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Transamerica life insurance review 2020
Last updated:
A diverse product lineup, flexible policy options and competitive pricing make this a popular insurer.
finder.com's rating: 3 / 5
★★★★★
Bottom line: Transamerica has generous final expense policies and good rates for people without perfect health, though you won’t be able to get a variable life insurance policy.18 to 75
Issue Age
$25,000 to $10,000,000
Coverage
Depends on policy
Medical Exam Required
Details
| Free quote | Online, Phone |
|---|---|
| Monthly cost | Not listed |
| Policies | Term, Whole, Universal, Index universal, Final expense |
| Coverage maximum | $10,000,000 |
| Term lengths | 10, 15, 20, 25, 30 years |
| Riders | Accelerated death benefit rider, Child rider, Decreasing term rider, Estate protection rider, Guaranteed insurability rider, Return-of-premium rider, Spouse rider, Waiver-of-premium rider |
| Medical exam required | Depends on policy |
| Available states | Certain policies not available in New York |
| Issue age | 18 - 75 years old |
Pros
- High policy limits= up to a rare $10 million
- No-exam policies for some ages and coverage amounts
- Lenient underwriting
Cons
- No online claims form
- Many customer complaints around customer service and communication
Expert review
Review by
Julia Cameron
julia.cameron@findercrew.comJulia 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.
Expert review
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.
Transamerica life insurance rates
We pulled sample quotes from the Transamerica website for a 20-year term with $150,000 in coverage for a healthy man and woman.
| Age | Man | Woman |
|---|---|---|
| 20 | $14.06 | $10.97 |
| 30 | $12.13 | $10.97 |
| 40 | $15.61 | $13.80 |
| 50 | $31.86 | $25.80 |
| 60 | $78.17 | $66.18 |
What affects my rate with Transamerica?
To qualify for Transamerica’s preferred rate class, you have to meet the following requirements:
- Driving record free of DWIs, DUIs, suspensions and other violations.
- Healthy blood pressure and BMI.
- Low-risk occupation and hobbies.
- Minimal or no history of tobacco use.
- No alcohol or substance abuse.
- No family medical history with specific diseases.
Compare life insurance rates
Compare quotes for life insurance policies starting at $15/month.How to apply for Transamerica life insurance
You’ll need to speak to a local agent to apply. Follow these steps to find one near you:
- From Transamerica’s homepage, click on What We Offer > Insurance.
- Select the type of life insurance you are interested in.
- Scroll to the bottom of the page, enter your zip and 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.
What types of life insurance coverage does Transamerica offer?
Transamerica offers a full suite of life insurance policies, including:
- Index universal life. This policy offers a flexible death benefit and a cash value that grows based on the stock market.
- Final expense life. Designed to cover end-of-life expenses like funeral and burial costs, this policy covers you as soon as it’s approved and its premiums never change.
- Term life. Available in coverage amounts ranging from $25,000 to $10 million, these policies last 10, 15, 20, 25 or 30 years. You can convert these policies to permanent life insurance later, and you can choose between level, decreasing or increasing death benefits.
- Universal life. Along with lifelong coverage, this policy offers flexible premiums and death benefits while earning cash value. Transamerica offers indexed universal policies tied to an index like the S&P, as well as variable universal coverage — which gives the highest possible returns.
- Whole life. This permanent policy features fixed premiums, a guaranteed death benefit and accumulating cash value. Coverage starts at $2,000 and goes up to $3 million for individual or $25,000 for group policies.
What riders can I add to my policy?
Depending on your policy, you could add these riders to your coverage:
- Accelerated death benefit rider. Pays out some of your death benefit if you’re diagnosed with a terminal illness.
- Child rider and spouse rider. Offers additional coverage for a spouse and child without taking out separate life insurance.
- Decreasing term rider. Lets policyholders lower their coverage as they pay off debt or lower expenses.
- Estate protection rider. Offers extra coverage for estate taxes if they’re applied to your death benefit.
- 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. Returns the premiums you’ve paid if you outlive your policy term, but it’s only available for 20- and 30-year terms.
- Waiver-of-premium rider. Your premiums are waived if you become totally disabled for over six months.
Transamerica life insurance reviews and complaints
Transamerica holds an A- rating by the Better Business Bureau (BBB) for its customer interaction as of October 2020. The BBB has recorded nearly 340 complaints since 2017, a relatively high number for an insurance company. Customer reviews award the company 1.5 out of 5 stars — but these reviews reflect the company as a whole, not just its life insurance.
In J.D. Power’s 2019 life insurance study, Transamerica ranked number 20 out 24 life insurance companies surveyed, The company earned 732 out of 1,000 points, which is under the national average of 761 points. These results signal a lower than average view from customers about Transamerica’s application, communication and product offerings. 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 $100,000 in coverage. With Transamerica, I get 4X that coverage while paying less than my previous life insurance. I also like the accelerated death benefit. My plan is to have enough in retirement so that I don’t need life insurance in the future. Knowing that I could use my policy early if needed is a benefit, especially if a qualifying illness has expensive medical bills. Last, while some people have a hard time contacting Transamerica, I just use my financial advisor to make account updates.
Case study: Sarah's experience
Sarah George
Writer, Insurance
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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.
