Primerica Guarantees

papa

Expert
22
When Primerica says it has guaranteed coverage until age 95, it is my understanding that the rates can increase without any limitations. Am I correct on this assumptions?
 
That "guaranteed coverage" usually means that you don't ever have to medically re-qualify for your coverage and you can keep it until age 95.

My parents had a Primerica 30-year term that was guaranteed level for 5 years. Of course, that means that after 5 years, premiums will go up incrementally.
 
When Primerica says it has guaranteed coverage until age 95, it is my understanding that the rates can increase without any limitations. Am I correct on this assumptions?

They _will_ go up. At the end of the level period. They had a decreasing option I believe. Also their 40 year while sold as a 30 level plan is/was only guaranteed 20 years. Does not mean they we ill raise the rates but they can. I have reviewed many of these. Many also have a automatic purchase rider that increases the face but the cost as well.
 
DHK is correct. The policy is guranteed renewable to age 95, but the premium is not level. When we worked with them, many years ago, the longest premium guranteed length was 20 years, even on the 30 yr product.

Is it best to shop this one around, there may be better options...a lot of them.
 
When Primerica says it has guaranteed coverage until age 95, it is my understanding that the rates can increase without any limitations. Am I correct on this assumptions?

Change the word "can" in your sentence to "absolutely will" and you have it right.
 
Primerica's 30 year level term product is in the "other" term category of Compulife because the initial level premiums are ONLY guaranteed for 20 years.

There are lots of competitive and fully guaranteed alternatives available, I can't imagine why anyone would sell a 30 year term policy that is not fully guaranteed for 30 years.

As to being renewable to age 95, or 90, or 100, does anyone actually care?

The YRT renewals that follow the level period are so ridiculously high, I can't imagine anyone buying a policy thinking they were going to keep it past the initial level period.

Consumers are best to select a term product with a level premium and guarantee that provides them the coverage they need, for as long as they need it. I wrote an article on the subject which you will find here:

Term4sale.com - Go Long on Term Life Insurance
 
When Primerica says it has guaranteed coverage until age 95, it is my understanding that the rates can increase without any limitations. Am I correct on this assumptions?

Not exactly.

There should be a table in the policy that shows the current charges and maximum charges. It will be level during the level term period and increasing afterwards.

It is much better to show this than to tell them. Let Primerica talk your new client into a replacement.
 
When Primerica says it has guaranteed coverage until age 95, it is my understanding that the rates can increase without any limitations. Am I correct on this assumptions?

I often wonder why they contradict themselves like this. According to them, you wouldn't even need insurance at age 95 because your investments will be allow you to self insure.
 
I often wonder why they contradict themselves like this. According to them, you wouldn't even need insurance at age 95 because your investments will be allow you to self insure.

They routinely add an auto purchase rider that buys a little more insurance every year, at a increasing premium of course. As supposedly their investments are increasing. So you need more and more insurance for 30 year then suddenly zero in year 31?
 
They routinely add an auto purchase rider that buys a little more insurance every year, at a increasing premium of course. As supposedly their investments are increasing. So you need more and more insurance for 30 year then suddenly zero in year 31?

Now you're catching on. You'll be Primerica material in no time. :D
 
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