Primerica Life Insurance Review 2016

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Compared to other insurers, Primerica is relatively new to the market, dating back to 1977 when it began its mission to encourage individuals and families to “Buy Term and Invest the Difference.” Primerica began trading on the New York Stock Exchange in 2010, and it earned a spot among Forbes’ list of America’s 50 Most Trustworthy Financial Companies in 2015.

In addition to its unique slogan, the way Primerica operates makes it a different option from most other life insurance providers. Read on to learn about how Primerica is different, what the company offers and how you can make the right decision for yourself and your family when it comes to purchasing insurance.

What Makes Primerica Different?

What sets Primerica apart from other life insurance companies is the way it structures its business. As a network marketing company, Primerica sells consumers on the business opportunity first. The opportunity is to sign up as an independent “agent” who sells the company’s various products to interested consumers along with letting others know about the option to create a part-time or full-time business with Primerica.

What Services Does It Offer?

When it comes to life insurance, Primerica offers term life insurance only. The company doesn’t provide the option for whole or universal life like most other life insurance companies do. Instead, its philosophy is for buyers to spend less on term life and invest the rest for the future. Other products Primerica offers include:

  • Mutual fund investments
  • Automobile insurance
  • Homeowners insurance
  • Health insurance
  • 401(k) and 457 plans
  • Annuities
  • Long-term care insurance

To get the lowest rates on life insurance, shop around and compare the rates of at least three to five different insurance companies to find the one with the most competitive rates and favorable terms that meet your needs. Visit each company’s website or call a local agent to get a quote. Alternatively, you can use an online life insurance comparison tool to analyze rates in minutes.

How to Get Primerica Life Insurance Rates

To get a quote, you need to call the representative located nearest you. Unlike most other life insurance companies, Primerica only offers one type of life insurance — term life — and no online quotes.

Although Primerica doesn’t provide estimated rates on its website, the following chart containing some of the other major names in life insurance should give you an idea about what you could be paying each month. Individual rates vary depending on your medical history, current health and driving record. This comparison is based on a 20-year term life insurance policy for $250,000 for a healthy individual with no pre-existing medical conditions.

Men, Age 25Women, Age 25Men, Age 45Women, Age 45
Mutual of Omaha13.7812.2531.2825.16
Lincoln Financial19.0316.4146.5934.78

The Downside of Primerica

Although Primerica has a superior rating from the Better Business Bureau and an A+ in financial strength from A.M. Best, results from a 2015 survey conducted by J.D. Power gave Primerica below-average ratings in all major categories, including overall satisfaction, billing and payment, price, policy offerings and interaction. Other companies that received the same ratings include Lincoln Financial Group and John Hancock.

If you’re looking for a side business or for term life insurance, Primerica might be a good option. If you’re more interested in permanent life insurance, otherwise known as whole or universal life, shop around before you sign up. Because Primerica doesn’t provide whole or universal life, your options are limited and you may be better off with a comparable life insurance company.

What’s the Difference Between Term, Whole and Universal Life?

  • Term life insurance offers low prices with fixed payment amounts for a specific period, and it only pays your beneficiaries if you pass away within that specific period — typically 10, 20 or 30 years. When the term is over, you can end your coverage or roll into a policy that renews annually with rate increases. Other insurance companies that offer whole and universal life typically offer the option to convert to permanent life insurance (whole or universal).
  • Whole life insurance costs more than term life, but the premiums remain the same for as long as you’re alive or the policy is in effect. Rates don’t increase and the policy may build cash value that you can use while you’re living.
  • Universal life insurance builds value, much like whole life, but it has added flexibility and lets you change your coverage as your needs change.

The following chart provides a quick overview of some of the key differences between the three different types of insurance:

FeatureTerm LifeWhole LifeUniversal Life
Death benefitsYesYesYes
Low monthly/annual costYesNoNo
Access to money while aliveNoYesYes
Cash valueNoYesYes
Tax advantagesYesYesYes
Flexible payment amountsNoNoYes
Caryn Anderson
Caryn Anderson combines extensive behind-the-scenes writing experience with her passion for all things food, fashion and finance. Anderson honed her craft while earning her B.S in Communication Studies from New York University.

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