Is Primerica A Pyramid Scheme? Some Say It Is


Primerica was established in 1977. And over the years people have asked over and over again, is Primerica a pyramid scheme?

Well, that’s what I’m going to answer in this review. Now this review is about the business opportunity available with Primerica. I’m not here to dive into the details of the insurance and financial products that the company offers.

My review is about whether or not Primerica is a good business opportunity for you. Spoiler alert – I think Primerica has a horrible business opportunity. And I’m going to show you why.

And with that said, let me first say, good on you for taking the time to do your own research before buying jumping into any business opportunity. That alone tells me you’re serious about finding a legitimate way to make money online.

Quick Overview

Product Name: Primerica

Price: $99.00 one time fee then $25 per month

Owner: Institutional Holdings – Primerica is a publically traded company

Type Of Product: Insurance and financial products

Overall Rating: 2/5

Recommended: NO

So, What Is Primerica?

As I just mentioned Primerica has been around since 1977 and they sell different insurance and financial products.

Here’s what they offer:

Financial Needs Analysis

Here you look at a person’s current insurance coverage and investment plans so you can see where you can sell Primerica’s products.

Term Life Insurance

This is the only life insurance Primerica offers. A complaint that’s been heard over and over again is Primerica does not provide any quotes for their insurance. So, you cannot compare pricing with other companies that offer term life insurance.

To get a quote you would have to engage in the sales process from an agent.


When it comes to the investments Primerica offers they are the broker for larger mutual funds and insurance companies.

Auto And Home Insurance

The auto and homeowner’s insurance offered is called Primerica Secure. Primerica is simply a referral service to the company Answer Financial which is an Allstate owned subsidiary. So, Primerica is operating as a lead generation company for Answer Financial.

Legal Protection (Pre-Paid Legal Services)

This is where people can buy basic legal services for a monthly subscription. The company that supplies this service is LegalShield. There have been a lot of complaints about LegalShield and their services.

ID Theft Protection

This is similar to countless ID protection products available. Nothing special here.

As you can see, they do offer a wide range of products. But I’m here to talk about the business opportunity the company offers. And why I would never get involved with this as a business opportunity.

The Business Opportunity

The business opportunity offered by Primerica is based on an MLM business model. Now I am NOT a big fan of MLM because it’s very difficult to make money within any MLM business model.

In fact, 99% of people that get involved with any MLM company loses money. It’s only the top 1% of people that get into MLM’s that make any money.

There was a survey done by Magnify Money and it found that a vast majority of people who got involved in an MLM business made less than 70 cents per hour.


And the reason why the success rate is so low is because of how the MLM’s are designed. The system is designed so the money flows up. So, it’s always the people at the top of the of the MLM that make money not the people at the bottom.

So, if you’re getting into an MLM that’s been around for a long time it’s very, very hard to make any money. In fact, it’s nearly impossible. The market gets saturated and the pool of people that you can recruit gets smaller and smaller.

Is It A Pyamid Scheme?

Primerica is definitely not a pyramid scheme. But being an MLM I can see why people would call it that because of the of the recruiting business model.

A true pyramid schemes business model is to keep recruiting people into the scheme. This is the only way you can make money. There are no products or services that you can sell.

Companies like Empower Network and MOBE got shut down because they were true pyramid schemes. No products. All you were taught to do was recruit people into the business.

Yes, the Primerica pay structure is a pyramid style pay structure. And I can see why companies like Primerica get tagged as a pyramid scheme. But Primerica does offer and sell actual products and services. And that’s why Primerica is not a pyramid scheme.

It’s just has average products with a horrible business opportunity.

Who Is Primerica For?

This opportunity is perfect for someone who loves to sell and constantly be recruiting people. If you’re not a sales person this is not the opportunity for you.

How Do You Make Money?

The compensation plan is a unilevel MLM type of payment plan. And that means all your recruits and customers will all be on your first level.

You will make commissions from the products you sell and a 10% override commission from the sales of the recruits in your downline.

There is no spillover with this type of pay structure.

So, to build your commission with this type of pay structure you need to constantly recruit new members and teach them how to recruit new members, and so on and so on.

And the more you sponsor you can qualify for the higher levels within the compensation plan.

primerica commission

Just heads up you will need a license from whichever state you are in to to sell the life insurance which is thier main product.

What’s The Price?

It costs $99 to start with Primerica. This fee is used for a background check and a sales license from Primerica. If you pass then it’s $25 per month to access the tools and platform.

You will also need pass and pay for a state license so you can sell life insurance.

The 1 Pro About Primerica

#1) Legit Services

Primerica is a legitimate company offering people legitimate products and services.

What I Didn’t Like About Primerica

#1) It’s An MLM

MLM, no matter what compnay it’s with is just a bad busienss model. The odds are seriously stacked against you when it comes to succeeding.

And just like every other MLM company when you watch or hear any Primerica pitch all they talk about is how your life is going to change if you jump on thier opportunity. Don’t beleive the hype.

All they are selling is the dream, not an opportunity.

Rememer the stats? Only 1% of people that get involved with MLM will make money. The other 99% don’t.

#2) Sell To Family And Friends

This is typical of all MLM’s. They want you to approach your friends and family fist because it’s easier to approach someone you know and getting that first sale can be easier as well.

But I’ve heard countless stories of how getting family and friends involved in MLM’s has ruined relationships and damage friendships. Sometimes just apporaching a family member or friend can put you in an awkward situation.

Were you ever approached by a friend about an MLM business opportunity? How did you react?

What was the first thought that came to mind about the opportunity itself? Be honest. I bet it was “no thanks, MLM are scams” or something to that affect, right?

If someone did approach you, I’m curious to hear what your thoughts were. You can leave your comments below.

#3) Expensive 

The term life insurance that Primerica offers is up to 29% more expensive when compared to other term life insurance products. So good luck trying to sell a product that is more expensive than other life insurance policies.

#4) You Need A Licence To Sell Life Insurance

You have to pass your states examination for a license to sell life insurance. The test is typically 150 to 200 multiple choice questions, plus class time. The fee for your license will depend on which state you live in.

#5) You Don’t Own Your Business.

Putting everything aside, the biggest issue with joining any MLM is that you do not own your business. You have zero control of your business. I mean NO control at all.

And because of that your business can be taken away from you and there is nothing you can do about it. I’ve heard horror stories of MLM companies terminating people’s business overnight. And if you read the fine print of MLM disclosures they tell you that they can do that.

And don’t think your safe because a company has been around for a long time. Companies like WildTree which was in business for 20 years closed down in July 2019.

And every single person that was in that MLM lost their business overnight because they did not own their business.

MLM companies open and fold on a consistent basis. There is no way I would put the fate of my business (livelihood) in the hands of someone else. And neither should you.

My Final Opinion Of Primerica

This is NOT a business opportunity I would recommend anyone getting involved with. You’re jumping into an MLM opportunity which has a staggering failure rate.

And if that’s not enough to make you avoid this company. Let me ask you a question.

Does the thought of constantly recruiting and selling to people to make your business work excite you?

Yeah, I didn’t think so.

There Is A Much Better Way

If you’ve come this far in my review it’s obvious, you’re looking for a legit way of building a successful online business that exceeds all your financial needs. Am I right?

Ok, you know how I make a multiple 6-figuer a year income WITHOUT selling or recruiting people? I’m an affiliate marketer.

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I hope you found this review helpful and I hope I answered any questions you may have had about Primerica.

If you have any questions or comments please leave them below and I’ll get back to you right away.

And if you did find this review helpful and enjoyed it please feel free to share it with your audience. And as always anytime you need a hand you can Email Me anytime.

I believe in you!!


2 thoughts on “Is Primerica A Pyramid Scheme? Some Say It Is”

  1. Your assessment of Primerica is COMPLETELY INACCURATE! There are override commissions paid at every level AND the company follows Dave Ramsey’s and Suze Orman’s advice for managing and growing the middle class’s finances. The company does absolutely amazing things for the average family without charging them A DIME!

    Anyone who loses money is NOT working for Primerica. The company is squeaky clean in the finance industry and in EVERY government entity that monitors them. The people who work for Primerica are LICENSED people – the industry is regulated. ANyone who speaks poorly about the opportunity is NOT working as trained. The company completely trains anyone willing to do the work.

    What you are saying is WRONG WRONG WRONG!!!

    • Hi Denise,

      This company is far from squeaky clean. Hell in 2014 alone Primercia had to set aside over 15 million dollars to settle 238 lawsuits from florida public servants. Not very squeaky clean is it?

      This is an MLM company that sells life insurance. And as with most MLM companies the people involved with MLM make little money and 99% lose money.

      in the 2019 income disclosure statement from Primerica between Jan 1 to Dec 31 on average they paid out $6,249 to representatives. So, on average people made $520.75 per month. Not what I would call a full time income like its boosted from people recruiting you to get involved within Primercia.

      No wonder there is such a high turnover in this company, with such low level of earnings your agent will most likely not be around in a years’ time.

      This is MLM end of story. And the goal of these independent contractors is to climb the ladder within the company. So, it’s first to recruit others to Primerica, and then be your agent.

      Business Insider even reported to be wary of Primercia when it was doing it’s IPO.

      But you can Google Primercia to find more assessments of Priamerica. And yes, you will find people that praise Priamerica such as you, and that’s fine. But MLM has been and always will be a bad business opportunity for people. The only real winner in an MLM is the company itself.

      Just look at the math just from the recurring fee reps have to pay.

      As a rep you must pay $25 per month to use the tools they offer. In the company’s 2019 first quarter results it stated it has 129,821 reps. And at $25 per month for each – the company is making $3,245,525 per month just from its reps.

      So, before any sales Primercia is already making over 3 million a month from its own reps.

      I appreciate your comment but the bottom line is getting involved with any MLM company is bad business model to try and create a sustainable income. You have better odds of making money in Vegas then you do in an MLM.

      I stand by my review.


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