Primerica Life Insurance Review – Primerica Life Insurance Pros and Cons

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Primerica is a financial services company with a reputation for operating like a multi-level marketing company. Founded in 1977, the company encourages its representatives to recruit family members, friends, and colleagues to join the business. From there, Primerica representatives earn commissions on policies and financial products they sell and products sold by their “downline.”

Primerica has solid rankings despite how it operates and attracts talent. For example, Primerica scored 766 out of 1,000 possible points in JD Power’s latest US Life Insurance Study. This score put it a few points below the industry average of 774 and ahead of competitors like Protective Life, AIG, and Transamerica (AEGON). The company also has solid ratings for its claims performance, as evidenced by the A+ rating Primerica received from AM Best regarding its financial strength.

Primerica also boasts some specific stats on its website, including paying out an average of $3.9 million claims daily. The company also reports 94{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} of its claims are paid to consumers within 14 days.

Currently, Primerica offers a range of financial services and products ranging from investments to auto and home insurance and identity theft solutions. The company also offers some of the best term life insurance policies, which can help consumers protect their families with a guaranteed death benefit if they pass away.

Life insurance plans from Primerica

Unlike many of the best life insurance companies, Primerica focuses its life insurance offerings exclusively on term life insurance. This means you can use Primerica to line up life insurance coverage for a specific time but not your entire life in a use-it-or-lose-it fashion.

Considering Primerica pays its representatives’ commissions for selling life insurance, the fact it does not offer permanent life insurance seems strange. However, the company clearly states in its materials that it believes “inexpensive term insurance is the best option for most families.”

Term life insurance from Primerica

Primerica sells its term life insurance policies throughout the United States, and consumers can choose a plan for 10, 15, 20, 25, 30, or 35 years. Term coverage from the company is offered in numbers from $15,000 up to $10 million for eligible applicants with no medical exam life insurance options.

Primerica offers two main types of term life insurance coverage:

• Custom Advantage: This policy from Primerica is available in terms of 10 to 35 years, and it requires applicants to complete a medical exam.
• TermNow: This coverage is available to eligible applicants with no medical exam required. However, coverage can only be for up to $300,000, and rates can be higher than Custom Advantage policies.

Primerica does not offer any permanent life insurance plans, so consumers cannot use this provider to purchase whole life insurance, universal life insurance, or any life insurance policy building cash value. In addition, term policy owners cannot convert to whole later on.

However, Primerica is among a limited group of life insurance providers offering a terminal illness benefit with term policies. Buyers can take 70{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} of their policy limit if diagnosed with a terminal illness during the preset term. Unfortunately, life is often unpredictable, and a terminal illness could financially devastate families. This rider ensures buyers have some protection against the unexpected, meaning Primerica will pay out on more term policies.

Additional coverage options from Primerica

Since Primerica only offers term life insurance coverage, it’s not surprising that it provides few riders consumers can use to customize its life insurance plans. That said, the available riders may help individuals get better coverage or recover from financial losses caused by specific situations.

Primerica riders include the following:

• Child rider: This rider lets Primerica customers purchase additional term coverage for eligible dependents.
• Increasing benefit rider: This rider enables the policyholder to increase coverage over time, usually up to 10{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} per year over ten years. Keep in mind that regardless of the increase in the payout, the term stays the same unless otherwise specified.
• Terminal illness rider: This rider lets the policyholder access up to 70{a652ac39cb023ff8fd1cc85f4393f5b1bb70bf2f880b7bee35f712e4bd8633f7} of their death benefit (up to $400,000 maximum) after being diagnosed with a terminal illness. You can immediately use this to pay rent, medical costs, and other bills or put it aside for funeral and other expenses.
• Waiver of premium rider: This rider allows for an automatic waiver of life insurance premiums if a policyholder becomes entirely disabled while coverage is in force.

How much does life insurance from Primerica cost?

Because Primerica only sells term life insurance coverage, buyers looking for cheap life insurance may be more attracted to it. Life insurance agents we’ve partnered with have indicated term policies are ultimately more expensive than permanent policies of the same value.

Regardless, Primerica life insurance policies do not offer conversions at this time. So the difference in value between term and whole or even Primerica and terms that convert to whole is significant.

The multi-level marketing aspect of Primerica also leaves something to be desired. Ultimately, agents must be licensed, but the training may not match up against competitors like Prudential, New York Life, etc. Licensing exams cover different types of life insurance, but the focus is mainly on laws and regulations. Product training comes from hiring insurance companies.

Once you connect with a local agent, you can speak with them about your goals and complete an application. Primerica agents can also provide answers to everyday life insurance questions you might have. For example, how much life insurance do I need? Also, how much should I spend to insure my family correctly?

Primerica term life insurance premiums depend on the following factors:

• Your age
• Your health
• Death benefit
• Riders you select

We were able to get average costs for term policies with Primerica, but buyers should discuss exact pricing with a licensed life insurance agent. As an example, a 30-year-old male in excellent health may be able to purchase $250,000 in term life insurance lasting 20 years for as little as $192 per year (or $16 per month).

Meanwhile, a 30-year-old woman in excellent health will pay an average of $240 per year ($20 per month) for $250,000 in term coverage lasting for 30 years.

How do I file claims with Primerica?

Primerica runs its operation with the help of experienced local agents who often sell to friends and family first. In an ideal world, customers can rely on representatives to help them file a life insurance claim. However, Primerica also offers a few ways for consumers to initiate a claim without an agent.

File a life insurance claim with Primerica:

• Call the company at 1-888–893-9858 to begin a claim (in the United States, Puerto Rico, and Guam)
• Email the company at [email protected]

It’s also possible to begin a life insurance claim through the regular mail using the following address:

Primerica Life Insurance Company

1 Primerica Parkway

Duluth, GA 30099

Whichever strategy you use to start the claims process with Primerica, the company needs the ten-digit policy number on all correspondence.

Who are the ideal customers for Primerica?

Because Primerica only offers term life insurance, it appeals to customers who feel healthy with no family history of serious issues. In addition, due to its community outreach via agents, Primerica may also provide more hands-on support.

However, we are wary of recommending term policies, especially without conversion options. Unfortunately, life doesn’t always happen as we expect. A term policy performs as expected if something goes wrong after the term expires, meaning it doesn’t pay out.

Primerica’s terminal illness payouts give it a leg up, but more is needed to compete with whole, universal, and other permanent life insurance options.

Compare Primerica vs. Colonial Penn

Colonial Penn is another highly-rated life insurance company worth considering, particularly if you’re in the market for low-cost life insurance with guaranteed acceptance. It offers permanent coverage without any medical exams required. Premiums start at just $9.95 per month for eligible applicants.

That said, Colonial Penn does not offer any term options, and its policies are geared toward consumers who need final expense insurance. The most significant whole life policies with Colonial Penn top out at $50,000. As a result, neither provider provides viable coverage options for buyers looking for financial planning, wealth building, etc.

However, while limited in size, Colonial Penn policies’ permanence with no medical exam has significant appeal. Like many other providers, Colonial Penn has an ‘A’ rating for financial strength from AM Best.

Compare Primerica vs. New York Life

New York Life Insurance is another life insurance company relying on professional agents to sell its products and oversee client accounts. New York Life offers annuities, mutual funds, and other investments, as well as term life insurance, whole life insurance, universal life insurance, and variable universal life insurance.

Primerica focuses on term sales, while New York Life focuses on the larger financial picture. As a result, New York Life customers typically buy more comprehensive policies for retirement, wealth building, and other financial planning.

Individuals need to speak with New York Life to get a quote for one of its policies. Agents are incredibly knowledgeable and can typically answer any questions about its products. The company also offers an online tool to preview available coverage options.

As you might expect, with more extensive permanent policies, New York Life’s underwriting can be more stringent. New York Life received an A++ rating from AM Best for its financial strength.

Compare Primerica vs. Gerber life insurance

Gerber Life Insurance offers several types of coverage, including term life insurance, whole life insurance, college coverage, and accident protection insurance. In addition, the company’s Grow-Up Plan covers children up to 14.

It also offers guaranteed coverage for seniors ages 50 to 80 with no medical exam required. In addition, permanent life insurance options through Gerber are available to adults ages 18 to 70. These policies come with locked-in premium rates.

Gerber Life Insurance boasts an A rating for its financial strength from AM Best.

Methodology

While writing this comprehensive review of Primerica, we compared the company’s life insurance policies to similar policies from other popular competitors. We based our comparison on the unique details of the policies offered, the coverage options, and available riders and add-ons. We used this information to rank companies based only on the facts we gathered.

To find the right life insurance coverage for your situation, however, you’ll want to take steps to compare policy options and premiums across a range of insurance companies. You’ll also need to determine whether you want term life insurance coverage or a permanent policy.

While Business Insider offers a comprehensive overview of the life insurance options offered by a range of providers, working with a professional life insurance agent can also help you find the best coverage for your personal needs and goals. You can read more about our insurance rating methodology here.

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