April, 30 2017

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Primerica (Prime America) Life Insurance Review 2016

Primerica (Prime America) Life Insurance Review 2016

Author
  • Price
  • Underwriting
  • Financial Strength

Primerica (Prime America) Life Insurance Review 2016

 

Pros: Financial strength- Primerica has an A+ superior rating in 2016 (2nd highest of 16 available ratings from A.M. Best) and they have a good reputation for paying claims in a timely manner.  Their policies also feature a nice living Terminal Illness Benefit In addition, their agents are local and often friends and family.

Cons:  Expensive compared to companies with an equal financial rating (See the table below).  Primerica also only offers term life insurance without the option to convert to permanent insurance.  As an alternative you can convert to a decreasing term policy at the initial health rating class you were approved for or choose annual renewable term which is often more expensive or reapply with for a new policy.  Also, since it is an MLM (multi-level marketing) business model many of the agents work in the insurance business on a part-time basis. (We do however support working a second job to make additional income and to help families get insured!)

Bottom Line:  Overall Primerica is a good company due to their A+ A.M. Best financial strength rating and their reputation for paying claims in a timely manner.  They were one of the pioneers in the industry in getting term life insurance policy out to the masses when whole life was the product companies wanted their agents to sell so they could make more money.  Today they are still in the top 25 for market share.  However, Primerica’s rates in 2016 are often not competitive with other A+ rated companies such as Mutual of Omaha, Prudential, Protective and Banner Life.  Also, Primerica does not offer the option to convert to permanent life insurance when the policy term is over, however they do offer the alternatives mentioned above.  As with all the companies we review, we recommended that you receive a quote from Primerica but also from the other top companies and choose the best one for you.

 

About

Type: Public Company-Traded as PRI

Founded: 1977

Website: primerica.com

Phone: (800) 257-4725

Address: 1 Primerica Parkway, Duluth, GA 30099

A.M Best Rating 2016: A+ (Superior) 2nd Highest of 16 available ratings

Comdex Ranking: 89 out of 100

BBB Rating: A+

Common Competitors:

New York Life, Northwestern Mutual, Mass Mutual, MetLife, John Hancock, Principal, State Farm, Allstate, AIG, Ohio National Life, SBLI, Banner Life, Protective Life, State Farm, USAA, Genworth Life, Pacific Life Insurance, North American Co, Lincoln National Life, ING-ReliaStar, Transamerica, Prudential.

 

Primerica vs. Competition-Price Comparison

For a 40-year old male on a 20-year level term at the Preferred Plus rating class (Updated 2016)

Amount Primerica (Rated A+)Mutual of Omaha (Rated A+)MetLife (Rated A+)Banner Life (Rated A+)
$250,000$28.98$19.91$21.51$20.77
$500,000$47.98$33.47$36.87$36.30
$750,000$68.40$47.47$52.11$51.82
$1,000,000$88.83$60.59$65.61$65.19

 

Sample monthly rates for a 45 year old male (D.O.B. 6/15/1970) $500,000 20 year term at the best health class:

 

Mutual of Omaha: $54.03 A+ Rated

Prudential: $56.25 A+ Rated

Protective: $55.29 A+ Rated

Banner: $56.44 A+ Rated

SBLI: $56.46 A+ Rated

Transamerica: $58.06 A+ Rated

MetLife: $59.76 A+ Rated

AXA Equitable:  $62.87 A+ Rated

State Farm: $71.35 A++ Rated

Primerica: $74.58 A+ Rated

Farmers: $91.43 A Rated

 

Conclusion

As you can see in our Primerica (Prime America) Life Insurance Review 2016, Primerica’s rates are a lot higher then many of the other top life insurance companies with the same financial rating.  Also, the underwriting guidelines on companies such as Mutual of Omaha, Prudential and Banner may be more favorable as well.  As with all the companies we recommend, we suggest you compare rates from multiple companies and choose the best company for you.

 

 

 

 We want to hear about your experience with Primerica Life Insurance for 2016.  Let America know if it was positive or negative?  Please leave a comment and rating below.