term products.
Without question, Primerica Life Insurance is a legitimate company. They boast an A+ rating as surveyed by AM’s best, as well as over a billion in coverage paid in the year 2022. They also specialize in term insurance, furthering their skill set in this area and differentiating them from other like-minded term policies. The question at hand now becomes, is Primerica Life Insurance worth your time and money? They may serve a purpose for your circumstance, depending on said circumstance, but overall unless you need a term policy with a maximum of $5,000,000 it’s hard to justify this option.
They utilize a rating, similar to the letter ratings placed on restaurants, meant to help you discern their overall quality. This letter ranking varies from A+ to F, similar to a scholastic grading system, and this organization is overseen by the chief insurance regulators regarding any US-affiliated territory. The rating itself is determined by a variety of different factors, such as performance, management, financial flexibility, shareholder safety, etc.
The rating given to Primerica only was an A+, as of 2021. This indicates just one level below perfect financial accuracy.
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 made. The rating used within the NAIC, involves a numerical value usually ranging from 1 – 10. One implies average customer complaints, where anything above this is above average, and so on.
As of 2023, Primerica online scored a 0.35 indicating almost 3x less complaints than the industry standard of 1.0.
JD Power ratings are essentially nationwide surveys that allow consumers an unbiased opinion regarding what other consumers say about said company. Generally, these surveys take a group of companies, usually around 21, and rate the companies in relation to each other. This is done either through focus groups, paid calls, or what have you. JD Power spends large sums of money annually simply on data specifically for this reason.
Primerica online was ranked 18th out of the 21 companies surveyed in its group, implying an overall low amount of customer satisfaction despite the NAIC rating being so low.
The niche this company fills is exactly that – niche. We’d argue that you would be able to find the coverage you need, even with an extreme maximum somewhere else.
Unless you need $5,000,000 in coverage or have family members involved with Primerica life insurance, there is no reason to recommend this carrier over other like-minded carriers.
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Yes, as they paid 1.7 billion in claims related to covid-19 in 2020 alone.
No they are not, although the ethics of their pricing and relations, that’s another story.
They are paid on a commission basis only, potentially providing strife in customer relations as a result.
According to the NAIC, not bad, but when you go online, it tells somewhat of a different story.
As per his twitter, he does not endorse primerica as the cost of their insurance is high.