Transamerica Life Insurance Review 2020

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Transamerica was founded in 1904 with the idea that “financial security should be available to everyone.” In 1999, Transamerica became part of Aegon N.V., an international financial organization. For the last 20 years, Transamerica and Aegon have served 13 million customers in the United States.

Transamerica offers a number of different investment and retirement products, including life insurance. The company has impressive financial strength ratings and was ranked in J.D. Power’s 2018 U.S. Life Insurance Study. In this article, we’re doing a deep dive into Transamerica’s life insurance offerings so you can decide if this provider is the right choice for you and your family.

Transamerica life insurance

Transamerica insurance has excellent life insurance policies. Unlike other companies that only offer the basics, Transamerica sells five different life insurance policies. 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

If you’re looking for a life insurance company with a few different options to choose from, you’re in luck. Transamerica offers five different types of life insurance. Here are the policies available:

Term life insurance

Term life insurance is ideal 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, and anywhere from $25,000 to $10 million in coverage. Most term policies require a medical exam.

With Trendsetter® Super, you can get up to $10 million coverage, and the amount of coverage you choose is guaranteed to stay the same throughout the term period. When the term is up, you can convert the policy into a permanent policy without another medical exam.

The other term life policy, Trendsetter® LB, has a death benefit of up to $2 million, and also 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

Whole life insurance covers you for your entire lifetime. Your premium never changes, and you get a guaranteed death benefit and cash value. 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 more. As the cash value grows, you can use the funds as a loan to pay off emergency costs, like a major surgery.

Universal life insurance

Universal life insurance is very similar to whole life insurance. It’s a type of permanent life insurance that includes a guaranteed death benefit, as well as a cash value. But with universal life insurance, you can use your policy’s cash value to pay your premium. Ultimately, that means you can choose how much and how often you pay your premium. You just need to maintain enough cash value to cover the monthly deductions.

Index universal life insurance

Transamerica’s index universal life insurance offers the ultimate flexibility and protection. It can provide steady income during retirement, but it can also financially cover your family if you were to pass away unexpectedly. Transamerica’s index universal life insurance policies are backed by The Transamerica Financial Foundation IUL® and include an income tax-free death benefit, policy value accumulation, a guaranteed minimum interest rate and other tax-free benefits.

Final expense life insurance

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, burial, etc. It doesn’t provide a death benefit, income during retirement or cash value. Purchasing final expense life insurance through Transamerica is quick and simple, and there’s no waiting period for coverage to start. Your age and health condition probably won’t impact your approval and your premium won’t increase as you get older.

Transamerica ratings, reviews, customer satisfaction and complaints

Organization Rating
J.D. Power Life Insurance Study (2018) 2 out of 5 stars
AM Best A
BBB A-
NAIC Complaint Index 1.31

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 rating from AM Best, which indicates that it has enough liquid cash flow to pay death benefits.

But when you look at customer reviews, it’s a different story. Transamerica has a 2 star rating from J.D. Power, which is considered below average. Although it has an A- rating from BBB, the company has an average customer rating of just 1.1 stars. Transamerica also has above average customer complaints according to the National Association of Insurance Commissioners (NAIC).

Reasons why Transamerica is a great option

If you’re in the market for life insurance, Transamerica is a great option because it offers tons of different policies. Whether you’re looking for the most basic coverage, the most comprehensive coverage or insurance just to cover final expenses, Transamerica has a policy that will fit your needs.

Transamerica is also a good option for first-time life insurance buyers. The website contains lots of helpful information about each type of policy, a well as an FAQ section on every page. 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.

The one disadvantage of Transamerica is that its customer satisfaction ratings are low. Customers have complained about their policies getting cancelled, not being able to reach a representative and being denied coverage despite being in good health.

Additional policies offered by Transamerica

In addition to life insurance, Transamerica offers the following retirement and investment products:

  • IRAs
  • Mutual funds
  • Annuities
  • ETFs

Frequently asked questions

What is the best life insurance company?

There isn’t one life insurance company that stands out as the best. 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.

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. However, 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.