PrimeAmerica Life insurance packages can be customized to cater to the unique requirements of its clients. Prime America’s term life insurance policy is known to be  popular among many people and provides a comprehensive policy at affordable rates. The policy can be renewed for an additional number of years upon its expiration.

If a person has acquired Prime America Insurance and the person were to unexpectedly pass away, then the company would direct the proceeds to the next of kin to pay for the burial or their expenses. This would enable the family of the investor to survive on the proceeds of the policy for a certain period time until they can make suitable alternatives to other sources of income.

At the same time Prime America has generated its share of criticism. Here are a few reasons why you should be a little wary of Prime America Life insurance.

Prime America or Primerica as it is popularly known is said to be not as competitive as some of its rivals in the market. These include the likes of AIG, Prudential, Genworth, ING, Banner life and others. It is said of late that some of the life products offered by many of these companies costs up 20 to 50 % less than what Prime America life insurance offers in the market. Make sure to check up and compare on the prices offered by these companies before you pick the policy of your choice.

Prime America Life Insurance is commission driven

Since Prime America life insurance offers only term life insurance quotes it limits your access to knowledgeable insurance agents. The real work of the employees deals with asset management while the selling of policies is done on a short term basis. The nature of the insurance makes it a good for agents to derive high commissions and most of them lack high-end technical expertise when it comes to fully understanding the products they are selling.

Prime America’s method of selling term life policies with no exams makes it possible for them to overcharge their product.  All applicants are assumed to be of below average health making the package a more expensive proposition for people who do not suffer from any illnesses.

Prime America also employs the use of ART, which is known as annual renewable term where people need to renew their policies every year. With every renewal the cost of the premiums also rise. The company does not notify the applicant that they can file for fixed premiums of 10, 15, 20 or even 30 years. The applicant’s ignorance helps them maximize profits. It would help if the applicant was offered a wide choice of products to choose from when going in for a term life insurance policy.

Term life insurance can be both a boon and a bane. If  you are looking for short term insurance to look after your medical needs, term life can come in as good investment. All people need to plan and sort out their finances properly so that they can have a stable source of income post retirement. Since Prime America deals only with term life insurance one cannot bank on it to acquire any form of whole life insurance for the future.

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