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Primerica (Prime America) Review-Are They A Good Company?

by Scott G on March 26, 2013 · 6 comments

Primerica (Prime America) 2013 review

Primerica (Prime America)

Primerica (Prime America) has grown into one of the largest term life insurance companies in the country.  They ranked #7 in the country for ordinary life insurance issued in 2011, according to A.M. Best.  However, when you examine their business model and premium rates, you will find a company who is overpriced and lacking substance in key areas.  As agents, when a prospective client says they have a policy with Primerica, we kind of smile inside.  We know from experience, more often than not we are going to get you a much better rate then you currently paying and will replace that policy.


Primerica was founded by Art Williams in 1977 as A.L. Williams.  Art was a revolutionary in bringing term life insurance to the masses.  He later sold his share of the company, and in 1987 the company was renamed Primerica Corporation.

MLM-Multi-level marketing type-business model (multi-tiered compensation system)

With about 90,000 + representatives, Primerica agents try to sell to a warm market- meaning friends, relatives and acquaintances.  The representatives also are encouraged to recruit more agents into the company so they can receive a commission from sales of the new agents.  This pyramid or business model unfortunately leads to overpriced policies for the consumer.

Primerica is expensive

Sample quotes for a 40 year old male, non-smoker at the preferred plus class:

Amount      Term          SBLI     vs.    Primerica     Difference      

$500,000     10 Year       $20.88               $29.45         -41%

$500,000     20 Year       $33.93               $45.13          -33%         


Amount       Term       Banner    vs.   Primerica   Difference      

$1,000,000   10 Year      $33.69            $51.78            -53%

$1,000,000   20 Year      $63.44            $83.13           – 31%


When you compare the quotes from Primerica vs. almost all of the other major life insurance companies, Primerica is usually at the bottom of the list as far as being competitive.   This example above was for a healthy 40 year old.  If you are older or have any health impairments, the rates are going to be even more expensive.  Of course every quote will be different, this is just an example.

Is it worth paying more to be with Primerica?

Primerica is A+ rated by A.M. Best.  This is a great rating but almost all of the other top companies have the same rating.  Primerica does have a good reputation for paying out their claims but so does all of the other major life insurance companies.


Primerica is usually way overpriced.  Art Williams and his company were one of the forefathers for bringing term life insurance into the market.  However, due to their MLM business model and lack of quality insurance products, there are much better options out there.


*Rates as of 3/26/2013. The information in this post is for informational purposes only and is not a guarantee of rates and insurability.  Rates and eligibly are subject to the underwriting guidelines of the insurance companies and state in which you live.

J C March 27, 2013 at 8:31 am

How much money have you been able to get the middle class to save?
BTW, your 2013 quotes are wrong.
Who does a 10yr policy anyway for a 40yrs old? How much will he have for retirement?
I am sure he’s would like to retire someday?
Who helps him pay off his house, get out of debt, send his kids to college?
Primerica does! Great article sounds like Primerica has converted a few of your clients. Even though we deal with high net worth individual as well, how many middle class people have you helped, do you even try?

Scott March 27, 2013 at 3:55 pm

Hi J C,
Thank you for your comment. I’ve been fortunate to have been able to save the middle class a lot of money with lower premiums over the years, that’s why I do this job. I’ve written policies for thousands of middle class people. You are correct, I usually do not recommend a 10 year term for most of my 40 year old clients. I was simply posting sample published rates. I also posted the 20 year term rates in the article, which is the most popular term. J C, if the 2013 quotes for Primerica are wrong, please let me know what are the correct rates. Those were the published rates I found. I want to of course have the most accurate information possible. Also, I’m not aware of any of my clients who converted to Primerica. It is possible, but I haven’t heard of one. Don’t get me wrong, I think Primerica is a good company as I mentioned in the post, I just don’t believe their rates are the most competitive.

Seth King March 29, 2013 at 2:24 pm

Hey Brian,
I agree with you that Primerica’s life insurance is not the cheapest route to go to protect your family. Just as Mercedes and Lexus are not the cheapest way to get your family around town. The question you must ask yourself when comparing any two companies offering the seemingly same product is what are the differences. Like if you went car shopping and found two seemingly identical value (same make/model, year, miles, etc) but one was $30,000 and the other was $20,000, I’m sure you’d probably ask what’s wrong with the $20,000 one or what’s better about the $30,000 one. Life insurance is the same way. There are more factors to consider than just the price of the monthly premium. Financial security of the company, the exclusions that the policy has, and how long the average claim is paid out are all factors that made me switch even though the price was higher. Speaking of price, your rates for Primerica are higher than the current rates. For a 40 yr old male Preferred Plus 500k 10yr is $29.45, 20yr is $45.13. 1 million 10 yr is 51.78, 20 yr is 83.13. Still not cheap compared to the ones you refer to above but what we’re talking about is protecting your family. Do you really want the cheapest thing to protect your family or do you want the best? Personally my family is worth an extra $.50 a day to get the best. That’s why I have Primerica!

Scott March 29, 2013 at 2:54 pm

Hey Seth,
Thank you for your comment. You are correct in the fact that the features and value of a Mercedes automobile are usually better then that of their less expensive counterparts. However, in term life insurance most of the policies have the same exclusions; 2 year suicide and 2 year contestability clause. Also, the finanical rating for Primerica is A + by A.M. Best, the same rating as the companies that were compared above. Also, many of the top companies have the same financial rating A + or better. I have heard that Primerica does payout the benefit rather quickly which is great. However, life insurance policies are contracts and no life insurance company has ever failed to pay a valid claim. Also, I updated the article with the numbers to the ones you provided vs the published rates I found. Thanks Seth!

Mann April 9, 2013 at 2:57 pm

The Price compared is wrong.
Primerica life comes with Terminal (critical illness) payable to client up to 70% compared product just is death benefit.
If client was to ask for client was to ask for that benefit to be included the quote would go two to three times hire for those other companies.

Former PFS Agent June 15, 2013 at 10:12 pm

Here is a homework assignment for the PFS guys. First off just ask yourself why is it so many people have gone through the PFS system yet you only have 90K agents? Look at your annual reports and notice how many people are recruited yearly and then consider the 90K.. Second for every product you offer that’s not PFS do some research and look at compensation and the cost to the client.. Last but not least do some research by talking to some seniors and ask them about BTID and if they did it long term..

Good luck..Oh yea one more thing. Here’s the kick that my RVP couldn’t explain.. You mention premiums. Take the premiums you quote and figure out how much more coverage one of the other companies can provide compared to Primerica. When you do remember you may be talking about your friends and family. Next ask yourself where is your loyalty? How would you feel if a family member or friend’s family found out you could have gotten them more coverage for the SAME amount of premium but do to your loyalty to Primerica you never told them about it.. That’s one reason I left Primerica..They were telling we did what’s right 100% of the time the problem was defining what they meant by right…

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