Is Primerica a Scam?

If you’re thinking of using Primerica’s products/working for Primerica, you need to know: Is Primerica a scam? 

Below, we explain whether Primerica is a scam and discuss some steps you can take to improve your safety when using this company’s products/working for Primerica. 

What Is Primerica?

Primerica is a publicly traded financial services company known for its multi-level marketing (MLM) approach. 

The company primarily markets term life insurance. 

It also offers other financial services, including other types of insurance (e.g., auto and home insurance), investment funds, credit monitoring, and debt management. 

Is Primerica a Scam?

Depends on who you ask.

Primerica says it is a publicly traded financial services company with a long history and is trustworthy. 

Sources other than Primerica say it is a multi-level marketing (MLM) company (though Primerica disagrees – on its website, it says “Primerica is not an MLM.”) 

Working for Primerica typically means becoming an independent representative. 

Earnings for individual representatives can vary significantly, and there have been reports that some participants have incurred losses after accounting for the fees they must pay.

A former Primerica representative reportedly said that Primerica Financial Services representatives lie and misrepresent the business opportunity to others to get them to join and stay.

In 2021, Kantor & Kantor filed a motion for a class action lawsuit against Primerica Life Insurance Company. The suit alleges that the company did not uphold the rights of California policyholders by failing to allow them to designate a third party to receive notifications regarding a policy lapse.

Primerica allegedly provided this information in a deceptive way, burying critical third-party notice documents in an online portal without notifying the insured about them.

In the past, Primerica advisors have been accused of giving poor retirement advice.

The Bear Cave, a Substack that claims to expose bad companies, reported recently that Primerica’s top agents may be engaging in misleading, false, or deceptive conduct. 

Glancy Prongay & Murray LLP has launched an investigation into Primerica, Inc. (NYSE: PRI) on behalf of its investors for potential violations of federal securities laws. 

Primerica said these claims are inaccurate, deceptive, and driven by self-interest aimed at benefiting at the expense of its shareholders. 

People seem to generally have a fairly negative opinion of Primerica on online forums. 

Primerica is Better Business Bureau accredited. It has an “A+” rating and 2.87 out of 5.0-star customer rating. 

So, Should You Use/Work for Primerica?

Depends. 

If you’re thinking of using Primerica’s financial products, compare them with alternatives and, even better, talk to an independent financial advisor to see if your needs would be met.

If you’re considering selling Primerica products, make sure you understand the compensation structure and the potential risks of participating in an MLM model.

How to Use Primerica Safely

If you’re considering using Primerica’s financial services:

• Compare alternatives. What are some other insurance companies and financial institutions available? Is Primerica really the best option? 
• Read reviews & ratings. Independent reviews and customer testimonials can give you a better idea about Primerica’s products and customer service. Be wary of fake reviews. 
• Understand the jargon. Carefully read through the fine print of any investment or insurance product. Have all fees, commissions, or charges explained for their services.
• Get professional advice. If possible, talk to an independent financial planner for their opinion on whether Primerica is the best option for you based on your financial situation.

If you’re considering selling Primerica products:

• Understand the business model. Know how commissions are earned at Primerica and be aware that success can vary significantly among representatives.
• Be wary of any initial costs. Know what upfront costs, such as training fees or marketing expenses, might be involved.
• Talk to current/former employees. Gain insights from people who have worked with Primerica to learn about their experiences and challenges.
• Set clear goals and expectations. Have realistic expectations about the time and effort required to be successful.
• Have an exit strategy. Consider what your options are if working for Primerica does not meet your expectations. 
• Stay informed. Ensure you follow all legal guidelines and company policies to protect yourself from potential liabilities.