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Primerica / outrageous increase in premium to keep the same policy

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My husband and I purchased a term policy with Primerica over 20 years ago. At the time, we were told the premium would increase when we reached a certain age. What we weren't told, is that the premium to keep the same coverage we have had would suddenly increase over $1200.00 per year!

So much for the theory of investing the difference!

We are 46 years old, and God willing, plan to live another 40 years. We've paid over $8000.00 to this company, but now we can't afford the quarterly payment, which has increased over $300.00!

Oh, they offered to exchange our policy for their Custom IV 10 Term Insurance, and only increase the quarterly premium by $50.00+. So, what happens when we turn 56 years old? How much does the premium jump then? Or will we even have coverage at all after that?

Just when you get to the point you may need them, they increase the premium so high you can't afford to keep the policy. I'm going to be looking for another company, while I'm still young enough, and healthy enough to find one. We feel as though we were taken advantage of for the last 20 years. They took our money, and are now forcing us to move elsewhere.

Va
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Jo
  4th of Sep, 2008
Agree Disagree 0 Votes

You should definitely read the policy (that you were given) when your agent delivered it to you. That's why insurance companies provide a policy to you-- the consumer, so that you, the agent, and the insurance company are all on the same page--plus it's in writing, and that's what is binding. :O) They deliver a policy to you...hoping that you will read it! Sadly, today most Americans won't pick up the papers and read them due to a lack of patience, time, or intelligence. Term insurance covers you for a term...and you can't expect a company to cover you for the same price twenty years down the road, unless stated in the application or on a basic illustration. Your age, health, and mortality rate have all changed...insurance companies are not in the market to lose money and need to protect themselves too. Put yourself in their shoes. What would you do? They fulfilled their end of the promise...they covered you level for the term for which you applied. Next time...pick up your policy read it! You might learn something!

JoJo

Ja
  3rd of Feb, 2009
Agree Disagree +1 Votes

As a licensed agent, I can say that it is NOT just up to the buyers of the policy to READ ALL THE FINE PRINT, but it is ESPECIALLY IMPORTANT THAT THE AGENT be ETHICAL in disclosing ALL CURRENT and FUTURE ACTUAL and POTENTIAL COSTS of the policy!! ANYTHING LESS IS UNETHICAL and the agent should not be licensed!! The agent that sold these people this policy clearly was not capable of seeing past his/her own commissions and it was totally improperly sold! This policy did not fit the objectives for this client. These are the kind of agents who need to be removed from the industry permanently and who give life insurance a bad name.

Eg
  16th of Mar, 2009
Agree Disagree 0 Votes

Hey brain surgeon, you are twenty years older and twenty years closer to death. You are a higher risk to insure. $100 more a month to insure you and your husband for the same face value, 20 years later, taking in to account the cost of inflation is not a bad increase. But remember you should not have that much debt to cover if you die if you paid it off over the last 20 years.

Fr
  20th of May, 2009
Agree Disagree +1 Votes

All these Primerica reps talk about is "how they help people." They talk about how EVERY other company rips people off. The second a client has a complaint, they bash and insult this women. What they should be doing is apologizing on the behalf of the agent that sold that women her policy for not doing his or her job. To blame the client for not reading their policy is nothing more than ridiculous. If clients new how to read an ins. policy or what they were reading then us as agents would not be needed. Primerica agents need to stop attacking people whenever that person has an opinion. The fact of the matter is you do not get the training that rest of the industry gets yet you speak on other companie's products and how they work. You have no idea on the rest of the industry works. Stop misinforming your clients and then blaming them for YOUR lack of knowledge. IDIOTS.

Ve
  28th of Aug, 2009
Agree Disagree 0 Votes

From the sound of it the Primerica Rep did his job by properly protecting you for the term of the policy in the event that you or your spouse passed. Now twenty years later your policy has ended and the policy will be written for your current age, so it will cost you more money. The question that I have is the after twenty years, hasn't your financial needs changed?

Think about it, twenty years, the kids are in college, the house is almost paid off, and your debt is going down. At this point you don't need as much coverage as you did when you were younger. Did you sit down with an agent and assess your financial needs today or did you just try to renew your plan? I have Primerica and I had a policy for 325, 000 for 20 years at 39 a month. That covered my mortgage, college for the kids, and income replacement for my wife and all my debt. Now 20 years later, I only needed 150, 000 to pay off the remainder of my home and make sure my wife is supported, since my kids are now in college and my debt is gone. Price difference, I'm paying 15 dollars more a month. So to me it begs the question: Did you even sit down with a Rep and do a complete analysis again, or did you just call and what to change your policy?

So if you still need the same coverage thats mean your financial needs haven't changed in the last 20 years, not for nothing, but that means you haven't paid off bills, had kids, got divorced, bought a car, home, saved for retirement, etc. I personally think that you are blaming Primerica because you are dumb enough to want something that you don't need, and if you need it, then I'm even more shocked that you only got a life insurance plan and didn't listen to the Rep on securing your future, paying off your debt, and saving for retirement. Life insurance may be a foundation for your future, but that isn't the entire project.

I would love to know if your financial needs have changed or not and what you would need to survive on should your spouse die. If you are still reading this forum, call to find the nearest Primerica shop, schedule a time for you to sit down and redo your financial needs with a licensed Rep. to see what protection you need at this point in your life.

Ru
  30th of Aug, 2009
Agree Disagree 0 Votes

The alternative for these people would have been to buy whole life and to pay$1200 or more each year for the last 20 years in order to get the protection they needed. Could they have afforded that? If they could, then they should have put the $800 per year into a mutual fund, today they could have $50, 000 to $70, 000.
Don't beleive it. Check out the returns on Fidelity contra fund or Van Kampen Comstock or 100 other
funds list in the Feb. issue of Smart Money. A cash value policy may be worth $20, 000.
That is why you should never buy cash value life insurance, it is the worst saving account ever. Mainly because your beneficiary loses the saving if you die. That's right the insurance company only pays the face amount of the policy. Do all you whole life agents tell your clients that? In 28 years, I have found, no one.
See Suze Ormond, Dave Ramsey, consumer report etc., etc. If the agent did not offer you the invest the difference part of buy term and invest the rest, then he did not do his job. But, don't you have a retirement account? If you needed money now would it be better to have $50, 000 or $20, 000? People join Primerica to get an education about money and those who join are 5 times as more likely to become financially free.

Fr
  6th of Sep, 2009
Agree Disagree -1 Votes

I believe that Primerica has the best term insurance programs. The agent I know sat down with me and explained (throughly) how my life insurance program works. The agent actually opened the policy and showed me (page by page) what my policy consisted of, including the projection of my premiums throughout the term of my program. Also, The agent expressed the importance of investing my money in a separate account. Throughout the term of my policy I should be working at reducing my debt and creating my wealth so that by the time I reach the "end of term" of my policy I may not even have a need for my life insurance. Another point is that any life insurance policy is a "contract" and by affixing your signature on the dotted line it is presumed that one understand what they have purchased. What I suggest is that you contact the nearest Primerica office and have them do a NEEDS analysis to determine what is your current financial status, maybe your needs are lesser and therefore your premium will be alot less than what you have been recently quoted.

Su
  11th of Sep, 2009
Agree Disagree -1 Votes

You bought Term which means that it covers you for a "term" in your case 20 years not for the rest of your life. it is meant to protect you when you are young and have a mortgage, young family, no savings, etc. 20 years later you shouldn't need much if any insurance. this is just a ridiculous complaint.

Tr
  9th of Aug, 2010
Agree Disagree +1 Votes

I absolutely rescent this company, I started a blog to help spread the word about them please post your complaints please primericacomplaints.blogspot.com

Sn
  8th of Mar, 2011
Agree Disagree 0 Votes

This complaint should be removed, it's a rant from someone who probably doesn't even have insurance, you know why? They are talking about an increase at their advanced age, when if they were to shop for term insurance at their age anywhere, they'd get a similar quote. If they were for real, they'd have done that and would be quiet about it. Instead, it's probably someone trying to scare people away from term life insurance (which works that way, no matter where you get it!) so that they can dupe people into buying a cash value policy (whose payments stay the same but gives far less benefit!). Yes, this reads like it's written by an agent. There is no indication in this complaint of the benefit vs. cost for term insurance vs. whole life -- which if you know the difference, you would know that they aren't being scammed!

Te
  25th of Mar, 2014
Agree Disagree 0 Votes

I have a Primerica policy. Twenty year term has expired, rates will increase. Current annual premium $217.75, new premium $507.00; if I exchange to Custom IV the premium will drop to $295.25. My first Primerica policy was purchased when I was in my 20s, because it was affordable and I needed to have coverage outside of what my employer offered. I realized that when I changed jobs and for a short period of time had no coverage. I had a NY Life agent who was recommended to me by a relative quote me
'whole' life which I could no way afford. I went with term insurance, and later the relative who referred me to NY Life dropped them and became an agent for Primerica. Here's the key. They sold me on buy term and invest the difference and while I did not invest the difference with Primerica, when I was able to do so I did invest the difference. Thirty years, no fault of my own, I was laid off. There went my company paid life insurance. I still had my Primerica coverage. It took three years to become employed again. Now that it is time to renew again (not my first renewal) I will weight the two options before me. I intend to keep the coverage. Oh by the way the difference that I invested is now valued at over $900, 000.00. Even with the crash due to the banking industry and even though I have not added to the account since the 2009 layoff. The philosophy of buy term and invest the difference works. However, you have to invest the difference. No I no longer need to have that policy, but for me it is peace of mind. I have a new policy with my current employer and I have my another investment account with my new employer too. I said all this not to bash the person who wrote the complaint but to say that we need to take responsibility and educate ourselves. When I first had the opportunity to invest (in myself) I could not afford it, but based on advice I had been given I realized that I could not afford to not invest (in myself), so I had to make some sacrifices. In the beginning it was the hardest thing I ever did, but it did get easier. I hope any 20 year old reading this takes heed to the advise I was given. Make the sacrifice to invest in yourself. In the end it will pay dividends.

Rp
  11th of Jan, 2016
Agree Disagree 0 Votes

Problem is with the PRIMERICA mentality that TERM is the ONLY solution. There is a place/need for every type of insurance depending on the individual situation. I do recommend mostly Term for basic temporary life insurance protection. but there are definitely scenarios where a term policy wont do the job. I use a combination of term policies & Guaranteed Lifetime UL policies for pension maximization strategies etc where pure term wont cut it.

It is of the utmost importance for the agent to explain the pros and cons of each and how it might fit into a certain situation. It is also up to the client to make sure the comprehend what they have but is also not the agents fault if a client in 20 years conveniently forgets that they have a level term policy that was locked in a set price at their age 20 year ago.

Ja
  18th of Aug, 2016
Agree Disagree 0 Votes

You seem kind of misinformed on how life insurance works. The main point of life insurance isn't to provide your wife and loved ones with a payout when you die after retirement. It is to protect your loved ones from the loss of income that would occur when you die prior to retirement. The point of the term policy is to give you insurance at an affordable rate so you can invest the remainder into stocks and bonds. Then when you hit 50 years old it is expected that you would have saved for your retirement and whatever else... that your house and other forms of property would be worth something. At that point you can decide if you really need $500, 000 in insurance in case of your demise. If not, lower it to $50, 000 and have a nice funeral and send some grand kids to college. By the time you are 60 you should not be relying on life insurance to provide for your family. You should have saved and created enough wealth to do that on your own through a 401K, a home, etc... Anyhow, good luck in life.

Er
  22nd of Oct, 2016
Agree Disagree +1 Votes

I try to educate regarding the fraud of a.l. williams, which has continued with con America, AND, become much worse! Most here are PIRATE VS. AMERICA APOLOGISTS, liars, frauds who are afraid they will not be able to deceive potential downliners!! For a THOROUGH posting of the con America piracy, lies, deception, dishonesty, cover-ups, lawsuits vs. con America, AND the newest ripoffs and cons that primerica has come up with to STEAL even more from victims and potential victims, see my blog, soon to be a website. IRS, SEC, FBI, FTC, OCC TAKE NOTICE!!! https://nextaxpro.wordpress.com/2008/09/12/primerica-a-l-williams-is-fraudulent-pyramiding-it-is-very-very-evil-att-now-abominable

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