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Shopping for life insurance can be a long and confusing process. There are hundreds of companies that you can choose from, and all of them have different types of plans and premiums that you’ll need to compare. Life insurance is one of the most important purchases that you’ll ever make for the future of your family. It’s one of the only ways that you can ensure that your loved ones will have the money that they need, regardless of what happens to you.
Prime America life insurance (often called Primerica) is a relative new comer to the insurance industry but has proven to have great backing from Citigroup. We are going to look more at the Primerica model through the rest of this article but if you are already familiar Primerica and want to get a set of term life insurance quotes, please fill out the form on the side of this page.
The history of Prime America life insurance is not nearly as long as that of other life insurance companies. Starting in 1977 by Arthur L. Williams Jr. the company is really a mass marketing strategy to use multi-level marketing to sell financial products. While making many acquisitions over the next 20 years the biggest change came in a merger with Citicorp, the banking behemoth. When the two merged in 1998 they became what is now known as Citigroup Inc. A short eleven years later in 2009 Citigroup spun off Primerica life insurance with an initial public offering. Prime America Life Insurance can now be found on the New York Stock Exchange as PRI.
Before we tell you the pros and cons of Primerica, we’re going to look at the different options that you can choose from if you decide to buy from them. Looking at their options won’t take long, because they only sell term life insurance. If you want to buy whole life, then you’ll need to look somewhere else. While they only have term life insurance plans, there are a few add-ons or additional benefits that you can buy.
One option is their Annual Renewable Term insurance policy, which is a life insurance plan that will increase every year, but it’s only effective for one year. This is an excellent option for someone that just needs a little bit of extra coverage but doesn’t want to pay for a 10 year or 20-year term insurance plan.
Unfortunately, there are a lot of drawbacks to Primerica that you should take note of when you’re shopping for insurance protection. Before we look at the disadvantages, it’s important to realize that every applicant is different and everyone is going to have different insurance needs. Just because Primerica tends to not be the best option, that doesn’t mean that it won’t work for you or your family.
We’ve already discussed one of the main drawbacks of Primerica, and that’s the lack of options. Most insurance companies have several different types of plans that you can choose from, but not Prime America. They have one option, and one option only. For most people, term insurance is going to be the best option, but having those options is still a huge plus.
Another disadvantage is that Prime America is rarely the most affordable option for term insurance. In our experience, there tends to be several other life insurance companies that have lower monthly premiums versus what Prime America is offering. One of the most common reasons that people don’t have the life insurance that they need, is because they assume that it’s going to be too expensive, and in most cases, that couldn’t be further from the truth. It’s important that you find the best company with the lowest monthly rates.
Another problem with Primerica is that they have very strict medical underwriting, which means that if you have any health problems, then more than likely, you’re going to be declined for coverage. Prime America rarely approves anyone that has any pre-existing health conditions.
The theory of Primerica Life Insurance representatives is that you should buy term life insurance and invest the rest. Once you break this down it is actually very good advice. What they are talking about is compare the price of whole life insurance and then price it against term life insurance. The term policy will be significantly less expensive. Son what you do is get the term, take the difference and invest it. Of course they want you to purchase a Prime America life insurance policy can do your investing through one of their investments. The truth is you can usually get a better price on the term life policy by shopping all of the insurance companies that are available in your area. The easiest way to get this done is through an independent insurance agent.
There are several ways that you can get lower insurance rates, regardless of the company that you choose. Making a few simple lifestyle changes can drastically lower your insurance rates and keep thousands of extra dollars in your pocket.
Regardless of the company that you apply for coverage with, they are going to require that you take a medical exam, unless you have chosen to purchase a no medical exam life insurance policy, which will come with a higher premium rate. The results of that exam are going to play a major role in how much you pay every month. If you want to save money, you need to get better results from the exam. There are two ways that you can improve your overall health. Getting regular exercise and sticking to a healthy diet can help you lose weight, lower your blood pressure, and reduce your risks of being diagnosed with a health problem. If you want to save money, it’s time to hit the gym and skip that extra helping of dessert.
Another way that you can save money is to kick the bad habits. If you use tobacco, either smoking cigarettes or using chewing tobacco, then you’re going to be at a higher risk of being diagnosed with some serious health problems. That means that the insurance company is going to view you as a much higher risk to accept for insurance protection. Smokers are going to pay a lot more for their life insurance versus what a non-smoker is going to pay. In fact, smokers are going to pay at least twice as much for their insurance coverage compared to what a non-smoker is going to pay for the same sized plan.
The main reason to go with an independent agent instead of one from Prime America life insurance is that you get someone who is not connected to any one single company. Primerica life insurance reps only sell insurance for Traveler's. So you are really no better off than going into a Traveler's insurance office. With an independent insurance agent you can get quotes for Traveler's and however many other companies are in your area. This means you have all the power and can decide which company best works for your needs.
Our independent insurance agents work with dozens and dozens of highly rated companies across the nation and we can bring a personalized set of quotes directly to you. Working with our agents can save you both time and money on your life insurance search. Every insurance company is different, and all of them are going to give you different rates based on their medical underwriting and rating systems. That means that the quotes that you’re going to get are going to vary drastically.
If you have a pre-existing health complication, like diabetes or a heart attack, you might assume that you can’t get affordable insurance, but that isn’t true. There are plenty of affordable options for you. Some insurance companies have more experience working with high-risk applicants, while others are going to automatically decline you for coverage. It’s crucial that you find the perfect company for you and your health.
At TermLife360.com we are here to help and we represent you instead of one of the life insurance companies. If you have any questions or if there is any way we can serve you please let us know.
You never know what’s going to happen tomorrow, which means that you shouldn’t wait any longer to get the life insurance protection that your family deserves. If something tragic were to happen to you, and you didn’t have insurance, your family would be left with a massive amount of debts and other final expenses. Losing someone that you love is never easy, but being stuck with a mountain of debt is going to make the whole situation that much worse.