Transamerica is a long-tenured life insurance company with strong financial backing, offering several life insurance products for young and old alike. Its term policies for younger, healthy individuals offer very competitive rates along with no medical exam required.
- Pros and Cons
- Key Takeaways
Wide array of policies for all age ranges
Many no-exam policies available
Life insurance explorer to help users find the right policy
Better-than-average rates for smokers or those in poor health
Can borrow against cash value of some policies
Most policies offer a level premiums
Mobile app available
Customer service rankings are less than average (NAIC and J.D. Power)
Many policy quotes require talking to an agent directly
Universal and whole life cancellation policies are not publicly available
- Transamerica is a long-standing life insurance provider with excellent financial strength.
- There are several term, whole, and universal life policies available along with several rider options.
- Transamerica’s customer satisfaction rating with J.D. Power and NAIC is below average.
- Transamerica offers six types of life insurance policies with several riders available.
- Year Founded 1930
- Kinds of Plans Term, Whole, Universal, Indexed Universal, Final Expense
- Number of Plans 6
- Payment Options Monthly, Annual
- Official Website https://www.transamerica.com/individual/
Transamerica Life Insurance offers term, whole, universal, and final expense life insurance at reasonable rates. We researched Transamerica’s financial stability, policy plan options, riders, website tools, and customer service reviews to help you compare the life insurance policy options of Transamerica with the competition.
Transamerica Life Insurance, originally part of Bank of America, was founded in 1904 and became its own entity in 1956. It is now a subsidiary of Aegon US Holding Group and is the eighth largest life insurance company in the U.S. by market share.
Transamerica offers term, whole, and universal life insurance policies for all ages. There are several policy riders available as well to help add additional coverage options and flexibility to your policy. Policy quotes are available online, but many of the policy estimates require you to talk directly to an agent for an exact quote.
Transamerica Life Insurance is licensed in all 50 states, but actual availability varies by product and state.
Transamerica also offers retirement accounts (IRAs), mutual funds, ETFs, annuities, and supplement insurance products as employee benefits.
Transamerica Life Insurance offers six types of life insurance plans including term, whole, universal, and variable universal plans, as well as final expense plans. With so many options available, the company has built in a “Plan Explorer” tool to help guide users toward the right policy.
Trendsetter Super Series Term Life Insurance
The Transamerica Trendsetter Super Series is its standard term life offering with coverage running from 10 to 30 years and benefits from $25,000 to $10,000,000. The Super Series is a convertible term life policy that can be converted into a whole life policy at the end of the term.
Trendsetter LB Term Life Insurance
The Trendsetter LB is a term life insurance policy with living benefits, meaning policyholders can access a portion of their death benefit early if certain health conditions arise. According to the website, customers may qualify for the “accelerated death benefit in the event of a qualifying chronic, critical, or terminal illness, while the insured is alive.”
Coverage is available up to $2,000,000.
Whole Life Insurance
Transamerica’s whole life offering is a permanent life insurance policy with benefits ranging from $25,000 to $2,000,000 in coverage. As with other whole life policies, these policies can accumulate cash value which can be borrowed against or accessed early with optional riders. These policies have a guaranteed cash value and level premiums throughout the life of the policy.
Indexed Universal Life Insurance
Transamerica offers universal life insurance with flexible insurance premiums, which can be split between a basic interest account and two index accounts. The indexed accounts may earn interest based on changes in the value of an index or indexes.
Transamerica Financial Foundation Indexed Universal Life Insurance
The Transamerica Financial Foundation IUL (FFIUL) is a universal life insurance policy that gives customers a guaranteed minimum interest rate, as well as a no-lapse guarantee. Policyholders can grow their policy value through excess index interest (above the guaranteed minimum) which is accumulated based on investment market index changes. This account also allows potential access to tax-free loans or withdrawals against the accumulated cash value in the account.
Quotes are not available online for indexed variable life insurance.
Final Expense Life Insurance
Transamerica offers three final expense life insurance policies, designed to help cover end-of-life costs such as burial and funeral expenses. These are permanent life policies that accrue tax-deferred cash value that can be borrowed against if needed.
- Immediate Solution: Available for purchase from ages 0 to 85; coverage can extend until age 121.
- 10-Pay solution: Available for purchase from ages 0 to 85, premiums payable for 10 years
- Easy Solution: Available for purchase from ages 18 to 80 (only ages 50 to 75 in New York)
While the minimum death benefit for the final expense plans is $10,000, the maximum depends on the plan you choose. The Easy Solution Plan has a maximum death benefit of $25,000. The 10-Pay Solution and Immediate Solution plan maximum death benefits depends on your age:
- Age 0 to 55: $50,000
- Age 56 to 65: $40,000
- Age 66 to 75: $30,000
- Age 76 to 85: $25,000
Transamerica offers access to several riders for their life insurance policies. A rider is an optional policy enhancement that adds additional benefits or custom coverage options to the insurance policies. Rider fees are typically billed as a small percentage of the policy premium, or as a flat annual fee. Fees vary by policy, product, and options selected.
Here are a few of their rider options for Transamerica Life Insurance:
Accelerated Death Benefit Rider with Nursing Home Benefit
While subject to state availability, this rider pays the policy face value upon a qualifying diagnosis or confinement in a qualified nursing home facility. The total paid would first pay back any interest discount, loans, administrative charge, or any premiums that would be due in the next year (upon diagnosis or nursing home confinement)
Return of Premium Rider
This benefit is offered to certain term life insurance policyholders that outlive their policy. Transamerica will return eligible premiums paid for the life of the policy, excluding substandard premiums, rider premiums, and outstanding loans. Speak with an agent directly about the terms of this offer.
Disability Waiver of Premium Rider
If you become disabled, you may be eligible to have your premiums waived (after a six-month waiting period).
Monthly Disability Income Rider
If you become disabled (for 90 days or more), you may be eligible to receive up to $2,000 of your monthly income for a period of two years.
Accidental Death Benefit Rider
This rider pays an additional benefit if the policyholder’s death is due to an accident. There may be additional payment if the death is caused by a “common carrier” such as a bus or train. This rider also carries additional financial support if the insured loses sight or limbs due to the accident.
Children’s and Grandchildren’s Benefit Rider
This rider offers level-term life insurance for your children or grandchildren. This policy is only available if the parent or grandparent is between 18 and 75 years old and the child is between 15 days and 18 years old.
Coverage benefits range from $1,000 to $5,000, and the policyholder can only cover up to nine children or grandchildren with this rider.
Customer Service: Many Ways to Connect
Transamerica Life Insurance offers support over the phone, online, or in-person at one of their local offices. They also have an app to access your account on your mobile device.
Transamerica Life Insurance customer service business hours are Monday-Friday 9:00 a.m. to 6:00 p.m ET.
Transamerica Life Insurance does not offer live chat support online.
Customer Satisfaction: Lower Than Average Scores
According to the National Association of Insurance Commissioners (NIAC) complaint index, Transamerica receives more complaints than the industry average life insurance company. While an average complaint score is 1.0 (the lower, the better), Transamerica received a 1.31 score. They have improved over their 2018 score of 1.46, but are slightly up from their 2019 score of 1.26. Overall, this is expected from a life insurance company this size.
J.D. Power also ranks companies based on customer satisfaction, and they ranked Transamerica 18 out of 23 life insurance companies in the U.S. in their 2020 Life Insurance Study. This is a slight improvement from their 2019 ranking (20 of 23), but still toward the bottom of the rankings. This customer satisfaction rating is based on their application and orientation (on-boarding process), communications, interaction, price, product offerings, and statements.
Financial Strength: A (Excellent)
Transamerica Life Insurance is a strong financial company with an A (Excellent) rating from AM Best. Good financial stability and a high rating from AM Best gives customers confidence that their policy benefits will be paid out when they make a claim.
Cancellation Policy: Hard to Find for Most Policies
Most states require a minimum “free-look” period for insurance policies. If a customer decides to cancel for any reason within that period, they will receive a full refund of premiums paid. Transamerica doesn’t advertise their free-look period, which means they are providing the minimum amount of time the state allows (usually 10 days).
After the free look period, cancellation terms vary between life insurance policies. Transamerica Term life policies can be canceled at any time, but will not provide a refund of premiums paid.
For whole and universal life policy cancellations, you will need to reach out to a Transamerica agent for specifics.
Transamerica’s cancellation fees are not publicly listed and may vary per policy.
Price of Transamerica Life Insurance: Low Cost for Young, Healthy Adults
Transamerica Life Insurance premiums vary by policy, but they are fairly competitive with their term life policies for young, healthy adults. We compared the cost of a 20-year “Trendsetter Super Series” term policy for both males and females, assuming a non-smoker in “very good” health living in Florida. We previewed these rates for a $300,000 policy, for participants age 20, 30, and 40 to compare premiums. Rates were obtained from the TransAmerica website.
Quotes are based on age and the answers to their short health questionnaire. Premiums can be paid monthly, quarterly, semiannually, or annually.
Term Life Rates
How Transamerica Life Insurance Compares to Other Life Insurance
Transamerica Life Insurance offers quite a few policy options for every stage of life. Its term policies offer competitive rates for healthier participants, while the whole and universal life policies give maximum flexibility with various options and additional riders available.
That being said, the customer service scores leave something to be desired. Transamerica scores below-average with the NAIC as well as J.D. Power customer satisfaction ratings. The company also does not offer online quotes for many of the cash-value policies, instead requiring that applicants talk to an insurance agent.
Transamerica Life Insurance vs. John Hancock Life Insurance
Both Transamerica and John Hancock offer a variety of life insurance policies, including term, whole, and universal life policies. Both companies also offer no-exam term life insurance for young, healthy applicants.
Here are a few key differences between Transamerica and John Hancock:
- John Hancock offers significant savings to smokers with their Quit Smoking incentive.
- Transamerica offers convertible term life options (convert to whole life policy) while John Hancock does not
- John Hancock offers rewards for healthy activities, like going for a walk or buying healthy food.
- Transamerica has local offices around the country, easily found using their Agent Locator tool.
While Transamerica offers great rates for its term policies for healthy individuals, smokers may benefit more from John Hancock’s Quit Smoking incentive plan, giving a significant discount on premiums for up to three years.
Read our full John Hancock Life Insurance review.
|Transamerica Life Insurance||John Hancock Life Insurance|
|Market Share||Eighth-largest in the U.S., 2.80%||Ninth-largest in the U.S., 2.73%|
|Number of Plans||6||14|
|Online Quotes Available?||Yes (term life only)||No|
|Service Method||Email, phone, in person||Email, phone|
|AM Best Rating||A (Excellent)||A+ (Superior)|
|Complaints Index||1.31 (below average)||1.53 (far below average)|
Transamerica offers a decent selection of life insurance policies for all ages with flexible term options and additional riders for customized coverage. It shines when it comes to its term life policies for younger, healthy individuals, offering competitive rates and potentially no medical exams for 10- to 30-year policies.
Their customer satisfaction ratings from both NAIC and J.D. Power are below average for the industry, but their financial strength and long-term history in the industry make them a reliable option for life insurance.
All of our reviews of life insurance companies are based on extensive research and analysis of each company based on offerings, customer service, financial stability, cost, and more. For each company, we compared the life insurance products offered, as well as available features, and reported customer experiences. Visit our life insurance review methodology for the full breakdown of what we evaluated for over two dozen companies.