Is Primerica Legit?

During my university days, a friend approached me with an invitation to join an insurance or financial advice company as a financial advisor.
It seemed promising, but as I got involved, I sensed something was off.

Long story short, I discovered it was an MLM, though they denied it.
This experience led me to question the legitimacy of MLMs like Primerica.

Many representatives flaunt a luxurious lifestyle, but at what cost?

In this article, I’ll provide an honest review of Primerica, drawing from my background as a former MLM participant.
By the end, you’ll have a clearer understanding of the company, its pros, and cons, and whether it’s the right opportunity for you as an aspiring entrepreneur.

Jump to:

• Primerica review
• What is Primerica?
• Who is the Founder of Primerica?
• Is Primerica a Pyramid Scheme?
• Who is Primerica Good for?
• What is the story of the Primerica Test?
• What is the Price to Join Primerica?
• What Products Primerica Offers?
• Primerica Compensation Plan
• How Much Can You Make with Primerica?
• Is there a Different Way to Generate the Revenue?
• Primerica Reviews
• Primerica Pros & Cons
• Is Primerica Legit?
• Conclusion
• FAQs

Disclaimer
The trademarks within this article are those of the respected proprietary propriety owners (Primerica, Inc.) and this website is not associated, endorsed by, or affiliated with Primerica, Inc. in any legal contracts or agreements, at this time.

The content provided below is for informational and educational purposes only, it is based on facts obtained online or in person by the author and is the sole opinion of the author.

What is Primerica?

Primerica Inc. is a well-established organization that provides investment, term life insurance policies, and financial services with a primary focus on middle-income families.

Operating in Canada, the United States, Puerto Rico, and Guam, the company has been publicly traded on the New York Stock Exchange since 1989, under the name “PRI.”

With its parent company tracing back to the early ’80s, Primerica has built a strong presence in the market.

The company’s diverse portfolio includes subsidiaries like National Benefit Life Insurance Company, Primerica Life, Peach Re, Vidalia Re, and e-Telequote.

Through its network of licensed representatives, Primerica operates as a multi-level marketing (MLM) company, enabling individuals to offer financial products and services independently.

Primerica Revenue

Primerica’s revenue has shown fluctuations over the years, with some periods of growth and others experiencing slight declines.

The company’s revenue for the quarter ending March 31, 2023, was $0.690B, marking a 0.17% decline year-over-year.

For the twelve months ending March 31, 2023, the revenue was $2.719B, representing a 1.6% decline year-over-year.

The table below provides a clear overview of Primerica’s annual revenue history and growth rate from 2020 to 2023:

Year	Revenue (in billions)	Growth Rate (%)
2023	$2.719B	-1.6%
2022	$2.720B	+0.38%
2021	$2.710B	+22.2%
2020	$2.218B	+8.04%

Who is the Founder of Primerica?

The company, founded in early 1977 by Arthur L. Williams Jr., initially focused on selling affordable term life insurance to the middle class, aiming to reach a broader audience.

Over time, Primerica introduced incentives for its representatives, transitioning into an MLM business model.

Throughout the years, the company underwent various changes, and it is now owned by financial giants, Fidelity Investments and The Vanguard Group.

Primerica Website Information

Curious about Primerica’s online presence?

Let’s explore the numbers.
By analyzing organic traffic data, we can gain valuable insights into the company’s attractiveness and popularity.

Primerica’s website is well established, having been registered in 1993.

According to Ahrefs, a reputable SEO tool, the website has been consistently receiving over 130,000 monthly visitors in the last six months of 2023.

These impressive numbers indicate a substantial interest in Primerica and its offerings, making it a compelling choice for those seeking a potential business opportunity.

Is Primerica a Pyramid Scheme?

Let me clarify upfront that Primerica is not a pyramid scheme; it is a legitimate company.

Now, let’s understand what a pyramid scheme is and how to identify it.

When people hear “MLM,” they often associate it with pyramid schemes, and there’s some truth to it. However, let’s delve into it further.

Pyramid schemes are illegal in many countries because they lack sustainability and fail to offer value to end-users. Profits are solely derived from recruitment, promising quick and massive returns.

To receive these profits, you must recruit others and make the same promises to them, creating a never-ending cycle.

Here is a short video on how to spot a pyramid scheme:

MLM companies typically offer products or services that representatives can sell to make money. Another way to earn is by recruiting others into their team.

Primerica does have products, and while opinions on insurance may vary, it does provide value to some customers. Hence, Primerica cannot be classified as a Pyramid scheme.

Who is Primerica Good for?

According to Primerica Reps, it is an opportunity for everyone to make some money easily. They highlight the potential for income growth and more free time as you build your team.

However, consider if you’re comfortable recruiting friends and relatives and how you handle rejection. Many people may say no, so be prepared for that.

This is a full-time commitment, and success may require more than 40 hours of work per week for several years. It’s not suitable for a part-time job.

While I’m not a fan of MLMs, being a Primerica representative seems better than other MLM options.

What is the Price to Join Primerica?

Joining MLMs is usually easy as it doesn’t demand a substantial investment.

For Primerica, you must complete the Independent Business Application and pay the initial fee of $99, followed by a $25 monthly payment.

Keep in mind that you cannot sell anything until you are licensed, which takes around 3 months. Be prepared with a budget to cover your expenses during this period.

What is the story of the Primerica Test?

To become a Primerica representative, you need to pass an exam. First, you must take a 20-hour course and then study for the exam.

It’s important to note that passing the exam is not easy. Many applicants have to retake it multiple times.

The process takes around 3 months, during which you can’t sell insurance or products, but your sponsor can. The benefit is that you learn directly from your sponsor’s experience in the field.

What Products Primerica Offers?

This review is not intended to assess the products, so let’s just briefly mention what products Primerica has to offer.

Financial Needs Analysis

Based on your financial status, the advisor is able to come up with suggestions and personalized strategies to improve your financial situation.

Term Life Insurance

This is considered a cheaper product than whole life insurance and Primerica has records of paying out 90% of the cases within 2 weeks or so.

Investments

Primerica can help you with proper investments in the following portfolio:

• Mutual Funds
• Managed Investments
• Annuities
• Business Retirement Plans

Auto & Home

Protect your assets with Primerica Secure and Answer Financial Inc. Apparently, with this insurance, you have an opportunity to save and “no obligation to buy”.

Long-Term Care Insurance

You can get the health care you need, instead of paying for the care.

Pre-Paid Legal

This program can help you against possible legal problems that might occur.

Identify Theft

This particular insurance can help you protect your identity in the following ways:

• Monitoring your personal information
• Providing counseling
• Re-establishing your identity (in case some kind of violation of your personal data occurs)

Generally speaking, the service Primerica offers is good but it is more expensive than other companies may offer.

It actually makes sense. The price for the Primerica products must cover all 11 levels of the structure (remember – it is multi-level marketing).

Primerica Compensation Plan

What bothers me about Primerica is the lack of a Compensation plan on their website, unlike most MLMs. Let’s go over the basics: you can earn up to 25% commission depending on the product sold, but there are some drawbacks.

For instance, if a customer fails to pay within the first year, you lose your commission.
Also, commissions from recruiting are shared up to 11 levels, so the earnings might not be as straightforward as they seem.

How Much Can You Make with Primerica?

Unlike other MLM companies, with Primerica, you won’t earn anything until you pass the test and get licensed, which typically takes 3 months.

Speaking of income, the average annual earnings for Primerica representatives in 2022 were around $7,479, including both the US and Canada.

Let’s have a look at previous years and I am also going to provide you with the data from 2018 to 2022.

And here is the income disclosure for 2020:

What is important to note, if is the customer who buys the insurance for some reason is not able to pay for it anymore within the year, Primerica will take the commission back.

There are other products you can sell, although the commission is not that high. The good news is there is no chargeback.

The Important Earnings Statement from 2022 is available on their website, however, it is not accessible from the EU.

Here is the screenshot if you wish to read it:

Here is the promised income overview:

Year	Annual Revenue	Number of Sales Reps	Average Earnings per Person
2018	$1.9 Billion	130,736	$6,069
2019	$2 Billion	130,522	$6,249
2020	$2.218 Billion	134,907	$7,198
2021	$2.710 Billion	129,515	$8,410
2022	$2.720 Billion	135,208	$7,479

Primerica Reviews

When I checked various user-generated websites for Primerica reviews, I noticed extreme opinions – some overly positive;

others excessively negative:

I find these reviews not really reliable.
The overly positive ones paint a perfect picture of easy money, while the extremely negative ones are from individuals who had no success.

On Trustpilot, there are only around 20 reviews, which doesn’t provide a comprehensive overview.

On a different user-generated site like BBB (Better Business Bureau), there are over 100 reviews, and the overall Primerica rating is 2.4 out of 5 stars.

This rating is more reliable and offers a summary of people’s opinions on Primerica as a business opportunity.

Summary of Reviews

Positive

• Customers appreciate Primerica’s financial products and services, finding them helpful and valuable.
• Some individuals credit Primerica for positively impacting their financial situations, leading to debt reduction and career growth.
• The company receives praise for its strong morals, ethics, and positive relationships with clients.

Negative

• Critics label Primerica as a pyramid scheme, expressing concerns about misleading business practices.
• Some reviews highlight pushy recruitment tactics and a lack of emphasis on product knowledge.
• Several customers share negative experiences, citing difficulties with policy cancellations and unprofessional interactions with representatives.

Is Primerica Legit?

Yes, this company is legit.
It is a network marketing company (or Multi-level Marketing) that sells insurance and other financial products.
Their products are OK, but if you consider becoming one of Primerica’s Representatives you better ask yourself a couple of questions:

• Is this something you are willing to do in the next 5 to 10 years full-time? (Because this is the only way how to succeed)
• Do you feel comfortable recruiting others? (starting with friends and relatives)
• Are you OK with rejections (the majority of people will say no to your offer)

These are just basic issues you need to resolve for yourself.

What I like about Primerica?

Wide Range of Financial Products

Primerica offers a variety of financial products, including insurance, investments, and financial advice, providing customers with multiple options to suit their needs.

Established Company

Primerica has been in business for several decades and is publicly traded on the New York Stock Exchange, adding a level of credibility and stability to its operations.

Opportunity for Entrepreneurship

Representatives have the opportunity to build their own financial services business, working independently and setting their own schedules.

Training and Support

Primerica provides training and support to its representatives, helping them gain the knowledge and skills needed to succeed in the industry.

Focus on Middle-Income Families

The company targets middle-income families, making financial services more accessible to a broader segment of the population.

What I don’t like about Primerica?

Commission-Based Compensation

Primerica representatives earn commissions on sales, which can lead to a focus on recruitment and a potential conflict of interest when recommending products.

Recruitment Emphasis

Some critics argue that Primerica’s recruitment practices can resemble a pyramid scheme, leading to concerns about the sustainability of the business model.

Limited Product Selection

While Primerica offers a range of financial products, its focus is primarily on term life insurance, which may not meet the needs of all customers.

High Turnover

The nature of MLM-based businesses can lead to high turnover rates among representatives, affecting team stability and customer relationships.

Potential for Misleading Claims

Some past controversies have involved misleading or aggressive sales tactics, raising questions about the company’s overall business practices.

Conclusion

Primerica stands as one of North America’s largest independent financial service companies.
If you’re comfortable meeting new people and becoming a licensed financial advisor, it could be a good fit.

Their products have value for certain individuals, and if you genuinely believe in them, selling shouldn’t be an issue.

However, if you feel unsure about selling or prefer a more settled approach, you might explore other options.

Personally, I enjoy the freedom of working anytime and anywhere with an internet connection, without having to chase anyone.

I’m curious about your preferred business model.

Feel free to share your thoughts on Primerica or similar companies in the comment section below. I’m looking forward to your questions and concerns.

Thank you for reading,
Mike.