Is Primerica a Good Option for Insurance Plans?

primerica-under-investigation

With an insurance plan, you can have peace of mind about your future and protect your loved ones in case of emergencies. Most people look for various insurance plans with easy payments. One of the popular companies in the USA and Canada is Primerica.

If you are considering getting a financial plan, there are quite a few things that you should focus on, particularly about the cases related to Primerica under investigation. While the company has been under the limelight since its inception, it’s been making waves for some highly controversial reasons.

What to Know About Primerica

If you have done extensive research about insurance plans, you may have come across this name. Primerica is a well-known company that provides insurance plans and offers investment opportunities along with other financial services to families in the USA and Canada. Based in Duluth, Georgia, the company has been around for quite some time now and has thousands of customers across the states.

Primerica claims to be the industry-leading financial company in the market. It was established with a vision to serve middle-class families and simplify their lives. However, people are of the opinion that it hasn’t been the case. The company has been a subject of quite a few debates and have left people divided.

What Does Primerica Offer?

The company has an extensive range of insurance and other financial plans. While the company specializes in life insurance planning, there are other options available as well. You can avail a plan according to your goals and finances.

How Does Primerica Work?

Primerica has been working on the multi-level marketing model for quite a long time. For those of you who are not familiar with it, it’s a structure in which a company recruits people to sell its services or products. The recruited individuals are not actually employees, but independent agents.

If more people agree to sign up or avail the insurance plans, these people get a small commission and the company is able to make a profit. The amount of commission earned usually increases with sales. So in case you are thinking of getting an insurance plan, it is a good idea to be aware of how the company works and engages with their clients.

Cases That Led to Primerica Under Investigation

In the beginning, the model was working effectively as the company made a profit by recruiting agents, and they convinced people to buy policies. However, in a strange turn of events, Primerica found itself in trouble after a few cases had been filed against it. So, what were the cases? Why is Primerica under investigation? Let’s find out.

Judith Palmer Case

The Judith Palmer case occurred during August 2021 and made headlines. It was based on Judith Palmer, Jayson D. Palmer, and Jennifer Whiterspoon suing Primerica for breaching the state’s law about insurance. They claimed that the company did not fulfill their obligations as stated in the contract.

These individuals further alleged that Primerica deliberately didn’t notify them regarding the changes in the contract. It was supposed to notify them according to California’s law about insurance. As a result, Judith Palmer and the others did not pay the monthly premium and had their contract terminated.

They are of the opinion that it was their right to be notified when it was time to pay the monthly premium. Since Primerica made changes in the contract, it should have taken all the measures to inform the policyholders about the premium and possible termination.

This case has been quite concerning for other policyholders as well. Since the affected family claims that they were not given a warning before termination, it has put a question mark on Primerica’s reputation and other policyholders have started questioning their customer service. The case is in progress as of December 2021.

Mrs. Arellano Case

This lawsuit was filed by Mrs. Arellano against Primerica a few years ago. According to Mrs. Arellano, she bought the disability policy from the company early on. This policy states that the company was bound to give Mrs. Arellano $1,500 a month in case of an utter disability.

After investing in the plan, Mrs. Arellano got injured and had a concussion as she slipped into a pothole. Due to this incident, she couldn’t concentrate on her job and went through a psychiatric breakdown. A few months later, the Mrs. Arellano attempted suicide and had to stay in a hospital for six months.

As stated in the policy, Primerica paid that specific amount every month for a year. However, they terminated the insurance policy for ambiguous reasons later. Mrs. Arellano was later admitted to the hospital again due to suicide ideation. Since Primerica terminated the insurance contract, Mrs. Arellano filed a case against them. The main points of this case are as follows:

Primerica wrongfully terminated the contract after paying for 12 months. It wasn’t mentioned in the contract that the company would only pay for a certain time period.

Primerica refused to recognize the total disability of Mrs. Arellano, even when doctors and health experts vouched for her.

In their defense, Primerica claimed that the evidence and reports provided by Mrs. Arellano were fake and incomplete. She failed to satisfy the company about her disability, thus the company had the right to terminate her contract.

However, Primerica didn’t have enough evidence to prove its point. Mrs. Arellano insisted that her claim was right and her statement was also proved correct by medical experts. As a result, the court gave the verdict in favor of Mrs. Arellano. Along with the hefty fine, Primerica also had to pay $1.29 million for the humiliation and inconvenience of the insured resulting from the termination of her contract policy.

After-Effects

As expected, Primerica’s reputation was drastically affected by these cases. The credibility of the company has been questioned as the company didn’t have a strong stance in both cases. Although the verdict in one case is yet to come, it has still done its damage. It’s why a lot of people presently have to think about whether they want to avail insurance policies from the company or look for other options.

Primerica is a popular insurance policy provider in the USA and Canada. Despite being in the market for over 40 years, the company doesn’t enjoy a sound reputation, mainly due to multiple lawsuits. While people will always think twice before investing their hard-earned cash in purchasing Primerica’s insurance policies, the cases have also stirred concern in policyholders’ minds.