- January 28, 2010
- Posted by: Brian Poncelet
- Category: Approved
I don’t normally beat up on insurance companies but I will let the facts speak for themselves. Primerica’s history from their web site:
“Primerica’s roots date back to 1977 when the company embarked on a revolutionary crusade to transform the life insurance industry. Primerica’s “Buy Term and Invest the Difference” philosophy encourages middle-income families to purchase affordable term life insurance so they can have more money to invest in their family’s future. Today, Primerica has expanded its crusade to address the number one financial disease facing families today: debt. Primerica offers solutions to help families eliminate crippling debt from their household finances and save more of their hard-earned money for the future.”
The problem is women pay much higher rates with Primerica than almost any other insurance company in Canada. Some examples:
female born 25/01/1988 (22 years old) (preferred rating)
Term 30 $500,000 coverage
Unity Life $42.30/month
BMO Life $44.10/month
The rates are not even close.
What female wants to pay more (a lot more) for less coverage? Another:
Female born 01/18/1982 (regular health) 28 years old
term 20 $500,000 coverage
Western life $27.07/month
Canada Life $27.45/month
For $1,000,000 coverage term 20…
Here is what she can get:
So double the coverage, more options for less money vs. the $54.63/month for only $500,000 of coverage.
If she wanted to be covered be covered for life. UL/T100
Female (Born) June 15th 1970 non smoker term 30 (regular health) (40 years old)
Unity life $76.95/month
Female (born) 06/15/1985 (25 years old) (regular health) Term 20
Western Life $25.82/month
Equitable life $26.55/month
So why promote buy term and invest in the difference when women pay much more? One primerica representive was quoted was saying “ It doesn’t matter that there may be lower women’s rates out there…”
Many who work for Primerica work part time. Do you want someone who works part time or full time? How about selling only one product?
The problem is many in the media like the idea that Primerica promotes, which is buy term and invest the difference, and suggest that those who sell permanent are ripping people off. Primerica’s term policies are non-convertible. If one gets cancer (as an example) and wishes to convert it into permanent insurance this is not possible.
Something to think about the next time you hear “buy term and invest the difference.” There may be merit to the idea but you have to be conscious of who you’re buying from.