Primerica Life Insurance Review 2021

They are best known for relying on a multi-level marketing strategy to sell life insurance products, primarily aimed at middle-class families.
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Author: Ben Peetermans
Last updated: September 8, 2021

Our take on Primerica

Primerica Life Insurance is based in Duluth, Georgia, though their agents are located nationwide.
Primerica only provides term life insurance coverage, and they have a bit of a reputation for campaigning against other life insurance products, though this may depend on your agent. Their life insurance products offer some solid choices, though their rates aren’t the most competitive.
Multi-level marketing strategies are always a mixed bag. On the one hand, it may be easier to reach an agent when you purchase from a friend or a brother-in-law. On the other hand, multi-level marketing companies have a reputation for emphasizing recruitment, so you may quickly find yourself being pressured to become one of Primerica’ agents.
Overall, Primerica’s term policies are solid choices for middle-class customers, but always be sure to investigate your other options before making a commitment.

Primerica Life Insurance Company Details

A.M. Best RatingA+
S&P RatingNR
BBB RatingNR
Customer Service Phone800-544-5445
Websitewww.primerica.com
AddressPrimerica
1 Primerica Parkway
Duluth, GA 30099

What we like

Longer Term Coverage

Primerica offers term life insurance up to 35 years. This is slightly longer than other companies who limit their coverage to 30 years or less.

High Coverage Amounts

Primerica offers up to $1 million in coverage. While this isn’t unusual for a term policy, not every company can promise this level of coverage.

No Medical Exam

Customers seeking limited coverage amounts can receive coverage without a medical exam.

What We Don’t Like

Multi-Level Marketing

Primerica sells its products through independent agents, who may then recruit others to join the company’s network of representatives.

No Online Quotes

No online quotes are available to give you a preliminary idea of what to expect from your monthly premiums.

Only Offer Term Life

Primerica only offers term life insurance, with no options for whole, universal, or final expense insurance policies.

No Conversion Options

Because Primerica offers no permanent life insurance options, there is no option for converting your term life policy after it expires.

Primerica Life Insurance Products

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2.0/5
Primerica’s term life products are generally of good quality, but they offer no options for permanent life insurance.

Custom Advantage

Length of Coverage

10, 15, 20, 25, 30, or 35 years

Minimum Coverage$15,000
Maximum Coverage$1 million
Estimated Time to ApprovalImmediate
Product Features
  • Online application
  • Instant approval
  • No medical exam

Custom Advantage is Primerica’s term life insurance offering. Terms range from 10 to 35 years, which is slightly longer than competing companies. However, these terms are limited by the following ages:

  • 10-year term: Max age of 70
  • 15-year term: Max age of 65
  • 20-year term: Max age of 60
  • 25-year term: Max age of 55
  • 30-year term: Max age of 50
  • 35-year term: Max age of 45

Policyholders have the option of choosing the death benefit, with values up to $1 million. Because this plan does not offer accelerated underwriting, it can take one to six weeks for approval.

Limited Level Term

Length of Coverage

10, 15, 20, 25, 30, or 35 years

Minimum Coverage$15,000
Maximum Coverage$300,000
Estimated Time to ApprovalImmediate
Product Features
  • Online application
  • Instant approval
  • No medical exam

Primerica’s term life products offer a level term, meaning you lock in your rate when your policy begins. But this level period is limited to a maximum of 20 years, after which policyholders can expect to see their monthly premiums increase. Because this increase is so far into the future, it’s difficult to know whether policyholders will be able to afford this additional cost, which poses the risk of losing the policy.

Term Now

Term Now is Primerica’s option for term life insurance without a medical exam. This policy is essentially identical to their Custom Advantage plan, though coverage is limited to the range of $15,000 to $300,000. And as with most no-exam policies, this plan will be markedly more expensive as compared to the traditional policy.

Policy benefits

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3.5/5
Primerica’s riders offer flexible options, but Primerica offers no conversion options.

Riders

Primerica’s riders offer some features that add value to the base package of their insurance policy. These include:

Accelerated Death Benefit Rider

This rider will pay up to 70% of the death benefit (to a maximum of $400,000) in the event of a qualifying illness.

Guaranteed Insurability Option

Policyholders have the option to renew their policy without a health exam until age 95, though with increasing age comes an increasing premium. Still, this can be valuable if you are diagnosed with a chronic illness during the initial term, and can use this option to guarantee your continued coverage.

Increasing Benefit Rider

While many companies decrease the death benefit over time, this rider will increase the death benefit by 10% per year for 10 years, to a maximum of $500,000. Policyholders have the flexibility to add this rider until they turn 55. No additional medical exam is necessary, but the monthly premiums will also increase.

Child Rider

Policyholders can receive up to $50,000 of coverage for children under the age of 24, which is slightly older than other child riders on the market.

Waiver of Premium Rider

If you are disabled, this rider waives your premiums for a predetermined period of time, without jeopardizing your policy.

Cost

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2.0/5
Primerica tends to be higher than industry averages, with few options to add value to their plans.

As you might expect, the rapid-issue Term Now policy costs a bit more than the Custom Advantage plan, but that’s to be expected for a policy that doesn’t require a medical underwriting. Yet Primerica’s base policy is still considerably higher than industry averages, which makes it not the most affordable life insurance provider

High Cost for Traditional Underwriting

A healthy, 35-year-old man looking for $500,000 in coverage can expect to pay the following for a term policy from Primerica:

  • $240 for a 10-year term
  • $335 for a 15-year term
  • $370 for a 20-year term

These estimates tend to be considerably higher than industry averages. Additionally, while other companies offer a consistently level premium, Primerica only offers level premiums for the first 20 years. Policyholders who invest in longer terms can expect their rates to increase toward the latter years of their policy.

Guaranteed Coverage Adds Little Value

Primerica makes a big deal of their guaranteed insurability option, but as we noted earlier this is hardly a unique benefit, and therefore doesn’t add any measurable value to the company’s products.

The Social Cost of Multi-Level Marketing

There’s also another cost to consider: the social cost of multi-level marketing strategies. Primerica is sold through independent agents, which means you may be receiving a sales pitch from someone you know. As with any MLM program, this could dial up the sales pressure, or introduce an unwanted business element into a friendship.

Performance

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4.0/5
Primerica has been rated positively by A.M. Best, and offer reliable payouts.

Financial ratings

A.M. Best has given Primerica an A+ rating, which indicates a strong record of reliability. Primerica’s website claims that they pay 94% of their claims within 14 days.

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About the author
Ben Peetermans author
Ben Peetermans
Life Insurance Expert
Ben Peetermans is a life insurance editor. He enjoys blogging about various topics, including finance. He has been writing about insurance since 2015. Ben has been featured in various press outlets including FOX, CBS, and NBC.