Is Primerica a Scam? This Review Will Expose The Hidden Truths!

There are varying opinions when it comes to Primerica. While it is considered by many as an established company, many people are not certain if they should see this company as a pyramid scheme they should veer away from or not. To set the record straight, I am making this review now. 

In line with this, we will also try to delve deeper into the business opportunity that this multilevel marketing company have on offer and figure out really if it is worth venturing into or if you should stay away from.

Primerica Summary Review


Founder:   Arthur L. Williams Jr. in 1977

Price:  $99 +  $25 a month for access to company training tools and resources

Best For: Ideal for people with flair for recruiting, selling, and networking. People with prior experience to finance, insurance and similar fields are at a more advantageous position here. 

Summary: It is such a relief to know for anyone concerned that Primerica is not a scam nor a pyramid scheme since they have real product offerings to give to their market. This review shows you that the company is not solely reliant on recruitment to gain profit. But since they are making use of the typical MLM approach, making money from this company is challenging.

Rating: 50 /100

Recommended: No. 


What Is Primerica?

If this is the first time that you heard of Primerica, chances are your interest to know more about them stems from the business opportunity they are offering. If somebody introduced you to their offer, it is commendable of you that you are trying to educate yourself about it prior to making a decision.

So, what is Primerica about? Primerica is a business organization that sells insurance policies and financial services. They have taken on the multilevel marketing approach because they have seen the potential of having greater reach  to their target market via networking system.

If you have plans of joining this networking company anytime soon, it is of paramount importance that you learn something about their background first and how this organization is conducting their business. It will give you a good idea if engaging yourself with this company is good in advancing your financial interest or if you need to look somewhere else for that.

Primerica is currently headquartered in Gwinnett County, Georgia. Aside from term life insurance, they are also offering various financial services. But before we came to know them as Primerica, they were  A.L. Williams and Associates first.

Founded by  Arthur and Angela Williams in February of 1977, the working idea behind the company is to encourage people to buy themselves a term life insurance and then they could decide if they want invest the rest. They are convinced that the average American professional is capable making an investment for their future. 

Is Primerica a Scam

Primerica Founder

In 1991, the company made a decision to change their name into Primerica Financial Services while retaining still their MLM business model approach. Once again, in 2010, the company decided to change their name again into Primerica, Inc., to which we are familiar with today.

Primerica Products, Are They Good? 

If you want to know the honest to goodness answer if Primerica products are good or not, you need to know whom to ask. A handful of their insurance customers are convinced the company has given them fair rates, and their insurance policies are solid and good. But then again, like everything else in the MLM sphere, some people are under the impression that obtaining an insurance program through Primerica is a scam.

According to Insureye, a website offering free of charge quotes on life, property, auto and home insurance, the highest rating they can give to Primerica is no more than 2.1 stars. The score was determined with respect to the 17 reviews they had at the time of writing this Primerica review.

A handful of these Primerica customers are asserting that after making a payment for their insurance policies for 20 long years, the company imposed a drastic increase on their rates without warning or notice. While some others after reaching their senior years, that is 65 years old and up, their premium prices were raised so high that they just simply can’t afford to pay for it anymore.

But there are few lucky ones who said that they were able to cash out a policy of their loved ones.

How to Get Started with Primerica?   

Much like any other MLM companies out there, in order to get started with Primerica, you need to become a member of their network and there is a corresponding fee for this valued at $99.

For those who are within the US, members can choose to have access to their online support system. This comes with a monthly subscription fee and is valued at $25 a month. This entitles you to have a privilege access to their various marketing and training materials designed to help you in growing your business.

If you are in Canada, membership fee is at $103.95, while the online subscription fee would have you shell out $28 every month.

In case that you don’t have any of the required licenses to market and sell insurance and securities, anticipate corresponding fees for that to get your license on process. In line with this, please be aware that there are federal laws also that you will need to abide by and follow so you can obtain and maintain your license.

Unfortunately, you might need to conceptualize your own promotional and marketing materials since the company can only provide you with a limited amount of support in this aspect. Naturally, you will have to shoulder up the cost of creating printing of your promotional and marketing materials.

How Much Can You Possibly Earn with the Company?  

The moment that you have your licence ready, every single policy that you were able to sell entitles you to a 25% commission. In addition to this earning potential, if you happen to have a downline network already, you can also get to earn up to 70% commissions on their sales.

Primerica made a public disclosure in 2017 that their North American agent’s average annual commissions is $6,030. Also covered here is the 25% selling policies commission, as well as every subsequent commissions the agent earned from his own downline network.  

Now, doing the Math here brings you to  an average of $502.50, this is every month. I really, honestly feel that this is not a decent amount of money to live by if you are living anywhere in North America.

The shady part here is that the company is not really in the habit of making a public disclosure of their insurance agent earnings. Those figures I mentioned above were derived from their 2017 annual report.

As for the agents who previously for Primerica, they are actually asserting that they received their commission pays on time and in full amount. This is giving us an impression that Primerica is not in the practice of holding back agent commission pays, however, the vast majority of their insurance agents are hardly making money with them.

What are the Primary Products of Primerica? 

The company is offering the following financial products to middle class families in Canada, Puerto Rico, and of course, the USA.

  • Auto & Home Insurance
  • Credit Monitoring
  • Debt Management Plans
  • Long-term Care Insurance
  • Term Life Insurance
  • Financial Investments

How Can You Make Good Money with Primerica?

The company is offering their network members 2 great ways to earn from their business opportunity:

  1. Network members can choose to sell their financial products and subsequently have commission earnings out of their closed deals.
  2. You can also choose to recruit and refer others to the business and train them to do the same.

If you want to delve deeper into the company’s compensation plan, you may learn about it in great detail with this Youtube video I sourced for your convenience.

The Ugly Truths of Primerica Revealed

The business opportunity in Primerica is definitely not for everyone. 

A very limiting factor when it comes to marketing and selling financial-oriented products is that you need to immerse yourself in studying them. This is the only way you can make yourself an authority figure and well-versed in this field, otherwise you will not become highly qualified  for the role.

Extremely low income potential. 

Much like in many other networking companies, many people who decided to join the Primerica networking team subsequently had to quit the business because they are unable to make decent amount of money here.

With reference to the company’s income disclosure for 2017, as mentioned above, where North American agents are receiving an average of $500 -- is that a decent amount to live by?

The worst part here is that more than 60% of their network members don’t even make a single cent. This clearly explains the reason why most people who are involved, not just in Primerica, but in networking companies don’t make it big in this industry.

It is because, generally speaking, MLM companies are offering us extremely low income potential, and only a discerning mind can actually see this loophole in their system.

You need to know how to recruit and refer people to the business opportunity. 

We many not qualify Primerica as a pyramid scheme company, but network members need to recruit people into the business which is a typical characteristic of networking companies.

Once you signed up and become a member of Primerica group, you will necessitated to come up with a list of relevant people whom you think will be highly interested in financial products and all.

While there is nothing wrong with this type of marketing approach, I just want to emphasize that this is something not everyone will be good at.

Primerica is riddled with different kinds of customer complaints. 

There are several documented court cases against Primerica. Some of the celebrated cases are as follows:

In 2012, Miriam Arellano filed suit against Primerica for breach of contract, consumer fraud, and negligence. Mrs. Arellano was awarded compensatory damages of $82,000 and punitive damages of $1,117,572.

In 2012, a certain woman by the name of Mirriam Arellano lodged a formal complaint against Primerica for consumer fraud, negligence and breach of contract. She eventually won the case and was awarded with $82,000 as compensatory damages plus $1,117,572 punitive damages.

In 2013, Primerica was forced to deal with 238 retirement plan cases. Complainants asserted that they received bad investment advice from the company. The following year, Primerica had to allocate $9.3 million to compensate these people.

In 2014, a person by the name of Carolyn Arline and  another complainant, Machell Amador, lodged a lawsuit against Primerica. They reasoned out that the company refused to pay the full benefits they are supposed to obtain due under their life insurance policy.

What I Do Like About Primerica?  

Their costs are within reasonable amounts. 

In order to get things started, you need to pay up $99 and a $25/month fee.

The $99 is for your sales license and screening, which is completely refundable should you have a change of heart. The $25/month fee is for your privilege access to the company’s training and marketing resources.

Both fees are within reasonable amounts and is affordable to most people.

Stellar score from the Better Business Bureau. 

What is Primerica About

An A+ score from the Better Business Bureau is a good indication that a business entity is a bona fide organization. It is very seldom that this agency will award this level or score to a company, unless they have enough compelling reasons to do so. In this case, it worked in favor of Primerica.

What is even more surprising is the fact that Primerica has been in the business for more than 40 years already. Moreover, the company has been enjoying their high BBB rating since 1980, the first time the agency accredited the company.

Should Primerica have been qualified as a scam or as a pyramid scheme company, then they would not have maintained such a high rating for a very long time.

Is Primerica a Scam?  

Technically, by its legal definition, we can't qualify Primerica as a scam. it is because the customer or prospect clients of this networking company will receive a product. But there is an open debate to this --- if we are to purchase any of their offered financial products, are we going to get our money's worth? Are we going to get it at the best price offer? 

Some people are likely to argue that a term life policy, in the long run, is just a big waste of money. Primerica is likely to make out more times as opposed to  being not since the likelihood that those insurance policies are going to be cashed out prior to their term is very slim. This actually brings us to this realization that insurance companies are essentially just collecting free money here. 

Personally I find the whole life insurance more appealing due to its cash value, you can borrow against it, and a manifold of other features that is making it more expensive than term. My impression here is am able to get more value from my money here, hence, it naturally costs  so much more. 

How I Make Money Online?

I know that what you read above with my review for Primerica is going to give you a little distaste for this company. Take that instead as a blessing in disguise. Otherwise, you are heading to join a networking firm that does not have your best interest at heart.

Fortunately, there are far better options in store for everyone who is trying to look for a better money-making opportunity. 

I don't have anything against networking companies or Primerica for that matter, what I am going against is the fact that there is a very slim chance for you to grow financially with the opportunity they are offering.

 It is sad to know that many people are deceived into thinking that networking companies may actually hold the key to their financial wellness. Truth is they are primarily designed to advance the company's interest, sometimes even at the expense of their network members. 

Consider becoming a marketing affiliate instead, the Wealthy Affiliate way. Why Wealthy Affiliate? 

It is because Wealthy Affiliate marketing program will provide to you all the support and help you will ever need, from building your website to finding the products and service you can promote.

My advice is choose the products or services you are most passionate about. This will make your experience more fulfilling, and subsequently your earnings will be more rewarding for you. 

If your goal is to have a stable passive online income, becoming a Wealthy Affiliate marketer is your best choice.

This program helped me and others Make A living Online and some of it even quit their Full Time Job. You will learn how to build a Thriving Online Business step by step so stop making excuses and Join Me Now

What do you think about Primerica?  Or do you happen to have any prior experience with a similar networking company? Why don't you share your insight, story or any experience you have regarding this networking firm or any other similar companies. Please head to the comments section below and share your story . 

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Edmon Gonzales

Edmon has worked as an SEO content and creative writing for the last 3 years. He has extensive experience in writing content for SEO purposes and started work as a freelance since 2011. He currently joined as a writer in How To Make Genuine Money blog and is dedicated to digging into the world of MMO niche with Maxx.