Thank you for checking out our Transamerica life insurance review. Transamerica used to be a big player in the life insurance industry, and they still are to some extent. However, it has been a while since we have seen their term life insurance topping the rate charts on affordability and we have created a ton of life insurance company reviews, so we know what is out there.
While Transamerica term life insurance is not currently on our list of best life insurance companies, they have some individual niches that still make them attractive in certain situations. Our Transamerica review will break down those advantages so you can decide if Transamerica life insurance is the right choice for your family.
Transamerica Life Insurance Company History
The Transamerica life insurance company history is quite interesting. It starts with the Italian-American founder of the Bank of Italy A.P. Giannini in San Francisco, CA. This Bank of Italy eventually went on to be known as the Bank of America that we know today.
As the Bank of Italy grew, Giannini created a holding company for the business known as the Transamerica Corporation. In 1930, the Transamerica Corporation acquired Occidental Life Insurance Company and rebranded it the Transamerica Occidental Life Insurance. This was the genesis of the Transamerica Life Insurance Company that we know today.
In 1972, Transamerica entered the iconic Transamerica Pyramid building in San Francisco, which is used in Transamerica’s branding and logo. Although, they actually only maintain a small presence in the building today.
Over time, the Transamerica corporation turned into a conglomerate of various businesses ranging from movies to rental cars. However, in the 1980s, Transamerica began to focus exclusively on financial services and life insurance.
The year 1999 marked a new milestone in the history of Transamerica when it was acquired by Aegon, a Dutch insurer. Transamerica Occidental became the Transamerica Life Insurance Company in 2008 and operates as such today.
Transamerica also is a responsible corporate citizen providing financial grants to communities and non-profit organizations. Transamerica’s foundation received the corporate citizenship awarded in 2013 for creating the first urban farm in Iowa.
Today, Transamerica primarily offers insurance and financial services to its clients. Transamerica offers life insurance, long-term care insurance, and Medicare supplements as well as annuities and investments with their main offices spread across Minnesota, Florida, and Iowa.
Transamerica Ratings and Financial Strength
When evaluating life insurance company brand and financial strength are important. You want to feel confident that when the time comes, the life insurance company will pay the claim. Transamerica has excellent financial ratings from independent third-party rating agencies like A.M. Best.
A.M. Best has provided Transamerica with an A+ (Superior) rating indicating a healthy financial situation for the life insurance company. Additionally Fitch, Moody’s and S&P Global have all rated the carrier with A ratings as of the most recent reports.
|A.M. Best||Fitch||Moody's||S&P Global|
Transamerica is also an A+ rated business with the Better Business Bureau. This indicates that customer service issues are a rare thing at Transamerica; although, no business is perfect.
Transamerica Life Insurance Solutions
Transamerica has offered a wide gambit of life insurance options to their clients over the years. Life insurance has changed a lot since the early 1900s when Transamerica was founded, and Transamerica has pivoted with it.
Transamerica currently offers term life insurance, universal life insurance, whole life insurance, variable life insurance, as well as long-term care and annuity solutions for their clients. The meat of our Transamerica life insurance review will cover their life insurance products, but we will briefly comment on their other lines of insurance.
Transamerica Term Life Insurance
Term life insurance is the most popular type of life insurance these days. It is affordable and is easy to understand. There is no cash value or indexing strategies to worry about. Term life insurance is pure death benefit coverage.
Transamerica term life insurance comes in 10, 15, 20, 25, and 30-year term periods. Transamerica also offers two term life insurance solutions for clients. The first option is your bare bones term life insurance policy and the second is a term life insurance with living benefits for critical and chronic illness option.
Transamerica’s life insurance policy is nothing out of the ordinary. Transamerica term life insurance with living benefits is nice in concept but can be uncompetitive on price when looking at alternatives like Phoenix Life or Ameritas Life. We feel strongly that living benefits for critical and chronic illnesses will be the future for term life insurance.
The number one cause of bankruptcy in the United States is medical debts. Getting an advance on the death benefit for a hard-hitting illness like cancer can keep you afloat during a time when cash can be tight. Overall, Transamerica has 11 total triggers for death benefit acceleration in addition to death that includes the big three of internal cancer and melanoma, stroke and heart attack.
One feature that is intriguing as well is Transamerica’s disability income rider that provides disability income on your life insurance policy. While this is better than not having any disability coverage at all, we would steer our clients towards purchasing a pure disability policy if at all possible for more robust coverage.
Transamerica’s living benefits term life insurance also has non-medical underwriting up until $240,999, which is an odd number. Why not just go to $250,000? Nowadays, there are life insurance companies will underwrite $300,000 or even $500,000 in death benefits with no medical exam, which is partly why Transamerica did not make our list of best no-exam life insurance companies. Check out Sagicor or Foresters Life for no-exam life insurance alternatives.
Transamerica term life insurance policies also include optional riders for accidental death coverage, waiver of premium for disability, and children term coverage. Transamerica also built in a conversion option to their term policies that let you trade your term policy for a permanent life insurance policy without proof of insurability.
Transamerica Universal Life
Transamerica also offers various universal life insurance options. Universal life is a permanent form of life insurance that can be customized for cash value accumulation or death benefit protection. Universal life insurance is regarded as being more flexible than whole life and can be more affordable as a result.
For death benefit focused universal life insurance, we like guaranteed universal life. It is simple and straightforward like term life and guaranteed up to age 121 if you want! Unlike whole life, guaranteed universal life usually has little cash value if any at all. However, premiums are usually more affordable than whole life of equal death benefit.
Indexed universal life insurance is an alternative to whole life in permanent death benefits with cash value accumulation. Indexed universal life does not come with all of the guarantees of whole life insurance, but you do get some flexibility in how you can craft the policy.
Indexed universal life insurance is growing in popularity due to a number of factors. Volatile financial markets have created a demand for safe places to store wealth. Indexed universal life allows you to participate in the upside potential of stock market indices without putting your principal at risk. If the market crashes, you won’t be credited interest that year but your principal won’t lose value due to investment losses.
If you have an appetite for risk, you could look at Transamerica’s variable universal life insurance policy. Variable universal life allows you to invest your cash value accumulation in mutual-fund-like sub-accounts.
Variable life insurance should be carefully considered before you move ahead with purchasing. If the market does not perform well, you could potentially lose your cash value and your life insurance at the same time.
Transamerica Whole Life Insurance
Transamerica has not been a big player in the participating whole life insurance marketplace in a long time. However, if you are looking for guaranteed death benefits, guaranteed cash value, and guaranteed level premiums for the rest of your life, Transamerica has an option for you.
Transamerica has a final expense offering within its whole life product line. Final expense insurance is a specific type of whole life insurance that is designed to cover your burial and final expenses. The underwriting is simplified. There is no medical exam usually, just a few health questions and a prescription history check.
Transamerica’s final expense whole life insurance product is your best value from their whole life offerings in our opinion. It has competitive pricing and will cover a number of conditions that other burial insurance companies simply won’t on the first day.
Transamerica only allows their burial insurance product to be sold face to face. As a result, Transamerica did not make our list of best senior life insurance due to its limited availability. There are plenty of other burial companies that allow online purchase that have similar underwriting advantages.
Other Transamerica Insurance Products
Transamerica also offers other insurance products such as Medicare supplements, annuities and long-term care insurance as well as investment and financial planning solutions. Transamerica’s really does offer a wide array of financial services options for just about any situation, which makes working with a Transamerica agent convenient and easy.
Transamerica is one of the few life insurance companies that still offers traditional long-term care insurance, but it usually is more expensive compared to other alternative options in our experience. This seems to be a reoccurring theme with Transamerica life and health products. Transamerica rarely holds the lowest rate. So why is that?
Our guess is that Transamerica brokers their life insurance and other financial service products through two channels, independent brokers and career agents and advisors. In recent years, we have seen companies that used to be heavyweights in the life insurance industry, transition their focus on retirement services through financial planners and financial advisors.
Transamerica’s career advisors can offer you a convenient one-stop shop for your investment and insurance needs, but that convenience may cost you in the form of higher priced insurance. Sometimes career agents may be incentivized to offer the company’s own proprietary products.
It is not that Transamerica’s long-term care, life insurance or other insurance products are bad, but if the rock-bottom lowest price is your main concern, there is most likely a better value available.
Sample Transamerica Life Insurance Rates
We have included some Transamerica term life insurance quotes as an example of Transamerica’s cost. Remember that most life insurance is not guaranteed issue. You need to qualify for these rates based on your health, lifestyle, and various other factors.
Sample North American Term Life Insurance Quote: (Age 45)
|Death Benefit||Male 10-Year||Male 20-Year||Female 10-Year||Female 20-Year|
**Please note that these Transamerica Life Insurance quotes are for the preferred best non-tobacco health class.
Final Thoughts: Is Transamerica Life Insurance Worth It?
I hope you found our Transamerica life insurance review useful. Transamerica has quality products, but they can be costlier than alternative insurance companies. If you work with a Transamerica agent and you like the simplicity of bundling your insurance and investments with one person, even if you pay for that convenience, then Transamerica could be worth.
In our brokerage, we do not write a lot of Transamerica these days due to their cost and underwriting parameters for their no-exam coverage. We would consider adding their final expense whole life product to our self if Transamerica opened up a telephone or online purchase options, but our final expense lineup is pretty robust as it stands now.
If you have a health issue or are looking for no-exam term life insurance coverage over $250,000, we likely could save you time and money by shopping the marketplace. We always recommend comparing the Transamerica Life Insurance quote with multiple life insurance companies. Fill out a quote on our website, or give us a call today. We love saving our clients money on their life insurance.
You can learn more about Transamerica on the web, or you can contact the Transamerica phone number 1-800-797-2643 for more information.
FILED UNDER – LIFE INSURANCE COMPANY REVIEWS
Resources: TransAmerica Website
Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs. Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.