Pros Explained
- Up to 35-year terms: Most life insurance companies offer a maximum term of 30 years. You can get coverage for up to 35 years with Primerica. Only three of the 91 life insurance companies we reviewed offered terms this long.
- Fewer complaints than expected: Customer complaints have been relatively few given Primerica’s size.3
- Superior financial strength ratings: An A+ (Superior) rating from AM Best means that Primerica has a superior ability to pay claims.4
Cons Explained
- No online quotes: Most term life insurance providers offer pricing estimates online, but you must call and speak with one of its agents to get a quote from Primerica.
- Lack of transparency: Primerica doesn’t provide enough details online about term lengths, coverage limits, or riders for a consumer to make an informed decision.
- Low customer satisfaction rating: Primerica scored 13 out of 22 companies in the 2022 U.S. Individual Life Insurance Study, indicating poor customer satisfaction despite its number of customer complaints.5
Complaint Index
The National Association of Insurance Commissioners (NAIC) reports a complaint index annually for every insurance company based on consumer complaints the association receives. An index of 1.00 indicates that a company has about the expected number of complaints given its size. An index of less than 1.00 bodes well for a company’s overall customer satisfaction. The lower the index, the better.
Primerica had an average complaint index of 0.28 in 2022, indicating that the company had fewer complaints than expected given its size.3 Most top life insurers we review don’t score over 1.00.
Third Party Ratings
Primerica has an A+ (Superior) financial strength rating from AM Best, an independent rating agency that assesses insurance companies.4 A high rating from AM Best is important because it indicates a greater likelihood that Primerica can reliably pay claims. We typically don’t recommend any insurance companies that don’t score in the A bracket.
But Primerica was one of the lowest-scoring life insurance companies in the J.D. Power 2022 U.S. Life Insurance Study.5 The company was ranked 13 out of 22 companies, scoring 766 out of 1,000. The industry average is 774, and the top-scoring company, State Farm, received an 839 score. This indicates that the overall level of customer satisfaction for the company is low relative to other major life insurance providers, even though complaints about Primerica to the NAIC weren’t rampant.
Competition
| Primerica | Globe Life | Mutual of Omaha | |
|---|---|---|---|
| Types of Coverage | Term life | Term life, whole life, final expense | Term life, whole life, universal life |
| AM Best Rating | A+ | A | A+ |
| Online Application | Not Available | Available | Not available |
| NAIC Complaint Index (Averaged) | 0.595 | 3.615 | 1.067 |
| J.D. Power Ranking | 13 | 2 | 3 |
Our ratings take into account NAIC complaint index scores and AM Best ratings. The NAIC complaint index indicates how many complaints a company receives relative to its size. AM Best assesses a company’s ability to pay its claims on a graded scale, with A++ being the highest possible rating. All our best life insurance companies have at least an A rating.
Policies Available
Primerica offers two term life insurance policies that include various plans and several riders. But its website provides relatively few details about specific product offerings. The information included here is from 2015. We received no response from Primerica in our attempts to verify it.
Term Life Insurance
Term life insurance offers coverage for a period of time, typically 10 to 30 years. Your beneficiaries would not receive a payout if you die after the term has ended and if you haven’t renewed coverage.
Primerica offers up to 35-year term policies and premiums stay level for the duration of the term. Both of Primerica’s term policies are renewable up to age 95. There are no war or terror clauses in either policy.
TermNow
TermNow is Primerica’s no-medical-exam life insurance product. It offers coverage amounts of up to $250,000 or $300,000 for individuals who are younger than age 45. This policy has three separate plans: the select, nicotine, and non-nicotine plans. It uses a rapid data check to get you insured more quickly.
Custom Advantage
Custom Advantage applicants must go through traditional underwriting, but they can qualify for up to $5 million or more in coverage. Minimum face amounts vary by age. They start at $50,000 for older applicants and $150,000 for younger applicants.
Available Riders
Life insurance riders are add-ons to a life insurance policy that allow you to customize your coverage. Primerica mentions several available riders but it doesn’t provide detailed information on how they work.
Waiver of Premium
A waiver of premium rider typically allows you to pause your premium payments if you become totally disabled and unable to work. The Primerica site doesn’t provide any information on this rider except that it is offered.
Terminal Illness Rider
This living benefits rider provides the lesser of 40% of the death benefit or $250,000 while you’re still living if you’re diagnosed with a terminal illness. You can get the lesser of $400,000 or 70% of the death benefit in advance of your death if you also have the waiver of premium rider on your policy.
Child Rider
You can get term coverage for all eligible children in your family with this rider.
Increasing Benefit Rider
This rider is available to applicants under age 56 who are issued non-rated coverage.
Customer Service
You’ll have to find an agent in your area and call them directly if you have questions about Primerica’s products. You can also email plic@primerica.com. Use one of the following phone numbers if you’re an existing policyholder or beneficiary:
- Call 1-800-257-4725 to manage your policy.
- Call 1-888-893-9858 to file a claim.
Primerica doesn’t disclose when their support team is available. There’s no live chat, but there is an online policyholder portal you can use to manage your policy.
Final Verdict
Primerica is a legitimate insurance company, but its limited offerings and limited transparency on pricing and coverage terms make it a difficult choice to recommend. The company has excellent financial strength ratings and fewer complaints than expected for its size, but other life insurance companies have more transparent product offerings, stronger financial strength, and higher customer satisfaction ratings.
Many of Primerica’s term life insurance competitors offer a wider variety of riders, convertible term policies, and more accessible customer service.
Frequently Asked Questions
Is Primerica a trustworthy company?
Primerica has been in business for more than 40 years and it’s publicly traded on the New York Stock Exchange, so it has some reputable longevity. It’s also been rated A+ by the Better Business Bureau.6 That said, the company has been less than transparent about the products it offers.
How long does Primerica Life Insurance take to pay out?
Primerica indicates that most payouts take no more than two weeks, but complaints have been made that some payouts have taken two months or longer. It can depend on the details of the policy and circumstances surrounding the death.
Can you withdraw money from Primerica Life Insurance?
Primerica offers only term life insurance. These policies don’t have cash value. You can’t borrow from or withdraw money from your Primerica life insurance policy.
Why does Primerica have a bad reputation?
Primerica doesn’t offer much in the way of upfront information about its policies online, including pricing estimates. This can deter some consumers. The insurer has received relatively few customer complaints, but some policyholders have reported poor customer satisfaction.
What disqualifies a life insurance payout?
Primerica doesn’t cite disqualification factors on its website, but some issues will commonly cause a life insurance company to deny a payout. These include deaths by suicide within a certain period of time after the policy is purchased or deaths due to acts of war or terrorism. Lying or withholding information on your application can also result in denial.
Methodology
We designed a comprehensive ranking methodology based on consumer priorities and life insurance company fundamentals to rank more than 90 insurers across five general categories: financial stability, customer satisfaction, product and feature variety, the overall buying experience, and cost.
We collected over 5,000 data points and scored each company based on 55 metrics in order to do this. We grouped metrics by category to see how insurers performed in each. We then weighted category scores to determine how companies performed overall.
Read our full Life Insurance Methodology to learn more.
