Primerica is an insurance group that consists of the Primerica Life Insurance Company, the Primerica Life Insurance Company of Canada and the National Benefit Life Insurance Company. With these three companies, Primerica services the needs of both Canadian and American customers. Primerica has its headquarters in Gwinnett County, Georgia. The majority of products sold by Primerica are life insurance policies, but Primerica also deals with things like mutual funds, segregated funds, variable annuities, managed accounts, pre-paid legal services, auto insurance, long-term care insurance, home insurance, debt management plans and credit monitoring.
The company has over 6.3 million customers worldwide. Primerica was founded in 1977 by Arthur L. Williams, Jr. Originally, the company was known as A.L. Williams & Associates; the name Primerica only came about in 1987.
The Primerica Life Insurance Company of Canada is a well regarded insurance company. A.M. Best rated it A+ (Superior) in 2011, and Standard and Poor’s rated the company AA (Very Strong). The company is also a member of the Better Business Bureau, which has assigned it an A+ rating.
Primerica’s company philosophy is to “Buy Term and Invest the Difference.” What this philosophy refers to is the idea that people should save money by purchasing term life insurance instead of the more expensive permanent life insurance. People can use the difference between the expensive permanent life insurance and the cheaper term life insurance to invest and make more money. Today, most people wouldn’t even think twice about following this philosophy, but a few decades ago this was a radical concept, with most people believing that permanent life insurance was a necessary purchase.
A second Primerica philosophy that goes hand in hand with “Buy Term and Invest the Difference” is the theory of decreasing responsibility. This theory states that life insurance needs change throughout your life depending on your particular family circumstances. For instance, when you have young children and a mortgage, it’s important for you to have insurance coverage in case you die. However, when you get older, the kids are out of the house, and the house has been fully paid off, you don’t need nearly as much insurance coverage, if any at all. Primerica believes that when your responsibility decreases, the amount of life insurance you have should decrease as well.