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Transamerica life insurance review 2023
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Bankrate's take
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.
Transamerica life insurance offers multiple plans that do not require a medical exam, which could be appealing to individuals with poor health.
Transamerica life insurance
Transamerica sells multiple types of life insurance. Unlike other companies that only offer the basics, Transamerica offers five different life insurance policy types. The company is licensed to sell policies in Washington, D.C. and all U.S. states, but some policy types are not available in New York. If you’re buying life insurance for the first time and aren’t sure how much life insurance you need, it may be helpful to utilize Bankrate’s life insurance calculator and life insurance guide before speaking with a Transamerica agent.
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. Transamerica’s life insurance offerings include::
- 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. The Trendsetter Super policy has higher coverage amounts available, while the Trendsetter LB 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: A permanent life insurance policy might be a good fit for those who want access to the cash value portion of the policy in addition to the death benefit. Transamerica offers two types of permanent life insurance: whole life and indexed universal life:
- Whole life insurance: Transamerica’s whole life insurance policies, also called Transamerica Lifetime, give you the option to customize your coverage with nine different riders. These include a children's benefit rider, accidental death benefit rider and chronic illness rider.
- Indexed universal life insurance: If you’re looking for a more flexible life insurance policy with an investment component, you might consider indexed universal life insurance. Transamerica's two indexed universal policies, the FCIUL and FFIUL, 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.
- Final expense life insurance: This life insurance policy type could be a good choice for customers looking for a lower death benefit intended to cover specific end-of-life expenses, such as funeral costs. Transamerica's policies have a maximum death benefit of $50,000 and do not require a medical exam.
Pros and cons of Transamerica life insurance
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Numerous life insurance products sold
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Life insurance products available for foreign nationals
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Excellent AM Best financial strength rating
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Below-average J.D. Power customer satisfaction score
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Above-baseline NAIC complaint index
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Some products are not available in every state
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Whole life insurance combines life insurance with an investment component.
- Coverage for life
- Tax-deferred savings benefit if premiums are paid
- 3 variations of permanent insurance: whole life, universal life and variable life include investment component
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
- Fixed premium over term
- No savings benefits
- Outliving policy or policy cancellation results in no money back
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Transamerica life insurance endorsements
Each Transamerica life insurance policy type has its own set of unique endorsements and riders. To see the full list of riders for the type of life insurance you want to purchase, you may want to speak with a Transamerica life insurance agent, but be aware that adding endorsements to your policy will likely increase the cost of your life insurance. Bankrate has highlighted a couple of standout endorsements across different Transamerica life insurance policy types:
Term and whole life insurance endorsements
Index universal life insurance endorsements
Compare Transamerica with other insurers
The best life insurance company for you may vary based on your priorities. Whether you're seeking great customer service or the cheapest life insurance company, comparing different carriers may help you narrow down your choices. If you aren’t sure if Transamerica is the right fit, you could consider comparing life insurance quotes from these other providers:
Transamerica vs. MassMutual
MassMutual’s whole life insurance won our 2023 Bankrate Award for best whole life insurance company. The carrier offers a variety of riders, so it may be a good choice for those looking to customize their policy. It also earned a strong financial strength rating from AM Best and high customer satisfaction scores from J.D. Power.
Learn more: MassMutual Insurance Insurance review
Transamerica vs. Northwestern Mutual
If you’re more interested in term life insurance and you value digital tools, Northwestern Mutual could be a solid choice. Its term life insurance is flexible in allowing customers to select coverage based on years or until a specific age, and may also be converted into a whole life insurance policy.
Learn more: Northwestern Mutual Insurance review
Transamerica vs. Guardian
For those looking for a company with a wide variety of policy types and strong customer service, Guardian could be a good option. The carrier scored above average in J.D. Power's 2022 life insurance study and has strong financial strength ratings from AM Best.
Learn more: Guardian Insurance Insurance review
Transamerica life tools and benefits
The Transamerica Insights page on the company's website may be a helpful resource for customers seeking to learn more about life insurance and other financial products. The page features articles on topics like financial needs of caregivers and retirement planning. Transamerica also offers numerous guides to walk potential policyholders through subjects like financial goal planning and how to build emergency savings.
Is Transamerica a good insurance company?
Bankrate’s insurance editorial team consists of four licensed agents and, across the entire team, over 40 years of industry experience. Based on our analysis, Transamerica could be a good life insurance company for individuals looking for a wide variety of policy options and potential for policy customization. Transamerica also offers a host of other financial products, so it could be efficient for customers who prefer to conduct business with a single financial company. However, Transamerica receives mixed financial strength and customer satisfaction reviews, so you may want to speak with existing policyholders before purchasing a policy.
Transamerica customer satisfaction
To round out our Transamerica insurance review, Bankrate looks at a variety of metrics including J.D. Power customer satisfaction studies and financial strength ratings from AM Best. Transamerica received one of the highest ratings available for financial strength. If you’re considering other products from Transamerica, you should know that AM Best ratings apply across multiple product lines — not just life insurance.
Although it boasts impressive financial strength, Transamerica scored poorly in the 2022 J.D. Power Individual Life Insurance Study for overall customer satisfaction. In fact, Transamerica took the second to last spot on the list, squeaking out of last place by just three points.
| Study or Rating Agency | Transamerica | Industry average |
|---|---|---|
| 2022 J.D. Power Individual Life Insurance Study | 740/1,000 | 774/1,000 |
| 2022 J.D. Power Group Life Insurance Study | Not scored | 797/1,000 |
| AM Best rating | A (Excellent) | N/A |
Transamerica life complaints
The National Association of Insurance Commissioners (NAIC) complaint index is another helpful third-party metric to consider when shopping for a new insurance policy. Among other duties, the NAIC tracks complaints filed by a company’s policyholders for different product types, and converts the number of complaints into a score. This way, potential customers can get an idea of how many complaints an insurance provider typically receives, and which insurance lines are the most complained about.
The NAIC complaint index has a baseline score of 1.0: any score higher than this indicates that a provider receives more complaints than expected, and a lower score means that it receives fewer. Transamerica’s high NAIC complaint index helps put its low customer satisfaction score from J.D. Power into context. From 2020 to 2022, Transamerica’s NAIC complaint index hovered around around the 2.0 mark. This means that Transamerica, on average, received twice the number of life insurance complaints than expected for a company of its size.
Other Transamerica tools and benefits
In addition to life insurance, Transamerica offers a slew of financial products, including:
- Employer-sponsored retirement plans: (accordion) Employers looking to provide workplace benefits, like 401(k)s or other retirement benefits, may consider Transamerica.
- IRA rollover solutions: (accordion) Transamerica’s IRA rollover program can help you transfer your retirement account from your former employer to your own account.
- Annuities: (accordion) Transamerica offers both variable and structured annuities.
- Mutual funds: (accordion) For a lower-risk investment option, Transamerica offers a variety of mutual funds.
Product availability may vary by state, however. Speaking with a Transamerica representative may be the best way to find out what products are available to you.
Frequently asked questions about Transamerica