Transamerica life insurance review 2020
A diverse product lineup, flexible policy options and competitive pricing make this a popular insurer.
finder.com’s rating: 4.0 / 5.0
Get a quote if…
- You’re a high-risk applicant, or looking for a generous final expense policy.
Pick something else if…
- You’re in the market for a variable life insurance policy.
18 to 80
$25,000 to $10,000,000
Depends on policy
Medical Exam Required
|Free quote||Online, Phone|
|Policy options||Term, Whole, Universal, Index universal, Final expense|
|Term lengths||10, 15, 20, 25, or 30 years|
|Monthly cost||Not specified.|
|Ratings||BBB ratings: A- AM Best: A+|
|Available states||Certain policies not available in New York|
|Customer support||Phone, Online|
Julia Cameron is a writer and editor who has experience in finance, mergers and acquisitions, content marketing and immigration law. She has a passion for interior design and an affinity for Old Florida, where she lives with her family.
Transamerica has a solid life insurance lineup, including various universal policies and a final expense policy that covers end-of-life expenses. Thanks to its lenient underwriting, it opens up coverage to riskier applicants, like seniors and smokers.
While its rates are competitive, it’s worth comparing life insurance companies to get the best possible premium.
What types of life insurance coverage does Transamerica offer?
Transamerica offers a full suite of life insurance policies, including:
- Term life insurance. Available in coverage amounts ranging from $25,000 and $10 million, these policies last 10, 15, 20, 25 or 30 years. All policies are convertible to permanent life insurance later on, and you can choose between level, decreasing or increasing death benefits.
- Whole life insurance. This permanent policy features fixed premiums, a guaranteed death benefit and cash value accumulation. Coverage starts at a minimum of $2,000 and goes up to a $3 million for individual and $25,000 for group policies.
- Universal life insurance. Along with lifelong coverage, this policy offers flexible premiums and death benefits, and earns cash value over time. Transamerica offers indexed universal policies, which are tied to an index like the S&P, as well as variable universal coverage — which has the highest possible returns.
- Final expense life insurance. Designed to cover end-of-list expenses, like funeral and burial costs, this policy is issued as soon as it’s approved and the premiums never change.
What riders can I add to my life insurance policy?
Depending on your policy, you may be able to add these riders to your coverage:
- Accelerated death benefit rider. Pays out a portion of your death benefit if you’re diagnosed with a terminal illness.
- Decreasing coverage rider. Allows policyholders to decrease their coverage as they pay off debts or certain expenses.
- Additional insured and child riders. Offer additional coverage for a spouse and child, without having to take out a separate life insurance policy.
- Estate protection rider. Offers extra coverage for estate taxes if they’re applied to your death benefit.
- Final expense rider. Offers an additional payout to cover funeral expenses.
- Whole life guaranteed insurability rider. You can convert to a whole life policy without medical exams or proof of insurability. It’s only available at major milestones such as the birth of a child or marriage.
- Return of premium rider. Provides a payout to you if you outlive your policy term. But it’s only available for 20- and 30-year terms.
- Waiver of premium rider. This rider provides extended coverage if you become totally disabled for over six months. Your premiums for your life insurance policy are waived.
How can I get a low rate?
Rates vary depending on a range of factors, like your age, gender, health cand lifestyle. To qualify for Transamerica’s “preferred plus” rate class, you’ll need to meet the following eligibility requirements:
- Have a minimal or no history of tobacco use.
- Have no history of alcohol or substance abuse.
- Have a personal and family health history free of specified disease or impairments.
- Have a clean driving record free of DWIs, DUIs, suspensions and other convictions.
- Have a healthy blood pressure and BMI.
- Have a low-risk occupation or hobbies.
Pros and cons of Transamerica life insurance
- Solid policy lineup. Transamerica sells term and permanent policies, as well as final expense insurance that’s meant to cover end-of-life expenses.
- Lenient underwriting. The company caters to high-risk applicants with its relaxed underwriting standards.
- Financial strength. Transamerica has an A (Excellent) rating with AM Best, which means it has the cash reserves to pay out claims.
- No online claims form. Your beneficiaries will need to call the company to file a claim.
Compare other life insurance companies
Transamerica life insurance reviews and complaints
Transamerica isn’t accredited by the Better Business Bureau (BBB), but it has an A- rating for its customer interaction. The BBB has recorded 363 complaints over the last three years, which is relatively high for an insurance company. Customers award the company 1.5 out of 5 stars — but keep in mind that these reviews reflect the company as a whole, and not just its life insurance department.
Case study: Sarah’s experience
I had never heard of Transamerica until I signed up for term life insurance through my financial advisor. I had a policy with State Farm before that because it was my car insurance company.
My advisor helped me realize that the State Farm policy was expensive for the amount of coverage I got, which was only $100,000. With Transamerica, I now get 4X that coverage for less than my previous life insurance.
I also like the accelerated death benefit. My plan is to have enough in retirement so as not to need life insurance in the future. So knowing I could use my policy early if needed is a benefit, especially if a qualifying illness has expensive medical bills. Lastly, while others might have a hard time contacting Transamerica, I just use my financial advisor to make account updates.
How do I apply for Transamerica life insurance?
You’ll need to speak to a local agent. Follow these steps to find one:
- From Transamerica’s homepage, click on What We Offer > Insurance.
- Select the type of life insurance you are interested in.
- Click Locate An Agent.
- You’ll be taken to a page where you can enter your location and contact information. Click Search to be presented with a list of insurance agents.
Frequently asked questions
Life insurance ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our experts analyze life insurance companies to help you to find the strongest possible policy and premium for your family’s needs. We assess their financial strength, customer satisfaction, policy features and riders. We then give each insurer a score between one and five stars that reflects their offering and reputation in the industry.