Transamerica Life Insurance Review

This financial giant makes a solid match for those looking for a variety of life insurance solutions. 


Life insurance products offered:

  • Term Life
  • Whole Life
  • Universal Life
  • Indexed Universal Life
  • Final Expense

Offering a huge selection of different types of life insurance policies including Term Life, Whole Life, Universal Life, Variable Life, Final Expense, Accidental…you name it and Transamerica probably has it. Below is a brief synopsis of the two main products: term life insurance versus permanent life insurance.

Transamerica life insurance: Who is it best for?

  • Anyone looking for a variety of life insurance solutions: Transamerica offers a variety of permanent and term life insurance policies to fit your needs.
  • People who are 71+: Transamerica offers liberal underwriting for those 71 and older and offers competitive rates for this age group when many companies will no longer issue a life insurance policy.
  • Those who don’t want to take a medical exam: Transamerica has multiple policy options that don’t require a medical exam.

How much does life insurance with Transamerica cost?

Term life insurance: 30 year old female, excellent health

  $100,000 $250,000 $500,000 $1M
10 year $10 $11 $12 $18
20 year $10 $14 $20 $34
30 year $12 $18 $30 $51
No Exam (10 year term) $16 $35 N/A N/A

Sample quotes based on Clearlink partner and are for illustration purposes only. Actual quotes may vary. Data effective 5/9/2019.

Term life insurance: 30 year old male, excellent health

  $100,000 $250,000 $500,000 $1M
10 year $20 $31 $52 $93
20 year $27 $51 $95 $178
30 year $41 $93 $175 $339
No Exam (10 year term) $35 $85 N/A N/A

Sample quotes based on Clearlink partner and are for illustration purposes only. Actual quotes may vary. Data effective 5/9/2019.

Term Life Insurance

The company’s level term life insurance comes in three flavors: a no medical exam term policy with a face amount limit of $250,000, a return of premium term policy, and a typical fully underwritten term life insurance policy with terms of 10, 15, 20, 25, and 30 years.

Transamerica Trendsetter Series offers initial level premium term products. The three main products are Trendsetter Super, Trandsetter Express, and Trendsetter Living Benefits.

All three offer non med underwriting options for certain face amounts (up to $99,999 for Super, and up to $249,999 for Express and LB). Face amounts come in ranges from $25,000 on up. And each offers a terminal illness rider at no additional cost (where applicable). However, Trendsetter LB offers some additional coverage in the form of living benefits.

Transamerica Life offers excellent permanent life insurance via the company’s universal and whole life insurance products.

Universal Life Insurance

Universal Life insurance is similar to whole life but with more flexibility in the premium. You can pay a higher or lower premium throughout the life of the policy depending on your financial health. You can also lower or raise your death benefit if needed.

Indexed Universal Life Insurance is a good alternative for those looking for permanent cash value life insurance that has the potential for higher returns than universal life and whole life, but without the risk of variable life, since it is not invested directly into equities.

With indexed universal life your credited interest is based on a formula that takes into account a specific market performance.

Indexed Universal Life

Transamerica Premier Life Insurance Company offers one of the top selling indexed universal life policies in the U.S. The policy offers a fixed account with a guaranteed 2% floor and a guaranteed 0.75% floor in the indexed accounts.

You can choose to allocate your funds to a fixed account that earns an interest rate declared by the company or to an indexed account that tracks the S&P 500 minus dividends, or the S&P 500, EURO STOXX 50 and Hang Seng.

Each index has a cap which represents the maximum amount of interest credited for each segment period of one year. Index caps fluctuate up and down, but will never be less than the declared rate on the fixed account.

You can choose from two death benefit options. Option 1 is a level death benefit and option 2 is an increasing death benefit. You can change the death benefit option once a year after the third policy year.

You can add an additional Long Term Care Rider to your policy that allows you access to the death benefit to help you cover costs associated with long term care.

The Income Protection Option (IPO) allows a different death benefit payment other than a lump sum. Monthly income payments can be between 5 and 25 years. The goal of the IPO rider is to pay out the death benefit over a longer period of time to protect the beneficiary from the typical lump sum, which essentially amounts to a “blank check”.

A Guaranteed Insurability Benefit Rider is available, making this a great life insurance policy for children or young adults. The rider allows the purchase of additional coverage without proof of insurability at specific ages, or alternatively, on certain special occasions such as marriage or the birth of a child.

Guaranteed Whole Life

The company’s guaranteed whole life insurance policy includes a guaranteed death benefit, guaranteed level premiums and builds guaranteed cash value that can be borrowed against to be used for whatever you need.

Life insurance loans are available using your cash value as collateral. The loan accrues interest, but the interest due does not have to be paid back. However, any outstanding loan plus interest due will be taken out when the death benefit is paid to your life insurance beneficiary.

Final Expense

Graded death benefit products are typically reserved for anyone looking for burial insurance or final expense insurance. The following whole life policies are available through Transamerica:

Immediate Solution: fixed premiums. Issue ages 0-85. Minimum issue amount $1,000. Maximum: Ages 0-55 maximum issue amount $50,000, 56-65 $40,000, 66-75 $30,000, 76-85 $25,000.

10 Pay Solution: level premiums FOR 10 YEARS. Issue ages 0-85. Minimum issue amount $1,000. Maximum: Ages 0-55 maximum issue amount $50,000, 56-65 $40,000, 66-75 $30,000, 76-85 $25,000.

Easy Pay Solution: level premiums to age 121. Available for ages 18-80. Death benefit for the first two years: 100% for accidental death or 110% of premiums paid. After the first two years the policy will pay 100% of the death benefit.


Why you should consider Transamerica

Pros

  • Financially stable
  • Variety of life insurance policies
  • No medical exam options

Cons

  • Not competitively priced for those under 70
  • >$250k requires medical exam

Living benefits life insurance can be highly advantageous because it protects the insured in death and also in life. Trendsetter LB offers a disability rider, terminal illness rider, chronic illness rider and critical illness rider.

  • Disability rider covers the insured if they suffer a qualifying disability and are unable to work.
  • Critical illness covers the insured if they suffer a critical health condition or paralysis.
  • Chronic illness covers the insured if they are unable to perform 2 of 6 Activities of daily living (ADLs) or severe cognitive impairment.

And the terminal illness rider kicks in if the insured is diagnosed terminally ill with less than 12 months to live.

Conversion Option

Transamerica offers convertible term life insurance on its policies. If you choose to convert your policy to permanent coverage down the road, you can convert all or a portion of the face amount to permanent life insurance with no evidence of insurability, i.e. no health questions and no medical exams required. Instead, the company converts the policy to permanent coverage based on your original health class rating.

Term Life Insurance Riders

Transamerica offers several life insurance riders, including:

  • Children’s insurance rider: life insurance children (ages 15 days – 18 years old)
  • Accident indemnity rider: pays an additional death benefit if the insured dies as a result of an accidental bodily injury.
  • Return of premium rider (for 20 & 30 year terms): return of premium life insurance returns 100% of eligible premiums at the end of the term.
  • Waiver of premium rider: a waiver of premium rider provides that premiums are waived after a 6 month period if you become totally disabled.

How Transamerica stacks up

All good Transamerica Life Insurance Company reviews will touch on the company’s strong ratings. As of April 2019, Transamerica Life has an A+ rating from A.M. Best Company, the premier rating agency for life insurance. What that means for you, the consumer, is that you are in secure hands with Transamerica Life. Rest assured this company will be able to pay out on your death claim.

Transamerica Financial Ratings  
A.M. Best (FSR) A+
S&P AA-
Moody’s A1
Fitch A+

Table created using information available at AMBest.com, StandardAndPoors.com, Moodys.com, and FitchRatings.com. Data effective 4/12/2019.


Bottom Line: Transamerica is a great option if you are over 70

Transamerica is a top life insurance company and has been for years. They are well known in the life insurance industry, especially for the company’s niche market—elderly consumers, see best life insurance for seniors.

Transamerica Life Insurance Company has positioned itself to be the leader in the life insurance world for older clients. However, the company is not always competitive with younger clients. As a result, for most people under the age of 70 there may be a better option.

That is why it is so important for people seeking Transamerica Life Insurance Company reviews to keep their options open. It is only by choosing an agency that represents multiple life insurance companies that you can guarantee that you are receiving the best rate and the best price on life insurance—for you.


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