What Is Primerica Insurance?

By Strahinja | Not Recommended

Sep 18

Are you sure that is right?

That is probably the first thing that comes to your mind when you are told that Primerica Insurance is an MLM company. But it does use the MLM format to sell its insurance products.

Those products include term life insurance, mutual funds, long term care insurance, annuities and a lot more. The hype behind their aggressive recruiting tactics is exactly like an MLM company as is their 11 level compensation payout scheme.

Primerica Insurance also have the failure rate associated with an MLM company. To know what is Primerica Insurance, just continue to read our article. We go in depth so you do not have to.

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A Little History Of The Company

We will not bore you with all of the details surrounding the history of Primerica Insurance. There are a lot of mergers, sales and spin offs involved which may wreck havoc on your mind.

what is primerica insurance

But we will give you a brief background so you understand the company a little. When it was founded in 1977 Primerica Insurance had another name. The company originated as the A.L. Williams & Associates and was started by Arthur L. Williams.

But this start was not like anything any normal insurance company has had over the years. It was founded as an MLM business and used the MLM business plan from the get go.

Even before 3 years was up, the company created a contract with a subsidiary of Pen Corp. Financial Serivces which saw the creation of several more financial and insurance type companies all named after Mr. Williams.

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From there the company finally morphed into Primerica Corporation. The details of all this can be found at this link. Eventually Primerica ended up as a Citigroup company until it was spun off by that corporation in 2010. By 2011 Citigroup sold all of its interests in Primerica off.

But these sales and mergers did not change the company as it remained, as it is today.  An MLM corporation with MLM style compensation payoffs.


Primerica Insurance Products

The product this company is famous for its term life insurance. Term life policies are for a set period of time and only bring you coverage if something happens to you during that term. There is no payout if the policy expires and nothing has changed for you.

insurance family

These term life policies are cheaper in terms of premiums and in the long run you save a little money over paying for a standard life insurance policy. Primerica Insurance invented the ad phrase, ‘Buy term and invest the rest’.

In other words, you can put the difference in premiums in another financial package to help you save for retirement. Other products include home, auto insurance policies as well as mutual funds, long term care insurance and many other products and policies.

One of the drawbacks that come with dealing with Primerica Insurance is that they do not put their prices for life insurance on their website. You have to contact the company to get a quote.


Is Primerica Insurance A Scam

It may be and it may not be. It is in how you look at it, it may not be a scam from the customer’s perspective because they are getting the product that they are paying for. The customer also knows up front that the product is only a term life insurance policy and it will run out once that term has expired.

what is primerica insurance

The same for the other products the customer purchases. They do get their money’s worth or at least the product that they bought. So in that sense, Primerica Insurance is not a scam.

But if you look at it from the sales agent side of things, it may just as well be a scam. The compensation package is difficult and the commissions paid are not that great, even though the company has paid out over 500,000,000$ to its agents.

sales agent

With over 100,000 insurance agents, that does not work out to be a lot of money. Then, of course, the agent is told to make what is called a warm market. This list is comprised of family and friends who the agent could sell to and possibly recruit.

This also could be looked at as part of the scam as some of the money the agent makes comes from his sales and those he can recruit to work under him. While it may not be totally a scam, Primerica does take advantage of its sales reps and gets them to do a lot of work for very little reward.

what is primerica insurance

We will conclude that it is a very bad MLM company where you really need to watch your step if you are being recruited to be a sales agent. The hype, like all MLM companies, covers a multitude of sins.

The supporters of the company will always try to turn your attention to the different positive ratings and its membership in the BBB as a way to stifle dissent and opposition.

Whether it is a scam or not it will be up to yo to finally decide. We just think it is a very bad way to do business.


How To Sign Up With Primerica Insurance

Like most MLM corporations, signing up to sell the products is not that difficult. They seem to hire just about anyone. The reason behind that type of hiring is that they have a computer software program that does the work for the agent.

sign up

All the agent has to do is plug in the financial details of their potential client and wait a few seconds before the computer brings up the Financial Analysis. This report shows both the agent and the potential customer what they can afford and how to invest their money.

Once you are signed up, you need to take a class to become licensed to sell insurance. You have to pay the fee for the class based on the promise it will be reimbursed. Whether that happens or not has not been reported.

what is primerica insurance

Prior to taking the class, you also have to pay an IBA fee of $103.95, plus $25 to gain access to their software. What the company doesn’t tell you is that you have to pay that fee every month.

Also, when you get started working to sell their term insurance policy, not only are you given a script to use to sell to your family and friends you are made an independent contractor without a salary or benefits.

Your only income is through your sales or the sales of your recruits, just like an MLM program. Then you are left on your own to handle your business.


Is There Money To Be Made At Primerica Insurance?

Again, the answer will be like any other answer when an MLM company is involved in the question. Yes, you can if you can beat your competition and recruit enough people to sell under you.

what is primerica insurance

You are told that your base commission of your sales is about 25% with the possibility of going up to 95% if you are promoted through the ranks and reach the highest level possible.

The average annual salary for a Primerica agent is between $5,000 and $6,000 a year. It is no wonder they have about a 60% drop out rate every year. If you want a figure to compare that number to, a State Farm Agent makes about $32,000 a year give or take a thousand or two.

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Then with part of your commission going up to 11 levels, you see more money go out the door than into your wallet. There is more bad financial news to come. You may not be able to convince your friends and family to give up their current policies, for yours.

If you can’t, then you do not make any money. Also, the cost of Primerica Insurance and other products is more expensive than your competitors prices. This makes it difficult to sell anything when you can’t beat those competing prices.


On top of that, unless you can sell ice to an Eskimo, don’t think that recruitment will save your financial goals. It is very difficult to get people to sign on the Primerica band wagon, especially when they are comfortable and enjoy what they are already doing. So, no, you won’t make a lot of money unless you are a really talented insurance salesman.


The Pros And Cons Of Working For Primerica

Believe it or not, there are some pros that come with working for the company. There are also a lot of cons which may have you rethinking your employment before it starts. Here are those issues:

what is primerica insurance


  1. You can make some money
  2. Only one life insurance policy to know and sell
  3. You can be your own boss
  4. You can set your own hours
  5. You can help people free up cash to save for retirement
  6. You have access to a computer program that does your analysis work for you
  7. You can help people save money on insurance policies



  1. Low commission payments
  2. A 2 year non compete clause if you quit
  3. If you quit you lose your clients
  4. Difficult to cancel and replace policies
  5. Can’t have your own website
  6. Can only sell your office to another Primerica agent
  7. Complicated compensation plan
  8. Its an MLM company
  9. Monthly fee to access software
  10. Initial payment of fees
  11. Expensive products to sell
  12. Low yearly salary and we mean low
  13. High agent turn over rate
  14. No salary or benefits
  15. Misleading sales approach
  16. Aggressive recruitment tactics
unsatisfied girl


The con list can go on if we wanted to. But that is the same with any MLM corporation. It sounds good up front but once you look behind the curtain, it does not look that good.

If you are thinking about joining Primerica to sell insurance, you may want to do some more research before you make your decision. Too many people just like you quit before the first year is up because it costs them more to be employed by an MLM company than not to be.


There Is A Better Way To Get Financial Security

As you can see, even insurance does not pay off that good when it is attached to an MLM business plan. The money goes to the top and not to your bank account. This is no way to make money or try to secure a little financial security over the next few years.

affiliate program

But all is not lost. There is a better way to make a little extra money so you can get that financial security you always dreamed of. It is called affiliate marketing and it is a growing industry.

The good part of this is yo do not have to buy the products you represent. Instead, you create a website and select the niches and products you want to represent and every time there is a sale, you get your commission.

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Of course, there is a little more to it than that but you do not have sketchy compensation plans, high pressure tactics from superiors and you do not lose parts of your commission to those above you.

That is because it is just you, your customers and your vendor that is involved in your sales. There is no one else. It is something to consider since affiliate marketing is growing by leaps and bounds every month


How To Learn About Affiliate Marketing

You may not know about this new industry or have been given misinformation about it. But that is okay. Affiliate marketing is legitimate and we can help you see how legitimate it really is.

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Thank you for reading.


About the Author

Hi there. I'm just a regular guy that worked many different jobs before finding out about affiliate marketing. Decided to give it a try, followed the instructions, worked hard and started making money online. Here to help you achieve same thing. Working from home is possible if you have the proper training and people.

  • Paul says:

    Great post. Thank you for the in depth review on Primerica. This was very informational and I learned a lot!

  • suzanne says:

    Hi and thanks for your detail post!
    We invested with Primerica in the past, but never considered what it was like for the salespeople.
    It certainly sounds like a horrible plan.
    My husband almost got an insurance salesman position in the past, but ended up elsewhere. I think I’m thankful now, lol.
    This was very enlightening. Thank you.

    • Strahinja says:

      Thank you for the comment Suzanne.

      Yes , like most MLM companies, regular sales people are the ones who have it the hardest. Very low chance of making a decent income.


  • Jonathan says:

    Hi, I am from Malaysia, I never knew Insurance company in other side of the world can be like a MLM concept. Totally new to me, thanks for the information. Great content.

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