Primerica Pyramid Scheme – Is Primerica Legit?

Primerica Pyramid Scheme - Is Primerica Legit

Primerica deals with insurance, investments, and financial services, providing servicing for the US market, Guam, Puerto Rico, and Canada.

Primerica has been operating for over 40 years and it represents a publicly-traded company.

Primerica recruits agents who sell insurance policies but are not regular employees of the company.

Since Primerica operates based on the MLM system (multi-level marketing), it may appear as a pyramid scheme.

And that is why we are here today; to answer is Primerica legit or is it a pyramid scheme?

But first things first.

What Is Primerica?

Primerica is a financial company founded in 1977 by Arthur L. Williams Jr.

Primerica is a parent company to several subsidiaries, including Primerica Life, National Benefit Life Insurance Company, e-Telequote, Vidalia Re, and Peach Re.

Primerica usually services customers and clients with middle income, which are households in the US that generate between $30,000 and $100,000 a year.

Primerica is the largest independent marketing organization and financial services company in the US with over $808 billion in life insurance policies.

The focus of the company is selling term life insurance, but it also offers auto and home insurance, credit monitoring, and mutual funds.

These financial services and insurance policies are marketed, promoted, and sold by Primerica representatives that pose as agents.

These agents operate as MLM marketers and are encouraged to offer Primerica services to relatives, friends, and neighbors (like in the case of Monat, another MLM scheme we had reviewed)

Primerica agents make profits based on commissions they receive from making sales.

What Products & Services Does Primerica Offer?

Primerica has a great number of financial and insurance products, while the main focus is set on term life insurance.

Primerica offers services in Canada, the US, Puerto Rico, and Guam. This is a list of services that Primerica offer:

  • Term life insurance
  • Financial needs analysis
  • Mutual fund investments
  • Individual 401k programs
  • Annuities
  • IRA
  • Managed investments
  • Small business solutions
  • Qualified retirement business programs
  • Legal protections
  • Long term care insurance
  • Home insurance
  • Auto insurance

Let’s see how some of the biggest and most popular Primerica services and products work and what users can expect from Primerica.

Financial Needs Analysis

Primerica offers FNA (Financial Needs Analysis) to help middle-income families in the US and other supported countries present a clear and direct overview of their financial needs.

Financial Needs Analysis is designed by Primerica as a form of a money management plan that should help you plan your financial decisions.

The FNA contains assumptions and calculations regarding the personal finances of their clients and is based on the current economic state and your finances. 

Primerica FNA doesn’t come with commitment and is subject to periodical changes due to numerous factors that can influence the analysis.

FNA is usually the first thing you get from an insurance consultant when taking an insurance policy so that you could get a clear overview of your financial position.

Term Life Insurance

Primerica has only one insurance product and that’s term life insurance.

With this type of insurance, clients are not receiving insurance coverage for their entire life.

Instead, you can choose a predetermined period when buying a Primerica term life insurance policy.

In case of death before the term of the life insurance expires, your beneficiaries will receive the benefits.

However, in case of death after the expiration of the policy, your beneficiaries won’t get anything. 

Primerica is not particularly transparent when it comes to term life insurance quotes, so it may be difficult to compare their product with similar competitors’ offers.

Still, one of the greatest advantages is an accelerated death benefit, which means the client can take up to 70% of the life insurance policy in case of a terminal illness.


Primerica offers investment products for middle-income families and encourages clients to contact a Primerica representative to help them choose a product following their financial needs. Primerica investment products include:

Mutual funds

Primerica has a long list of providers for mutual funds and presents this financial product as one of the best ways for middle-income families to achieve financial stability.

Mutual funds with Primerica’s involvement in management and diversification of your mutual fund’s portfolio.

Managed investments

You can invest in securities via Primerica, while your portfolio is professionally managed for maximized profits and minimized risks.

You can always access your managed account via the Primerica investment platform, while your investment advisor will keep you updated and will be in touch.

Clients also receive consolidated reports.


With a long list of reliable annuity providers, Primerica offers three types of annuity products:

Fixed annuity

In case you choose this product, you are agreeing with an insurance company that guarantees that you will be receiving fixed rates of returns on your investment.

Variable annuity

If you choose a variable annuity, you will be making a contract with an insurance company that will provide you with investment and insurance features.

This product is the best option for retirement among Primerica annuity products.

Fixed indexed annuity

With a fixed indexed annuity, a long-term contract is made between a client and an insurance company.

In this case, rates are fixed and are higher in comparison to similar products, however, the rates are not guaranteed.

Business retirement plans

Primerica offers 401(k), 403(b) and 457(b) employer-sponsored retirement plans.

Employees can have a portion of their income invested in either mutual funds or annuities under a retirement plan of their choice.

Auto & Homeowners Insurance

You can get a quote for auto and homeowners insurance in minutes if you contact Primerica.

The product is supported by the referral program to Answer Financial, Inc.

The rates are said to be competitive and the insurance affordable.

You will be presented with several quotes from third-party partners and licensed affiliates.

Long Term Care Insurance

Primerica offers long-term care insurance for people who are living with a disability or chronic illness to meet their non-medical and medical needs.

This product is particularly useful in the long run as medical costs are increasing over time.

How Does Primerica Operates?

The company is well-established and relies on the MLM system to sell its products, which is why some people may consider it non-legit or a pyramid scheme.

Primerica recruits agents or representatives to sell insurance policies and encourages their agents to offer Primerica products to family and friends.

Agents make money based on commissions they receive on every sale they make.

Let’s Answer The Big Question: Is Primerica a Scam?

Primerica is not a scam and is a publicly-traded company that has been in the stock market for decades.

Primerica is a legitimate company with a long history of business conduct.

Still, some people may consider Primerica a scam due to its sales and marketing model.

Primerica uses MLM (multi-level marketing) system and sells its financial and insurance products through Primerica agents who work based on commissions.

Exposing Ponzi & Pyramid Schemes

One of the primary ways of dealing with and exposing Ponzi and pyramid schemes is realizing that if something sounds too good to be true, it usually is.

Ponzi and pyramid schemes involve a great number of investors that normally invest their money in a non-existent product without being aware of the scheme that involves scamming them of their money.

There is also a great number of agencies and websites dedicated to exposing Ponzi and pyramid schemes, so you can always search for reviews online and research any company or business that you doubt could be a scam.

We try to do our fair share of exposing and reviewing different platforms and programs, like Legal Shield or Appen.

Some Major Concerns – Primerica Investigation In 2012

Primerica is not a scam or is involved in Ponzi or pyramid schemes, however, Primerica was subject to numerous lawsuits in 2012.

The company was accused of having its agents make a profit on firefighters, teachers, and different public workers to purchase Primerica policies and divest from government-secured retirement programs.

The case was settled in 2014, which cost Primerica over 15 million dollars.

Still, Primerica was among the top 50 trustworthy companies in the US according to Forbes.

Bottom Line – Should You Engage with Primerica in Any Way?

Primerica is a legitimate company that has been operating in the US and Canada for decades, helping middle-income families with their financial needs.

If you are planning to use one or some of the products offered by Primerica, make sure to get quotes so that you can compare Primerica’s financial offers to competitors.

Primerica is a trusted company, however, it lacks some transparency when it comes to insurance quotes.

Make sure to read all the terms and conditions from A to Z before signing a contract with Primerica or its affiliates and partners.

Overall, Primerica has been around for 40 years, deeming it one of the longest-running financial companies in the US, trusted by thousands of satisfied clients.