Transamerica Life Insurance Company Review

In 1904, a young businessman named Amadeo Giannini created the Bank of Italy. His dream was very simple: to offer financial services to everyone, not just the rich. Giannini merged his bank with the existing Bank of America in 1928 and, in 1930, purchased Occidental Life Insurance Company through Transamerica Corporation.

In 1956, the financial and life insurance businesses split with the latter taking the Transamerica name. In July of 1999, Transamerica was acquired by Aegon, which is considered a top financial organization. Transamerica’s commitment is the same today as it was 100 years ago: to provide affordable financial products to everyone.

Related: Top 20 final expense companies.

I took a look at the various financial ratings for Transamerica to start out my research.

Transamerica Ratings

A.M. Best FSR Rating: A+
A.M. Best ICR Rating: AA-
Moody’s Rating: A1
Standard & Poor’s Rating: AA-

These are very impressive stats, but keep in mind that they don’t provide an indication of the quality of the products or services. They’re merely a reflection of Transamerica’s financial stability. Still, it’s important to buy financial products from a company that is financially solid, and Transamerica definitely passes the financial test with flying colors.

I also checked their website to determine their assets vs. liabilities. I found they have $1,068 billion of insurance in force as of December 31, 2015, and their Total Capital and Surplus is listed as $6,199 billion.

What products do Transamerica offer?

Transamerica offers term life, whole life, universal life, variable universal life, final expense and accidental death insurance policies. Issue ages range from 0 to 85 years.

Let’s dive into the details and benefits of each type of life insurance.

Transamerica Term Life Insurance

This is probably the easiest type of life insurance to understand. Term life insurance options include 10, 15, 20, 25 and 30 years. Transamerica offers two types of term life policies:

Trendsetter Super Series

Trendsetter super is a term life insurance policy that provides coverage from $25,000 up to $1,000,000. The coverage and the premium stay the same throughout the term contract. At the end, you may be entitled to a conversion benefit without going through another exam, but you may need to answer some health questions.

The Super Series automatically includes an accelerated death benefit in the coverage. If you were diagnosed with a terminal illness and had 12 months or fewer to live, you could receive up to 75% of the policy face amount (max $250,000 per policy). In my opinion, having access to the cash benefit while you’re alive is a great added value.

Trendsetter LB (Living Benefits)

Trendsetter LB has the same coverage limits as the Super Series, but it provides more extensive living benefits. Living benefits exist as a rider that allows you to receive some of the life insurance death benefit while you are still alive.

The policyholder may accelerate a portion (not to exceed 24% per year or the lifetime 90% maximum) of the face amount up to a maximum of $1,500,000. You only have access to the funds if you experience one of the following:

• Critical illness, such as heart attack, stroke, cancer, etc.
• Chronic Illness-causing inability to perform two out of the six daily activities
• Terminal Illness, defined as a medical condition expected to result in a death within 12 months

Transamerica Whole Life Insurance

A whole life policy is a permanent policy that remains throughout the life of the policyholder. The policy also includes a cash value benefit. This is a more expensive option when compared to term life. Find out how much whole life insurance costs.

Transamerica Universal Life Insurance

Universal life is a type of permanent life insurance option with cash value but which offers the policy owner flexibility to modify premiums amount and frequencies.

Transamerica Variable Universal Life Insurance

With Variable Universal Life Insurance, you can invest some of your cash value in the policy into the stock market. While this exposes you to an added risk, it also has its rewards.

Transamerica Final Expense Insurance

This coverage is a permanent policy often known as “burial insurance” or “funeral insurance.” The face amount of this coverage isn’t high, with benefits usually varying between $1,000 and $50,000 per policy.

Transamerica offers no exam for such policies; however, you will need to answer a few health questions.

Transamerica offers 3 types of final expense policies: Immediate, 10 pay, and easy pay. These types of policies do not require a physical exam—only a few health questions. Let’s look at the details for each.

Immediate Solution

A whole life policy with level death benefit and premiums up to age 121. The premiums do not increase, and the life insurance policy can’t be canceled as long as you make the payments. The issue ages are 0–85 years. The minimum death benefit is $1,000. The maximum death benefits are as follows:

• 0–55 years: $50,000
• 56–65 years: $40,000
• 66–75 years: $30,000
• 76–85 years: $25,000

10 Pay Solution

This has the same benefits as the Immediate Solution; however, on this plan, the payments are paid for 10 years. You may opt to pay monthly, quarterly or annually.

Easy Pay Solution

This is a graded benefit life insurance policy. This means that the policy will become effective after 2 years. If you die within the first two years, your beneficiary will get the premium paid plus 10% of premiums paid. This is often the last resort for people who could not qualify for another type of life insurance. The max death benefit is $25,000, and the issue ages are 18–80 years.

Transamerica Accidental Death Insurance (AD&D)

Unlike other life insurance options, accidental death & dismemberment (AD&D) coverage pays out only if you are killed in an accident. For example, if you die from cancer or a stroke, there’s no payout.

Accidental death policies may not require life insurance underwriting and are very cheap to buy. Covered accidents include causes such as traffic accidents and falls.

I personally wouldn’t recommend buying such a policy as stand-alone life insurance coverage. It may be better to add it to an existing life insurance policy.

Transamerica has two AD&D policy options:

• Plan A: up to $500,000 in total coverage
• Plan B: up to $250,000 in total coverage

Transamerica Policy Riders

Transamerica offers extra riders for an additional premium.

Waiver of Premium Rider (WP)

Should you ever become disabled or seriously ill, this rider would cease your premium’s obligation for the duration of the total disability.
This rider is only available at the time of issue.

• Issue ages: 18–55 years

Accident Indemnity Rider (AI)

The AI rider pays an additional death benefit should the policyholder pass on as a result of an accident or injury.

• Issue ages: 18–65 years

Children’s Insurance Rider (CIR)

The CIR provides insurance for your children.

• Issue ages: 15 days–18 years

Transamerica Customer Service

The People

I’ll start by reviewing what Transamerica’s employees think about the company. Transamerica received 3.8 out of 5 stars based on 244 reviews according to Indeed. Many employees raved about the company’s phenomenal and powerful leadership, motivated team, and devoted managers.

I really like to see this kind of response, because it’s a true reflection of how they are likely to treat customers. The more you enjoy where you work, the more pride you have, the better Transamerica is. A company is only a reflection of its employees.

The Service

I have visited Transamerica’s site multiple times as both a broker and a consumer, and I must say that this is one of the easiest sites to navigate with tons of information regarding their products and services. They really make it easy to read and learn about life insurance.

Transamerica has customer support available around the clock, 24/7. In addition to phone assistance, you can also communicate via live chat or email support.
When it comes to customer service, Transamerica is top notch.

Transamerica Sample Rates

Transamerica vs. Other Carriers’ Sample Monthly Rates

40 Years Old Male $250,00 20-Year Term

70 Years Old Male $250,00 20-Year Term

Is this the best option for you?

Transamerica is geared more to the older population, those aged 70 years or older. For example, Cholesterol ratio of 6 still gets you a preferred class while with other life insurance companies you would be a standard table ratings.

If you are younger, there are some other options with other companies as they are not competitively priced.
Since everyone has different needs—some are older or younger, some may have health issues, etc.—it’s a good idea to contact a broker who can present all the options.

Summary

Transamerica is an outstanding company catering to an older customer base with strong financial ratings, comprehensive product offerings, employees who love to work there, and great customer service.