Primerica Life Insurance Review

About Primerica

Headquartered in Duluth, Georgia, Primerica markets financial services throughout the United States and Canada.  While the company traces its roots back to 1977, “Primerica, Inc.” originated with a 2010 initial public stock offering.  Affiliated companies like Primerica Financial Services and Primerica Life Insurance Company have been around longer.

Primerica, aka “Prime America,” distinguishes itself from its competitors in the financial services industry with its emphasis on “underserved middle-income consumers,” which Primerica defines as individuals with household incomes ranging from $30,000 to $100,000 per year.

Primerica’s bread-and-butter is selling term life insurance, which is underwritten by Tennessee-chartered Primerica Life Insurance Company.

Indeed, Primerica currently insures around 5 million people, which, according to Primerica’s website, makes it North American’s second largest provider of term life.

The company boasts that it is the originator of the “Buy Term and Invest the Difference” theory on life insurance, and the popular phrase is usually attributed to Arthur Williams, Jr., Primerica’s founder.

Advocates of this philosophy recommend consumers purchase term coverage (rather than whole or universal life) to meet their life insurance needs and put the premium savings toward investments (usually mutual funds).

Primerica’s sales network consists of over 130,000 captive agents throughout North America.  Along with term life, Primerica representatives sell an array of financial planning and personal finance products.  Many of the non-life-insurance products marketed by Primerica—such as mutual funds—are offered through third parties.

Primerica Financial Ratings

A.M. Best: A+
Fitch: NR
Moody’s: A1
S&P Global: AA-
Comdex Ranking: 93

Primerica’s strong financial ratings suggest that the company is financially secure and profitable, with very little risk that it will fail to meet its policy obligations.

Primerica has been accredited by the Better Business Bureau since 1980 and currently enjoys an A+ rating, with generally favorable customer reviews.

However, Primerica only sells through captive agents—who are often not full-time insurance professionals and who receive commissions for recruiting new agents, and why many refer to Primerica as a multi level marketing (MLM) company. So, the company has at times drawn criticism for its sales approach.

Products Offered by Primerica

• Term Life Insurance
• Identity Theft Protection
• Pre-Paid Legal Services
• Individual and Business Retirement Accounts and Programs

Life Insurance Policies Offered by Primerica

Even though there are many instances where whole life insurance is a great option, Primerica does not offer it. Instead, what you will find is the company only offers term insurance.

(If you are shopping for term coverage, we invite you to explore the best life insurance rates by age to compare to your Primerica quote.)

Primerica Custom Advantage (Term Life):

Custom Advantage provides term coverage for initial periods ranging from 10 to 35 years, available in five-year increments.

Coverage levels start at $15,000 and go to seven figures—the precise limit is not entirely clear from Primerica’s public-facing materials.

New applicants can be anywhere from 18 to 70 years old, though the longer policy terms are only available for younger applicants.

The result is that the longest a policy’s initial term can last is through the insured’s 80^th birthday.  So, for example, the 20-year term is only available through age 60, and the 25-year term through age 55, and so on.

Importantly, Custom Advantage premiums are fixed, but only for a maximum of 20 years.  As a result, an applicant eligible for a 30-year term will likely see significantly increased premiums during the final ten years of coverage.

Upon the conclusion of the initial term, Primerica policies are guaranteed eligible for annual renewal until the insured reaches age 95 with no additional underwriting.

Premiums are almost certain to increase upon each renewal, but even with the higher premiums, guaranteed term coverage through age 95—with no risk of cancellation except for nonpayment of premiums—is a notable feature.

As an important aside, most companies offer convertible term life insurance. This term life rider allows the owner to convert all or a portion of the term policy to permanent coverage upon a specified period of time.

The benefit is that if you are diagnosed with a condition that makes it difficult to get life insurance down the road, you can always convert your policy and keep your coverage for the rest of your life.

However, Primerica does not offer permanent coverage. Instead of converting your term policy, you only have the option to renew your policy annually. Your term insurance premium will increase every year and become way too expensive to maintain.

Primerica TermNow:

TermNow is Primerica’s no exam life insurance. It is structured similarly to Custom Advantage, except that coverage is capped at $300,000 and policies are simplified-issue, meaning you do not need to give blood or fluids.

The application process still includes a medical history questionnaire, and Primerica will review healthcare databases.  But no medical examination is necessary.  Essentially, in exchange for avoiding a medical exam and shortening the application time, TermNow charges higher premiums.

Available Life Insurance Riders

Increasing Coverage:  If elected, a policyholder has the option, for an additional premium, to increase a policy’s benefit level by ten percent for a period of ten years.

Terminal Illness:  If the insured is diagnosed with less than 12 months to live, the policyholder can accelerate up to 70% of the policy’s face value (subject to a cap of $400,000).  Premiums are waived during the period following the diagnosis.

Child Rider:  If purchased, the rider provides lower-benefit term coverage to all children in the insured’s immediate family.