Reasons to be weary of Primerica (also known as Prime America)

 Disclaimer: We are not affiliated with Primerica or as some refer to them as Prime America.  This article is our review of Primerica and their Life Insurance ProductsPrime America life insurance review

Primerica has become a very well-known name in the life insurance industry.  Many consumers find their insurance over priced with lots of fine print in their marketing and selling affordable life insurance. Here are a few reasons that reveal why Primerica or Prime America is a company you should review and compare.

As always we recommend shopping around and receiving several quotes before you make your final decision. Also, do not allow health or lifestyle choices to hold you back from finding the best policy for you, such as finding life insurance quotes for smokers, it is possible to get affordable quotes!

1) Annual Renewable Term: Primerica or Prime America as some people refer to them as, only sells term life insurance, they do not offer permanent life. After the level term period Primeirca sends a letter to the insured giving them options. Consumers have told me that if they declines to make a change the policy converts to an increased flexible premium without an exam.

Prime America also offers ART or annual renewable term after the level term period ends in some instances. ART policies increase in price ever year. Primerica offers this as a quick solution to continue coverage.  Many consumers have problems with receiving a letter of explanation versus a phone call explaining in detail that the insured, if healthy could apply for  level premiums for ten or more years at more affordable rates. Its easy to understand why this is common,  life insurance with no medical exam coverage is more expensive and more profitable and I am sure its too hard for Primerica to call each policy holder.

2) High Prices: Primerica is not as competitive as the typical well known insurance companies like Banner Life, Genworth, SBLI, Prudential, ING, and AIG. Primerica is more than a life insurance company. They sell other financial services and their business model is to sell many financial related products. Many consumers find that because  they do not compare rates from multiple companies to shop for the client, they are getting the short end of the stick. ALWAYS shop and compare rates before purchasing a life insurance policy.

3) Jack of all Trades, Master of None: Primerica or Prime America offers term life insurance quotes only, they do not provide whole life insurance quotes. Many of their agents sell life insurance part time, while the majority of their time is spent trying to sell other financial products and or working other jobs. Some agents only work part time and have full time jobs. Some of Primerica’s agents lack the knowledge and experience that an Independent Life Insurance Broker has, because they only work part time. Primerica also pushes agents to recruit new agents without any experience or financial education. Would you want a part time doctor performing surgery on you, of course not, so why let a part time insurance agent attempt to protect your family or business?

4) Where’s the beef, No Permanent Products: Primerica only provides term life insurance quotes. Customers looking for a permanent policy won’t find it from this company. Primerica does this mainly because they want you to buy term and invest the difference, just like Zander Insurance and Dave Ramsey suggest. Prime America or Primerica is a full service financial services company, their model is to manage all your assets  so they can generate fees. Just like the other companies I’ve wrote about. It is important that consumers looking for life insurance for seniors understand this because they need permanent policies for funeral planning and burial policies and Primerica or Prime America doesnt sell these type of products.

These are the big reasons why we are able to pretty much always beat the prices of anyone offering life insurance through Primerica.  If you came looking for an in depth review of the company here is the information on the company itself.

Primerica is a very popular name in the life insurance industry, unfortunately name recognition doesn’t always equate to quality of service.. Just like Globe Life and Colonial Penn, Primerica is overpriced and only sells term life insurance.  If in the market for a free term or whole life insurance quote please click below to get free life insurance quotes from over 50 different companies.

The History of Primerica Life Insurance Company

Primerica Life Insurance Company traces its initial roots back to 1977 when the company started an entire revolution to change the overall life insurance industry as people knew it. This is because, while many people were taught to purchase permanent life insurance – where both insurance coverage and a savings component are all lumped into one policy – Primerica has the concept of “buying term and investing the difference.”

In fact, the “buy term and invest the difference” philosophy has been encouraging families to save money on life insurance coverage now for nearly 40 years, and it essentially works to allow people to purchase affordable life insurance protection, while at the same time building up a sizeable investment portfolio that is more in their control.

Primerica had its beginning when the company’s founder, Arthur Williams, wanted to ensure that all families could afford to be covered with life insurance protection. Just three years later, the company contracted with Massachusetts Indemnity and Life Insurance Company, and the next year, the A.L. Williams Corporation was born.

Throughout the 1980s, the company grew considerably. One reason for its massive growth had to do with the way that the company’s life insurance products were marketed. This is primarily via the multi-level marketing concept whereby agents recruit others to sell the product to others, adding to their “downline.” This has led to a massive sales force – many of which are very positive about the product when pitching it to potential clients.

Some of the other positives about the company and its life insurance product include its brand name and its low price. The company also has a great deal of loyalty – primarily due to the fact that many people end up purchasing their life insurance coverage from an agent who is a friend or a family member.

In 2010, Primerica became a publicly traded stock company, and it is today traded on the New York Stock Exchange under the symbol of PRI. It is considered to be the largest independent financial marketing organization in North America. The company is headquartered in Duluth, Georgia.

A Review of Primerica Life Insurance Company

Primerica Life Insurance Company has the concept and the focus of helping “Main Street” families to obtain the life insurance protection that they need at a price they can afford. While doing so, they also help these families to get out of debt. Because these concepts are not taught in school, they can be extremely helpful for people in moving forward in their lives – and in saving for their futures.

Today, roughly 5 million lives are insured via Primerica’s life insurance companies, which accounts for approximately $693 billion of life insurance in force. Every day, the company pays out an average of $3 million in benefit claims. The company also has more than 2 million investment clients, who have more than $47 billion in asset values invested in their Primerica investment accounts (as of December 31, 2015).

The company also offers a great deal of information on its website. This can be extremely helpful for clients and potential customers in understanding how life insurance and other products work to grow and protect their wealth.

For example, there are examples presented on how and why individuals and families should “pay themselves first”, as well as the high cost of waiting to start saving. There are also examples of how various investment concepts work such as the Rule of 72 and the power of compound interest. These details can help clients to get out of debt and to move forward with building future wealth, as well as with protecting that wealth.

Primerica Life Insurance Company Ratings and Grades

Primerica is considered to be a strong and stable company from a financial standpoint. It has been given a grade of A+ (Superior) from A.M. Best – which is the oldest and the most prominent insurer rating agency in the insurance industry.

Also, Primerica is also a member of the ACLI, the American Council of Life Insurers. This trade association that is based in Washington, D.C., has more than 370 members and accounts for over 90% of the life insurance industry’s total assets in the U.S, as well as 90% of the life insurance premiums, and 95% of annuity considerations.

In addition, Primerica Life Insurance Company has been an accredited company with the Better Business Bureau since January 1, 1980. The company has been given a grade of A+ (on an overall grade scale of A+ through F).

Throughout the past three years, Primerica has closed out 158 total complaints. Of these 158 complaints, 99 have been about problems with the company’s products and / or services, 39 were issues with billing and / or collections, 19 were issues with advertising and / or sales, and one had to do with guaranteed and / or warranty issues.

Life Insurance Products Offered By Prime America

Primerica Life Insurance Company has a focus on term life insurance policies. With term life, the insured is covered with life insurance protection only – and because of this, the coverage can be very affordable. This allows for funds to be freed up for investing in other options such as mutual funds, stocks, and retirement plans. Since 2012, the company has paid out more than $1 billion in life insurance claims. The company is known for paying out more than 90 percent of its life insurance claims within 14 days.

While the focus on just term life insurance provides a great deal of specialization, there can also be some drawbacks to having too much focus on just one type of life insurance product. For example, because Primerica Life Insurance Company offers no permanent life insurance coverage, here is no way to convert the term coverage over into a permanent life insurance policy.

While this may not be an issue for a policyholder who is young and in good health, it can be unfortunate for someone who has developed an adverse health condition and may become uninsurable once his or her initial term life insurance policy has expired.

Other Products Offered

In addition to term life insurance coverage, Primerica also offers a number of other products and services to its customers. These include the following:

  • Mutual Fund Investments
  • Annuities
  • Managed Accounts
  • Health Insurance
  • Debt Solutions
  • Long-Term Care Insurance
  • Pre-paid Legal Services
  • Auto and Home Owners Insurance
  • 401(k) and 457 Plans

Where to Find the Best Rates on Life Insurance Coverage

When you are seeking the very best life insurance premium quotes, it is often the most successful course of action to work with either a company or an agency that has access to more than just one life insurance carrier. That way, you will be able to directly compare multiple policies, benefits, and premium quotes, and from there determine which one will be the best for you.

If you are ready to see which life insurance coverage may be the best for you, we can help. We work with many of the top life insurers in the industry today, and we can assist you with obtaining all of the important details that you need for making a purchase decision. We can do so for you quickly and easily – and without the need to meet in person with a life insurance agent. To get the process started, all you need to do is fill out the form on this page.

Should you find that you still have any additional questions regarding Primerica Life Insurance Company – or even if you just have more questions about life insurance in general – please feel free to call us directly. We can be reached via phone, toll-free, by dialing 877-400-0484.

We understand that the purchase of life insurance can be somewhat overwhelming. There are many different variables to sort out – and you want to ensure that you are getting the right type and amount of coverage for you from the very best carrier for you needs. We can help you in sorting out all of those essential details. So, contact us today – we’re here to help.


4 Responses to Reasons to be weary of Primerica (also known as Prime America)

  1. Thank you for sharing this valuable information regarding Prime America. I received a phone call from them today for an interview for a job prospect. I asked about their company and the person stated — “We’re Prime America, formerly Citi Corp.” I pursued to research them and learned that this company is lacking integrity, at many levels, therefore as badly as I need a job I can not bring myself to work for such an organization. So, I thank you for your input and advice for searching for reputable life insurance companies and about the return of premium policy. Thank you again, and appreciate your help.

  2. I ah prime america life insurance for years and I failed to check around to compare prices. That was stupid on my part. I’m looking for life insurance for me and my wife, can some one recommend a reliable company that I can contact to get coverage. Thank you.