Protecting your family’s financial welfare with life insurance is one of the most important decisions you’ll make in life. That’s why choosing the right company and agent is important.
This post describes the life insurance benefits and options available to you with your life coverage offered through Primerica. Please see our Primerica policies for all terms and conditions.
Your Primerica Term Coverage includes Valuable Options and Benefits
Primerica pioneered the “Buy Term and Invest the Difference” philosophy in 
1977 which helps families protect their income with affordable term life insurance and offers a sound investments strategy to help them prepare for the future.
Throughout our history, we have worked hard to meet the changing needs of the Main Street families we serve. Primerica’s latest innovations – our Primerica PrecisionTerm and Primerica PowerTerm life insurance products – provide our most competitive coverage for your needs and budget with more convenience and security enhancements built in.
Purchasing life insurance coverage doesn’t have to be complicated, which is why we’ve gone above and beyond to make the entire process – from filling out the application and completing underwriting, to policy delivery and disclosures – as simplified and easy-to-understand as possible.
Terms
Primerica’s life companies offer terms of 10-, 15-, 20-, 25-, 30- and even 35-years,3 and they are among the few that offer 35-year term policies.
Industry Leading Renewal Options and Rates
Primerica offers you the most competitive options in the industry
with no evidence of insurability.4
• Continuation: You can keep your policy and your premiums will increase every five years to age 70 and they then increase annually to age 95.
• Annual Renewable Term: You can choose to exchange your policy for an annual renewable term policy, which means you will keep your coverage at the original face amount but your premium will increase annually on your policy anniversary.
• Decreasing Term: You can choose to exchange your policy for a decreasing term policy – which means your face amount will gradually decrease but your premium will remain the same until you reach age 100 at which time your coverage will expire.
• Custom Exchange: An alternative to the above three options, Custom Exchange 10 provides a level death benefit for 10 years. After 10 years, the death benefit decreases until age 100 or the coverage expires, whichever is earlier. Premiums are scheduled to remain level until coverage expires.5
(3 Not all products are available in all states. 4 Not all options are available in all states/provinces. 5 Premiums are guaranteed in the U.S. for one year and in Canada for the life of the policy.)
So, whether you wish to keep your original policy or exchange it for different coverage, you will remain covered as long as you pay your premiums. In addition to our guaranteed options, you may also apply for a more current product.
Automatic Increase Request – AIR
Primerica’s revolutionary process, AIR, is an innovation that allows you to tap one little button at the time of application and make a huge difference in the lives of your family. Select AIR, and if you qualify for a better rate class during the underwriting process, we will increase your coverage with the same premium amount that you have already budgeted for. AIR automatically provides even better protection for you and your family!
Automatic Increasing Benefit Rider – IBR
Think about what a car, a week’s worth of groceries or a trip to the dentist cost 20 years ago versus what you would pay for the same things today. They all cost more today — and, in some cases, a lot more than they did just 20 years ago. This increase in costs of just about everything you can buy is driven by even the modest overall inflation North America has experienced over the last two decades. That’s why many of the policies offered through Primerica now feature the automatic Increasing Benefit Rider (IBR). The IBR gives you peace of mind knowing you can increase your coverage without having to prove insurability.
How Does the IBR Work?6
The Increasing Benefit Rider provides an automatic 10 percent increase in the original face amount of your coverage beginning in the second policy year and continuing for 10 years up to a maximum of $500,000. This can effectively double your face amount over that decade. Each coverage increase comes with a premium increase — which is shown in your policy at the time of issue. If you’re under 56, and you’ve been issued standard or better risk coverage, your policy will feature an automatic IBR. Before each IBR increase, you’ll receive a letter describing your new coverage and premium amounts. You can decline your annual IBR increase but, if you choose to decline an increase, that will end all future IBR increases.
Living Benefits
Terminal Illness Benefit — TIB
Stress from money concerns can mount during a time when a terminal illness has been diagnosed. Primerica includes a Terminal Illness Benefit (TIB) with every life policy at no additional cost. If the insured is diagnosed by a physician as having a terminal illness and a life expectancy of six months or less (longer in certain U.S. states), you can apply for the TIB. After the claim is approved, 40 percent of the policy face amount will be paid to the policy owner up to $250,000.
If the TIB is paid, Primerica charges interest on the advanced portion of the face amount. Interest rates vary by state/province. The advance and the interest are deducted from the total face amount of the policy when the final death benefit is paid.
(6 Maximum of $50,000 per increase. In the U.S., the Primerica PowerTerm IBR form number is ICC22QC0 or PLF22QC0 and the Primerica PrecisionTerm IBR form number is ICC22PC0 or PLF22PC0. In Canada, the Primerica PowerTerm IBR form number is ZLF22QC0 and the Primerica PrecisionTerm IBR form number is ZLF22PC0.)
TIB with Disability Waiver of Premium
If you also have Disability Waiver of Premium Rider, the advance is 70 percent of the face amount up to $400,000.
Disability Waiver of Premium
Since money can become an issue while you are disabled, Primerica offers the Disability Waiver of Premium Rider. Under this benefit, if the Insured is ever continuously totally disabled for six months or more, Primerica will waive your policy premiums that are due after your disablement passes the six-month time period. We will also refund any premiums paid during that six months. Waiver of premium is available for issue ages 18 to 55 and terminates at age 60 in most states. If you are on waiver when you turn 60, Primerica’s life companies will continue to waive your premium for as long as your disability continues. If you want this benefit, you’ll need to select the Disability Waiver of Premium option at the time you apply for your policy.
Child Rider Benefits
Primerica’s life companies’ policies cover all eligible children with one rider that is added to the policy, and we charge only one policy fee — saving you money. The maximum coverage on a child rider is $50,000 and it can be issued for children age 5 days up to 18 years old. The child rider covers children until 25 years old.
Child Rider Conversions
Because Primerica serves Main Street families, we offer our Child Rider Conversion option to help young people get started with their life insurance coverage.
When covered children turn 25, a separate policy can be purchased with a face amount of up to five times the face amount of the child rider – up to $125,000 in total coverage – without any underwriting required.
Child Paid Up Policy
If the insured dies then all the children covered by the Child Rider receive paid-up life policies through Primerica in the face amount of their original rider that covers them until age 25, for no additional premium.
Other Important Benefits
Conditional Coverage7
Part of Primerica’s mission is to help families get the life coverage they need and we want to do that as quickly as possible. That’s why we offer “conditional coverage.”
Conditional coverage exists when:
• All the information in the application is true and complete, and
• Your policy would have been issued at standard or better rate, and
• The company has received all items concerning insurability (medical exam results, body fluid studies, etc.), and
• You have paid at least one full month’s premium.
Achieved Contestability Honored
If you already have life insurance coverage and have either fully or partly completed that policy’s contestability period and you replace that policy with a Primerica policy, Primerica will honor that achieved contestability up to the same face amount of your previous policy, subject to certain terms and conditions outlined in your Primerica policy.
No War or Terror Clause
In today’s uncertain times, it’s important that your life coverage be as complete as possible. A war or terror clause in an insurance contract means that if you are killed by an act of war or terror, the insurance company can refuse to pay your claim. Primerica’s life companies do not have war or terror clauses in their policies.
Banded Coverage
Primerica helps Main Street families keep more of their hard-earned money and get the coverage they need by offering banded coverage. That means the more insurance you buy, the less expensive it becomes per thousand dollars of coverage. Banding discounts do not include IBR increases.
The face amounts for the premium bands are as follows:
Band 1: $15,000 to $149,999
Band 2: $150,000 to $249,999
Band 3: $250,000 to $499,999
Band 4: $500,000 to $749,999
Band 5: $750,000 and up
You can personalize your policy based on your needs using riders with different term lengths and face amounts. Your representative can help share the Theory of Decreasing Responsibility financial concept with you to help ensure that you have the right protection in place for each stage of your life.
Financial Needs Analysis — FNA
Primerica believes that combining affordable term life insurance along with a program for investing is the key to meeting your financial goals. To help you better understand your personal finances, Primerica offers our complimentary Financial Needs Analysis (FNA).
This personalized, confidential tool provides a snapshot of your current financial health, identifies your goals, and provides solutions to help you achieve financial security.
The FNA is complimentary, confidential and customized. The FNA gives a detailed overview of your current financial situation and suggests a personalized strategy for your financial security.
(7 Conditional coverage requirements can vary by state.)
Who Could Benefit From an FNA?8
• Anyone with children
• Anyone with debt
• Anyone who plans to retire someday
• Anyone who lacks a strategy for financial independence
Here’s an overview of the FNA’s five basic sections and the information you’ll receive from each:
• Debt Solutions — Illustrates strategies for paying off credit cards and loans in an efficient manner.
• Retirement Income — Provides a detailed analysis of how much money you need to prepare for retirement.
• Education Funding — Projects actual costs for specific schools you select, then shows you several strategies for funding your children’s education expenses.
• Income Protection — Offers a variety of strategies to help ensure your family’s financial future should you die prematurely.
• Building Your Financial Future — Pulls all your information together by outlining specific steps to put your plan into action.
(8 The Financial Needs Analysis (FNA) is designed to assist you in identifying your financial needs and goals so that you can make better informed decisions in managing your money. It is provided to you as a complimentary, no obligation service by Primerica. The Financial Needs Analysis is not a financial or retirement plan and is not intended to offer tax, legal, financial, or investment advice. The FNA is for educational purposes only and should be considered as a guide for you to use in deciding how best to attain your financial goals.)
Helpful Defitions
Benefit – A payment or entitlement such as one made in an insurance policy.
Contestability Period – The amount of time (by law no more than two years from the date the policy is issued or reinstated) during which a life insurance company may investigate a claim – including reviewing the information provided on the life insurance application – to determine whether a claim is payable. (In Canada, fraudulent misrepresentation is always contestable.)
Disability – A decline in physical condition and ability as defined by an insurance policy.
Face Amount – The amount, as stated in a life insurance policy, that is to be paid to the covered person’s beneficiaries upon death.
Insured – Anyone covered by the base policy or by a child rider.
Non-Standard – When a life insurance policy is issued with a rating because of the covered person’s physical condition, family or personal history of disease, occupation or high risk activities such as skydiving or scuba diving.
Options – Choices that allow an owner to customize his or her insurance policy.
Owner – The owner of the policy. This person may exercise rights and make changes to the policy.
Policy Fee – An administrative fee that is part of most life insurance policies.
Premium – The periodic payment required to keep a life insurance policy in force.
Provisions – The language in an insurance policy dealing with such questions as claims notice, policy renewal and other contractual obligations of both the insured and the company.
Rider – Additional insurance coverage attached to the base policy. Riders can be attached at the time of purchase or at a later date, such as when a child is born. Available riders are: Disability Waiver of Premium, Terminal Illness Benefit, Child Rider, and Increasing Benefit Rider.
Standard Risk – When a life insurance policy is issued without extra rating or special restrictions.
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Primerica PrecisionTerm term life insurance policy form ICC21PA0 or PLF22PA0 in the U.S. In Canada, Primerica PrecisionTerm life insurance is policy form ZLF22PA0. Primerica PowerTerm term life insurance policy form ICC21QA0 or PLF22QA0 in the U.S. In Canada, Primerica PowerTerm life insurance is policy form ZLF22QA0.
In the United States (except in New York), term life insurance products are underwritten by Primerica Life Insurance Company, Executive Offices: Duluth, Georgia. In Canada: Term life insurance and Common Sense Funds segregated fund products are underwritten by Primerica Life Insurance Company of Canada, Head Office: Mississauga, Ontario.
Not for use in New York.