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Primerica Review (2022): Pros, Cons, and Alternatives

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Looking for a thorough and in-depth Primerica Review? If so, you’re in the right place.

If you’re here, it’s likely you’re trying to decide if Primerica Financial Services offers solutions that can be a benefit to you. You’re either:

  • Considering setting up insurance or investments with Primerica
  • Wondering whether or not to begin working as a Primerica rep
  • Considering whether or not to open a Primerica office location
  • Or, you know someone who is associated with Primerica (either as a client or agent), and you’re doing research to see if they’re doing something legit.

In this Primerica Review, I’ll be discussing the pros, cons, and alternatives of Primerica, so you’ll know whether it’s a good fit for you; regardless of whether you’re looking from a client perspective or agent.

Primerica Review | What is Primerica?

Originally known as A.L. Williams, Primerica is a financial services company focused on helping main street America to have financial independence.

Who Founded Primerica?

Primerica was founded by Art Williams, a football coach from Georgia. He had not originally intended to go to into the financial services industry, but after an injustice in his family, he wanted to make things right for other main street Americans.

Why Was Primerica Founded?

In , Art Williams’ father passed away unexpectedly, and his mother was left to find an income to care for his brothers. Before death, his father was sold a cash value life insurance policy, and they received $10,000 as the death benefit. Even at that time, $10,000 wasn’t enough income replacement for his mother to support his brothers, so they were left struggling financially.

Later in life, Art learned about term life insurance. He discovered how much more of a death benefit his father could have recieved if they had taken the amount they were paying for their cash value premium, and applied that to a term policy.

He also discovered that his mother and father would’ve been better off if they had put the money in a high yielding savings account versus storing it inside of a cash value life insurance policy. As a result, he sought out to educate more people about term versus cash value and added fuel to the crusade “Buy term and invest the difference”.

Primerica Review | What Services does Primerica Offer?

Services for Clients

Primerica is a full-service financial firm. Offices with fully licensed representatives are able to help families implement short term and long term savings plans, and properly protect their families with insurance.

Life Insurance

Primerica started out as a Life Insurance Company, and they still operate a subdivision of the company under the name Primerica Life Insurance Company. They offer the field sales, the underwriting, and they pay out death claims that are filed.

  • They’re A+ rated by A.M Best–this means it’s been validated by 3rd party sources that they are able to pay the claims of the clients whose policies are in force
  • They’ve placed $858 billion+ in term life insurance in force
  • They’ve been named by Forbes as 1 of the Top 10 Life Insurance Companies in 2022

Short and Long Term Savings (with Interest Rates Upwards of 9%!)

  • Mutual Funds
  • Retirement Accounts
  • Education Savings Accounts
  • Fixed and Variable Annuities

Other Primerica Services

  • Business Insurance
  • Senior HealthCare
  • Home Security (thru Vivint Smart home)
  • Legal & Identity Protection
  • Long-Term Care

Services for Representatives

  • Part-Time Supplemental Income
  • Full-Time Income
  • Great pay
  • Ownership in the Company
  • Location Freedom
  • Set your own Schedule
  • No quotas
  • Majority of licensing fees are sponsored by Primerica ($2500+)
  • A Large market opportunity
  • Uncapped Income Potential
  • The opportunity to start a business in a Growing Industry
  • Ongoing mentorship
  • Start a business for yourself, but not by yourself
  • The Opportunity to Open Your Own Location or Multiple Locations (Comparable to Franchising)
  • Your office becomes an asset you own and can sell or pass to inheritors (unlike jobs or franchises)
  • And, the Opportunity to help many families with an area of life that strongly impacts their futures
  • Primerica has a proven system with over 7848+ people earning over $50,000/yr, 4,076+ people earning over $100,000, 110+ people earning over $1 million/yr, 23+ people earning over $2 million/year, and 1 person earning over $5 million/yr

In 2021, Primerica paid over $971 million dollars to its sales force

Primerica Review | Is Primerica a Trustworthy Company?

  • They’ve been in business since 1977
  • They’re a publicly traded company on the New York Stock Exchange that continues to see increases in stock prices
  • The industry is highly regulated and they’re able to keep 130,000 independent agents compliant with the standards of the Department of Insurance in multiple states, the SEC, and FINRA
  • They’re the largest independent financial services marketing organization in North America
  • They’ve partnered with many credible companies to offer main street families access to a service that was typically only available to wealthy individuals
  • They are spoken highly of by large investment firms like Ben Templeton, Axa, Voya, and others
  • Major media outlets have ranked them among the top financial firms for trustworthiness, life insurance, and best women employers
  • They’ve been thoroughly examined for financial solvency, and been rated A+ by A.M. Best
  • And, they have 7 million+ happy customers

Why does Primerica have a bad Reputation with some people?

Primerica was started to correct an injustice that effected many people. In 1977, it was common for middle class families to overpay for insurance and to get smaller death benefits than they should.

Primerica set out to fix the injustice and in the process enraged many competitors. Policies were being replaced at astronomical rates. Other companies who built their livelihoods from overpriced insurance, or policies that weren’t advantageous for the client were upset!

The crusade created enemies.

In addition to the internal tension from replacing bad policies, over the 44 year history, not all Primerica representatives have had morals and ethics. Each office is regulated internally. Some representatives and clients have had bad experiences with specific office policies that aren’t regulated nationally.

In some cases, Primerica has stepped in and removed personnel from the sales force, but in other cases, they respect the independent business agreement, and let individual offices make their own decisions.

It’s best to note that all Primerica offices and hierarchies are different, and may have different chains of leadership; therefore, it’s possible to have a completely different experience simply by going to a different office.

Consider McDonald’s for example…

Some locations might have a reputation for being slower or have lower quality than others. In the same way, personnel within each office can drastically impact the experience a client or representative might have within Primerica.

Primerica Review | Is Primerica a Pyramid Scheme?

According to the FTC, some signs you’ve run across a pyramid scheme include:

  • Being paid based on recruiting vs. on product sales
  • A requirement to buy a certain amount of sales volume (even more than you can use or sell)
  • Claims of lavish rewards or pay
  • Promoters use high pressure sales tactics
  • Inability to profit
  • Only the top producers make money, but most lose money

Primerica does have people who make extravagant amounts of money, but the company has no national requirements that state:

  • Distributors have to buy products to be a representative
  • They are careful about claims made (even when pay is factual)
  • High pressure sales isn’t taught. In fact, the founder said you shouldn’t sell on the first appointment
  • Representatives aren’t paid at all for recruiting. They’re only paid for product sales. Recruiting simply helps with growth.
  • There are many profitable distributors (even those who aren’t at the “top”)
  • Top producers aren’t the only ones to make money
  • And, although there are competitions run internally for fun, there are no sales quotas

No. Primerica is not a Pyramid Scheme. Results within Primerica are above average in business, but not consistent with a Pyramid Scheme.

Primerica Review | What others Have to Say About Primerica?

You still may be trying to decide if Primerica is a good fit for you, and for some, it’s helpful to see what other people’s experiences have been like, so here are some positive and negative reviews from clients and representatives.

Primerica Reviews - From Partners and Major Media Outlets

Jennifer Johnson, CEO, Franklin Templeton

Kunal Kapoor, CEO, Morningstar

Primerica Reviews — From Clients

Common Pros from Clients

  • They told me they wouldn’t change anything about my financial plan unless they could offer something better, and that’s what they did
  • I’ve never felt so confident that I’ll be able to reach my debt payoff goals and my retirement goals
  • If it wasn’t for Primerica, I wouldn’t have been able to send my kids to college 100% debt free
  • It was horrible too lose my loved one, but having the Primerica representative bring me a check with enough to replace their income made the situation so much better because we didn’t have to struggle

Common Cons from Clients

  • My loved ones’ life insurance claim was denied because of fraud in the application
  • The representative that used to help me went inactive and didn’t leave me a contact number for someone else
  • The representative on my account was unprofessional

Positive Primerica Reviews — From Clients

My husband isn’t a citizen of the US, but I was able to insure him with his tax ID number. I was also able to insure myself and my daughters.

Veronica Gallegos

I was able to insure my child who had pre-existing conditions, and I was given a guarantee that they’ll be approved up to 5 times the amount I have on my plan when they’re an adult.

I’m able to get feedback from a fully licensed financial advisor that’s better than my previous experiences at other firms who charge $350+/hr.

Negative Primerica Reviews — From Clients

I set up recurring drafts into my investment accounts, and sometimes, I forget to put the money into the right account, then I get overdraft charges. Reminder to self: Put the money in the right place at the right time!

Primerica Reviews — From Representatives

Common Pros from Representatives

  • I got tons of mentorship in business that translates into so many other areas of my life
  • I met great people
  • I was able to earn a great income considering the amount of time I invested
  • I have friends who have done very well in the Primerica ownership program
  • The death claims on the policies I sold were paid out by the company 100% of the time
  • I got paid very high bonuses and advances because the customers who purchased policies from me had high retention
  • Clients are so happy when I show them what types of interest I can offer them on their money
  • I’ve had clients save so much on their auto and homeowners insurance

Common Cons from Representatives

  • It was a challenge for me to re-prioritize my time so I could reach my goals within Primerica
  • I didn’t like working with my sponsor/upline
  • I had personality issues with people in the office I joined at
  • I had a hard time shifting from an environment where I get paid per hour or salaried to training people and stabilizing a certain sales volume
  • I didn’t have much credibility when I came to Primerica so it was hard for me to find clients
  • I realized I could make more money selling cash value policies because you get the client’s savings in commissions
  • I got lots of chargebacks because many customers cancelled the policies I sold them

Positive Primerica Reviews — From Representatives

I work full-time, but always felt like my family had “just enough” to cover our expenses. I didn’t want a second job because I knew it would take me away from my family even more.

When I came across the ownership program within Primerica, it was an answer to prayer. I have been able to make more on a part-time basis in Primerica than I could full-time on my job, so once I fully stock my savings account, I’ll be quitting soon.

Negative Primerica Reviews — From Representatives

Primerica did not accept my application to become an independent contractor because of my felony

Anonymous

I wasn’t able to get paid for 5 months of becoming a representative because my family was under criminal investigation. I didn’t let that get to me though, and within my first year as a rep, I made more than 10 times the amount I made in my career as a nurse.

Anonymous

My Personal Primerica Review

I’ve been a client and representative of the company.

I was shocked by the high-quality of the insurance policy and the investments, which is why I switched to Primerica. I enjoy getting quick access to a financial advisor who can answer my money questions, and I also enjoy learning the inner workings of the industry as a representative.

Initially, I hesitated to become a representative because I saw mixed reviews of the company online, but later, I realized that many competitors want to beat Primerica, and some representatives were practicing shady methods (and misleading people), which leads to mixed reviews.

For example, I’ve seen people who are recruiting representatives; yet, give the illusion that their offering a job. Since Primerica’s ownership program isn’t a job, a person with expectations of employment would feel mislead, and is likely to complain, however, this isn’t a national practice, and is actually against the company policies.

As an insider of the company, I can see they have a strong ethical stance, and I’ve personally been able to help many families make strides towards their financial goals.

My experience aligns with many large press companies (like Forbes and Morning Star) and the majority of the Primerica clients and representatives who have had positive experiences with the company.

Tiffany Domena, Founder, HowtoEntrepreneur.com

Primerica Review | Has Primerica Been Under Investigation?

Yes. Primerica has been under investigation.

In the book “Coach”, Art Williams describes several instances where competing companies filed complaints against A.L Williams; now called “Primerica”.

Primerica is known for replacing cash value life insurance policies with term policies, and replacing poor performing savings accounts with high yielding investments. For competitors in the industry, there has been alot of upset, and legal complaints filed.

Most investigations on the company have been resolved without any fines or changes to policies. Some investigations have led to representatives being removed from the company.

Primerica Alternatives for Clients

There are several alternative companies in the financial services industry, however, most work differently than Primerica. Typically, they focus primarily on one thing. For example, companies like State Farm or Farmer’s Insurance focus solely on selling insurance. Or, companies like Charles Schwab or Merrill-Lynch focus on investments.

Pros

  • You may be able to find cheaper services
  • Depending on your association, you may be able to find a representative to an alternative firm easier because Primerica works solely thru referrals
  • You may be more familiar with other companies

Cons

  • With other companies, you typically pay hefty prices for advice from fully licensed financial advisors; whereas, Primerica advises free of charge, and only charges for products (insurance, mutual funds, IRA’s, etc.)
  • You may have to go to several different companies to implement your complete financial plan. For example, you would probably have to go to an investment company for investments, and multiple insurance companies for insurance, and a bank for a savings account, etc.
  • You may only have access to products associated with that specific company. For example, Charles Schwabb is likely to show you the mutual funds they manage; whereas, Primerica can show you multiple different funds from various companies
  • Many companies have hidden fees, and products that are only advantageous to the company
  • Many companies expect you to do your research and to come to them clearly knowing what you want. Primerica educated people up front, creates a financial plan, and helps them decide on products (mutual funds, insurance, and other investments) that would be consistent with their overall goals
  • Other companies work only with clients with a certain net worth, or amount of liquid cash.
  • Other companies deny death claims for various reasons clients wouldn’t expect. They have hidden exclusions and sometimes, they simply take advantage of families who lack knowledge about their deceased loved ones’ policy, and they don’t pay claims. Primerica reps are taught to become familiar with the client, emergency contacts, and beneficiaries to prevent the family from having difficulty filing claims. Additionally, Primerica has one exclusion, so they pay nearly all claims that are filed ethically.

Primerica Alternatives for Representatives

Other companies such as:

  • USAA
  • AAA
  • New York Life Insurance
  • PHP
  • WFG
  • and others offer positions where you can sell life insurance

There are also companies like:

…that give advice or offer investment solutions.

If you’re looking to get into an investing career, here are some pros and cons of going with an alternative company to begin your financial services career…

Pros

  • For some, it may be an advantage that other companies offer a job with benefits
  • Other companies may be more familiar with your family and friends
  • Other companies may have a more loyal following within your social circle
  • Others offer more financial products

Cons

  • Others may not sponsor your licensure
  • Others require experience or degrees to get started
  • Others typically have quotas (some may even be very aggressive)
  • Others don’t typically give you the opportunity to override several generations or have lifetime overrides on entire offices. For example, if you recruit a friend to work with Primerica, you can override them, and their recruit up to six generations deep. If they open a location with agents, you can potentially override their entire location for life.
  • Others don’t allow you to pass down your office or sell it.. In fact many independent offices go back to the corporation when the owner passes away.
  • Others don’t give you equity and stock in the company after achieving certain levels of earnings (unless you make it to high executive staff positions)
  • Others can fire you or lay you off
  • Others may not allow you to work from anywhere or choose your own schedule
  • Others pay weekly, bi-weekly, or monthly (Primerica pays daily)

Final Verdict: Is Primerica a Legit Company?

Primerica is a legitimate company. They’ve been in business over 44 years, and have 7 million+ clients. Primerica has over 10,000 representatives who earn over $50,000 per year, and up to $5 million in annual income. Although they have some mixed reviews, majority are positive.

If you’d like to learn more about becoming a Primerica representative or client, set up a free consultation by visiting here.

Primerica Financial Services

9.6

Reliability

9.5/10

Products and Services

10.0/10

Convenience

9.5/10

Quality

9.5/10

Customer Satisfaction

9.5/10

Pros

  • Great Work-From-Home Business Opportunity for People looking for Supplemental or Full-time Income
  • Clients can have Convenient Access to Fully Licensed Financial Advisors
  • 7 million+ Clients
  • Longstanding Reputation--in business since 1977
  • Lots of investment and insurance options

Cons

  • Many people may not know about Primerica because it's a referral-only company
  • Not all interested reps are accepted
  • Limited Insurance options for Clients above age 70
  • Offices can create their own local policies that make things un-uniform

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