Primerica Life Insurance Review

March 18, 2021
Jonathan Fritz
B.A. Risk Management
Life Insurance Agent

Primerica is a financial services company based in Duluth, Georgia. It offers a diverse range of financial products and services including term life policies, long-term care insurance, auto and home insurance policies, mutual funds, annuities, prepaid legal services, and identity theft protection services.

How does Primerica life insurance fare as an insurance provider? How good is its term life insurance policy? Let us take a look!

Our Take

Insurance agents, especially those who represent a particular company, tend to sell policies based on the commission they get, which can make it difficult to provide the best plan based on the financial needs of the customer.

If you are considering Primerica for your life insurance needs, consider contacting an independent agent before buying life insurance coverage. This will allow you to have an apples to apples comparison in relation to how Primerica stacks up to the nation's best life insurance companies.

History and Background of Primerica Life Insurance

primerica life insurance
AM Best Rating
Our Rating




Products sold


The history of Primerica life insurance can be traced back to 1977, when Arthur Williams, along with his wife and 85 of his colleagues, established A.L. Williams & Associates. The company was founded with the aim of providing affordable term life insurance to middle-class families.

Over the next decade, A.L. Williams & Associates went through a series of mergers and acquisitions, while consolidating its position in the industry as a reliable term life insurance provider.

In 1991, the company started operating as Primerica Financial Services. In 2010, the company’s name was again changed to Primerica Inc.

In 2015, the company was featured on the Forbes list of the 50 Most Trustworthy Financial Companies in the US.

In 2017 Primerica was the number 2 issuer of term life insurance policies.

By 2018 the company had 130,736 licensed agents.

Getting the best rate

Primerica Life Insurance Financial Ratings

Primerica has an A+ (Superior) rating from A.M. Best, which is one of the oldest and most reliable credit rating agencies in the world today.

It is the second-highest rating – out of a total of 15 ratings – offered by the agency. The significance of the rating can be gauged from the fact that only 17% of life insurance companies in the country meet the standard.

Primerica has issued insurance policies worth over $781 billion, which is a staggering number. On average, the company pays $3.5 million in benefits to its policyholders and their beneficiaries every day. The company is listed on the New York Stock Exchange and has over $12 billion in assets.

Primerica also enjoys an A+ rating from the Better Business Bureau, which indicates that the company has its ears on the ground and resolves consumer complaints in a timely manner.

On the whole, the company is financially stable, has a healthy debt to asset ratio, and is in a position to honor its commitments to its investors as well as policyholders.

Compare Primerica's Financial Ratings

  • AM Best
  • Better Business Bureau
  • J.D. Power
  • Moody's
  • FitchRatings
  • Standard & Poor's
  • Comdex
  • AM Best
  • Better Business Bureau
  • J.D. Power
  • Moody's
  • FitchRatings
  • Standard & Poor's
  • Comdex

Life Insurance Products Offered by Primerica

Primerica is a term life insurance provider. The company promotes the concept of buying low-cost coverage through term life insurance policies and investing the difference in mutual funds, retirement accounts, and other such investment options. This is referred to as BTID: buy term and invest the difference.

The company offers two term life plans – Custom Advantage Term Life and TermNow.

Primerica Custom Advantage Term Life

The policy offers you six term lengths to choose from – 10, 15, 20, 25, 30, and 35 years. The face amount can be anywhere from $15,000 to $1,000,000 or even higher.

This is a fully underwritten policy, which means you must undergo a medical exam, irrespective of your age, financial status, or health condition.

One of the important things you need to know about Primerica’s Custom Advantage policy is that the premiums remain unchanged only for 20 years. From the 21st year onwards, your policy premium is likely to increase on a regular basis.

For example, if you choose a 10, 15, or 20-year plan, there will be no changes in your policy premium for the entire term period. If you, on the other hand, choose a 25, 30, or 35-year plan, your policy premium will remain unchanged for the first 20 years and increase steadily from the 21st year onwards.

You need to be between the ages of 18 and 70 in order to apply for a policy with Primerica. The age requirement, however, might change depending on the term length you choose.

The table given below shows you the age restrictions for each term length.

Term Length Age Group
10 Years18-70
15 Years18-65
20 Years18-60
25 Years18-55
30 Years18-50
35 Years18-45

Primerica TermNow

This is a no exam policy, which means there are no lab tests or physicals involved in the application process. The company runs a thorough background check on each applicant (using data from the DMV, Medical Information Bureau, and other such public sources) and determines their insurability.

The coverage amount can be anywhere from $10,000 to $300,000. Since it is a no exam policy, the premiums are higher than what you pay for a fully underwritten policy.

TermNow is an ideal policy for people who are suffering from serious diseases or disorders and are unlikely to qualify for a fully underwritten policy.

Guaranteed Insurability

One of the important aspects of Primerica’s term life policies is the guaranteed insurability option, which is available for all the policyholders, irrespective of the coverage amount or term length. It provides you with life insurance coverage until the age of 95, irrespective of your health condition.

Once your term life plan expires, you can choose to renew it until you turn 95. The best part is that you are not required to go through a medical exam in order to renew your policy.

Every time you renew your policy, the premium is likely to increase slightly due to your age. Your health condition, however, is not taken into account by the insurance company while determining the policy premium.

This is a solid advantage, especially for people who are suffering from serious health problems that can prevent them from qualifying for a new policy.

Riders Offered by Primerica

Increasing Benefit Rider

This is a unique rider which allows you to increase the coverage amount of your term life policy if needed. You can choose to increase the death benefit by up to 10% for a period of 10 years.

At any point during the coverage period, if you think that the death benefit amount is not sufficient to cover all your financial obligations, you can add the rider to your policy and increase the death benefit by 10%.

This rider, however, is available only for policyholders between the ages of 18 and 55. If you are over the age of 55, you cannot increase your death benefit for any reason.

Terminal Illness Benefit Rider

This is a rider which is commonly offered by most insurance providers. If you develop a disease or disorder during the course of your policy and become terminally ill, you can access up to 70% of the death benefit to cover the costs of your treatment and other miscellaneous expenses.

After your death, your beneficiaries will receive the remaining 30% of the death benefit payout.

Advantages of Choosing Primerica as Your Insurer

Financial Stability

The company has an A+ rating from A.M. Best, over $12 billion in assets, and has issued policies worth $728 billion. These are impressive numbers and an excellent indication of the company’s financial strength and stability.

No Exam Policy

Primerica’s no exam policy (TermNow) can be beneficial for people who are uninsurable and not likely to qualify for a regular term life policy. The application process for the policy is very quick.

If you have a clean record (no DUIs, no arrests, or any other factor that could raise a red flag), you are likely to get approved within minutes of applying for the policy.

Guaranteed Insurability

The company offers a guaranteed insurability option, which allows you to renew your policy and extend the coverage until you reach the age of 95. There is no lab test or physical exam involved, so you are assured of life insurance coverage regardless of your health status.

For people with serious health problems, qualifying for a policy can be an uphill task. Even if they qualify, the premium is likely to be much higher than that of a regular term life policy.

With the guaranteed insurability option in place, you do not have to worry about qualifying for the policy. The increase in premium is also negligible compared to what you are likely to pay for a fully underwritten policy.


Primerica offers a terminal illness benefit rider, a waiver of premium rider, and a one-of-its-kind increasing benefit rider which allows you to increase your policy’s death benefit to accommodate your increasing financial needs.

Good Claim Settlement Record

Primerica’s official website states that 94% of the claims filed with the company are paid within a period of two weeks, which is pretty great.

Financial Needs Analysis

Primerica offers financial needs analysis services for all its customers free of cost. The company has teams of experts who can analyze your financial situation and offer you personalized insurance and investment solutions which are ideally suited for your earning capacity as well as your short-term and long-term financial needs.

This is a valuable service, since a large number of people – especially those from middle income households – do not know how much insurance coverage they need, what kind of asset classes are safe to invest in, and how to prevent their investments from losing value due to inflation.

Expert advice from a seasoned professional can immensely benefit these people and help them make the right investment decisions.

Informative Website

Primerica’s website is easy to navigate and full of useful information regarding life insurance and investments. If you do not know much about life insurance or personal finance, you will find the information provided on their website very useful.

Disadvantages of Choosing Primerica as Your Insurer

No Permanent Life Policies

As mentioned above, Primerica only offers term life policies. The lack of whole life insurance and universal life policies means people who are in need of lifelong coverage have no option but to look for other insurance providers who offer more than one type of life insurance.

Expensive Term Life Policy

While Primerica claims to offer affordable term life plans for middle-class people, its policies are generally more expensive compared to the policies offered by most other companies in the industry.

Data shows that Primerica’s term life policy can be anywhere from 11% to 29% more expensive than the industry average.

Strict Underwriting Guidelines

Primerica’s underwriting guidelines are stricter than many of its competitors. If you are young and free of pre-existing conditions, you can expect to get the lowest rates. Otherwise, you can expect to pay significantly more than the average person for the same amount of coverage.

So, if you have pre-existing conditions or if you have a family history of hereditary diseases, you are better off buying coverage from an insurer who is lenient towards high-risk individuals.

Multi-Level Marketing Business Model

Primerica’s business model closely resembles that of a network marketing or multi-level marketing company. Primerica agents are not only concerned about hiring as many people as possible, but also tend to have a salesman like approach, which can be off-putting for many people.

Final Thoughts on Primerica

Primerica is basically a middle-of-the-pack company in terms of the products they offer and their life insurance rates. Its term policies are not the worst by any stretch of the imagination, but they also do not stand out from the best life insurance companies. Similarly, they are not the most expensive policies, but they also cannot claim to have the best rates.

There are people who might find Primerica’s term life plans ideally suited for their financial needs and budget. If you are one of them, go for it by all means. Otherwise, there are a number of other options available for you.

If you are looking for a low-cost term life policy, you can check out digital insurers like Haven Life, Ladder, and Ethos. Even traditional insurance providers like AIG, MetLife, and Prudential offer excellent term life policies at very affordable rates.

Similarly, if you are in need of an affordably priced whole life or universal life policy, there is a whole range of options available for you.

On the whole, Primerica’s products are likely to appeal to a niche customer base with specific financial needs. For others, there are a number of better, cheaper options available.

Make sure you consult an independent agent from before buying life insurance coverage. We can provide you with the instant quotes you need and help you choose the right plan from the right provider.