Primerica Life Insurance Company Review
When you are planning to get financial security for your loved ones and yourself, you should consider life insurance. It is the best way to guarantee that you won’t have to worry about money problems later in life. This is because the proceeds from the policy can be used to pay off debts for the survivors or dependents. It is a safety net that takes care of all rising expenses and costs of living and can ensure that your children and/or the spouse don’t experience any financial hardships in life.
If you have been searching for life insurance policies, there are several factors that you must consider before acquiring them. The first thing you must do is to ensure that you purchase a policy from a company that has great financial strength so that you get great coverage options. It is important that you focus on the reputation of the insurance company, especially when it comes to paying out the claims of the policyholder. One life insurance company that we will be looking at today is Primerica.
Established in 1977, Primerica is relatively new in the industry but has been offering affordable life insurance policies to millions of people in the United States. The company has focused on serving the middle class of America, from the beginning, and was started by Arthur Williams. Williams was a former high school football coach who had turned into a life insurance advisor and ended up starting a life insurance company — Primerica.
The company did extremely well in the initial years. It had contracted with Massachusetts Indemnity and Life Insurance Company quite early on. By 1982, Primerica had gone public and was trading stock on the NASDAQ market. The company was different because it had decided to take an educational approach apart from its insurance coverage. It focused on educating all customers and prospects through the complimentary Financial Needs Analysis.
This was done to ask important questions and find out the goals and needs of a family or an individual. The company knew that having this information was crucial to suggesting different financial solutions to fit the budgets and needs of its clients. There are three main companies that are part of Primerica:
- Primerica Life Insurance Company
- Primerica Life Insurance Company of Canada
- National Benefit Life Insurance Company
The products offered by Primerica are done by independent representatives, most of whom work part-time. Primerica is headquartered in Duluth, Georgia, and has won a lot of accolades and awards over the years. In 2015, it made it to the Forbes list of America’s 50 Most Trustworthy Financial Companies, which goes to show their standing in the industry.
Insurer Ratings and Better Business Bureau (BBB) Grade
Primerica has a stable and robust financial standing in the industry, which is why it has always paid out claims to its policyholders. This has given Primerica very high ratings from most insurer rating agencies — A.M. Best Company gave it an A+ (Superior) rating. There are only about 20% of life insurance companies that have been awarded this rating.
Primerica has also been a part of the Better Business Bureau (BBB) since 1980, and that company has been given an A+ grade by the BBB. Primerica has gotten about 140 customer complaints over the past three years, and most of them have been resolved.
Primerica is an industry leader when it comes to term life insurance, and the company has paid out an average of $3.5 million in claims every day! That is a stunning number, and it gets even better when you learn that 90% of those claims were paid out within 14 days of submission! Primerica currently serves around 4.5 million policyholders and customers.
The company has got more than $728 billion in life insurance, and most of the policies are sold through Primerica agents, with the “Buy Term Invest the Difference” philosophy. It allows clients to buy affordable life insurance and helps them invest in mutual funds and other investments. Primerica believes that people should purchase life insurance using the same tactics they use when buying other forms of insurance. They want people to maximize their coverage and then invest the remaining. This allows families and individuals to save more money and enjoy a stress-free retirement.
The biggest advantage of the term life insurance products offered by Primerica is that they have very low rates compared to permanent life insurance policies of other companies. This means that an insurer can acquire substantial coverage for affordable rates, particularly when they are in good health and young at the time of application. Anyone looking for term life insurance policies should know that they are only offered for a set period, which is 10, 15, 20, or 30 years.
This means that once the policy has expired, the insurer will need to renew the policy if they want to keep their coverage. However, this means that they will pay higher premium rates after the renewal. It is a great option for people who want temporary coverage while they are paying off their mortgage or saving money for their kids to go to college.
The products offered by Primerica include an affordable and straightforward term life insurance coverage. Most of the insurance policies sold by Primerica come with renewal options, which allows the insurer to continue their coverage after the term has ended for their policy. There are several options available for policyholders to structure the insurance coverage. The company offers individual riders, and add-ons like waiver of premium, terminal illness benefit, and increasing benefit riders.
This adds greater value to the lives of people looking for life insurance, and Primerica is the best at it. It offers a unique approach towards buying life insurance since the company only offers the TermNow and Custom Advantage plans. These options are meant to provide guaranteed insurability to all policyholders till the age of 95 and include:
- Terminal illness benefit
- Industry-leading renewal options
- Affordable renewal rates
- Flexible use of riders that can help with increasing the coverage
- Better “customizing” the policy to better fit the insured’s needs
Apart from the term life insurance coverage, the company also has different products and services, which are meant to offer great solutions to people. These include the following:
Primerica provides mutual fund investments, which are meant to help their clients save money for their future. The policyholders can also choose to invest a lump sum or a dollar cost average, where they can invest a lot of money regularly.
Ø Auto Insurance Coverage
The auto insurance coverage can be availed through the Primerica Secure Referral Program. This offers clients the advantage of gaining affordable rates in less than 10 minutes!
Ø Home Owners Insurance Coverage
The home owner’s insurance coverage can also be availed through the Primerica Secure Referral Program. It is meant to provide an easy solution to clients to get quotes they are eligible for and then choose the program appropriately.
Ø Long-term Care Insurance
Primerica also provides long-term care insurance coverage through the most experienced and oldest companies in the industry. This provides them with additional coverage and ensures that clients can protect their assets and savings properly.
Ø Pre-Paid Legal Services
Most people don’t think they need to acquire the services of a lawyer, but when you really need them, you quickly find out that you can’t afford to pay the high legal fees of good attorneys. You can get legal insurance protection to ensure that you don’t have to worry about that problem. It also offers you different services like probate benefits, IRS audit assistance, durable powers of attorney, motor-vehicle-related benefits, legal consultation, and creation.
Ø Identity Theft Defense
One of the fastest growing crimes around the world is identity theft. It not only harms the individual whose identity is stolen but others as well. You can get identity theft protection to ensure that if someone tries to steal your identity, you don’t have to worry about financial losses.
Ø Debt Reduction / Payoff Solutions
The debt solutions provided by Primerica are designed to help families and individuals get themselves out of debt and experience financial freedom in their life. The Primerica Debt Watchers product is meant to allow clients to use information from their Equifax Credit Report to create a plan that works towards reducing and paying off their debt. This is very different from other debt relief products that you will find in the market because it doesn’t limit itself to the debts on the credit report of the individual but creates an overall plan that looks after the debts of all debts incurred.
Apart from all the above-mentioned products, there are a lot of educational concepts and solutions that are offered to clients from Primerica. These include the following:
In addition to the other educational solutions and concepts that may be provided, Primerica offers:
- Theory of Decreasing Responsibility
- Rule of 72
- Power of Compound Interest
- Pay Yourself First
- High Cost of Waiting
- Debt Stacking
Primerica believes in making the lives of people in America easier by offering them well-protected life insurance and coverage and helping them get out of debt.
Company Products and Features
What is Primerica Known for?
Primerica is one of the newest insurance companies in the market, even though it has been around for over 40 years. The best thing about the company is that it has already made a formidable name for itself in the market. It was the alternative methods that Primerica used to sell policies that turned it into one of the biggest financial service marketing company in North America. The alternative structure it uses allows independent contractors to act as licensed insurance agents and sell the policies of the company. There are also Primerica trainees who do not officially have the license, but there is no information on how they get paid or what it actually means to become a trainee.
This business model offers a more personal experience to people, but it has been criticized by many in the insurance industry. This is because it creates a conflict of interest between the commission-based multilevel marketing structure and the limited products offered by the company. This has brought Primerica into the limelight with regards to a lot of controversies, but despite that, it still offers complete term life insurance and other financial services. The most important thing is that despite the negative image created by other insurance companies on its unconventional business model, Primerica continues to satisfy millions of customers with its life insurance policies.
The Bottom Line
There are a lot of options available in the market if you’re looking for term life insurance. Primerica is a great insurance company, but it may not be the best fit for you since it has limited products on offer. That is why it is recommended that you conduct thorough research when looking for life insurance products in the market.
- See our next life insurance company review: Met Life