February 4, 2022

Is Primerica a Pyramid Scheme? MLM Life Insurance Scam or Opportunity?

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Primerica Review

You probably found this page because you have been offered the opportunity to start a “home business” with Primerica.

Maybe you saw an advert for it or perhaps someone has personally contacted you about the opportunity because they think you are a “good fit”.

Most people know it’s not that easy to start making money from home. But Primerica promises to be that solution for you.

This honest Primerica review, with videos, will reveal the truth about the program and let you make an informed decision about whether it is right for you or not.

Primerica Review- The Overview and Rankings

  • Name: Primerica
  • Owners: Founded by Athur L. Williams Jr. in 1977 (CEO Glenn J. Williams) (70 out of 100)
  • Website URL: primerica.com
  • Type: Insurance & Financial Services MLM Company
  • Success Stories: 20 out of 100
  • Products: 10 out of 100
  • Price: $99 to start & $25/ month
  • Maketimeonline.com Rating: 33 out of 100

Pros and Cons


  • Low costs to start a business
  • Good BBB ratings and seen on Forbes
  • There is a screening process to qualify as a distributor
  • Low on-going costs and no need to buy products or keep inventory


  • Many complaints about the products
  • Many complaints about the MLM opportunity
  • The finance industry is certainly not for everyone
  • Low success rate and lack of success stories off of their website
  • You’re really going to have to sell to your friends and family
  • Lots of controversy and lawsuits surround Primerica

What does Primerica do?

Primerica offers a range of financial services for the everyday person. From insurance to investment opportunities, Primerica will have something for anyone.

They also are a Multi-Level-Marketing (MLM) company that provides every day people the opportunity to start their own home business and make money by selling their services.

The 4-minute video below sums it up (feel free to watch it on x2 speed if you’re in a hurry).

Primerica’s mission statement- To help families become properly protected, debt-free and financially independent.

Chances are it sounds like a great company that everyone would want to be a part of.

So let’s dig in a bit deeper…

Primerica’s Product Line

There are 6 main products that Primerica offers, with branches and different options off of each product:

  • Term Life Insurance
  • Financial Investments
  • Long-term Care Insurance
  • Auto & Home Insurance
  • Credit Monitoring
  • Debt Management Plans

Here is an example of the Primerica dashboard if you were to use them for financial investments…

Is Primerica a Pyramid Scheme

Primerica offers easy to use financial services.

This does mean they use mutual funds for investments as you can see above.

It does also mean that you as a customer don’t really have control over your money, investments or price point of insurance.

As you continue to read this Primerica review, you will find out more about these products in more detail and my personal recommendation (which I believe should be taught in school to everyone!)

Also note that there are many other companies that sell the same stuff, such as:

You’re probably really on this page because you want to know…

How Can You Make Money With Primerica?

So it’s possible for you to become a recruiter for Primerica’s products.

Basically, if you were to sell these products to someone else you can receive a commission.

You can also earn by getting other people to become a Primerica recruiter.

Before we dive into that, it’s important to know…

How Much Does It Cost To Start The Primerica MLM Business?

It costs $99 one time payment to get started.

Then there is a $25 monthly payment to stay active as a Primerica recruiter.

There really are no additional costs or an amount you need to sell or spend on other products each month to stay active.

So you’re probably wondering about the…

Primerica Compensation Plan

There are 4 main ways for you to earn a commission from Primerica:

  1. Sales Commissions on Insurance – Commissions earned when you sell any financial plans (see the screenshot below)
  2. Overrides on Downline’s Insurance – 10% override commissions for the sales from your downlines (you can earn a commission for “11-tiers” down below you)
  3. Differentials from Downline’s Insurance Sales – You get commissions for helping your downlines make insurance sales
  4. Commission on Other Products – You can earn a commission from any other Primerica product sales

Primerica Compensation

The whole 11 tier deep thing can be confusing so let’s take an example.

You join Primerica and become a representative.

This means you make 25% of any Primerica sales you make i.e. $250 commission on a $1,000 product sale.

If you get other people to join Primerica as a representative you can get “promoted” up the ranks.

So let’s imagine you are a regional manager…

If one of the representatives that joined through you makes a $1,000 sale he would make $250 commission (25% of the sale) and you would make $450 (70%-$25 = 45% of the sale).

Basically you can start to make money from the sales of your downline too.

Now, I can almost hear your mind asking…

Is Primerica a Scam?

Technically no.

There are two main ways an online course can be a scam:

  1. Take your money and run off into the sunset, never to be heard from again
  2. Provide some information but it doesn’t live up to their promises

Primerica has a long-standing business record and clearly does provide some legit financial products.

Are these the best products on the market? Personally I very much doubt it (well I can guarantee mutual funds are not as you’ll find out later in this Primerica MLM review).

Just to be fully transparent with you, I have not purchased this program myself and I do not endorse it in any way.

I have researched the website, testimonials and information on the Internet to get to the bottom of what this program genuinely does. This is because I have been burnt from programs just like this in the past and I want to prevent others from making the same mistakes. If you’d like to learn more “Ways to Spot an Online Marketing Scam” then click the highlighted text.

Is Primerica a Pyramid Scheme?

Now, this is the interesting one!

Again technically no… Primerica is not a pyramid scheme.

However, I do think it’s important to be aware of how you make money within this MLM program.

Check out this 6-minute video to learn more about how to detect a pyramid scheme.

What is a Pyramid Scheme?

A pyramid scheme is a promise of paying clients for them recruiting new members into the program, rather than selling an actual product.

As Primerica does have numerous products and it is possible for recruiters to make money by selling these products it is not a pyramid scheme.

If the only way for them to make money was by recruiting new members then it would 100% be a pyramid scheme.

Related content:

Common positive reviews

Here are some of the positive reviews we had from Site Jabber about the job opportunity…

  • “Primerica is my current life insurance provided. I use this site and some features at times. I have like the knowledge and help I can find on the website. I have enjoyed working with my Primerica agent to obtain great products and learn about my financial needs. They offer a wide range of products that can enhance your financial life.”

Common negative reviews

And here are the common negative reviews we got from Indeed

  • “Lack of client lead generation. Upline competition that doesn’t deliver promises to downline. Lack of income despite services offered. Company is not trusted by people in the community. Multi level marketing. Lack of support.”

Primerica Review: The Good

Here are some of the things I like about Primerica…

#1 Low Costs to Start a Business

It’s not every day that you get an opportunity to start a business for $124.

Is Primerica a Pyramid Scheme

This may lure a lot of people into jumping into it without giving it any thought.

However, you’re obviously not “a lot of people” as you are doing your due diligence first! Congrats!

#2 Good BBB Rating & Reviews on Forbes

It has been featured in Forbes, A. M. Best and has a rating of A+ on Better Business Bureau.

Primerica Review

This shows the company is well regarded and has been in business for over 40 years!

They must be doing something right!

#3 Screening Process to Qualify as a Distributor

It’s not possible to become a distributor of Primerica without going through a “screening process”.

This means that at least the people selling the products have had some form of training and

Glassdoor makes it clear there is some training that all members go through when they join Primerica.

#4 Low On-Going Costs- No Need to Buy Products or Keep Inventory

Many MLM programs require you to sell a certain amount each month.

This usually means that when you are starting you need to buy the products just to stay active as a distributor. This often results in needing to buy storage space for all the extra products you have piling up!

This is not the case at Primerica. You only need to pay $25 a month to stay active.

#5 Primerica is Not Technically a Pyramid Scheme

Primerica is not a pyramid scheme as already discussed in this Primerica MLM review.

Is Primerica a pyramid scheme?

As you can see there have been over 5 million lives insured and 2 million client investment accounts.

The products are definitely used by real people.

They’re not just products to make it seem like they are selling something, but really it only works if you recruit more people.

Primerica Review: The Not So Good

Every company or business opportunity will have pros and cons.

Anyone that doesn’t tell you about the cons upfront is probably trying to take your money and run before you find out!

Here are some of the bad parts of Primerica that you should be aware of before diving in…

#1 Complaints About The Products

I’m not going to beat around the bush here.

There are SO many complaints about the products.

Here are two of the most common ones on Consumer affairs, Glassdoor and BBB.

Primerica Review
Being awkward at paying insurance

Is Primerica a pyramid scheme?
Hard to get money out of investments (oh yeah and remember mutual funds are terrible because of the high fees!)

Primerica Review
Increasing the insurance payments without telling customers

These are honestly not cherry-picked (in fact I saw some others such as taking the life savings from a veteran pensioner).

If you were to look at any of the linked websites above you will find hundreds of these kinds of reviews.

#2 Complaints About Primerica’s MLM Opportunity

If you’re thinking…

“Oh well the products may not be great but at least I could make a quick bob!”

Well the same websites also throw out some curveballs for the MLM business opportunity.

Primerica Review
Taking advantage of people

Is Primerica a Pyramid Scheme
The only way to make good money is by recruiting other people (sounds like a pyramid scheme right?)

Again, these are not selected by me. There were so many on there saying the same kind of things!

#3 The Finance Industry Is Not For Everyone

It doesn’t matter what the representatives tell you.

This gig is NOT for everyone!

Trying to sell financial products to unsuspecting victims when your finances are in tatters is not something that “anyone” can do.

You are going to have to sell and you are going to have to keep asking people. If you don’t want to do this kind of thing, then this is not the opportunity for you.

And yes there are ways to make money from home without being a pushy salesperson!

#4 Lack of Success Stories & Low Success Rate

Just check out the statement below from the Primerica 2016 income disclosure.

From January 1 through December 21, 2016, Primerica paid cash flow to its North American sales force at an average of $6,088 per life licensed representative.

That is the average!

Could you live off $6,000 a year?

Now let me tell you. The top dogs of this company will be making A LOT of money. So what do you think that means most people are earning?

Bingo… diddly squat!

#5 You Really Need to Sell to Your Friends & Family

Again you will hear from the representative pushing you to join that you won’t need to sell this to people you know.

“There are so many other ways to do it”

Here’s the truth…

They don’t tell you the other ways because they don’t exist!

The ones that do exist involve paying for some other forms of training and putting in years of work to understand how internet marketing actually works. But if you do that, you will find way better things to promote along the way that Primerica will be a waste of time!

#6 Controversy & Lawsuits

In 2014 Primerica set aside $15.4 million to settle 238 cases.

I’ll say that again…

238 lawsuit cases!

If that doesn’t ring the alarm bells, then I’m not sure what will!

Related content:

My Opinion – Primerica MLM Opportunity

It’s not worth it.

The products are not very good. The price of the policies increase randomly, mutual funds eat your profits due to commissions and people don’t rely on one company for their finances any more.

It’s so much easier to shop around (thanks Google) that this whole business model is outdated.

Even if the products were good here is what real people say about the company…

Is Primerica a Pyramid Scheme

“It’s a pyramid scheme in disguise” appears in 46 reviews!

The only way you’ll make money from this is if you get others to join the representative program. And you’ll have to lie to them about how great the company is to do that!

If you’re interested in learning how to sell insurance, my friend David Duford has a few suggestions on what to look for in an insurance agency:
1) Make sure you own your book of business. 
2) Ensure your commission levels are maximized. 
3) Make sure you’re an independent agent. Working with one company like Primerica limits your product options only to Primerica. 

Is There a Better Way to Invest Your Money?


Index funds!!

I’m so glad you asked that eventually, it’s been killing me to not scream this the whole way through this Primerica review.

Obviously index funds aren’t the same as life insurance but if you teach all of your family about them it will be better than it in the long run!

I won’t go into detail about why index funds beat mutual funds or any other type of investments in the stock market for 99.9% of people right now as that will be too long.

If you’d like to know more then check out these short podcast series that explains all you need to know (under 20 minutes each… and you can listen on your way to work, during your lunch break, at the gym or when your shopping next):

  1. 7 reasons you should invest in index funds today
  2. How to invest in index funds
  3. The ultimate passive income strategy using index funds


How I Make Money Online

Not all MLMs are scams or pyramid schemes. But I’m not a fan of them due to the expensive products and focus on recruiting people. 

Once I learnt more about affiliate marketing I realised it was a far superior business model because:

  • You don’t need to sell to friends and family
  • You are in control of the business and can promote what you would like to
  • It’s free to start

I had no idea what affiliate marketing was in 2018. 

But I went from a full time PE teacher to making a passive income online within one year...

Mike PE teacher to Passive Income Online

If you want to discover how I did it then check out this special video I created which explains exactly how. You can also get your free 7-day bootcamp to get started.

Make Time Online Income

About the Author

Mike Beatty has built a passive income online whilst working as a full-time PE teacher without any marketing or technical experience. Learn more about how he's done it here.

Mike Beatty

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  1. Working from home seems to be what most people prefer to do these days. Thanks for your honest Primerica Scheme review, which helps people like me to make an informed decision.

    I’m keen to work from home but the dilemma is not knowing what works and what doesn’t. The good thing about the Primerica Scheme is that it is legit.

    The downsides, for me, is the payments I must do to get started. What if I never get many referrals to pay me back?

    1. That sums it up perfectly! 

      It’s legit… but you’re not likely to make any money considering the costs to stay active and get set up! 

  2. Ive tried getting a lot of information about this  Primerica and to say but a few, this is not encouraging from any form. Thank you for even detailingvon a review about them. Well! I’d try my best to get a lot of people to know about them and how they operate and the fact that they are not worthy of investing in

  3. hello Mike;
    happy to read your post there is little I came across a similar article but I have not taken the time to read it. it’s like a breath of fresh air, with all the plethora of proposals that fill the web about MLM businesses there is enough to be lost, but I appreciate your frankness and the concerns you bring to the details; I will subscribe to not miss anything of your next posts on this niche.

    1. Yeah there is a lot of misleading information out there! It’s hard to tell what is legit and what the truth is about so many programs.

  4. After my marriage, I was looking for a source of extra earning. One of my husband’s colleague introduced me to the Primerica insurance company. Initially, I was bit hesitant to involve myself with an MLM company, having heard many reviews. However, I thought to give Primerica a try.
    From what I have researched, Primerica is a multi-level marketing insurance company. That is it with the theory part.
    Coming to my experience, I have been using this scheme from a year and as of now, I have a good experience with Primerica. I have yet to experince the bad side of this MLM scheme. Most importantly, I have lived the life of an agent and learnt the business well. All-in-all; I’m satisfied that I have chosen Primerica.

    1. Hey Bianca,

      Thanks for sharing your experience.

      Would you be able to shed some light into how much people you know earn as a member of the company? Have you been able to cover your costs yet etc.?

  5. If you’re interested in selling insurance, please continue to do your research on other insurance sales opportunities other than Primerica.

    Plenty of agencies offer triple, even quadruple, the new agent starting commission, don’t require you to start an “adult babysitting” business recruiting friends and family, and allow you to write multiple insurance carrier contracts, so you’re not stuck repping a high-priced product like Primerica.

    Thanks for the write-up =).

    1. Thanks for your thoughts David. Can you be more specific about what companies offer those opportunities? I’m sure other people would be glad to hear about them.

Comments are closed.

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