Can anybody tell me specifics of a Primerica life insurance policy?

Question

I had a Primerica rep come to our house. We were unaware of what was going to be presented and felt very overwhelmed by the entire meeting. I am really curious about their life insurance and cannot find specifics anywhere about it online. All I have found out is that it will be much higher than what I am encountering elsewhere. Could someone please tell me what in their policy would be worth paying more for? Can I get this type of policy with another company? Also, any suggestions for a good life insurance company to buy from. I am talking to someone from ING and I have spoken to someone about AIG. If anyone is planning to respond and hipe up Primerica, it wont work. I just want answers to my specific questions. Thanks.

Answer 1

As a Primerica Financial Service representative, here are the specifics of Primerica Life Insurance or National Benefit Life (if you live in New York) policies:

1) Husband, wife, and/or children are covered in one life policy. The child rider covers all children in your family.

2) Term policies are customized to your needs.

3) Banding coverage. This is where rate per thousand is determined by total coverage of the husband and wife (along with other usual factors such as age, height & weight, smoker or non smoker, health conditions). So the higher this banding coverage is, the less it cost per thousand coverage.

4) Terminal illness benefit included free of charge. In case you were diagnose to die within 12 months, you can use 40% of the face amount of the policy (up to a maximum of $250,000) to pay for your expenses.

5) Like all other life policies, waiver of premium is available.

6) Unlike other life policies that converts term into whole life or universal life at the end of the term (or even worse, cancel at the end of the term), Primerica's life policies are convertible into another term policy.

7) Guaranteed renewable term. If you wish to renew your term policy instead of exchanging it or canceling it, you can renew it without any medical checkups. When you renew, the new premiums remain level for another 5 years and continues until age 75. After age 75, premiums goes up every year to age 95

8) Increase Benefit Rider is available.

9) All Primerica's clients receives a customized, confidential, and complimentary Financial Needs Analysis (whether you buy their life insurance or not).

Primerica's rates has been reduced numerous times over the past 10 years. The last rate reduction happened in 2007, making Primerica's rates for term policies cheaper than Prudential, Metlife, and AIG. So you really have to get the final quotes from all the companies you are trying to get term insurance from. Don't trust the quotes online because they are only preliminary. Your final quote will be different than the quote online (hopefully its lower).

While premiums are a factor in deciding what company to go with, you also have to compare what's the difference between Primerica's term policies and the other companies term policies such as what are your options at the end of the term? What if you become terminally ill? Do they sell life policy per individual or per household?

You also have to compare the financial strengths of these companies. Primerica Life Insurance or National Benefit Life has an AM Best Rating of A+.

Answer 2

Okay - answer to your specific question.  Yes, you can buy term policies from many companies.  Many are cheaper in premium to the Primerica policies.  If you die, they pay out the same amount (assuming that you are comparing apples to apples),  

A term policy is a term policy with some having few various bells and whistles (ROP - return of premium rider, etc.)  Beside most term policies never pay out anyway because the term expires before the individual does.  Now, with that one proviso also make sure that any carrier you choose is a stable company that will pay off in the event of your death.

I'm specifically not going to mention other companies because I don't want this to look like a solicitation.

No, I don't work with Primerica - I work with someone else who I consider to be better for me and my clients all around (obviously or I wouldn't be here).  However, I'm tired of Primerica getting a bum rap too.  

The agents I've met have been ethical, work hard for their client (as do I) and are there when you need them -- that alone may justify the extra costs - and they aren't just some voice you'll never see on the other end of a line.

At the end of the day though - it's your money. Do what you wish.  I'm just glad that you're getting the coverage your family apparently needs.

Answer 3

Simple answer:  Primeamerica has a poor reputation (or a good one for selling inappropriate products). The only ones that will hype Primeamerica are its  agents.

You really don't go into what your insurance needs are so its  very hard to comment otherwise. One quick rule..... run away from anyone trying to push a variable annuity product on you!

Answer 4

Primerica has overpriced policies sold by untrained agents. They are NOT qualified, even their own website says so, "Representatives are not financial planners, investment advisors, financial consultants or other specialists who provide financial advice and whose compensation may be unrelated to sales."  

It's a MLM ... their commissions go up if they can recruit others into selling.  And to support the layers of recruiters, the policies are overpriced.

Talk to your employer and see if they provide financial planning services,or your credit union ...then go shopping at real insurance companies for what you need.

Answer 5

Yes, as was said Primerica is the equivalent of the Amway of the insurance business.  Their policies cost twice the amount of a similar plan AND, despite what was said above AIG and ING have better policies because should you become ill and unable to get insurance beyond the period you’ve initially purchased you still have the option to convert the policy to something that will last beyond the term of the policy (hopefully makes sense).

Use the tool on my site so you can get quotes from about 150 different companies (of which we’re able to do business with all of them).  No other site has more than what we quote.  You’ll see AIG, ING and all the rest.  AIG is competitive, but they won’t be the least costly for sure (it’s rare that they are).

AND most importantly you can do the shopping on my site without divulging any private information (other than a date of birth to get the rates).

There is no advantage to buying a term policy from Primerica and anyone that has one either knows no better or was trying to ‘help’ their relative who sold their policies for three months.

http://insurancepickle.com/life-insuranc...

Answer 6

Answer the following:

Who will be insured, for how long, for how much?  What is their age, health, lifestyle? Do you want any special considerations, like returning the premium when the policy is over?

Once you have answered thes questions

you should be able to get a quote in about 1 minute, if not, find someone else to work with.