Since 1904, Transamerica has provided financial security to its customers, with a goal of helping build generational wealth. Its mission is to connect health and wealth by offering life insurance, annuities, employee benefits, retirement and investment products.
With over 100 years in the insurance industry, Transamerica has been a long-standing provider of life insurance. It offers several options for term and permanent life insurance, with term policies ranging between $25,000 to $10 million (or more in individual cases). Transamerica’s whole life insurance policies include up to nine riders for additional policy customization.
Transamerica life insurance
Transamerica insurance has an excellent selection of life insurance policies. Unlike other companies that only offer the basics, Transamerica sells five different life insurance policies in all U.S. states, although term life insurance is not offered in New York. You can also customize your policy with a variety of riders. If you’re buying life insurance for the first time, you can use Transamerica’s Plan Predictor tool to help you find the right life insurance policy for your needs.
Types of life insurance policies offered
Transamerica offers five different types of life insurance, including term, index universal, whole and final expense. With a dedicated international underwriting team, Transamerica is also one of the few companies offering life insurance coverage to foreign nationals who are regular visitors or have ties to the U.S. Here are the policies available:
Term life insurance may be a good choice for anyone who wants life insurance coverage for a specific amount of time. Transamerica offers two term life insurance policies — Trendsetter® Super and Trendsetter® LB. Both policies offer term periods of 10, 15, 20, 25 or 30 years. Most term policies require a medical exam.
With Trendsetter® Super, you can get between $25,000 and $10 million coverage (or more), for the period of time the policy is in force. When the term is up, you can choose to convert the policy into a permanent policy without being subject to another medical exam.
The other term life policy, Trendsetter® LB, has a death benefit of up to $2 million and provides living benefits. A living benefit allows you to receive an accelerated death benefit if you are diagnosed with a qualifying chronic terminal illness.
Whole life insurance covers you for your entire lifetime, as long as you pay the premium. Your premium never changes, and you get a guaranteed death benefit and can even build cash value with a whole life policy. Transamerica’s individual whole life insurance policies include coverage from $25,000 to $2 million, which can help cover the cost of medical expenses, funeral costs and outstanding debt, for example. As the cash value grows, you could potentially use the funds as a loan to pay off major unexpected expenses, such as a major surgery.
Transamerica’s index universal life insurance offers an even greater degree of flexibility and protection. It provides financial protection for your dependents in the event of your death, but it also accrues cash value with protections against the market. Transamerica’s index universal life insurance policies are backed by The Transamerica Financial Foundation IUL®, which means your cash value is protected from index changes and backed by guarantees. In addition, they include an income tax-free death benefit, policy value accumulation, a guaranteed minimum interest rate and other tax-free benefits.
Final expense life insurance is used to help cover the cost of end-of-life expenses so your family members don’t have to use their savings to pay for a funeral or burial, for example. You can buy a guaranteed death benefit in amounts from $1,000 to $50,000. Transamerica makes purchasing final expense life insurance quick and simple, with no waiting period for coverage to start. Your age and health condition typically do not impact your approval and your premium is not expected to increase as you get older.
Transamerica ratings, reviews, customer satisfaction and complaints
|2021 J.D. Power Life Insurance Study||747/1,000|
|NAIC Complaint Index (Individual Life)||2.19|
When it comes to ratings, you can look at Transamerica life insurance in two main areas — financial strength and customer reviews. On the financial strength side, Transamerica scores pretty well. The company has a solid A (Excellent) rating from AM Best, which indicates that it has historically had enough liquid cash flow to pay death benefits.
But when you look at customer reviews, it’s a different story. Out of 23 companies, Transamerica scores 747 out of a possible 1,000 points in the 2021 Individual Life Insurance study from J.D. Power, which is considered well-below average.
Transamerica also has an above-average number of customer complaints according to the National Association of Insurance Commissioners (NAIC). The NAIC Complaint Index standard is 1.00, while Transamerica’s Complaint Index is 2.19 for life insurance, which is a higher-than-average amount of customer complaints compared to other life insurance companies.
Reasons why Transamerica is a good option
If you’re in the market for life insurance, Transamerica may be a great option because it offers several different policies. Whether you’re looking for a short term policy or one that covers just final expenses, or a permanent life insurance policy that functions as an investment vehicle, Transamerica likely has a policy that will fit your needs.
Transamerica may also be a good option for first-time life insurance buyers. The website contains abundant resources and helpful information about each type of policy, which can help you make an informed decision about your life insurance purchase. If you’re confused about what type of insurance you need, Transamerica has an online Plan Predictor tool that can help you find the best policy.
One disadvantage of Transamerica is that its customer satisfaction ratings are low. Third-party agencies such as the NAIC indicate the company receives more than double the average complaints for the life insurance industry.
Additional policies offered by Transamerica
In addition to life insurance, Transamerica offers the following retirement and investment products:
- Mutual funds
- Employer sponsored retirement plans
- Defined contribution investment-only products
Frequently asked questions
What is the best life insurance company?
Everyone has different needs when it comes to life insurance. The best life insurance company for you is dependent on the type of coverage you need, the amount of coverage you need, your health, your age and your budget, among other factors.
Does Transamerica require a medical exam?
Almost all of Transamerica’s life insurance policies require a medical exam. However, depending on your age and desired coverage amount, you can get a term life insurance policy without a medical exam. Even with this option, you still need to complete a health questionnaire.
Where is Transamerica life insurance available?
Transamerica sells life insurance policies in all 50 states. However, some policies may have limitations in certain locations. Contact the company to find out what policies and riders are available where you live.
How much life insurance do I need?
How much life insurance you need is based on several factors. Life insurance proceeds can be used to pay off debts, for a funeral, to replace income or for other needs your family may have after you are gone. You can use a life insurance calculator to help determine how much life insurance you need.