transamerica life insurance company review

Transamerica

In 1904, Transamerica was started in San Francisco to help make financial services available to all people.

Is Transamerica a Good Life Insurance Company?

The parent company for Transamerica is Aegon.

A world-leading financial organization with more than 29 million customers and 921 billion euros in revenue.

Both term life insurance and permanent life insurance policies are available.

Financial Strength

  • AM Best – “A” (3rd of 16) – 10/20
  • Moody’s – “A1” (5th of 21) – 10/20
  • S&P Global – “A+” (5th of 21) – 03/21

Ratings are subject to change

While Transamerica has solid ratings and financials, there’s more to the company than just that.

We work with many life insurance companies and Transamerica used to be a favorite of ours, but no more.

Operationally, Transamerica is a nightmare to work with right now.

We tell clients to avoid them unless the client is prepared to wait a long time for underwriting. (updated 04/2021)


Transamerica Term Life Insurance

Two term life insurance products are available and we’ll provide you with Transamerica life insurance quotes for both.

The Trendsetter Super Series and the Trendsetter LB Series, with LB standing for “Living Benefits”.

Super Series is a traditional level term life policy while the LB is also level but has living benefits built into the policy.

Super
Series
LB
Series
Minimum Face$25,000$25,000
Term Length YearsYRT
10
15
20
25
30

10
15
20
25
30
Conversion?YesYes
Riders Available:
Term. Illness Accel. DBYesYes
Accidental Death BenefitYesYes
Children’s Insurance RiderYesYes
Disability WaiverYesYes
Monthly Disability IncomeNoYes
Chronic Illness Accel. DBNoYes
Critical Illness Accel. DBNoYes

There are only a handful of companies that offer term life insurance in face amounts less than $100,000.

Besides Transamerica, other companies that do include Assurity and Illinois Mutual.


Riders Offered by Transamerica

The following are general descriptions of riders.

The availability and details vary by your state of residence.

We’ll provide you with full illustrations if you consider any of these options.

Terminal Illness Accelerated Death Benefit – This rider accelerates a portion of the death benefit should you be diagnosed with a terminal illness.

Death is expected to result within 12 months.

There is no cost for the rider but there is an administrative fee paid if used.

Available with Super Series and LB Series policies.

The maximum amount that may be accelerated is 100% of the death benefit or $1.5 million, whichever is less.

The minimum amount that may be accelerated is $5,000.


Accidental Death Benefit Rider – If the face amount of your policy is less than $200,000, the maximum rider is equal to the policy face amount x 2.5 or $200,000, whichever is less.

If your policy is $200,000 or greater, the maximum rider is the face amount of your policy or $300,000, whichever is less.


Children’s Insurance Rider – Available for children age 15 days to 18 years.

Coverage expires on the child’s 25th birthday.

Policy amounts from $1,000 – $25,000 are available.

The child rider may be converted to a permanent insurance policy for up to 5 times the rider or $50,000, whichever is less.


Disability Waiver of Premium Rider – If you become disabled for a minimum of 6 months, this rider will waive premiums.

Premiums are waived during disability and also waived retroactively from the beginning of the disability.

There is an additional cost for this rider.


The following are Trendsetter LB Riders Only:

Monthly disability income rider (MDI) – This rider is available with the Trendsetter LB policy.

This rider provides a monthly income for up to 24 months, if the insured is totally disabled and qualifies.

The rider is available with the 15, 20, 25 and 30 year term policies.

It is not available for the 10 year term.

The minimum benefit is $300 per month.

The maximum benefit is the lesser of $2,000 per month or 2% of the initial face amount of the base policy, not to exceed 66% of gross monthly income.

Additional limitations may apply.


Chronic Illness Accelerated Death Benefit Rider – This living benefit rider becomes available if you are unable to perform at least 2 of 6 of the daily living activities.

Daily living activities include bathing, continence, dressing, eating, toileting and transferring.

A maximum of 24% of the death benefit may be accelerated in one year.

The maximum total of a policy that may be accelerated is up to 90% of the death benefit or $1,500,000, whichever is less.

The accelerated payout depends on your life expectancy.

Any acceleration reduces the face amount of the policy.

Premiums are reduced proportionately and there is an administrative charge for each claim processed.


Critical Illness Accelerated Death Benefit Rider – Accelerates a portion of the death benefit if you become critically ill.

Examples of critical illnesses may include:

  • Heart attack
  • Stroke
  • Cancer
  • End-stage renal failure
  • Major organ transplant
  • ALS/Lou Gehrig’s disease
  • Blindness
  • Paralysis

There are specific requirements as far as how severe the condition must be to qualify for this benefit.

The maximum amount that may be accelerated is the lesser of 90% of the policy’s face amount, or

“A maximum Accelerated Death Benefit amount declared by us. This amount will never be less than $500,000 and is currently a cumulative amount of $1,500,000 per insured, including all other accelerated death benefits previously elected or currently under review under all policies, endorsements or riders issued by us or our affiliates.”

This rider is built into the living benefits policy.


Does Transamerica Offer Accelerated Underwriting?

Yes, Transamerica does offer accelerated underwriting if you qualify as follows:

  • Trendsetter Super
    • 18 – 70 = Up to $50,000 as a non-medical option.
    • 18 – 60 = Up to $99,000 as a non-medical option.
  • Trendsetter LB Non-med
    • 18 – 60 = Up to $249,999 as a non-medical option.

We use a drop ticket or e-application to get you started.

With the drop ticket, you submit some basics and then complete a phone interview.

With the e-application, everything is completed online.

Underwriting with Transamerica is fair, but nothing too special.

Underwriting rate classes available:

  • Preferred Plus
  • Preferred
  • Standard Plus
  • Standard
  • Preferred Smoker
  • Standard Smoker

Occasional cigar smoking of 1 per month with a negative urine sample will still qualify for non-tobacco rates.

Another area of expertise for Transamerica is with foreign national life insurance policies.


Transamerica Life Insurance Customer Service

Transamerica’s phone number is 800-797-2643

You’ll find the Transamerica life insurance login – here

Address information – 4333 Edgewood Road NE, Cedar Rapids, IA 52499 

Conclusion

Transamerica has been around.

The ratings and financials are favorable, and hopefully they improve the operations side soon.

Please take a few minutes to submit your request.

We’ll show you how Transamerica compares with other companies. Thank you.

Other Companies Reviewed

Michael Horbal - Author

Michael J. Horbal

Owner of RiskQuoter

Too many people overpay for life insurance because they end up with the wrong life insurance company, agent, or both. That’s why I started RiskQuoter – To help you get the best life insurance rates available.

As an independent insurance agent, I’m licensed in all 50 states and the District of Columbia and offer 40+ life insurance companies to ensure you get your best rate!

By Michael Horbal – updated on – 10/08/2022

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