Primerica Life Insurance Review (Ultimate Guide)

Primerica Life Insurance Review (Ultimate Guide)

Who or what is Primerica Life Insurance, how does it work, policy features, financial ratings, and how do they compare to all other life insurance companies in the United States?

In 2018, Primerica was the second-largest issuer of life insurance products in North America. But is Primerica one of the best life insurance options in 2020?

Primerica Life Insurance Review
Primerica Life Insurance Review

Note: Primerica is known as Prime America by consumers.

This Primerica life insurance review will expose the whole picture, including how the company operates and its life insurance agency system. This is very important to understand if you are considering purchasing life insurance with Prime America.

Then we will show you the facts you need to know about your term life insurance policies and how to compare Primerica with other companies.

Specifically, we will cover (click on any of the topics to go directly there):

Life insurance is boring. Let’s get to the point! Here are the key takeaways …

Primerica is a legitimate company that offers term life insurance policies, but most people can find a better policy elsewhere. They have an A + rating from AM Best. Primerica uses a marketing strategy to recruit new agents who are not always experts. Their rates are usually higher than those of the competition.

A friend, family member, or colleague may have approached you to purchase a Primerica Life Insurance Company policy. I recommend that you spend a few minutes with this article to get Primerica’s life insurance facts before making a decision.

We also recommend that you consult our list of the best life insurance companies to assist you with the purchase of your life insurance.


How Primerica Life Insurance Works

Keep in mind that Primerica is built as a multi-level marketing business.

This means that the agent who introduced you to Primerica Term Life Insurance will likely ask you to join their team in the future so that you can earn money from the life insurance policies you sell. Once you are part of the organization, they will encourage you to do the same.

This doesn’t exactly scream out the “expert” life insurance agent. In fact, most recruits have trouble passing the insurance exam, according to the Wall Street Journal. This may seem like a “scam”, it is not.

Remember earlier how we mentioned that you are the second largest issuer of life insurance in North America? According to the public record obtained here on Business Wire, each agent averaged 2 policies per month. That means the average agent writes 2 life insurance policies EVERY YEAR. For comparison purposes, full-time agents write life insurance policies every day.

That said, they are a legitimate company that offers credible life insurance policies.

The reason we present this information first is so that you know that your Primerica agent is first a recruiter and then a life insurance agent. For most Primerica agents, this is a part-time job or a hobby, so you’re not getting expert advice or help.

Your friend or family member who is throwing you a term life insurance policy may be licensed to sell insurance, but that doesn’t mean they are qualified to give you the best advice. They probably only know Primerica and have no other options.

And I feel the need to add this: Primerica agents are good people who try to protect families. The point I will make below is that you can do much better than your term life insurance offer.

We always recommend comparing with other life insurance agencies that are independent and offer multiple quotes like our own agency.

3 Facts You Should Know About Primerica Life Insurance

Now that you understand Primerica’s life insurance marketing methods, let’s take a look at its real life insurance offerings.

Fact # 1: Primerica Only Offers Term Life Insurance

Primerica agents can only offer 1 life insurance product: term life insurance. They are trained in general advice that “buying term life insurance and investing the difference” is the ONLY way to go.

We agree that term life insurance is the best option for most families, but there are situations when other products are better.

Since Primerica agents only offer Primerica life insurance products, this means they cannot get the best option on the market for you. If you get a higher rate than you think because a Primerica insurer thought your cholesterol was a little high, they will recommend that you accept the offer without asking about other options.

Term life insurance as presented by Primerica is a product. You must find the best price for the amount of coverage and the length of the term necessary to protect your family. And each life insurance company will consider your risk differently, some more favorably than others.

By offering only term life insurance, we look forward to more of your term life insurance offering. Prime America’s term life insurance offering has become obsolete in the past decade and lacks 2 main features of the newest term life insurance products on the market.

One of the biggest benefits of a term life insurance policy is its conversion function. This is a feature that almost all other life insurance companies have on the market, but “Primerica” does not.

A life insurance conversion allows you to convert your term life insurance policy into a permanent policy without having to re-subscribe. No one really plans to convert their policy to a permanent one when they initially purchase term life insurance, but it is common for situations to arise throughout the term of your policy where you might consider it.

For example, suppose your policy is about to expire and you cannot qualify for coverage because of a health problem you developed. The conversion option allows you to keep your coverage in the same health class that you applied for. This may be a great option for your family in the future. Especially if you are not in as good health as when you originally applied for the term life insurance policy. The ability to convert your policy to term could save you thousands of dollars in life insurance in the future, which is why we almost always recommend it.

You don’t know how much your life can change. You could have more children, change jobs, move status, etc. And because of this, your term life insurance policy must be flexible. There is no reason that your term life insurance policy does not have this conversion option. Even if you don’t think you’ll ever need the conversion, it’s good to have it there just in case.

The second main feature that Primerica lacks is Life Benefits. Competitive term life insurance policies on the market offer life benefits, which means you can access your death benefit if you are diagnosed with cancer, have a heart attack, or have a stroke, among many other triggers.

Life benefits are one of the fastest growing benefits in term life insurance because it costs no more than traditional term life insurance. In fact, if you get term insurance quotes from companies like American National, Ameritas, North American, Foresters, and dozens of others, you’ll see that their rates are much better than Primerica AND that they have life benefits AND conversion options.

Fact # 2: Primerica Has Expensive Life Insurance Rates

Run an instant life insurance quote and compare it to your Primerica life insurance rates. You will notice that there are much better life insurance options with the same financial ratings. Life insurance policies will offer exactly the same benefits, amount of coverage, and length of terms, except for a lower monthly payment.

Primerica is a company that is listed on the New York Stock Exchange (its symbol is PRI) and has to answer to investors. All that matters is earnings, and Primerica has an army of life insurance agents who sell their expensive term life insurance policies.

Primerica’s “Term to 95” Policy Prices

Let’s review the Primerica “Term to 95” product that most Primerica agents are selling.

Here is an example Primerica illustration for a 35-year old in the standard health class and a smoker.

The annual payment of $ 855 is guaranteed until age 55.
At age 55, rates increase every 5 years to age 70.
At age 70, rates increase annually.

If you compared this same customer to the open market and budgeted for a standard 35-year-old male smoker, you’d get more than 20 companies that are less expensive. Many of them would include life benefits that would allow you to access the death benefit if you had a heart attack, cancer, stroke, or other qualified trigger.

Then you could pay less and get more benefits.

You can generally get better prices than Primerica for any age and health condition. In other words, you can find much better rates than Primerica for term life insurance.

Fact # 3: Primerica Rejects “High Risk” Applicants

If you have moderate to severe health problems, it will be difficult to obtain coverage with Prime America.

We have helped many people find affordable life insurance coverage that was rejected by Primerica.

Don’t let health problems keep you from trying to get coverage. Take a look at companies with limited health questions like Mutual of Omaha and Foresters Financial. Almost anyone will be able to get coverage, but they also have disadvantages, like low coverage limits.

Several different things could make you a “high risk applicant,” such as having a pre-existing health condition, using tobacco, or being obese. All of this would cause him to be turned down with Prime America, but not with most other life insurance companies.

In fact, this is what prompted us to write this article. Too many people think they are not insurable, but in reality, they simply used the wrong company for their risk. If you’ve ever been turned down by Prime America life insurance, don’t worry. You can still find affordable coverage. It is easy to get quotes from credible companies.

If you are in this category, we are experts in high risk life insurance , so do not hesitate to contact us.

Who or what is Primerica?

Just a baby in the world of life insurance, Primerica (Prime America) started in 1977.

But their start is not exactly like that of any other insurance company because they are not just a company that offers insurance; They are a MLM or MLM organization.

Your sales force may try to convince you otherwise, but it’s true. It is explicitly indicated in the prospectus of the company.

Primerica Financial Ratings

Any agent who offers you, your family, or friends a Primerica product will promote the few good things the company has going for you. Among them, an “A +” rating from AM Best, an “A +” from the Better Business Bureau, or even statistics like 4 million active life insurance policies.

They can even boast of their wide range of financial products to help you with everything from insurance to getting out of debt and investing.

With $ 675 billion of life insurance currently in effect, over 90% of life insurance claims are still paid in just two weeks.

Primerica life insurance features

Primerica does not sell a bad life insurance policy. In fact, if you consider your previous financial ratings and the policy itself, it’s a good option.

The problem is that your life insurance policy offers the same benefits as others at a higher cost.

Primerica life benefits

Your Primerica agent will inform you of the “life benefits” of your policy that other life insurance companies with less expensive rates also include with their policies.

There is nothing special about your “life benefits” over others. These benefits are also offered by dozens of other life insurance companies at a fraction of the cost.

Primerica has fast payment of claims and others too …

You will most likely hear a story of how someone’s mother or father passed away and Primerica paid their claim within 1 week. I have heard the same story from various agents.

It is a misleading answer that they are trained to give to sell you “peace of mind”. The truth is, if you are outside the 2-year dispute period of a life insurance policy, almost all life insurance companies will have a check in hand within a week.

Primerica’s Philosophy

The company’s philosophy is to buy a term life insurance policy and invest the difference, a common attitude for millions of middle-class Americans.

All this is true.

However, it’s all part of a launch to sell you an inferior product.

While they may have great people working for them, we can confidently say that there are significantly better products available on the market, and that you should not do business with Primerica before seeing what the industry has to offer.

Let’s talk about the facts:

  • The roles of “agent” as Primerica’s independent contractors are first to recruit him for Primerica and second to be his “agent”.
  • Median life insurance reps’ median earnings are $ 5,613 per YEAR, which means your “agent” probably won’t be next year. Its turnover is one of the worst in the industry.
  • Your “agent” will offer you everything from prepaid legal services to your DebtWatchers program (ironically costing you money, and simply a debt consolidation loan), to identity theft insurance and more.
  • Primerica offers strictly temporary coverage and is extremely expensive. Their prices can almost always be exceeded.
  • Primerica is explicitly advertised as “North America’s largest financial services marketing company.” They are marketing specialists.

It is also unfortunate, because Primerica has excellent relationships and partnerships with some of the best and largest life insurance companies in the United States, such as AXA and Lincoln Financial Group, as well as world-class investment companies.

But you can also go directly to these companies.

Primerica In The News

If the above information wasn’t enough, you can find more disturbing truths about Primerica in the news with a few quick searches.

Here is one, for example:

Meet Primerica, the new Wall Street IPO that is truly a multi-level marketing scheme | Business Insider

Within the article, BusinessInsider breaks down the different aspects of Primerica that the company and its “agents” will probably not tell you.

Among them:

  • Aggressive recruitment, resulting in nothing more than revenue for the company for the vast majority of new hires
  • 11 levels to move up the food marketing chain, where each level wins with the next, resulting in “agent” motives for moving up the ladder for profit

So why should this side of the business bother you? It directly affects life insurance rates.

What you pay in premiums is part life insurance, part fees to keep this business going.

How To Compare Primerica Life Insurance With Other Companies

Primerica agents, also known as “Prime America,” are adept at “reformulating” the truth about their expensive life insurance offerings. They have to do it because it is the only life insurance they can sell.

Our Primerica Life Insurance Review is intended to provide you with information that your Primerica Life Insurance Agent would never provide, similar to our Zander Life Insurance Review and Globe Life Review.

There is nothing inherently wrong with Primerica Life Insurance as a company. They are legitimate, they are not scamming anyone, but they are almost never the best option for life insurance.

With life insurance, there is no reason not to find the lowest possible cost for your policy. Don’t waste money paying more for a life insurance policy than you could get for a better rate elsewhere.

Get quotes from Primerica and other providers before deciding

Contact an independent life insurance agent so you can compare the policies of different companies. This will ensure that you find the best option for your needs and do not overpay for a Prime America life insurance policy.

The bottom line is that before deciding on Primerica (Prime America) or any other life insurance company, we suggest you visit our top 10 life insurance companies.

Learn about other options that could offer similar (or better) coverage at a lower cost.

Even if you agreed with extraordinarily high prices, you are still getting a much lower product compared to the rest of the market.

  1. You have an option for insurance. Why do you, the consumer, have no other choice? This is a big flaw because not all situations are created equal, and different needs require different product selections.
  2. You have no option to convert. Because there is only one term available, permanent life insurance is not an option; you can’t even convert what you already have. The only way to get a Primerica payment is to die before your policy runs out.
  3. There is no benefit to your life insurance policy that you cannot find elsewhere. All other companies have the same passengers, whether or not they are called the same.
  4. You have to be in good health, or else. If you are unhealthy, even a little, Primerica may not assure you. This is a big concern because not everyone has a perfect health history. Many private insurers allow high risk life insurance policies, but not Primerica.

Final Thoughts

For the cost of a Ferrari, you get nothing but a broken Primerica toy car.


When dealing with a Primerica agent, we recommend that you remember the following:

  1. Don’t get caught up in the emotional side of your sales tactics and presentations (or anyone else’s). Insurance agents who conduct face-to-face sales are trained to exploit the emotional aspect of the purchase.
  2. Generally speaking, term life insurance is simple and straightforward. One company’s term life insurance policy will look almost identical to another, with the exception of accelerated death benefits and rider clauses.
  3. Get life insurance quotes from InsuranceLatino before sitting down with a Primerica agent to properly compare prices.
  4. Primerica life insurance policies do not become a permanent life insurance policy.
  5. Primerica’s life insurance prices are typically 11% -29% higher than the average cost of a term life insurance policy.
  6. Primerica agents are generally recruited with minimal training in life insurance and estate planning. We DO NOT recommend that you trust their advice for more advanced life insurance needs.
  7. If you have a less than perfect financial or health history, Primerica may be even more expensive than other competitors on the market.

July 2016: A real email from someone recruited by Primerica with information about his book “Getting Rich.”

Hello, I am writing to express my appreciation for your honest Primerica review. I also appreciate the stellar interpersonal communication work you’ve done in the comments section. I recently became familiar with Primerica through an attorney for whom I work as an estate-planning paralegal. She is mostly a family lawyer, but she wanted to expand her estate planning practice, so she hired me.

Before I realized that I had even been hired for the paralegal position, she was talking to me about this “other aspect” that I wanted her to try out. That was Primerica. I was under the impression that this “life insurance issue” was part of the estate planning work. Then she said she would pay my $ 99 license fee at that time. I had no idea this was completely separate from the paralegal job. Once I realized that, I told him that I really wanted to focus on estate planning and learn everything about the software, Wealthdox. But she kept going back to the conversation about how I could pay my college tuition with Primerica …

After going to a couple of meetings with her to get her off my back, I wanted to throw up. I don’t even know where to start… but here are some observations: I went to a meeting with “authors” who wrote a book called “Get Rich”. It was about how other insurance companies are screwing people up. Of course, they said Primerica is the only company that won’t. So they casually said that this book was written at the request of the Primerica CEO !!!

Then they tried to match the Wall-Street Journal because they also advocated for term life insurance and reversed the difference. I couldn’t help but laugh! The Wall-street Journal did not recommend Primerica, they only recommended term life insurance.

Then they continued on how if you buy ten of their books you will get 100 customers… And these books are only available to Primerica agents. (That is not a red flag). However, people lined up to buy… After that I told my boss that I was very excited to take the initiative in building her heritage practice, but had no interest in Primerica.

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