HomeLegitimate ReviewsIs Primerica a Pyramid Scheme or MLM? Legitimate Reviews 2020

Is Primerica a Pyramid Scheme or MLM? Legitimate Reviews 2020

What is a pyramid scheme?

If I’m right so, you are here to know “Is Primerica a Pyramid Scheme” or not. For new investors, this article is very important. Here we tried to explain each n everything that you should know before you invest in any scheme or MLM company. So, read it till the end, hope you’ll be got something knowledgeful.

A pyramid scheme is nothing but a very unstable method of earning money by recruiting more investors, who in return pay the upfront cost to those who have recruited them. Now, these newcomers in turn recruit other members and earn money and some portion of it is again kicked up the chain. In this kind of scheme, the officials usually promise high returns within a short period without involving any kind of product sales or services. The main focus is on hiring more people. 

This kind of scheme is illegal in many parts of America as well as other states. The pyramid scheme is generally promoted via various social media platforms, company websites, internet advertising, etc. The fraudsters usually use the money to pay those who have recruited them, at some point the chain gets too big, and becomes impossible, to earn enough money from the newcomers to pay off the earlier investors and people eventually lose their money. Go through this article to know is Primerica a pyramid scheme or not.

How does a pyramid scheme work?

There are have so many fraudulent pyramid schemes. Nevertheless, the two most popular of these are so-called transparent pyramid schemes focused on goods. Between the two, the naked pyramid scheme is the most relevant one.

Here how it works:

  • Let’s assume Mr. A recruits 10 people in a non-failure business program 
  • Now, these newbies pay 100$ cash to Mr. A fir recruiting them
  • Now Mr. A (recruiter) tell his 10 employees to go and recruit 10 more members like them
  • Now, if each of the 10 employees joins the business then the previous set of recruiters will end up earning 900$ from a small investment of 100$. 
  • Now, a portion of this 900$ is sent to Mr. A. 

This is how the naked pyramid scheme works. Eventually, it becomes more difficult to recruit new members and the chain is entangled within itself. Therefore, those who are sitting at the top tier of the pyramid earn huge amounts of money and the people at the lower tiers lose everything they have. 

American Income Life Pyramid Scheme

American Income Life is a multinational insurance organization aiming to cover working families in the U.S., New Zealand, Canada. It has been offering supplementary life insurance for working-class families since 1951. They hire representatives to establish long term relationships with the customers. 

According to the reviews, it is not a pyramid scheme but a company that follows MLM strategies. They recruit representatives to promote their products that are their insurance schemes. The recruiters at every level earn a commission with every sale made. Check the users’ reviews on BBB.

MLM vs Pyramid Scheme

Before you know is primerica a pyramid scheme or not?, you should know the difrrency between MLM vs Pyramid Scheme.


Multi-Level-Marketing (MLM) –

Multi-level Marketing is a strategy of making money by promoting sales of a product with the help of various distributors. The distributors then earn a commission when every sale is made. 

Pyramid Scheme –

In this kind of scheme, no products are sold and only recruiting new members for the scheme makes money. 


MLM focuses on the strategy of recruiting distributors who would promote the maximum sales of the products. The commission is earned by the distributors or the promoters with every sale made. They also earn compensation from every sale their recruits make. 

Whereas in a pyramid scheme, money is earned simply by recruiting more employees for the scheme and no real product is sold. Eventually, when there are no more people to recruit, the scheme fails, people at lower level lose all their money, and the top tiers walk out with loads of cash. 


A few guidelines have been set by the Federal Trade Commission  (FTC) for its customers so that they can differentiate the legal ones from the fraud ones. The below-mentioned guidelines will help to understand between the MLM and Pyramid schemes

  • In the case of MLM actual sales are made of various products whereas pyramid scheme do not have such system 
  • MLM strategies largely depend on the commissions earned from every sale of the products whereas pyramid schemes are based solely on recruitments of more members 

Examples of MLM and Pyramid schemes are as follows:

MLM companies include Amway, Max International, Herbalife, Mary Kay, Avon. A pyramid scheme includes companies like – Arbonne Pyramid Scheme, Malaysian SwissCash, etc.

Now, the queries are coming in our mind is whether Primerica is a pyramid scheme or it is an example of MLM (Multi-level Marketing)? Let us have a detailed look at these doubts.

Is Primerica a Pyramid Scheme? or MLM?

What is Primerica?

Is Primerica a pyramid scheme? We will answer that question later but first, let us know about Primerica a little bit. Primerica is an American insurance company that offers term life coverage policies to its customers between the age of 18 and 70 years old. There are two types of Primerica life insurances, namely:

  • TermNow with up to $300,000 coverage 
  • Custom Advantage w it has up to 5 million in coverage 

Primerica insurance provides a Primerica agent to its customers for a more personalized experience. These agents help customers with their application process. To buy a Primerica life insurance one must provide their details such as age, gender, and address. They may also be asked certain health care questions depending on the policy they are buying. Citigroup provides the products that Primerica promotes. 

Is Primerica a MLM? 

Is Primerica a MLM
Is Primerica a MLM?

Yes, Primerica is a Multi-Level-Marketing (MLM) company. They will deny it but it is one such company that follows MLM strategies. According to Primerica’s prospectus, over 100,000 representatives are hired to promote the sale of financial products such as mutual funds, life insurance, etc. They aim to sell these products in a more warm market, which includes family members, friends who are aware of the business that you are promoting rather than selling products in a cold market. These representatives earn a commission from every sale made and his recruiters and their recruiters earn a commission from it. 

In the prospectus, it is written that Primerica life insurance follows an 11-tier upside down the scheme in which you get a commission from your recruits who in turn get a commission from their recruits. This chain is followed up until the 11th level. 

Following an MLM business, the strategy can lead to criticisms, but Primerica has not faced such criticisms so far. Now, we have concluded the question is Primerica is a pyramid scheme or not. No, it is not at all a pyramid scheme.

Can you make money with Primerica?

Now, already we have answered whether Primerica is a pyramid scheme or not. Since it is not a pyramid scheme and an MLM, there are two main Primerica jobs that you can do to earn money. Now, before making money with Primerica, you should get an idea about the various tasks that Primerica deals with and how one can make money by performing those tasks. Primerica provides financial services to customers. You can earn money by selling these financial services for them to the customers. Some of the common financial services or products offered by them are:

  • Life insurance
  • Debt management products
  • Segregated funds
  • Long-term care insurance
  • Mutual funds
  • Variable annuities
  • Loans
  • Prepaid legal services

You do not have to be an expert in this field to earn money with Primerica. Having a decent financial knowledge with satisfactory sales skills will help you to earn an income with Primerica. Primerica provides another way for the representatives to earn money. It is a multi-level marketing company that sells its products through third parties, that is the agents. Therefore, it has a team of representatives. Now, if you as a representative helps Primerica to hire more representatives, then you can earn some commission for each representative hired through you.

How much money do you make with Primerica?

Now, as we have seen that one can make money with Primerica, the next thing that comes to our mind is how much money can be earned via Primerica. It entirely depends upon your marketing and financial skills and knowledge. As a licensed agent of Primerica in the U.S., you can earn an average monthly salary of $1,500 and as a Regional Vice President; you can earn a monthly salary up to $12,701. 

Primerica Products

Primerica, a multi-level USA-based company, founded in the year 1977, excels in providing various financial products and services to the clients. Among the multiple products it offers, its main aim is to provide life insurance, annuities, and mutual funds to the clients through third parties or Primerica representatives. To have a better understanding of Primerica online, let us have a look at some of the Primerica shareholder services.

Financial Needs Analysis

In this modern world, financial needs analysis is one of the most important steps to perform while doing financial planning. You will require a qualified financial planner to do your financial needs analysis by checking your current financial position as well as your future financial needs. The financial needs analysis is based on several factors such as your income and savings, your present assets as well as liabilities, financial products that you presently enjoy, your life stage, and lastly, your employment benefits.

Term Life Insurance

Term life insurance is a well-known financial policy that provides financial coverage to a person for a specific period. If the policyholder does during this specific period then his family will receive the death benefit. Unlike permanent life insurance, term insurance costs you with less money and it gives you no cash value, which means the only guaranteed benefit that you will get is the death benefit. There are various types of term insurance – convertible term, increasing term, mortgage term, and annual renewable.


We are all accustomed to the word “investment” in our day-to-day life. Investment means putting your money in purchasing some goods or assets that will help you in earning an income in the future as well as a great profit when you sell those items in the future. Now, there are four main types of investment present: shares, property, cash, and fixed interest.

Auto and home insurance

Auto and home insurance, also known as property insurance, will protect you from any financial loss, in case there is any damage to your property. If you get into an accident, then you will be provided with property, liability, as well as medical benefits if you are having auto insurance.

Property coverage will protect you from any loss in case your vehicle is damaged or stolen, liability coverage will protect you from your legal debts by paying to the other party if he is injured or his property is damaged and medical benefits will cover the cost of your treatments in case you are injured. Home insurance protects your property as well as liability in case your house is damaged due to any disaster.

Long-term care insurance

This long-term care insurance is one of the most important financial policies keeping your future in mind. When a person reaches the age of 65 or above or in case of any chronic disorder, there are many extra expenses such as nursing home care, adult daycare, or home health care. All these costs will be covered by this insurance policy.

Primerica DebtWatchers

This online financial program will help you to manage and pay your debts efficiently. To avail of this program, you will have to pay a small number of monthly service fees. After you have registered yourself, you have to enter some information regarding the details of your debts. Once you have entered the details, it will help you in paying your debts faster by giving you advice about how and which debt to pay first.

Pre-Paid Legal Services

Primerica provides various types of pre-paid legal services for your financial needs.

Primerica review

Before you are willing to avail of financial services offered by any company, you must make sure that the company is legit and has received positive reviews. Primerica, well-known for its life insurances, is perfectly financially solvent and can cover up all your claims. It has also been included in “America’s 50 Most Trustworthy Financial Companies” by Forbes. However, there is one problem with Primerica. They sell only term-insurance with no options to convert them to whole coverage.

Moreover, third parties that are their representatives, generally force potential customers to purchase these insurances even if they do not need them, sell these services. Therefore, before purchasing those services, you consult another financial expert. Apart from all these, many of Primerica’s agents do not possess enough financial knowledge and skills thus, they are unable to provide you with proper and correct information. They also try to convince their clients to become a Primerica agent as recruiting sales agents for Primerica also helps them to earn a commission. 

Primerica complaints

  • Though Primerica offers legitimate financial services to the clients, it is a multi-level marketing company that offers these services by new inexperienced representatives, who do not have enough financial knowledge and skills.
  • As a Primerica representative, one can make money but you can make a much larger sum of money by doing those same works outside. Primerica gives a very small amount of commission to the agents as compared to what they earn.
  • Primerica does not allow its agents to work anywhere other than them during their term of service, which means you can sell only the Primerica products and nothing else. You will never be able to perform independently.
  • The insurances offered by Primerica are priced at a much higher rate than those offered by other companies.
  • Primerica does not provide you with an option to convert your term insurance to whole coverage. This means there is no option to change your minds later. Moreover, they do not offer insurance services to high-risk individuals with not so great physical conditions.
  •  In 2014, Primerica faced various legal issues in Florida.

Is Primerica legit or a scam?

Firstly, Primerica is a legit multi-level marketing company that has been doing business in this field for decades. One can become a Primerica representative and can sell their products, which will help him to earn an extra income. However, Primerica is not one of the best insurance companies out there. It has a decent reputation and provides genuine help to the clients by offering them several coverages.

However, with its limited number of insurance products, it is not suitable for everyone. Therefore, before purchasing any product from Primerica, consult an independent financial advisor. Moreover, to know whether Primerica is the best choice for you, compare Primerica’s rates and premiums of life insurances with that of other companies.


1. What is the difference between a Pyramid scheme and Multi-Level-Marketing?

Multi-level Marketing focuses on selling actual products and earning commission through it. Whereas the Pyramid scheme focuses on recruiting more members and earning commission from them. 

2. How to recognize a Pyramid selling scheme? 

They are often recognized as organizations that are offering mass recruitment programs, where they aim to make a huge amount in a short period by recruiting new members. 

3. Is Primerica life insurance a scam or a real scheme?

Yes, Primerica life insurance is a real scheme and has its branches across the entire U.S. It has more than 130,000 representatives working under Primerica.

4. Is Primerica a pyramid scheme?

No, Primerica is a MLM company. It follows a multi-level marketing structure.

5. Can a beginner make some money with Primerica?

Yes, as a beginner also, one can make money with Primerica. You should have some basic financial and marketing skills.


Finally, the answer to your query “Is Primerica a Pyramid Scheme?” is – No, it’s a Multi-level marketing (MLM) company. Before you choose to work as a representative of Primerica, make sure that you clear all your doubts and queries regarding the functions, working procedure, structure, commission, etc. of Primerica. One of the important things is how much commission you will get after selling the products of Primerica.

Now, according to the reviews, Primerica offers a lower commission than other companies. However, the commission is not the only factor while choosing a financial company. You should consider the quality of the training that you are receiving, the support and backup from your team, and the future of your career. So ask these questions to yourself before choosing Primerica. You may visit their official website to know more.

Thank you.

Dale L. Collins
Hi, It's Dale L. Collins. I have been doing blogging since 2010. I have tried almost all the majority of blogging platform, money-making ideas/niches which are available for the online earning generate. So, now it's very easy and well known to me the correct and short-cut ways and strategies that how to perfectly build a blogging career online! I'm sharing my deep experiences and earnings strategy on this blog and making about all the legit source of online income that is related to be a blogger. Thanks & Regards, Dale L. Collins Founder of Legitearner.com


  1. […] It has almost 125,000 financial representatives spread all across the world to sell the financial products on behalf of the company. As compared to others it is a new company that made a revenue of $1.69 billion in 2017. One can join there as a part-time or a full-time worker to earn money by selling the company’s financial services. Know more about Primerica. […]


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