Transamerica Life Insurance Review | Complete Guide For 2020

Heidi Mertlich Heidi Mertlich Posted in Reviews
Last updated on March 2, 2020

Transamerica, with over 100 years of history, offers a wide variety of life insurance products.

Is it the right company for you? Possibly.

Plan to do a little digging, first, to determine if their products, prices, and processes meet your needs.

You have found the complete guide for Transamerica life insurance. Everything you need to know is covered, including a detailed life insurance overview, quotes, and frequently asked questions.

Table Of Contents

  1. Company Overview
  2. Life Insurance
  3. Quotes
  4. FAQs
  5. Next Steps

Transamerica Overviewtransamerica

Transamerica’s humble beginnings started in 1904 when Amadeo P. Giannini founded a bank in San Francisco.

Giannini hoped to make financial services available to everyone, a new concept in the early 1900s.

Along with their parent company, Aegon N.V., Transamerica now serves over 13 million customers in the United States.

Today, Transamerica is known for competitively priced products, including life insurance, but client experience is a concern.

Originally based out of San Francisco, where the iconic building still stands, Transamerica is now headquartered out of Cedar Rapids, Iowa.

Key Features

  • Affordable life insurance
  • Strong financial rating (A.M. Best – A)
  • Negative customer experiences (BBB Rating – F; with no accreditation)

Transamerica Life Insurance

Transamerica offers a number of life insurance products for you to consider.

Put simply, life insurance could be the most important purchase you ever make. – Transamerica

There are five primary types of life insurance products available. Discover the differences to determine the best option for you. transamerica

Quick Navigation Guide

  1. Term
  2. Whole
  3. Index Universal
  4. Final Expense
  5. Accidental
  6. Compare

Important – product details and availability are subject to change.

Transamerica Term Life Insurance

Term is the most common form of life insurance purchased, for good reason. It’s affordable and is available in large face amounts (policy size).

Features

  • Term lengths of 10, 15, 20, 25, and 30-years
  • Level premiums for initial term
  • Option to convert to a permanent product

Transamerica offers term coverage via two products:

  1. Trendsetter Super Series
  2. Trendsetter LB (living benefits)

There are a few key differences between the two term products.

Trendsetter Super

A term life insurance product in which you may purchase up to $10 million (or more) in coverage.

Essential facts

  • Face amounts: $25,000 – $10,000,000
  • Issue ages: 18 – 80
  • No medical exam option for up to $99,999
  • Policy fee $30 ($60 if policy is under $100,000)
  • Multiple health classes available

Living Benefits

Living benefits are features of your life insurance contract, in addition to the death benefit.

  • Terminal Illness Accelerated Death Benefit – the lesser of $1,500,000 or 100% of the face amount
  • Income Protection Option (IPO)

Riders

Riders can make all the difference during a difficult time.

  • Accident Indemnity
  • Children’s Insurance
  • Return of Premium
  • Waiver of Premium

Trendsetter LB

Term life insurance for up to $2 million that includes comprehensive living benefits.

Essential facts

  • Face amounts: $25,000 – $2,000,000
  • Issue ages: 18 – 85
  • No medical exam option for up to $249,999
  • Policy fee $30 ($60 if policy is under $100,000)
  • Multiple health classes available

Living Benefits

Trendsetter LB offers generous living benefits, via the Accelerated Death Benefit.

  • Chronic Illness
    • Must be unable to perform two of six activities of daily living or experience severe cognitive impairment
    • Minimum benefit: $1,000 per year
    • Maximum benefit: the lesser of $1,500,000 or 90% of the face amount
    • Maximum face amount acceleration: 24% per year
  • Critical Illness
    • Must suffer a critical health condition or paralysis
    • Minimum benefit: $2,500
    • Maximum benefit: the lesser of $1,500,000 or 90% of the face amount
    • Maximum face amount acceleration: 90%
  • Terminal Illness
    • Must have 12 months or less to live
    • Minimum benefit: $5,000
    • Maximum benefit: the lesser of $1,500,000 or 90% of the face amount
    • Maximum face amount acceleration: 100%
  • Income Protection Option (IPO)

Note – if you opt to utilize a living benefit, your death benefit is reduced accordingly.

Riders

  • Accident Indemnity
  • Children’s Insurance
  • Monthly Disability
  • Waiver of Premium

Who buys term life insurance?

Most people buy term.

If you are in need of life insurance protection for a specific period of time, say, when you are raising your children, term is an excellent option.

Highly affordable, term life insurance offers the ability to purchase a large face amount that won’t break the bank.

Transamerica Whole Life Insurance

Aptly named, whole life insurance lasts your whole life.

Also referred to as permanent coverage, Transamerica offers individual whole life insurance, for up to $2 million (or more).

Specifically, Transamerica’s whole life product is a “single-life, nonparticipating, limited-payment, and interest-sensitive”.

Essential facts

  • Face amounts: $25,000 – $2,000,000 
  • Issue ages: 20 – 80
  • Multiple health classes available
  • Cash value component you can access
  • Higher premiums than term
  • Level premiums during the Premium Payment Period

Additional features

  • Option to select a limited pay period
  • Accepts 1035 Exchanges (for plan takeovers)
  • Guaranteed coverage with guaranteed minimum cash values
  • Works for 412(e)(3) and split-funded defined benefit markets
  • Potential for net cash value
  • Rates are the same for males and females

Riders and options

  • Accelerated Death Benefit
  • Automatic Premium Payment provision
  • Coverage Continuation Option
  • Premium Loan Provision

Keep in mind – whole life premiums are significantly higher than for term life. However, your policy will not expire and it accumulates cash value.

Transamerica Index Universal Life Insurance

Index universal life insurance is a type of permanent coverage, with flexibility in premium payments and an investment component.

Transamerica offers the Financial Foundation IUL (FFIUL).

Typically, IULs are purchased by someone looking to utilize a policy for retirement funding and provide a death benefit to beneficiaries.

Policyowners have the option to change their policy face amounts once per year.

Keep in mind – IULs are exposed to the stock market, meaning that there is some risk to its cash value, beyond the guaranteed minimum rate.

Essential facts

  • Minimum face amounts: $25,000
  • Issue ages: 0 – 85
  • Multiple health classes available
  • Ability to accumulate cash value
  • Guaranteed minimum interest rate (guaranteed floor)
  • No-lapse guarantee with minimum monthly premium payment
  • Policy loan option

Additional features

  • Policy includes a basic interest account; plus two index account options
  • Policy illustrations available at any time
  • Death benefit has many uses:
    • Family financial protection
    • Key person insurance
    • Buy-sell agreement
  • Death benefit option may be changed after the third policy year

Riders and options

  • Base Insured
  • Long Term Care
  • Additional Insured
  • Children’s Benefit
  • Guaranteed Insurability
  • Disability Waiver of Monthly Deductions
  • Disability Waiver of Premium

Important – Transamerica also offers variable universal life insurance, another form of permanent coverage.

With variable universal life (VUL), your premiums are placed into investment accounts, in which money may accumulate over time, but there are risks involved.

Transamerica Final Expense Life Insurance

Final expense life insurance is a type of permanent coverage, designed specifically to cover end-of-life expenses.

For example, final expense may pay for medical bills, funeral costs, and burial services.

Face amounts are modest. Transamerica provides up to $50,000 in final expense coverage.

There is no medical exam required during underwriting and the application process is simple. Expect just a few health questions.

Transamerica offers three final expense policies:

  1. Immediate solution
  2. 10-pay solution
  3. Easy solution

Essential facts

  • Face amounts: $2,000 – $50,000
  • Issue ages: 0 – 80
  • Level premiums to age 121
  • No medical underwriting
  • First day, full coverage available
  • Cash value
  • Policy loan option

Transamerica Accidental Death Insurance

Accidental death insurance is not technically life insurance because it only provides a benefit if death occurs as a result of an accident.

The most common unintentional deaths occur as a result of:

  • Motor vehicle accidents
  • Accidental falls
  • Unintentional poisoning
Transamerica’s accidental death policies provide your family with financial assistance when it is needed. Transamerica

Transamerica offers two types of accidental death policies.

  1. Plan A – $250,000 for a covered accident
  2. Plan B – $125,000 for a covered accident

Note – the amount of coverage doubles if the death is caused by a common carrier, like commercial airlines, buses, or trains.

A family option is also offered.

This option provides an additional $125,000 in coverage for a spouse and $5,000 for your children for Plan A.

For Plan B, an additional $75,000 is provided for a spouse and $5,000 for children.

Compare Transamerica Life Insurance Products

Each life insurance product has different features. View side-by-side comparisons. 

Compare Transamerica Life Insurance

ProductFace AmountPermanent CoverageNo Medical Exam
Term$25,000 - $10,000,000NoSometimes
Whole$25,000 - $2,000,000YesNo
Index UniversalMinimum of $25,000YesNo
Final Expense$2,000 - $50,000YesYes
Accidental Death$125,000 - $250,000NoYes
Subject to change

Transamerica Life Insurance Quotes

To get a general idea of Transamerica’s life insurance rates, consider the following sample quotes.

Keep in mind, though, sample quotes are just that – samples of how much a policy costs.

Term

Below are example rates for 10-year term life insurance from Transamerica.

Transamerica Term Life Insurance Quotes Male

 $100,000$250,000$500,000
20 year old$13.24$17.20$24.51
30 year old$10.06$11.83$14.62
40 year old$13.33$16.99$23.22
50 year old$20.21$30.96$52.46
60 year old$42.66$77.62$131.58
70 year old$110.77$221.24$418.82
80 year old$388.03$777.01$1514.46
Subject to change. 10-year term.

Transamerica Term Life Insurance Quotes Female

 $100,000$250,000$500,000
20 year old$11.95$11.61$12.90
30 year old$9.72$10.75$12.90
40 year old$12.47$15.27$19.78
50 year old$17.46$26.45$42.14
60 year old$36.98$63.86$112.23
70 year old$90.13$181.46$332.82
80 year old$324.74$681.98$1267.21
Subject to change. 10-year term.

Final Expense

Transamerica Final Expense Life Insurance Quotes Male

 $5,000$25,000$50,000
20 year old$10.08$36.10$68.64
30 year old$11.50$43.20$82.83
40 year old$14.51$58.27$112.97
50 year old$17.56$73.50$143.44
60 year old$23.69$104.17NA
70 year old$39.11$181.28NA
80 year old$71.90$345.21NA
Subject to change.

Transamerica Final Expense Life Insurance Quotes Female

 $5,000$25,000$50,000
20 year old$8.83$29.86$56.14
30 year old$10.12$36.34$69.11
40 year old$12.59$48.68$93.80
50 year old$14.77$59.59$115.60
60 year old$18.64$79.84NA
70 year old$28.78$129.63NA
80 year old$53.84$254.92NA
Subject to change.

Additional quotes can be found using the instant quote form. 

Frequently Asked Questions

Commonly asked questions about Transamerica and their answers.

Is Transamerica life insurance good?

Transamerica has strong financial ratings (A.M. Best gives them an A).

They provide a wide range of insurance products with competitive pricing.

However, Transamerica does have poor customer-service ratings.

In fact, the Better Business Bureau gives them an F, and J.D. Power rates them, “below average” in all customer satisfaction categories.

Should I buy a Transamerica policy?

Only purchase life insurance through Transamerica if it is the best policy option to meet your needs.

You will want to collaborate with an independent agent to evaluate Transamerica and other carriers to compare and contrast.

Your needs should be based on the following, to start:

  • Who is the life insurance for?
  • Purpose of the life insurance policy
  • Financial needs of those who depend on you
  • Annual income
  • Monthly monetary requirements
  • Long-term financial goals

What type of Transamerica life insurance should I look at?

Your financial needs determine the type of life insurance you should buy.

For temporary coverage with the most bang for your buck, look to term.

If your needs are indefinite and you’re interested in a cash-value component, consider whole life or a variable life product.

And, for example, if you are considering life insurance for seniors and need end-of-life financial protection, look to final expense.

Finally, an accidental death insurance policy provides protection for qualifying accidents and might be an option if you would otherwise not qualify for coverage.

Do I need to take a medical exam?

It depends.

Most of Transamerica’s traditional life insurance products do require a medical exam.

Certain term life insurance policies are available for simplified underwriting, if you meet certain criteria, namely face amount, age, and overall health.

Additionally, final expense products never require an exam.

Next Steps

There are a couple of things to do in order to determine if Transamerica, or any carrier for that matter, is right for you.

Understand your needs

Before applying for life insurance, it’s in your best interest to understand your coverage needs.

Conduct a needs analysis and determine how long you will need coverage for.

Also, note if you have experienced major medical events because it can impact the type of policy you qualify for.

Independent agent

By collaborating with an independent agent, you have someone sitting on the same side of the table as you, so to speak.

Importantly, you will have access to multiple quotes from top-rated life insurance companies. That way, you can rest assured you are applying for the best policy at the best rate you qualify for.

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