I have a life policy with Primerica, today i got a notice saying that they are going to increase my monthly premium to .27 from .00.

I don’t know much about life or all the technical jargon they use, their notice said "all future increases in coverage are guaranteed with no proof of insurability for as long as you continue to accept each annual increase."

What does this mean? Are they trying to rip me off?

 

  • primericaisbad 5:04 pm on March 6, 2010

    HOLY COW….

    A Primerica rep just said:

    "You should think about whether you need more coverage or not in the future. If you forfeit now and someday you find out you need more coverage, you will have to provide proof of insurability and the added coverage will be based on your current age."

    Why would he ever need more insurance in the future? Won’t his "buy completely overpriced term insurance and invest what’s left" plan that Primerica set him up with take him all the way to financially independence?

    LOL

  • Hutchings Insurance 5:04 pm on March 6, 2010

    It sounds like you have an Annual Renewable Term (ART) policy with premiums that increase each year, so, no, I don’t think they are trying to rip you off.

  • Primerica Debate Team 5:04 pm on March 6, 2010

    Sounds like to me you have an Increasing Benefit Rider in your policy. What this means is that your coverage will increase by a certain percent (either 5% or 10%) for 10 straight years (starting in year 2) and premiums will be based on the issued age, not your current age. For example, lets say you bought the term policy at age 30. All future increases in your coverage will be base on the rate at age 30, not age 32, 33, all the way to age 41. That means by the end of the 11th year, you would have nearly double your coverage. You may elect to forfeit this option and continue to pay $66/month and if you do, no further increases will be allowed.

    You should think about whether you need more coverage or not in the future. If you forfeit now and someday you find out you need more coverage, you will have to provide proof of insurability and the added coverage will be based on your current age. If you are not sure what to do, you should contact your Primerica representative.

    If you have more questions about your life insurance policy or how the Increasing Benefit Rider works, you can either call customer service number listed on back of your policy or contact your Primerica representative.

  • Insurance Pickle.com 5:04 pm on March 6, 2010

    Primerica is usally about twice the price of comparable plans. I wouldn’t be surprised if you could get the same coverage for $40/month.

    • People are reading:

    wrl vs primerica, reserve national insurance rip off, wrl life insurance and scam