Primerica Life Insurance Review – A Bad Deal For Most Families
last updated on November 10, 2025Since 1977, Primerica has seemed to grow its business around one saying: buy term and invest the difference.
That’s a catchy saying that sounds easy, but this sales tactic costs families money they likely don’t have, and potentially restricts their financial freedom in the future.
That’s where I, Randy the Final Expense Guy, come into play! I review why Primerica is a sub-standard deal for most families.
(If you’d like to get answers before reading, call the Final Expense Guy directly at 888-862-9456)
WHAT IS PRIMERICA LIFE INSURANCE?
Primerica built its name on one big slogan: “Buy term and invest the difference.”
It sounds logical enough at first. Why pay for lifelong coverage when you can buy a cheap term policy and invest the rest, right?
That pitch hooked millions of families who wanted affordable life insurance.
The problem is, most people never actually “invest the difference.”
They buy the term policy, then when it ends, they lose their coverage. No refund. No equity. No second chance, years later, after health issues inevitably develop.
Primerica only sells term life insurance. No whole life. No final-expense options. No guaranteed-issue coverage.
Their agents can’t offer you a permanent policy that protects you for life, even if that’s what your situation requires. If you’re 50, 60, or retired, you’re already likely outside their sweet spot.
Primerica also operates under what many would say is a multi-level marketing structure rather than a traditional life insurance brokerage.
That means most of their “agents” were recruited by other salespeople, not trained life insurance career advisors. It’s common to meet Primerica representatives who have been licensed for only a few months and are already trying to recruit rookie agents to sell under them.
Many would say that’s kind of like the “blind leading the blind” in many cases.
When a business model depends on building downlines instead of serving clients, the focus can shift from helping families to signing up new sales reps.
HOW PRIMERICA LIFE INSURANCE ACTUALLY WORKS
Primerica’s term insurance policies go through full underwriting.
That means medical exams, lab work, and long waiting periods before approval. You can be declined outright for health issues that other companies easily approve under simplified-issue plans.
Their most common offerings are 10-, 20-, or 30-year renewable term policies.
When that period ends, the renewal cost skyrockets, often quadrupling (or more) overnight. Most policyholders can’t afford the new premium at that point, so their coverage lapses.
Once that happens, there’s no cash value, refund, or life insurance safety net.
Primerica calls it “renewable” coverage, but the truth is, few people ever renew. They either can’t afford it or can’t qualify for another policy due to health changes.
Primerica’s fine print clearly shows that their term coverage is designed for short-term financial protection up to 30 years, not end-of-life expenses, funeral planning, or legacy protection. Yet many feel it’s marketed as a one-size-fits-all solution.
PRIMERICA’S MLM SALES MODEL = REAL PROBLEM
Primerica doesn’t operate like a traditional insurance company. Many people say that it runs like a multi-level marketing (MLM-like) organization.
Their agents aren’t just selling policies; they’re recruiting new agents underneath them. That creates a pyramid-style income system where every sale gets split between multiple levels of “upline” managers.
So when you buy a Primerica policy, your premium is funding commissions for people you’ll never meet. And that means higher costs and more pressure to sell fast.
Most Primerica representatives are part-time agents. Many have limited insurance experience or training. Their main goal is to hit quotas and recruit others, not to help you find the right plan.
This explains why so many clients feel rushed into coverage they don’t fully understand.
This model also fuels high agent turnover.
Primerica’s own financial filings show that only a SMALL fraction of their agents make it past the first year. When your agent leaves the business, you’re left without support or anyone to call when you need help with a claim or policy change.
Independent brokers, like the Final Expense Guy, stay in business because of service and results.
MLM-like companies survive on recruitment. That’s a huge difference.
Even the National Association of Insurance Commissioners (NAIC) and Better Business Bureau (BBB) reflect this problem.
Primerica sells the idea of entrepreneurship. But in practice, it’s more like joining a franchise where you can only sell one company’s products and give up most of your commission to your recruiter.
IS PRIMERICA LEGITIMATE OR JUST ANOTHER MLM?
Primerica is a legitimate company; they’re licensed in all 50 states and do pay out claims. The problem is how they operate and who really benefits.
Primerica built its small empire on recruitment, and its “business opportunity” is what draws people in.
They sell the dream of financial independence, not the reality of being a business owner and managing a “downline” team. The agents who make real money aren’t the ones selling policies. They’re the ones building teams of new recruits under them.
Every layer of that pyramid takes a cut of your premium. That means more hands in the cookie jar that ends up costing you loads extra in premiums.
Many agents join because it’s easy to get started and seems like a side hustle. That’s not who you want managing your family’s protection.
Primerica’s NAIC Complaint Index tells the real story, and Primerica ranks worse than the national average for term-life complaints.
Compare that to companies that don’t need to recruit part-time sellers to grow. Their strength comes from offering solid products, not recruiting inexperienced life insurance salespeople.
If you ask, “Is Primerica a scam?”, the answer is no.
But it is a multi-level marketing company that relies on mass recruitment and single-product sales. Rarely does that benefit you as a consumer.
THE “BUY TERM AND INVEST THE DIFFERENCE” MYTH
Primerica’s entire business model rests on this slogan: “Buy term and invest the difference.” It sounds smart, and it’s based on one big assumption: that you’ll actually invest the difference.
Most people don’t. Life happens. Bills come first. Kids need help. Emergencies pop up.
The “difference” never gets invested, and after 20 or 30 years, the policy expires, leaving you with no coverage and no savings.
Even if you do invest, the math still will rarely work out like Primerica claims. Their term policies can quadruple or quintuple in price after renewal. So instead of investing the difference, you’re fighting premium increases.
| Concept | Buy Term & Invest the Difference (Theory) | Real-World Outcome |
|---|---|---|
| Affordability | Low initial premium leaves “extra” money to invest | Premiums spike after renewal; the “extra” disappears |
| Investment Discipline | Assumes disciplined monthly investing | Most families never invest consistently due to life expenses |
| Policy Longevity | Coverage during working years is “enough” | 98% of term policies expire before paying a death claim |
| Financial Security | Goal is to build wealth faster than whole life growth | Market volatility, emergencies, or skipped investing ruin the plan |
| Lifetime Coverage | Not needed “if you invest right” | Leaves families unprotected later in life with no payout |
| Alternative Solution | Term + self-managed investments | Whole life with guaranteed lifetime protection and cash value |
Whole life insurance, on the other hand, locks your price forever and guarantees a payout. You can build cash value and borrow from it later if needed. It’s predictable, safe, and built to last a lifetime.
Primerica’s version of “financial education” ignores that reality. They push term because it’s cheap upfront, not because it’s the best long-term solution. And they never tell you that 98% of term policies never pay a death claim; they expire before the insured dies.
This means the company keeps your money as profit, leaving your family with nothing.
If you’re under 40, term can make sense as a temporary safety net. But for anyone over 50, it’s a short-term fix with long-term consequences.
Whole life final expense coverage, especially first-day coverage, provides what term never can: guaranteed lifetime protection.
Primerica’s slogan should be updated to something more honest like “Buy term, forget to invest, and try to start over again later.”
PRIMERICA LIFE INSURANCE RATES VS OTHER COMPANIES
Primerica promotes itself as an affordable choice, but that’s not the case.
Primerica only offers term insurance, and because of their MLM-like structure, they are easy to beat pricewise with other companies.
Their underwriting can be more restrictive, leading to more declines, which can make it harder to qualify for better life insurance later.
WHY PRIMERICA IS A BAD CHOICE FOR SENIORS AND VETERANS
Primerica is especially bad for older adults or veterans.
Term life coverage ends when you need it most, and rarely goes beyond age 80, when you need it the most, and there’s no permanent conversion option.
For seniors, that’s devastating. Most develop some form of health issue by that age, making new coverage harder to get. What good is a policy that disappears the moment you’re most likely to need it?
Veterans face another problem.
Many assume their VA benefits will cover funeral costs. In reality, the VA burial benefit typically pays only $948 for a non-service-related death (VA.gov, 2025). That barely covers a fraction of the cost of a funeral.
Without permanent life insurance, most families are left paying thousands out of pocket.
Primerica offers nothing that addresses this gap. No whole life, no final expense option, no small guaranteed issue plan.
For comparison, real first-day coverage protects you for life with guaranteed level premiums.
Here’s a side-by-side example:
| Company | Type | Age Limit | Premium Increase? | Coverage Duration |
|---|---|---|---|---|
| Primerica | Term Life | Up to 75 | Yes, every renewal | Expires after term |
| Mutual of Omaha | Whole Life | Up to 85 | No | Lifetime |
| Aetna (CVS Health) | Whole Life | Up to 89 | No | Lifetime |
Primerica simply doesn’t serve seniors or veterans well. Its products are short-term, high-pressure, and overly expensive.
FINANCIAL STRENGTH AND COMPLAINT DATA
Primerica Life Insurance Company holds an A+ financial strength rating from A.M. Best, which indicates the company is financially sound and capable of paying claims. That’s a good sign for solvency, but it doesn’t mean the policies are good for consumers.
Financial ratings measure whether a company can pay its bills, not whether its products are fair, affordable, or designed in your best interest.
According to the National Association of Insurance Commissioners (NAIC), Primerica’s complaint index for life insurance has been above the national average for several years in a row.
The Better Business Bureau (BBB) also lists a pattern of complaints about misleading sales pitches, sudden policy cancellations, and unresponsive agents.
Many customers report being told their coverage would “last a lifetime” when in reality, it expired after 20 or 30 years. Others say they were recruited into selling the product without clear training. That confusion exists because the company focuses more on building downlines than building understanding.
COMMON CONSUMER COMPLAINTS ABOUT PRIMERICA
Dig into complaint records and you’ll see the same problems repeated again and again. Clients often report that their Primerica representative disappeared after the sale. Others find out years later that their term policy is about to expire and that they can’t qualify for new coverage because of health changes.
The complaints usually fall into five categories:
- Misleading Presentations
Families are told the policy will “cover them for life,” when in fact it’s a 20- or 30-year term. - Aggressive Recruiting
Many buyers report being asked to join the company immediately after buying their policy. - Poor Customer Service
Getting a live person on the phone for claims or policy changes can be frustrating. - Unexplained Cancellations
Several reports indicate that coverage lapses due to nonpayment after small administrative errors or auto-payment issues. - Rate Shock
Policyholders are blindsided by renewal premiums that jump by 200-400% when their initial term ends.
When you combine these problems with Primerica’s seemingly MLM-like structure, you get a predictable outcome: salespeople chasing signups instead of long-term service.
A 2024 NAIC Consumer Complaint Survey even noted that Primerica’s life insurance complaint ratio was roughly 1.7 times higher than the industry average, meaning they received nearly twice as many complaints per policy as other insurers.
Independent brokers who work with top carriers rarely face these issues because they’re accountable to the client, not to an upline. That’s the difference between being your advocate and being your recruiter.
WHAT HAPPENS WHEN YOUR TERM POLICY EXPIRES
This is the part Primerica doesn’t always explain clearly. When your term life policy expires, the coverage ends immediately. You can renew, but the premium skyrockets because you’re older and statistically riskier.
For example, a 55-year-old who buys a 20-year term policy might pay $50 a month. When it expires at age 75, the renewal could cost $400 or more per month, if the company even allows renewal at that age. If your health has changed, you might not even qualify for a new policy at all.
Term life insurance is meant to cover temporary needs like mortgages or short-term debt. It was never designed for lifelong protection. Yet Primerica continues to sell it to seniors and retirees who need permanent coverage. That’s deceptive marketing.
When a Primerica policy ends, you lose everything. There’s no refund, no accumulated cash value, and no safety net. You’ve spent decades paying premiums and walk away with nothing to show for it.
Real first-day coverage works differently.
Whole life insurance guarantees lifelong protection, builds cash value, and locks in your premium for life. Your rate never changes. Your coverage never expires. And your family gets paid no matter when you pass away.
To show the difference, here’s a simple comparison:
| Policy Type | Monthly Premium (Age 55) | Monthly Premium (Age 75) | Coverage Duration | Cash Value |
|---|---|---|---|---|
| Primerica Term | $50 | $200+ | 20 Years | No |
| Whole Life (Mutual of Omaha) | $80 | $80 | Lifetime | Yes |
When you buy whole life insurance, you lock in peace of mind for the rest of your life.
With Primerica, you’re renting life insurance protection that disappears just when your family needs it most.
HOW PRIMERICA COMPARES TO REAL FINAL EXPENSE AND BURIAL INSURANCE
Primerica calls its coverage “protection for your loved ones,” but it doesn’t actually protect anyone in the long run. It’s temporary and offers no permanent death benefit for funeral or end-of-life costs.
Final expense insurance, also known as whole life coverage, is entirely different. It’s permanent. It starts immediately if you qualify. It’s built to cover funeral expenses, medical bills, and any small debts your family might face.
Primerica’s term coverage expires, leaving your family to scramble for money when the time comes.
A real final expense policy guarantees payout regardless of age or timing. That’s why it’s the standard solution for seniors, veterans, and anyone over 50 who doesn’t want their loved ones left with a bill.
Here’s how Primerica stacks up against real final expense coverage:
| Feature | Primerica Term | First-Day Coverage Whole Life |
|---|---|---|
| Length of Coverage | 10-30 Years | Lifetime |
| Premium Increases | Yes | No |
| Health Requirements | Full Exam | Simple Health Questions |
| Cash Value | None | Yes |
| Age Limit | Usually Ends by 75 | Up to 89 |
Primerica is not designed for seniors, retirees, or anyone who wants permanent protection. It’s a short-term policy that leaves long-term problems.
PRIMERICA GOVERNMENT AND CONSUMER OVERSIGHT
Every insurance company in America is regulated at the state level. That includes Primerica.
Each state has a Department of Insurance that licenses agents, reviews company filings, and enforces compliance with basic consumer protection laws.
However, being regulated does not mean being endorsed. Primerica is not a government-approved or government-sponsored company. It’s a private for-profit corporation.
The National Association of Insurance Commissioners (NAIC) provides oversight across state lines, monitoring complaints and financial conduct. The A.M. Best rating system, while important, focuses only on a company’s financial health, not on its sales practices or fairness to policyholders.
If you want to verify any insurance company’s legitimacy, you can check two places:
- NAIC.org for complaint ratios and market conduct reports
- Your state Department of Insurance website for license verification and disciplinary actions
Primerica’s record is public, and it shows consistent consumer complaints about policy lapses, confusing renewals, and unreturned calls.
Don’t mistake regulation for approval. Being allowed to sell in your state doesn’t mean the policy is in your best interest.
Many companies pass financial tests while still selling poor-value products.
HOW TO SPOT A LEGITIMATE LIFE INSURANCE COMPANY
Here’s what separates legitimate companies from the ones to avoid:
- Variety of Products
Real companies offer both term and whole life. They give you choices. Primerica only sells term. - Simple Health Questions
Top carriers use simplified underwriting that approves most people instantly. Primerica requires full exams and long waits. - Experienced Agents
Legitimate companies are represented by licensed, full-time professionals who stay in the business for years. Primerica’s turnover rate is among the highest in the industry. - Lifetime Protection
Good companies sell policies that last forever. Primerica’s coverage disappears when you age out. - No Recruitment Pressure
You should never be asked to “join the team” when buying life insurance. Real advisors focus on coverage, not on building a downline.
Independent brokers working with leading carriers like Mutual of Omaha, Aetna, or Foresters meet all of these standards.
If you ever see “state-regulated,” “government benefit,” or “official burial program” in marketing materials, take that as a warning sign. Those phrases are written to sound official, not to protect you.
HOW TO GET REAL FIRST-DAY COVERAGE THAT NEVER EXPIRES
Real first-day permanent coverage is available through reputable whole life companies that specialize in final expense protection.
These policies start immediately if you qualify. There’s no waiting period, renewal concerns, and no rate increases…ever!
You get coverage that lasts for your entire life, and your family receives a tax-free payout guaranteed by contract.
Most of my clients qualify on the first try. Even with common health issues like diabetes, high blood pressure, or COPD, approval is usually straightforward. That’s because simplified-issue whole life policies are designed to help ordinary families, not exclude them.
Unlike Primerica, which requires full underwriting and sometimes months of back-and-forth, first-day coverage is quick and dependable. You answer a few health questions, and in most cases, your policy is active the same day.
These whole life plans also build a small cash value over time. That value can be borrowed in emergencies or used to cover a few months of premiums later in life. It’s flexible protection, and something Primerica doesn’t offer.
The best part is that the price never changes. Whether you live to 75 or 95, your premium stays the same and your coverage remains intact. That’s how real peace of mind is built.
PRIMERICA BENEFITS THE COMPANY, NOT YOU
Primerica is a legitimate company, but that doesn’t make it a good choice for consumers. The business model is built to benefit the corporation and its recruiters, not the policyholder, in almost every instance.
Their agents are trained to sell one product, term life insurance, and to recruit others to do the same. That single-product focus hurts consumers who need long-term protection. When your policy expires, Primerica wins and the family loses.
The “buy term and invest the difference” slogan sounds smart, but in practice, it rarely works. Most families never invest the difference. They end up with no coverage in the years when they need it most.
The truth is simple. Primerica offers expensive short-term protection with high turnover among agents and no permanent solution for seniors, veterans, or anyone looking for peace of mind.
If you want lifetime coverage that never expires, choose a company that offers first-day protection and guaranteed rates for life. You deserve an agent who works for you, not for a pyramid.
FREQUENTLY ASKED QUESTIONS: PRIMERICA LIFE INSURANCE
How good is Primerica Life Insurance?
Primerica is a large company, but “large” doesn’t mean “good.” They mainly sell term life insurance, often through a multi-level marketing structure. Their prices are higher than most top-rated carriers, and they don’t offer whole life or final-expense coverage. You pay more for less flexibility, and the agent who sold it to you likely earns more commission than you think.
What is the downside of Primerica?
Primerica doesn’t sell permanent life insurance. When your term ends, you lose coverage, and renewing can cost up to 10× more. There’s no cash value, no funeral protection, and no way to build equity in your policy.
How long does it take for Primerica Life Insurance to pay out?
Most claims are paid in 2–4 weeks, assuming paperwork is complete. However, reviews show frequent delays when the policy is new or if medical records are required.
How does Primerica rank in life insurance?
According to A.M. Best, Primerica holds an A+ rating, but ratings measure financial stability, not consumer value. High cost and limited product choice make it less attractive than competitors like Mutual of Omaha or American Amicable.
Can you really make money with Primerica?
Most agents don’t. Primerica’s structure is multi-level marketing, and very few earn a full-time income. According to the company’s own disclosures, the majority of agents make less than $6,000 per year.
Can I cash out my Primerica Life Insurance policy?
No. Primerica term policies have no cash value. If you cancel, you lose everything you paid in.
Does my Primerica Life Insurance have cash value?
No. Only whole-life or universal policies build value, and Primerica doesn’t sell those.
How do I get my money out of Primerica?
You can’t withdraw from a term policy. The only money that changes hands is your premium – going to them.
Can I cancel my life insurance policy and get my money back?
Only if you cancel within the 10-day “free look” period. After that, there are no refunds.
Do you get a refund if you cancel Primerica Life Insurance?
No refunds after the first 10 days. The policy ends, and all premiums paid are forfeited.
How can I cancel my Primerica Life Insurance policy?
To cancel, call their customer service line at 1-800-257-4725 and request written confirmation. It’s smart to stop your bank drafts only after you’ve received that confirmation.
How much does it cost to cancel Primerica?
There’s no cancellation fee, but you lose your coverage and all premiums paid.
What happens if I stop paying Primerica?
Your policy will lapse, and coverage ends immediately after the grace period (usually 30 days).
