Transamerica is a great option for term life insurance and final expense insurance products, particularly if you don’t have a perfect health profile. Transamerica’s wide variety of policies means that you can typically find one that fits your preferences. For example, their term coverage lets you accelerate death benefits if diagnosed with any of a wide variety of illnesses, while many competitors only offer this ability for the terminally ill. Similarly, Transamerica’s final expense policies allow you to choose whether you want to pay higher premiums for ten years or a smaller amount for your lifetime. While many insurers offer the same types of policies, we've found that few have the customization options that Transamerica has.
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Transamerica Life Insurance Products
Transamerica offers a wide range of life insurance products including term life insurance, universal life insurance, whole life insurance and accidental death insurance. Each product has a different underwriting process but, for those that don’t require a medical exam, you can typically get coverage within 14 days of submitting an application. Fully underwritten products typically require 2 to 8 weeks before coverage can begin.
Transamerica Term Life Insurance
Transamerica offers two term life insurance policies, the Trendsetter Super Series and Trendsetter LB, which are quite similar with regards to their features. The primary difference is that the Trendsetter LB includes the opportunity to receive accelerated death benefits under a wide range of circumstances.
Term policies from Transamerica can be purchased for terms of 10, 15, 20, 25 or 30 years, and their death benefits range from $25,000 to $1 million. Just note that longer term lengths (such as 25 or 30 years) are only available if you’re young and reasonably healthy. As the policyholder, you can choose whether your beneficiaries receive the death benefit as a single lump-sum payment or a monthly payout over a period of 5 to 25 years. If you’re a parent with young children and want to make sure they’re financially comfortable, this is a handy option as you can make sure a kid or teenager doesn’t spend the money too quickly.
Each policy can be customized using riders, which are policy add-ons that will increase your premiums by a small amount. Transamerica offers the following riders for term policies:
- Decreasing coverage - Many people need less coverage over time as they pay off debts or certain expenses. For example, you wouldn’t need coverage for your child’s education after they graduate college.
- Additional insured and child riders - Coverage for your spouse and children.
- Estate protection rider - Extra coverage to pay estate taxes if they are applied to your death benefit for some reason.
- Final expense rider - Additional payout to cover funeral costs.
- Whole life guaranteed insurability rider - At certain points during your term, you can convert to a whole life policy without medical exams and proving insurability again.
- Return of premium rider - If you live past the term of your policy, a portion of your premiums are returned to you (only available for 20 and 30 year terms).
- Waiver of premium rider - If you become totally disabled, per the insurer’s definition, for over 6 months, premiums are waived.
When the period of coverage ends for a Transamerica term life insurance policy, you can automatically renew coverage, but the policy turns into a 1 year term. This means that premiums which will increase each year as you get older and their risk increases. However, their term policies also have the option to be converted to a universal life insurance policy at certain points, typically when you hit a life milestone (like having a child or getting married) or reach a certain age.
If you primarily wanted coverage to replace your income before you retired or cover certain expenses, like a mortgage, we wouldn’t recommend converting to a permanent policy as you’ll pay higher premiums than if you purchased a new term policy. However, if you’ve built up a broad portfolio of assets and are interested in using permanent coverage to diversify your investments or as part of an estate plan, then converting to a universal policy is a good consideration.
Trendsetter Super Series vs Trendsetter LB Term Life Insurance
The primary differences between Transamerica’s two term policies are their accelerated death benefits and the amount of coverage you may qualify for without a medical exam. While the Trendsetter LB policy has higher premiums than the Trendsetter Super Series, the difference is quite small unless you’re a smoker or have health issues.
|Trendsetter Super Series||Trendsetter LB|
|Accelerated Death Benefit||Only for terminal illness. Automatically included in policies over $50,000.||For terminal illness, chronic, illness, and critical illness. Included in all policies.|
|No Medical Exam Option||Available if death benefit below $100,000||Available if death benefit below $250,000|
|Regional Restrictions||Not available in AL, GA, MD, NY, OR, PA, WV||Not available in NY|
The accelerated death benefit is included in every Trendsetter LB policy and can be triggered by a wide range of chronic, critical, and terminal illnesses, but only if you’re diagnosed after purchasing coverage. So, for example, if you contracted cancer and needed a large amount of money to cover hospital bills and medication, you could choose to receive a portion of your policy’s death benefit immediately in order to cover the expenses. The different categories of illness are:
- Terminal illness - You are diagnosed with a medical condition, resulting from bodily injury or disease, that is expected to cause your death within 12 months.
- Chronic illness - You are diagnosed with an illness and, for at least 3 months, are unable to perform 2 out of the six “Activities of Daily Living” without significant assistance: eating, bathing, getting dressed, using the toilet, walking, and being able to control your bowels/bladder). Chronic illness can also refer to severe cognitive impairment that requires you to have substantial supervision in order to avoid health and safety risks.
- Critical illness - You are diagnosed with a life-impacting medical condition such as a heart attack, stroke, cancer, ALS, or blindness.
With Trendsetter LB, any of these conditions will allow you to accelerate your death benefit, though the amount depends on the severity of your illness. The maximum you can accelerate is 24% of the death benefit per year and 90% of the death benefit over your lifetime, up to $1.5 million.
The Trendsetter Super Series includes the option for an accelerated death benefit if you have over $50,000 in coverage, but you can add this feature as a rider for smaller policies. With this policy, you can only accelerate death benefits if you get a terminal illness and the amount is limited to $250,000 or 75% of your death benefit (whichever is smaller). In addition, the option to accelerate death benefits is not available in Illinois, New Jersey, Pennsylvania, South Carolina, or Vermont.
Transamerica Term Life Insurance Quotes
Transamerica term policies tend to be less expensive if you’re either young (under 40) or have certain health risks, such as being a smoker, having high blood pressure, or being over 70. If you’re healthy, we recommend the Trendsetter LB policy over the Trendsetter Super Series as the accelerated death benefits are much better and the cost is quite comparable. As you can see below, the Trendsetter Super Series has only 5-10% lower quotes:
If you’re older or have health risks, we recommend the Trendsetter Super Series as you can not only save you money over the Trendsetter LB, but also get better quotes than you would from other major insurers.
Transamerica Universal Life Insurance
Transamerica offers both indexed universal life insurance and variable universal life insurance. Both policies have a minimum death benefit of $100,000, offer a minimum guaranteed interest rate on the cash value, and offer you the option to use the cash value to pay premiums.
In addition, riders can be added to each policy that allow you to adjust the death benefit, either so that it increases over time, it decreases over time, or you’re able to purchase additional coverage later without medical questions. This is particularly important when it comes to permanent life insurance policies since coverage is already quite expensive. So, for example, if you decide to upgrade your house later in life and take out a sizable mortgage, you want to increase your coverage. With a guaranteed insurability rider, you’ll be quoted using your original health rating, even if you’ve developed high blood pressure or another health issue.
The primary difference between Transamerica’s indexed and variable universal life policies is the set of options available for how to invest the policy’s cash value. With their variable life insurance, you choose which set of sub-accounts to invest in, with each sub-account behaving similarly to a mutual fund. The downside of this type of policy is that, if your investment choices are poor, your cash value can decrease.
The cash value in Transamerica’s indexed universal life insurance policy can only be invested in two sub-accounts: a fixed account and an indexed account. The fixed account mirrors Transamerica’s performance and has a guaranteed 2% interest rate, while the indexed account tracks a particular index (such as the S&P 500 minus dividends) and has a guaranteed 0.75% interest rate.
Transamerica Whole Life & Final Expense Insurance
Transamerica offers whole life insurance as well as three final expense insurance products (Immediate Solution, 10 Pay Solution, and Easy Pay Solution). All these policies are quite similar in that they offer permanent coverage, have a limited death benefit (less than $50,000) and build cash value.
|Whole Life Insurance||Immediate Solution||10 Pay Solution||Easy Pay Solution|
|Age Availability||0-80 years old||0-85 years old||0-85 years old||18-80 years old|
|Premiums||Level for length of coverage||Level for length of coverage||Level, only pay for 10 years||Level for length of coverage|
|Maximum Coverage||$50,000||$50,000 (if age 0-55); $40,000 (if age 56-65); $30,000 (if age 66-75); $25,000 (if age 76-85)||$50,000 (if age 0-55); $40,000 (if age 56-65); $30,000 (if age 66-75); $25,000 (if age 76-85)||$25,000|
|Payout||Full death benefit||Full death benefit||Full death benefit||Limited payout if you die during first 2 years of coverage|
|Underwriting||Full, medical exam typically required||No medical exam, includes health questions||No medical exam, includes health questions||No medical exam, includes health questions|
The primary difference between Transamerica’s whole life insurance policy and the final expense policies is that you’re required to take a medical exam. This means it’s likely to offer lower premiums if you’re young and healthy, since the insurer is able to verify your health status.
Transamerica’s Immediate Solution is a fairly standard final expense policy and the 10 Pay Solution is identical, except that you’ll only pay premiums for 10 years. While premiums will be higher with the 10 Pay Solution, we recommend paying premiums for a shorter period of time if you have enough income to do so easily. Many people have trouble keeping track of things (such as bills) as they get older and, with life insurance, that often means policies lapse after years of paid premiums.
The Easy Pay Solutions policy has a small maximum death benefit, but will be less expensive because Transamerica is able to reduce its risk when you accept a limited payout for the first 2 years of coverage. For an insurer, this restriction tends to weed out any terminally ill or particularly sick consumers, and increases the average number of years a customer makes premium payments. Since the company feels secure you’re likely to live a certain number of years before passing (and their expenses are limited if you don’t), they can reduce your premium.
Transamerica Accidental Death Insurance
Transamerica’s accidental death coverage can be bought as a standalone policy or as a rider to an existing policy. Coverage is typically low-cost since a policy only pays out if you die accidentally, and accidents account for about 5% of deaths in the United States. With Transamerica, there are no medical exams or health questions in order to get coverage, and you’re guaranteed to get a policy if you are between 18 and 80.
Transamerica has two accidental death insurance plans (Plan A and Plan B) which are nearly identical. The only key difference is Plan A has higher payouts and, therefore, will cost more.
|Payout||Plan A||Plan B|
|Your accidental death||$250,000||$125,000|
|Your accidental death (while on bus, train, or other “common carrier”)||$500,000||$250,000|
|Spouse’s accidental death (if they’re added to plan)||$125,000||$75,000|
|Child’s accidental death (if they’re added to plan)||$5,000||$5,000|
Transamerica Customer Reviews & Complaints
The Transamerica Life Insurance Company has a financial strength life insurance company rating of A+ from A.M. Best and a NAIC Complaint Ratio of 0.58. A company’s Complaint Ratio measures the number of complaints received as compared to the amount of business they write, with the median score being 1.0, meaning Transamerica has a proportionately low number of complaints.
Those customers that have had poor experiences primarily feature issues with Transamerica’s customer service and claims departments in their reviews. Customers report long wait times in order to reach company representatives and generally poor communications. In addition, many claims take over a month to be paid out. We recommend that you and your beneficiary maintain copies of your original policy in order to make sure claims are processed smoothly and you can easily refer to the information if any questions arise.
Transamerica Life Insurance Payment Options
Transamerica life insurance payments can be made by check, bank draft or credit card (they accept Visa, MasterCard, American Express and Discover), and you can set up autopay for deductions to be made regularly on your behalf. Depending on your preference, premiums can be paid annually, every 6 months, quarterly, or monthly.