Disclaimer: We are not affiliated with Primerica or, as some refer to them, Prime America. This article is our review of Primerica and their life insurance products.
Primerica (also known as Prime America) is a very well-known name in the life insurance industry. Many consumers, however, find their life insurance is overpriced with lots of fine print. It’s important to know the facts. You should understand all the information from your insurance company. Here, we lay out the reasons why Primerica (or Prime America) life insurance is one you should do your research on.
We always recommend shopping around. Receive 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 still possible to get affordable quotes!
Reasons to be Wary of Primerica Life Insurance
- Annual Renewable Term
Primerica is also known as Prime America. They only sell term life insurance. They do not offer permanent life insurance. After the level term period, Primerica sends a letter to the insured. This letter gives them options. Consumers have reported that if they decline to make a change, the policy converts to an increased flexible premium without an exam.
Prime America also offers ART (annual renewable term) after the level term period ends in some instances. ART policies increase in price every 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 10+ years at more affordable rates. It’s easy to understand why this is common. Life insurance with no medical exam coverage is more expensive and more profitable. It is probably not easy for Primerica to call each and every policy holder in this manner.
- High Prices
Primerica is not as competitive as the typical well-known insurance companies like Banner Life, Genworth, SBLI, Prudential, ING, and AIG. Actually, Primerica is more than a life insurance company; they sell other financial services, too. 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. Our advice? You should always shop and compare rates before purchasing a life insurance policy.
- Jack of All Trades, Master of None
Again, Primerica offers term life insurance quotes only. They do not provide whole life insurance quotes. Many of their agents sell life insurance part-time, while they spend the majority of their time trying to sell other financial products and/or working other jobs. Some agents only work part-time and have other full-time jobs. This part-time culture means that some Primerica agents lack the knowledge and experience that an Independent Life Insurance Broker has. Primerica also pushes agents to recruit new agents without any experience or financial education. Would you want an inexperienced, part-time doctor performing surgery on you? Of course not! So why allow an inexperienced, part-time insurance agent to risk the protection of your family or business?
- 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. Primerica (Prime America) is a full-service financial services company. Their model is to manage all of your assets so that they can generate fees. It is important that consumers, especially those searching for life insurance for seniors, understand this. Seniors need permanent policies for funeral planning and burial policies! Primerica doesn’t sell these types of products. Hence, they are not the best choice for seniors.
Goldsmith Beats Primerica’s High Prices
Now you know why Primerica isn’t the best choice for everyone and what their true interests are. Goldsmith Insurance is happy to help our customers find the life insurance they need at a low price. We always beat the high prices of anyone offering life insurance through Primerica. If you are in the market for a free term or whole life insurance quote, simply click here to get free life insurance quotes from over 50 different companies. It’s quick and easy!
Testimonial – Goldsmith Insurance
“I was contacted by Sam Goldsmith after putting in a request on the internet for a life insurance quote. He was wonderful in explaining the differences between term life and permanent life–something I never truly understood. Every interaction I had between Sam and Talia was very professional and informative. I highly recommend using Goldsmith Insurance Agency to make sense out of what can be a very “cloudy” subject. Thank you both for all your help!” – Angela
The History of Primerica Life Insurance Company
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.
Primerica Life Insurance Company traces its initial roots back to 1977. Founder Arthur Williams wanted to ensure that all families could afford life insurance coverage. The company started a revolution. They wanted to change the life insurance industry as people knew it then. While many people were instructed to purchase permanent life insurance – where both insurance coverage and a savings component are all lumped into one policy – Primerica came up with the concept of “buying term and investing the difference.” In fact, the “buying term and investing the difference” philosophy has been encouraging families to save money on life insurance for nearly 40 years. 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 under more of their control.
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 their products were marketed. They used the multi-level marketing concept, where agents recruit other people to sell the product to others, adding to their “downline.” This has led to a massive sales force – and those involved are often very positive about the product when pitching it to potential clients.
Some of the other positive factors regarding Primerica and its life insurance products are its brand name and 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 (Prime America) became a publicly traded stock company, and is today traded on the New York Stock Exchange under the symbol of PRI. Headquartered in Duluth, Georgia, it is considered to be the largest independent financial marketing organization in North America.
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 a strong and financially stable company. It has a grade of A+ (Superior) from A.M. Best. AM Best is the oldest and the most prominent insurer rating agency in the industry. They also are an accredited company with the Better Business Bureau (since January 1, 1980). They have an A+ rating.
Primerica is a member of the ACLI, the American Council of Life Insurers. This trade association is based in Washington, D.C. It boasts more than 370 members. It 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.
Throughout the past three years, Primerica closed out 158 total complaints. Of these 158 complaints, 99 were 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 focuses on term life insurance policies, which covers the insured with life insurance protection only. 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 pays out more than 90 percent of its claims within 14 days.
While the focus on just term life insurance provides a great deal of specialization, there are some disadvantages to having too much focus on just one type of life insurance product. Since they don’t offer permanent life insurance coverage, there is no way to convert it over into a permanent policy. This may not be an issue for a policyholder who is young and in good health. However, it can be very harmful to someone with a health condition. They may become uninsurable once their initial term life insurance policy has expired.
Other products and services offered to customers include:
- Mutual Fund Investments
- Managed Accounts
- Health Insurance
- Debt Solutions
- Long-Term Care Insurance
- Prepaid Legal Services
- Auto and Homeowners Insurance
- 401(k) and 457 Plans
Where to Find the Best Rates on Life Insurance Coverage
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.
When seeking the very best life insurance premium quotes, take the most successful course of action. Work with an agency with access to more than one insurance carrier, such as Goldsmith Insurance. This gives you the power to directly compare multiple policies, benefits, and premium quotes. From there, you can easily determine which one will be best for you.
So which life insurance coverage is best for you? Goldsmith Insurance can tell you. We work with many of the top life insurers in the industry today. We get all of the important details you need for making an informed decision. It’s quick. It’s easy, and you don’t have to meet with an insurance agent. Just fill out the form on this page to get started!
For Life Insurance Experts You Can Trust, Contact Goldsmith Insurance Today!
If you have questions about Primerica Life Insurance or anything else, simply call us. Our toll-free number is 877-400-0484. We understand that buying life insurance can be overwhelming and stressful. There are many different variables to sort out. You want to make sure you’re getting the right type and amount of coverage for you. You need it from the best carrier possible and you need it to meet your specific needs! We can help you in sorting out all of those essential details. Contact Goldsmith Insurance today – we’re here to help.