Transamerica Life Insurance Company Review

Written by Jeff Root

Transamerica Life Insurance company has been around for well over 100 years. Their home office is located in Cedar Rapids Iowa and they are owned by a larger company based out of the Netherlands. They also own Stonebridge Life Insurance Company.

Previously called Monumental Life Insurance Company, the name was changed to Transamerica Premier Life Insurance. Western Reserve Life Assurance company merged with the TransAmerica Premier Life Insurance Company. This can get a little tricky but all in all, it simply means that Transamerica and its Dutch parent company provide services across 30 global markets.

Transamerica has worked hard to provide life insurance companies around the world but especially for seniors.

About the Transamerica Life Insurance Company

transamericaTransamerica has a range of term and permanent policies alongside their burial insurance and accidental death policies.

For term, they have two types of policies both of which supply coverage up to $1 million. The terms available range between 5 and 30 years. The difference between the two is that the Trendsetter LB provides access to money before you die if you are diagnosed with a terminal, critical, or chronic illness.

Their permanent policies are available in amounts between $1,000 and $50,000. Their variable options have cash value growth tied to the performance of investments.

The company has $1,055,000,000,000 worth of insurance in force right now. That’s not an error, that’s just a lot of insurance. They have an A from the BBB, A+ from A.M. Best, A+ from Fitch, A1 from Moody’s, and AA- from the S&P 500.

Transamerica Life Insurance Company Products

Transamerica has term life insurance policies, whole policies, and more.

Term life Insurance 

No Exam Term Life Insurance 

Transamerica has three different types of term life insurance. The first is a no medical exam Term Policy that has a face amount limit of $249,999. There is also a return of Premium Term Policy which, if you take out this policy and outlive it, you get all of your premiums returned to you as a refund, not as taxable income. The third is a fully underwritten regular term life insurance policy which you can take out in increments of 10 years, 15 years, 20 years, 25 years or 30 years.

TrendSetter Term

They have what is called the TransAmerica trendsetter Series. This series offers level premium term products initially. The three products include the trendsetter super, trendsetter Express, and trendsetter living benefits. All three of these are non medical underwriting with face values that vary from one to the other. The trendsetter super has a face value up to $99,999 and the other two have a face value no more than $249,999. Each of these comes with a terminal illness rider at no additional cost.

The living benefits life insurance product, known as the trendsetter product comes with a disability Rider, chronic illness benefit, and terminal illness benefit.

Transamerica has conversion options for all of its term life insurance policies. If you choose to convert your policy to permanent coverage at the end you can convert the current face amount you have or just a portion of it if your financial needs have changed. You can do this without having to undergo another medical exam which means they won’t take any blood sample. The policy for conversion stipulates that your permanent coverage amount will be based on the original health class rating you were given when you took out your Term Policy.

Below is a sample for a 65 year old male:

Face Amount 10 Year 15 Year 20 Year 25 Year
$250,000 $123 $148 $215 $349

Below is a 70 year old male:

Face Amount 10 Year 15 Year 20 Year 25 Year
$250,000 $208 $264 $406 n/a

Permanent Life Insurance

Transamerica offers multiple permanent life insurance policies.

Transamerica Universal Life

This is a universal life insurance policy that has a bit more flexibility compared to a whole life insurance policy. You can choose to pay a higher or lower premium throughout the life of your policy. You also have the option of increasing or decreasing your death benefits as your financial situation changes.

There is an indexed universal life insurance option that gives you a more permanent cash value account with the potential for higher return. Of course it does come with higher risk. The TransAmerica Premier Financial Foundation index universal life insurance policy is one of the top selling indexed Universal Life policies across the United States.

This policy has a guaranteed minimum of 2% floor for a fixed account, with a guaranteed 0.75% floor for all index accounts.  You can choose to allocate the money to a fixed account which will earn in interest rate declared by the company. Alternatively, you can choose to allocate the money to an Indexed account which tracks the S&P 500.

Each index comes with a maximum cap. with this type of account you can choose from to death benefit options. The first is a level death benefit and the second is an increasing death benefit. With the second option you can change your death benefit once a year after the third year you have had your policy.

You also have the option of adding a long-term care benefit to your policy. There is an income protection option that allows you to take out different death benefit payments other than the traditional lump sum. This is designed for people who want their death benefit to go to their beneficiaries in the form of regular income.

You can set it up so that your death benefit pays out in the form of monthly payments between 5 years in length and 25 years in length. The goal of this is to pay out over a longer amount of time rather than all at once.

Guaranteed Whole Life

Transamerica has a guaranteed whole life insurance policy that comes with guaranteed level premiums, build cash value, and offers a guaranteed death benefit.

With this product, you can take out a life insurance loan and use the cash value in your account as your collateral.

Graded Death Benefits and Burial Insurance

If you need burial insurance or final expense Insurance, Transamerica offers graded death benefit products. The first is called the immediate solution. This one has fixed premiums and has a maximum issuance amount based on your age. The second is called the 10 pay solution which keeps level premiums for 10 years.

The third is called the easy pay solution which keeps level premiums until the age of 121. Transamerica is known for its senior based plans, and burial plans in particular.

Company Name Issue Ages Death Benefit Type Coverage Amount
Assurity 40-80 Level, Modified, and Graded $5,000-$50,000
Gerber 50-80 Guaranteed Acceptance $5,000-$25,000
Transamerica Up to 85 Level $1,000-$50,000
United Home Life Up to 80 Level, Graded, and Guaranteed Approval $5,000-$100,000

If you are looking for level coverage between $1,000 and $50,000, Transamerica is the perfect company. Applicants who only needs $1,000 of coverage might prefer Transamerica. Somebody over 60, would be better off with Transamerica, or United home life.

There are other companies that do have competitive offerings for niches like smokers or diabetics, but Transamerica is one of the only companies that offers a minimum amount of only $1,000 and still gives you upwards of $50,000. They also have one of the highest age limits for issuance.

Great Life Insurance for Smokers and Diabetics

For a smoker, these are the best rates you will receive for a $2,000,000 coverage policy for 20 years:

Company Monthly Rate
Banner Life $869.29
Prudential                $954.19
Transamerica $898.70

As you can see, for smoking, Transamerica lands right in the middle of the road price category.

For diabetics, Transamerica is not the cheapest option on the market, but they are much more affordable than other companies. For any health situation, costs will vary based on company, coverage, type of policy, and the class into which you are placed.

Below is a average monthly premium for a 20-year term life insurance policy that is worth $500,000. The applicant is a female who is 40 years old living in California, diagnosed with diabetes in 2014 with A1c levels at 7.7 when last checked and average A1c levels at 7.2 for the last 12 months.

Company Monthly rate
Transamerica $101.91
Lincoln Financial $105.11
Prudential $109.81

For a male who is 50 years old, diagnosed with diabetes in 2010 with no complications due to diabetes and no insulin use, the sample cost is for a 20-year term life insurance policy that is valued at $500,000.

Company Monthly rate
Transamerica $269.72
Prudential $271.57
Mutual of Omaha $276.50

How Transamerica Life Insurance Compares to the Competition

Company A.M. Best Rating Life Insurance Options
Lincoln Financial Group A+
  • Term life
  • Universal life
  • Variable universal life
Transamerica A+ Superior
  • Term life
  • Whole life
  • Universal life
  • Variable universal life
AIG A Excellent
  • Term life
  • Whole life
  • Universal life
  • Indexed universal life
  • Variable universal life
Nationwide A+ Superior
  • Term life
  • Whole life
  • Universal life
  • Variable universal life

Is Transamerica the Best Life Insurance Company for Me? 

For people who are looking for traditional term life insurance coverage that is both affordable and offers great policy add-ons, Transamerica may be best for you.

Smokers and Diabetics can receive very low life insurance rates through Transamerica, and as a result, they are one of the premier life insurance providers for this demographic.

They also have some superior permanent life insurance plans through their Universal Policies.

Overall, they are a great life insurance provider and may have the best coverage for you. However, they are just but one of many options on the market. In order to find the best coverage, you should follow a few steps.

Finding the Best Life Insurance Company for Your Needs

There are plenty of life insurance options on the market, perhaps too many to count. This can make things seem overwhelming. However, working with an independent life insurance agent makes it easy to find the best coverage for you and your family.

Our agents work with Transamerica and most of the other best life insurance companies on the market in order to help our clients find the best coverage for their loved ones.

Give us a call today to learn more about your life insurance options and how to find the best rates for your age and health.

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