Transamerica could be a good option if you are looking for numerous life insurance options coupled with other financial products. However, while the company has relatively strong financial strength, its customer satisfaction reviews tend to be below average. Bankrate’s Transamerica life insurance review could help give you a comprehensive view of the company.
|Numerous life insurance products sold||Below-average J.D. Power customer satisfaction score|
|Various other financial products available||High NAIC complaint index|
|Excellent AM Best financial strength rating|
Transamerica, which was founded in 1904, offers a nice selection of life insurance policies along with several other financial products. If you like keeping your accounts in one place, the carrier could be a good fit. Coverage is available nationwide, although not all products are available in all states. If you’re considering getting quotes from the company, our Transamerica life insurance review might help you get more familiar with the pros and cons of the products and services.
Transamerica life insurance coverage types
Transamerica sells multiple types of life insurance. 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. If you’re buying life insurance for the first time, you might want to talk to a Transamerica agent about your needs.
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 policy types available from this company:
- Term: Term policies may be good options if you only need coverage for a short or predetermined period 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. Coverage limits can go quite high depending on the product, and could potentially be as high as over $10 million. The Trendsetter LB also provides living benefits, which may allow you to receive an accelerated death benefit if you are diagnosed with a qualifying critical, chronic or terminal illness.
- Permanent: Transamerica offers two types of permanent life insurance: whole life and indexed universal life. Transamerica’s whole life insurance policies give you the option to customize your coverage with nine different riders. If you’re looking for something more flexible, you might want to consider Transamerica’s indexed universal life insurance. These policies allow you to have more control over your death benefit amount and premium as your life changes.
Unlike whole life policies, which also accrue cash value, the cash value of indexed universal life policies is invested. Transamerica also offers final expense insurance, which is a type of whole life insurance with a low death benefit.
- Guaranteed: Transamerica does not appear to offer any guaranteed-issue life insurance policies.
Transamerica life services
Transamerica sells more than just life insurance, and because it is so heavily invested in the financial world, the company’s professionals may be able to help guide you through a number of different needs all in one place. The company’s website is a great resource for current news about various financial markets, tax information and more.
Other Transamerica perks worth considering
In addition to life insurance, Transamerica offers a slew of financial products, including:
- Employer-sponsored retirement plans
- IRA rollover solutions
- Mutual funds
Product availability may vary by state, however. As such, talking with a Transamerica representative is the best way to find out what products are available to you.
Transamerica life insurance customer and claims satisfaction
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 below the study’s average.
Transamerica also has an above-average number of customer complaints, according to the National Association of Insurance Commissioners (NAIC). The baseline number of complaints is 1.00, while Transamerica received a rating of 2.21 for its individual life insurance products. This means that the NAIC receives more than twice the number of complaints about Transamerica when compared to the baseline.
Transamerica social responsibility
Transamerica lists three areas of commitment on its website: inclusivity, sponsorships and the Aegon Transamerica Foundation.
To help foster diversity and inclusion, Transamerica created employee resource groups (ERGs) to give employees a sense of belonging and a place to discuss similarities and differences. Transamerica also gives back by sponsoring a few organizations and individuals , including the American Heart Association and several golfers. Finally, the Aegon Transamerica Foundation is the company’s charity arm and gives back in areas like the arts, education and health.
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, cover the costs of a funeral, replace income or help take care of 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.
Not sure if Transamerica is right for you? Consider these alternatives
- MassMutual: MassMutual won the 2022 Bankrate Award for best whole life insurance company and might be a good option if you are looking for a high death benefit for numerous riders.
- Northwestern Mutual: If you’re more interested in term life insurance and you value digital tools, Northwestern Mutual could be a solid choice. Bankrate chose Northwestern Mutual as one of the best term life insurance companies in 2022.
- Guardian: For those looking for universal life, Guardian could be a good choice, especially if you want a no-exam policy.