Is Primerica A Pyramid Scheme

Hey, welcome to my Primerica Review!

This company has been accused of being a pyramid scheme more times than it should. But you probably got invited to this company by those who are saying the opposite, it is legit.

Firstly, I am really proud of you for taking the time to do your own research before purchasing any course or services.

Secondly, that’s how you find the best-proven method to avoid scams and make real money online instead!

I am not acquainted wit Primerica is any way, so rest assured if you think I am trying to pitch you something.

Without further ado, let's find out about the answers to:

  1. Is Primerica a pyramid scheme?
  2. Is Primerica a scam?

Primerica Overview

Name: Primerica


Owners: Arthur L. Williams Jr.

Price: $99 one time payment and $25 monthly recurring fee

Launched: 1992

SAP Ratings: 30/100

Primerica Logo

Best Suited For: people who are looking for financial security and affordable life insurance.

Summary: Primerica is a legitimate long-running business known for catering to the insurance needs of middle-class families through their reasonable offers. Although this company was not able to avoid complaints and even lawsuits, they remained strong throughout the years proving that they are far from being a pyramid scheme or a scam! Though their policies does what its supposed to, the business opportunity they offer is not entirely ideal as it seems.

Recommended: Definitely not.

What Is Primerica?

Primerica is another MLM company that stood for years despite not having to offer any physical products. How so?

Arthur L. William Jr. founded Primerica in 1977 with a mission to help the middle-class families attain more affordable life insurance. 

You might have been wondering how this business thrived for years with only financial policies as products. 

Surprisingly, Primerica builds a credible reputation and continuously raking in millions worth of revenues every year.

The results of Primerica’s total revenues are $2.1 billion in 2019 alone! 

Primerica's Product Line

Primerica’s mission is to give affordable life insurances to people who are struggling financially.

They also claim that it’s cheaper than what’s offered in the market.

  • Financial Needs Analysis
  • Term Life
  • Investments
  • Auto & Home
  • Long Term Care
  • Legal Protection
  • Identity Theft

Primerica aims to educate families in terms of making financial decisions.

They are assuring people that they are keen to provide the benefits of every policy they have at a very reasonable price.

Unfortunately, there do not include the price range for every product they offer.

You can always visit their homepage and check how to contact them in case you are really adamant to inquire about their policies.

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Is Primerica a Pyramid Scheme?

Although Primerica can be easily deemed as a pyramid scheme for offering no actual physical products, it is a legitimate business. 

It’s as obvious as it gets, it’s not shocking how other MLM companies offer high-priced items but are never really effective anyway. 

As for Primerica that offers different types of insurances, they actually work.

A business can only be a pyramid scheme if the source of income solely relies on recruiting people since there are no existing products to sell.

How Much Does It Cost To Join Primerica ?

Unlike Vasayo, Primerica offers a much cheaper charge on becoming a representative. 

They call their associates contractors and require that they pass the the licensure exam to be capable of selling their policies. 

I believe it’s fair enough that people have to go under a screening process. Primerica doesn’t easily let anyone apply to become a sales agent unless they are clear from any criminal records. 

In terms of availing a product from any MLM company, it’ll be easier for people to sign up as an associate instead. It seems to be a more practical choice if an individual would want discounts on their next purchase. 

If you want to become an agent for Primerica, you will be charged a $99 one time payment. Like any other MLM, there is a need to pay a monthly fee to remain active within their system. 

With Primerica, you will not be worried about stacking up an inventory of from the required monthly product purchases like most MLM companies, that’s for sure.

Primerica's Compensation Plan

Are you burdened by financial obligations or may have been disappointed by the previous life insurance company you signed up with?

Either way, you’re probably thinking that Primerica can be your saving grace. Let’s find out!

The difficulty of learning about their product prices is the same for their compensation plan. Even if you do your best to look for it within their website, this is the only thing you’ll come across:

Primerica Compensation Plan

But here are the 4 different ways you can earn from Primerica:

  1. Sales Commissions on Insurance –  every time you successfully close a deal with an insurance applicant, you will receive commissions accordingly.
  2. Overrides on Downline’s Insurance – 10% override commissions for the sales volume of the people in your team.
  3. Differentials from Downline’s Insurance Sales – If you help your downline close sales, you will also be entitled to earn commissions from it.
  4. Commission on Other Products – once you were able to sell the other offers Primerica has besides the term insurances, you will also earn commissions from each product sold.

Basically, the only ways you can actually earn from Primerica are through selling and constant recruiting. Once you are able to grow your sales team, keeping them active, help them close sales, then you will earn from it. 

Sounds easy, but we’re all aware how much time and effort is needed to thrive in an MLM company

You can always check their annual report if you want further information.

Looking for a more detailed explanation of how people are compensated by Primerica consumed a lot of my time.

It seems that looking for their compensation plan is more difficult than finding out the prices of their policies.

Anyway, this is the best video I have encountered that actually explained how to earn from Primerica:

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Is Primerica Accredited By The BBB?

3 years after being founded, Primerica was already accredited by the Better Business Bureau and has maintained an A+ plus rating over the years. 

Even though they have managed to keep the rating, their profile within BBB still shows unresolved cases of customer complaints! 

Primerica BBB rating

What I Like About Primerica / The Pros

1.  Product Works

As I have mentioned, most MLM companies fail to deliver high-quality products as promised.

But with Primerica, there’s no need to worry whether your investment is worth it.

Nowadays, people are looking more into signing up for insurance policies. 

And Primerica’s policies surely delivers.

2. One of The MLM Giant’s

For the years Primerica is in business, makes it a lot easier for people to trust them.

Also, they were included in Forbes’ Top 50 Most Trustworthy Companies in 2015.

In addition to that, they are also recognized as one of America’s Best Employers for Women in 2019.

Primerica Forbes

3. Qualifying Process

Before you can even sell the insurance policies of Primerica, you must pass an examination to acquire the “Primerica Sales License”.

It’s quite commendable how Primerica requires this to anyone who’s willing to take chances on their business opportunity. 

This license lets an individual prove that they are knowledgeable of what they are offering people and definitely gives the impression of credibility.

But you need to wait for about 90 days before you can claim your license. 

Despite that, this doesn’t limit you to offer other products Primerica has.

What I Dislike About Primerica / The Cons

1.Covert Product Prices

Having no idea of how much a company charges for each available offer is utterly frustrating. 

We all wanted to easily get a grasp of how much it would cost us in order to weigh out other options.

Like Melaleuca, Primerica does not show the prices of their offers within the official website

The only chance you can better understand the fees they charge for each insurance policy is by contacting an agent from Primerica. 

And when you do, I am betting you will have a hard time trying to deny an offer from their agent.

2.Countless Legal Issues

Is it really inevitable for MLM’s to face legal issues? It’s like a curse set upon any networking company, but we all know that it’s due to failures of living up to their promises.

Even though Primerica had set the bars high when it comes to being one of the longest-running MLM’s, they weren’t free from any lawsuits either.

An alarming 238 lawsuits were filed against Primerica with a settlement cost of %15.4 million in 2014 alone. 

Isn’t it irritating how insurance agents will endlessly try to convince you to purchase any of their policies, how much more if it’s partnered with recruiting you to join their team?

Nobody wants to be forced or harassed into doing so. What makes it more disappointing that these Primerica agents were so adamant in expanding their network they were caught trying to sell to a student of Brooklyn College right on campus.

This happened back in 2017 but was denied but the alleged representative. In that same year, an agent of Primerica pleaded guilty of pocketing the client’s money worth of 4.2 million dollars. 

3. Policies Are Not Given To Everyone

One more frustrating thing anyone may not stop to nitpick at is the fact that they are quite choosy when it comes to their customers. 

Although this company built its reputation from being the refuge of middle-class families for affordable insurances, they don’t give out policies to everyone. How so?

Let’s say an individual has pre-existing health conditions and tried to apply for a 10-year term life in Primerica. This guarantees that within the period of the insurance and the individual passed, his or her family will receive the benefits according to the contract. 

Unfortunately, once Primerica becomes aware of the individual’s deteriorating health, there are huge chances the applicant will be denied. 

Policies are only granted to people who have robust health.  

That’s disappointing since the company is supposed to cater to anyone especially those who are struggling financially.

4.Continuous Complaints

Wouldn’t it be dismaying knowing that a company that stood for years still fails to properly address the complaints of their consumers?

For years in the business, they should have mastered giving high-quality service to anyone who wants to avail of their products! 

But with Primerica, that’s not the case. Despite the A-plus rating in BBB, there are several issues that remain ignored. 

Overall there are 115 existing issues within the last 3 years and only 42 were resolved in the last 12 months. 

Other than that, the most common complaint is about the problems regarding their products or services.

Below is a screenshot of the latest complaint in BBB against Primerica.

Primerica complaint

Is Primerica a Scam?

Despite the dismaying fact that Primerica had faced hundreds of lawsuits doesn’t entirely prove that they are operating as a scam. 

They are trusted by a lot of people throughout the years of their service. 

But if you will ask me whether it’s worth it to take chances on their business opportunity, I’d have to be brutally honest.

Primerica may not be a fraud but operates as an MLM which I was never a fan of.

Constant recruiting will be needed in order to earn real money.

Believe it or not, even if they claim to offer the cheapest term insurances, there are better options you may have not come across yet.

How I Made Thousands Online In 1 Year?

By reading my review on Primerica, you should know by now that I am not a big fan of MLM, and that's not because I hate them or anything.

I, personally, had a very bad experience with MLM thus why I am not recommending it to anyone.

However, there is a business model I do recommend, and it's called affiliate marketing.

The reason why? let me tell you why.

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  • You do not need to recruit people to actually make money.
  • You are not limited to what you want to promote.

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I lost thousands of dollars in pursuit of financial freedom, and then it happened, I found it.

I have been making $3.000 dollars month after month.

After years of pursuing financialtime and place freedom, after burning those midnight oils and work my butt off as a manager in a phone shop, I am finally able to live the paradise lifestyle I deserve.

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About the author 


Kayin is an online marketer that started his affiliate marketing journey with nothing but an old HP laptop and $100 in his credit card. He learned all the necessary skills to succeed in affiliate marketing by following the STEP-BY-STEP system from Wealthy Affiliate. You can find him inside the community exchanging internet marketing ideas and strategies.

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