Trans America Life Insurance: Marijuana Testing Policy Explained

Marijuana users can get life insurance, but some companies are more lenient than others. Transamerica, for example, takes a liberal approach to underwriting when it concerns marijuana use. The company differentiates between ingested and smoked marijuana, with ingested use up to 12 times a year qualifying for standard non-smoker rates, and 13 times or more a year resulting in smoker rates. However, it's important to note that Transamerica will automatically decline an application if marijuana use is not listed on the application and the blood or urine test comes back positive.

Transamerica's underwriting guidelines for marijuana use

Transamerica Life Insurance Company offers a somewhat liberal approach to underwriting when it comes to marijuana use. The company offers two types of term life solutions, with coverage ranging from $25,000 up to $1,000,000 per policy. The majority of applicants must submit to an insurance medical exam, which includes blood and urine tests that show THC levels. However, applicants below a certain age and coverage amount may be approved without an exam.

The current underwriting guidelines for individuals who use marijuana are as follows:

• Using marijuana twelve or fewer times per year – Standard Non-Tobacco
• Using marijuana thirteen or more times per year – Smoker

It is important to note that any marijuana use should be listed on the insurance application. If marijuana use is not listed and the blood or urine test comes back positive, the application will be automatically declined. The type of marijuana consumption, whether smoked, vaped, or ingested as edibles, does not matter. Only the frequency of consumption is considered.

Transamerica's financial stability

Transamerica has a solid financial strength rating and is considered reliable. The company offers a range of insurance and financial services in North and South America and has five separate insurance companies under its umbrella, all of which have extremely high ratings from the top four financial rating services.

Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company, Transamerica Premier Life Insurance Company, Transamerica Advisors Life Insurance Company, and Transamerica Life Ltd. (Bermuda) all continue to demonstrate a solid ability to pay future claims and financial obligations. The company has an excellent financial strength rating from AM Best and is licensed to sell policies in Washington, D.C., and all U.S. states, except for some policies not available in New York.

Transamerica also offers a range of financial products, including employer-sponsored retirement plans, IRA rollover solutions, annuities, and mutual funds. The company's financial strength is further demonstrated by its collaboration with First Trust in May 2024, which aimed to enhance the growth potential of its annuity offerings.

However, it is worth noting that Transamerica has received lower-than-average customer satisfaction ratings and has a higher-than-expected number of complaints, according to J.D. Power and the National Association of Insurance Commissioners (NAIC) respectively.

Transamerica's history

Transamerica has a long history that dates back to the early 20th century. Here is a detailed overview of its history:

The Early Years:

In October 1904, A.P. Giannini founded the Bank of Italy in San Francisco. This was the beginning of what would eventually become Transamerica. Giannini's mission was to make financial services accessible to everyone, especially the working class. In 1906, an earthquake and fire destroyed the bank building, but Giannini persevered and set up a temporary bank to continue serving the community.

Expansion and Diversification:

About two decades later, in 1928, Giannini created the Transamerica Corporation as a holding company. This new entity owned several banks, including Bank of America, Bank of Italy, and Bancitaly Corporation, giving it significant financial assets. That same year, the Bank of Italy merged with Bank of America, Los Angeles, which was then renamed simply Bank of America in 1930.

Transamerica continued to expand its financial services by acquiring Occidental Life Insurance Company in 1930, marking its entry into the life insurance business. Over time, Transamerica grew into a diversified conglomerate with interests in banking, insurance, and other industries.

Focus on Financial Services:

In the 1950s, following government antitrust action, Transamerica underwent a reorganization. It separated its banking and non-banking activities, with a new corporation, Firstamerica Corporation, taking over the banks. This marked a shift in focus for Transamerica, as it began expanding into insurance and other financial services while divesting some of its non-finance businesses.

Continued Growth and Rebranding:

Transamerica continued to grow and diversify its financial services offerings. In 1972, it constructed the iconic Transamerica Pyramid skyscraper in San Francisco, which served as its headquarters for many years. During this period, Transamerica offered a range of insurance and investment services, including life, property, casualty, and title insurance, as well as sales financing, loans, and equipment leasing.

Divestments and Acquisition:

In the 1980s, Transamerica began divesting some of its non-core businesses, such as selling Budget Rent-A-Car Corporation and Transamerica Delaval Inc., to focus exclusively on financial services. During this decade, it also sold its subsidiary United Artists Corporation, a producer and distributor of motion pictures, records, and tapes.

In July 1999, Transamerica was acquired by Aegon NV, a Netherlands-based insurance company, marking a new chapter in its history. Transamerica became an independent subsidiary of this multinational company.

Recent Developments:

In recent years, Transamerica has continued to focus on its core businesses of insurance, retirement, and investment services. It offers various life and health insurance policies, retirement plans, and investment options. Transamerica has also been actively involved in sponsoring sports personalities and supporting third-party research and thought leadership initiatives.

In summary, Transamerica has a rich history that spans over a century, evolving from a community bank to a diversified financial services corporation with a strong presence in the insurance and investment sectors.

Transamerica's insurance products

Transamerica offers a range of insurance products, including life insurance, annuities, and retirement solutions. The company has a history dating back to the early 20th century when Amadeo Giannini founded the Bank of Italy in San Francisco. Over the years, Transamerica has expanded and diversified its financial services, and today, it offers a broad range of insurance products to meet various needs.

Transamerica's life insurance products include both term life and permanent life insurance options. Their term life insurance provides flexible choices of terms ranging from 10 to 30 years, with coverage amounts ranging from $25,000 to $1,000,000 per policy. The Trendsetter Super Series policy offers up to $1,000,000 in coverage and includes a conversion feature that allows policyholders to switch to permanent coverage at the end of the term without additional medical exams. The Trendsetter LB policy includes living benefits, providing an accelerated death benefit for those diagnosed with a qualified chronic, critical, or terminal illness.

Transamerica also offers whole life insurance, which allows policyholders to build cash value that can be accessed later. This type of permanent life insurance provides long-term financial security and can be used as a tool for wealth accumulation.

In addition to life insurance, Transamerica provides annuities, including variable annuities with different fee structures and surrender charge schedules. Annuities offer principal protection along with the opportunity for growth, making them a popular choice for retirement planning.

Transamerica's retirement solutions include Individual Retirement Accounts (IRAs) and tools for effective retirement planning, such as 401(k) and 403(b) management. They aim to help individuals and employees save for retirement and provide a secure financial future.

Overall, Transamerica offers a comprehensive suite of insurance products that cater to a wide range of needs, including life insurance, annuities, and retirement planning solutions. The company's financial strength and diverse offerings make it a reliable choice for individuals seeking financial security and protection for themselves and their families.

How Transamerica compares to other marijuana-friendly insurers

Transamerica is considered to be a marijuana-friendly insurer, taking a liberal approach to underwriting when it comes to marijuana use. The company offers non-smoker rates to those who smoke marijuana for fun or relaxation less than once a month. However, if you smoke marijuana more than 12 times a year, Transamerica will rate you as a smoker, which will impact your premiums.

Transamerica offers a range of life insurance products, including term life, whole life, universal life, variable universal life, accidental death, and final expense life insurance. The company is financially stable and well-managed, with high ratings from top financial agencies, suggesting it will honour all claims.

When compared to other marijuana-friendly insurers, Transamerica is found to be an extremely low-cost option for seniors. However, it is less competitive for younger applicants. For example, Brighthouse Financial and Lincoln Financial are good options for daily marijuana users, while Corebridge Financial is a solid choice for occasional users and those who use marijuana for medical reasons.

Overall, Transamerica is a reliable choice for marijuana users, offering reasonable rates and a range of insurance products. The company's underwriting guidelines for marijuana use are similar to other marijuana-friendly insurers, with the distinction being made between occasional and frequent users.

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