at a glance
- Solid financial strength ratings
- Does not sell permanent life insurance and offers no online term quotes
- NerdWallet ranking: No. 13 life insurance company (out of 18 evaluated)
Primerica recruits people to sell its policies, encouraging these new insurance agents to start by selling to family members, friends and co-workers and recruiting them to join the business. Primerica agents also make money based on sales by agents they recruit, which is known as multilevel marketing (MLM).
NerdWallet rank: 13th
Primerica ranked No. 13 out of 18 large insurance companies scored by NerdWallet. NerdWallet’s life insurance company rankings combine its A.M. Best rating, consumer complaints and J.D. Power’s customer satisfaction score.
A.M. Best financial strength rating: A+ (superior)
Primerica’s financial strength is “superior,” according to ratings agency A.M. Best.
Financial strength is important because it indicates how well an insurer can pay claims. It’s especially important when choosing a life insurance company, because claims might not be made until decades after a policy is purchased.
Consumer complaints: Better than the median
Primerica drew fewer than the median number of complaints to state regulators in 2016 for a company of its size, according to the latest data from the National Association of Insurance Commissioners.
The association assigns a complaint ratio score to insurance companies, based on the number of complaints to state insurance commissioners, adjusted for market share. The median score is 1. A score less than 1 means fewer complaints. Primerica’s score for individual life insurance in 2016 was .24.
J.D. Power ratings: Among ‘The Rest’
Primerica ranks among “the rest” — the lowest rating possible — in research firm J.D. Power’s 2017 U.S. Life Insurance Study. The company had the fourth-lowest score overall among 24 of the largest U.S. life insurers.
|Primerica customer satisfaction scores|
|Overall satisfaction||The rest|
|Billing and payment||The rest|
|Policy offerings||The rest|
|Source: J.D. Power 2017 U.S. Life Insurance Study|
More about Primerica
|Types of insurance sold||Other products & services|
Primerica’s sales strategy
Some insurance experts criticize Primerica for its MLM structure and lack of life insurance policy choices. Primerica doesn’t provide life insurance quotes on its website, making it hard to easily compare prices with other insurers.
Because of Primerica’s MLM strategy, you may find friends or family members pitching the products. Your personal connection with these salespeople could create extra pressure to buy from Primerica, and perhaps pressure later to become a part-time Primerica agent. But it’s always a good idea to compare options and prices from several companies before committing to a personal finance product.
For context, most other life insurance companies sell their products through full-time agents who make a career in life insurance sales.