Transamerica Life Insurance: Is It A Good Option?

Transamerica offers a wide range of life insurance options, including term, whole, and universal policies, with coverage of up to $10 million. The company has strong financial strength, but its customer satisfaction ratings are below average. Transamerica's life insurance policies are available to applicants up to 85 years old, with some plans not requiring a medical exam. The company also offers retirement services, mutual funds, and annuities.

Transamerica's customer satisfaction ratings

The National Association of Insurance Commissioners (NAIC) complaint index further underscores this, with a score two times higher than the baseline from 2021 to 2023, indicating higher-than-average customer complaints.

Customer reviews on Reddit and Trustpilot also reflect issues with delays in claims processing, unresponsive customer service, and difficulties in policy cancellations. However, it's important to note that people often leave reviews due to negative experiences, which may not represent the overall customer base.

Transamerica's financial strength

Transamerica has strong financial strength, with a rating of A+. The company offers a wide variety of plans, including term, whole life, and universal policies, with coverage limits that are very flexible. There are some age restrictions in place, however. For example, its Financial Foundation IUL policy has an issue age limit of 85 years old in most states and 75 in Florida. The company's Final Expense policy can be issued to applicants up to 85 years old, depending on the state and type of policy.

Transamerica's term life insurance options include the Trendsetter Super Series and the Trendsetter LB. The former offers coverage limits of $10 million and above, while the latter provides coverage of up to $2 million. The Trendsetter Super Series is the only plan that offers online quotes and applications. It also offers exam-free options for qualified applicants seeking a policy of less than $2 million.

The company's whole life insurance options include the Individual Whole Life Insurance plan and the Final Expense Life Insurance policy. The universal plans are the Transamerica Financial Foundation IUL and Financial Choice IUL, which are indexed universal life policies.

Transamerica's maximum coverage varies by product and the applicant's eligibility. The company's life insurance policies are available in all 50 states, although availability varies by product.

Transamerica's insurance riders

Transamerica offers a range of riders to provide additional coverage and customisation to your policy. These riders can be added to your policy to enhance your benefits and protection. Here is a detailed overview of the riders available from Transamerica:

Living Benefit Riders

Living Benefit Riders offer coverage for various illnesses and provide benefits that can be accessed while the policyholder is still alive. These riders include:

• Chronic Illness Rider: Provides benefits to help cover costs associated with chronic illnesses.
• Critical Illness Rider: Offers coverage for critical illnesses, providing financial support during critical health events.
• Terminal Illness Accelerated Death Benefit Rider: Allows policyholders to access death benefits early if they are diagnosed with a terminal illness.

Accidental Death Benefit Rider

This rider provides additional coverage in the event of an accidental death. It can help provide financial security for your loved ones in case of an unexpected accident.

Children's Benefit Rider

The Children's Benefit Rider extends coverage to your children or grandchildren, ensuring their financial well-being in the event of your death.

Disability Waiver of Premium Rider

This rider waives the premium payments if the policyholder becomes disabled and unable to work. It helps keep the policy in force during a period of disability.

Income Protection Option

The Income Protection Option rider provides a source of income if the policyholder becomes disabled and unable to work. It can help replace a portion of lost income during the disability period.

Guaranteed Insurability Benefit Rider

This rider guarantees the policyholder's ability to purchase additional coverage at specified times in the future without providing further medical evidence. It offers the flexibility to increase coverage as your needs change.

Other Riders

Transamerica also offers other riders, such as the Overloan Protection Rider, Additional Insured Rider, Concierge Planning Rider, and more. These riders provide additional customisation options to your policy and are designed to meet specific needs.

When considering Transamerica's insurance riders, it is important to discuss your options with an agent to determine which riders are available for your specific policy and whether they align with your coverage goals and requirements.

Transamerica's insurance plans

Transamerica offers a wide range of insurance plans, including term, whole, and universal life insurance policies. The company was founded in 1904 as a bank and is now headquartered in Cedar Rapids, Iowa. Today, Transamerica offers retirement services, mutual funds, annuities, and various life insurance policies.

Term Life Insurance

Transamerica offers two types of term life insurance policies: Trendsetter Super and Trendsetter LB. The main difference between the two is that the Trendsetter Super offers coverage limits of $10 million and above, while the Trendsetter LB provides coverage up to $2 million. The Trendsetter Super is the only plan that offers online quotes and applications. Both plans offer flexible coverage amounts, term periods, and optional rider benefits. They also provide accelerated death benefits for qualifying terminal illnesses.

Whole Life Insurance

Transamerica has two whole life insurance plans: Individual Whole Life Insurance and Final Expense Life Insurance. The individual whole life insurance policy offers a tax-free death benefit, a tax-deferred cash value that can be accessed during the insured's lifetime, and a guaranteed level premium. It also offers living benefit riders for chronic, critical, and terminal illnesses, as well as other customization options.

The Final Expense policy offers coverage ranging from $1,000 to $50,000, an accelerated death benefit, an accidental death benefit, and a children's and grandchildren's death benefit.

Universal Life Insurance

Transamerica provides two indexed universal life (IUL) policies: the Transamerica Financial Foundation IUL and the Financial Choice IUL. Both policies offer death benefit protection and the potential for cash value accumulation. The Financial Choice IUL is designed for high earners who want to maximize cash value and enjoy tax-advantaged income distributions, while the Financial Foundation IUL caters to a broader audience with its emphasis on flexible premiums. Both plans include living benefit riders for critical, chronic, or terminal illnesses.

Pros and Cons of Transamerica Life Insurance

Transamerica offers a variety of life insurance products, including options for foreign nationals. The company has strong financial strength ratings, but its customer satisfaction scores tend to be below average. Some of the pros of choosing Transamerica include the range of life insurance products available, the excellent AM Best financial strength rating, and the availability of plans that do not require a medical exam. However, there are also cons to consider, such as below-average customer satisfaction ratings, an above-baseline NAIC complaint index, and the fact that some products are not available in every state.

Transamerica's history and services

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

History

Transamerica has gone through several iterations and mergers over the years. The original Transamerica life insurance company was founded in 1906 as the Occidental Life Insurance Company, a West Coast-based insurer. In 1930, it was acquired by A.P. Giannini's Transamerica Corporation, a holding company that owned Bank of America, among other banks. Following the acquisition, Occidental was renamed Transamerica Occidental Life Insurance Company.

Transamerica Corporation itself was founded in October 1928 by A.P. Giannini, who had previously founded the Bank of Italy (later Bank of America) in San Francisco in 1904. The Transamerica Corporation's original headquarters were located in San Francisco, and it primarily focused on banking activities.

In the 1970s and 1980s, Transamerica began to diversify and focus more on financial services. They sold off some of their non-core businesses, including Budget Rent-a-Car and United Artists, and expanded their insurance and investment offerings. In 1999, Transamerica became an independent subsidiary of the multinational company Aegon, an insurance company based in the Netherlands.

Services

Transamerica primarily offers insurance, retirement, and investment services. On the insurance front, they provide life and supplemental health insurance, including term life, whole life, universal life, variable universal life, accidental death, and final expense policies. They also offer a range of mutual funds and annuities.

Transamerica's retirement services include defined benefit pension plans and defined contribution retirement plans, such as 401(k) and 403(b). They also provide plan-level record-keeping, administrative services, participant education, fiduciary risk mitigation, and compliance guidance.

In addition, Transamerica has a history of supporting third-party research and thought leadership, partnering with organizations like the Massachusetts Institute of Technology AgeLab, the American Heart Association, and Stanford's Center on Longevity.

Frequently asked questions