Primerica Life Insurance Review for 2020 (AKA Prime America)

Written by Rob Pinner

Primerica Life Insurance Company Review (AKA Prime America)

Primerica Life Insurance or sometimes referred to as Prime America is unique in the life insurance industry in that it only offers term life insurance products, no whole life or adjustable/universal life insurance.

primerica life insurance

In 2018, Primerica issued the second most life insurance products in North America, but their average agent averaged 2 policies a month or 12 a year. In comparison, a full time agent writes 2-3 everyday.

The Primerica name has become well known across the United States because of it’s business model which utilizes more than 100,000 insurance agents. Primerica uses a MLM (Multi Level Marketing) approach in order to market themselves and reach more potential customers.

Be weary of this approach. What MLM means is if you purchase a Primerica term life insurance policy, you will probably be asked to join their team. That agent then makes money off the life insurance policies you sell and will encourage you to do the same thing.

Even though MLM may seem like a scam it isn’t, but this business model doesn’t scream “expert” life insurance agent. Primerica is also a captive life insurance company, meaning their agents can only sell Primerica Life products.

We are not saying that Primerica agents can’t be trusted. We are recommending that if you are looking to buy life insurance you will want to work with an experienced agent, especially if buying online.

The Wall Street Journal wrote a piece on how most of Primerica recruits have trouble passing the state exam.

Primerica Life Insurance History

Primerica Life Insurance Company, also referred to as Prime America, is relatively new to the insurance industry. Primerica (aka Prime America) is a Georgia based company established in 1977.

Primerica believes in the concept of “Buy Term and Invest the Difference”. This means combining the purchase of low cost term life insurance with detailed retirement accounts.

Other than term life insurance, Primerica Life also offers annuities, mutual funds, retirement plans, auto insurance, health insurance, long term care, and homeowners insurance.

Primerica Life Insurance Company Ratings

Anytime you are considering buying a life insurance policy, you will want to make sure the insurance company is financially stable and able to pay claims now and in the future.

According to Forbes, Primerica is one of America’s 50 most trustworthy companies. They have maintained an “A+” (Superior) rating with A.M. Best, and boasted an “A+” with Better Busines Bureau since 1980.

Term Life Insurance offered by Primerica

What makes Primerica unique to the rest of the insurance industry is that they only sell term life insurance. And their term life is generally lower in cost when compared to other carriers whole life insurance.

But if you compare Primerica’s term life rates to other top carriers, they are not competitive at all. If you smoke or have any health impairments they can get real expensive.

Since Primerica Life Insurance Company only offers term insurance, they do not offer a conversion option that most other carriers do. The conversion option allows the insured to convert his/her term policy to a permanent policy without having to go through an exam again.

The term life insurance offered by Primerica is available with guaranteed premiums for 10, 15, and 20 year term lengths. They also offer 30 and 35 year terms but the premiums are only guaranteed for 20 years. After 20 years the policy is guaranteed renewable up to age 95, but premiums increase on an annual basis.

Here’s a sample illustration from Primerica for a 35-year-old in the standard health class and a smoker.

  • The annual payment of $855 is guaranteed level until age 55.
  • At age 55, the rates increase every 5 years until age 70.
  • At age 70, the rates increase yearly.
life insurance Primerica Life Insurance Review for 2020 (AKA Prime America)
Source: rootfin.com

We highly recommend you do a detailed comparison of policies and rates. Some life insurance companies we recommend are:

Riders Offered

Most life insurance carriers offer many riders to choose from, allowing you to customize your policy to fit your needs.

Primerica Life Insurance Company offers a rider that is unique to the industry, the increasing benefit rider. This rider allows the insured to increase the death benefit up to 10% each year for the first 10 years of the contract. They also offer a living benefits rider, but so does many other carriers with better rates.

Should You Buy Primerica Term?

Primerica’s marketing strength is targeting those consumers who have given life insurance much thought. Most individuals that go with Primerica Life Insurance Company choose to because they have a personal relationship with the agent.

Other than this, most consumers avoid Primerica simple because their term life product is not competitively priced.

3 Facts to Remember About Primerica

  • Primerica only offers term life insurance, which means no converting to a permanent life product.
  • Primerica’s life insurance rates are priced much higher than most insurance carriers.
  • Primerica will not cover you if you have had health problems in the past or the present.

Our Thoughts

Primerica Life Insurance Company is a strong, financially stable insurance carrier with high ratings with A.M. Best and the BBB.

With that said, you have limited options when it come to life insurance. Their term life product is priced higher than the other top insurance carriers.

We also believe working with an independent agent compared to a captive agent is always going to be more beneficial for the consumer. If you have any questions or need quotes please don’t hesitate to reach out.

Frequently Asked Questions

Does Primerica sell permanent life insurance?

No, Primerica only sells term life insurance.

Is Primerica a good company?

According to Forbes, Primerica is one of America’s 50 most trustworthy companies. They have maintained an “A+” (Superior) rating with A.M. Best, and boasted an “A+” with Better Busines Bureau since 1980.

Can I convert a Primerica term life policy?

No you cannot convert a Primerica term life policy, simple because Primerica does not offer any permanent products.

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Rob Pinner
Rob Pinner

My name is Rob Pinner and I own EasyQuotes4You. At EasyQuotes4You we aim to make your life insurance buying process a smooth and stress free transaction.  We are independent life insurance agents servicing all 50 states. I have over 15 years of experience and have focused solely on life insurance for the past 5 years. If you have any questions or comments please don’t hesitate to give us a call.

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