Transamerica Life Insurance Review

Pros Explained

• Whole life policy death benefits start at $1,000: Transamerica offers final expense coverage as low as $1,000, making it our pick as the best whole life insurance company for small policies. 
• Wide range of policy types: Transamerica offers four types of life insurance and multiple products of each type, fitting a variety of financial circumstances.
• Good child term rider features: Transamerica’s children’s benefit rider provides life insurance coverage for your children up to age 25. They can then convert the policy to a whole life policy in their name.
• Generous term life insurance features: Transamerica’s term life insurance policies include a terminal illness accelerated death benefit, coverage amounts reaching $10 million and up, and no medical exam for qualified applicants.

Cons Explained

• Frequent customer complaints: Transamerica receives many more complaints than expected for a company of its size. Only five of the 45 companies we reviewed had a worse complaint index.
• Poor J.D. Power customer satisfaction score: Transamerica ranks in the bottom three for customer satisfaction in the J.D. Power 2023 Individual Life Insurance Study.

Financial Stability

Transamerica has an A rating with AM Best, meaning it has a superior ability to pay out its future insurance obligations. AM Best is an independent agency that analyzes insurance companies' finances. The highest possible rating is A++.

Customer Complaints and Satisfaction

Transamerica has a much higher-than-expected NAIC complaint index for a company of its size. The National Association of Insurance Commissioners (NAIC) created the index to show whether insurance companies receive more complaints than expected compared to their size. Transamerica’s three-year average shows it receives well above the expected number of customer complaints.

Transamerica also has one of the lowest customer satisfaction scores in the J.D. Power 2023 Individual Life Insurance Study. It ranks in the bottom three, only above Equitable and Brighthouse Financial. Its score is 757, 33 points below the industry average and 86 points below the top life insurance company, State Farm.

Types of Life Insurance Offered by Transamerica

Transamerica offers four types of life insurance.

Term Life Insurance

Term life insurance is the most affordable type of life insurance you can buy. It covers you for a specific amount of time, known as the term. You can buy policies from Transamerica with terms of 10, 15, 20, 25, and 30 years. Term policies can cover temporary needs, such as replacing your income, paying off a mortgage or other debt, or paying for your children’s education.

Transamerica offers two types of term life insurance: Trendsetter Super and Trendsetter LB. Both policies are available for ages 18 to 80, starting at $25,000 in coverage. The Trendsetter Super policy is available with over $10 million in coverage, while the Trendsetter LB policy is capped at $2 million. 

Trendsetter LB includes terminal, chronic, and critical illness riders at no cost, plus several riders you can purchase. The Trendsetter Super policy includes a free terminal illness accelerated death benefit rider.

Whole Life Insurance

Whole life insurance is a type of permanent life insurance policy that offers a guaranteed fixed death benefit and premium, plus guaranteed cash value interest rate growth. These guarantees make whole life more expensive than term insurance, but it can last your entire life.

Transamerica’s whole life insurance policy automatically includes a terminal illness accelerated death benefit rider and a variety of optional riders for customizing your policy. You can also choose how long you pay into the policy: for 10, 20, or 30 years or until age 100. The shorter pay periods will have higher premiums, but your cash value will grow faster, and the policy will be paid off earlier.

If you’re healthy enough, you may qualify for accelerated underwriting, which lets you skip a medical exam.

Indexed Universal Life Insurance 

Indexed universal life insurance (IUL) offers permanent coverage with the flexibility to change your premium and death benefit after you’ve built enough cash value in the policy. You can accelerate your cash value growth by investing the cash value portion of your premium payment into accounts that track equity indexes like the S&P 500. This policy type is best for savvy investors or someone working with a knowledgeable financial advisor.

Transamerica offers two indexed universal life policies: Transamerica Financial Choice IUL (FCIUL) and Transamerica Financial Foundation IUL (FFIUL). Both policies include a guaranteed floor or interest rate on invested earnings to limit losses. 

You can buy an FFIUL policy with a minimum death benefit of $25,000 and invest in either the Global Index Account or the S&P 500 Index Account. The FCIUL policy starts at $250,000 and has a broader variety of investment options, including the two available with the FFIUL policy. However, FCIUL is not available in New York. 

Final Expense Life Insurance

Final expense life insurance is for people who need coverage for end-of-life expenses. It doesn’t offer a large death benefit, but you also won’t have to deal with labs or take a medical exam, and you can still build cash value. You’ll answer a few health questions on the application, and you may receive a same-day decision when applying through Transamerica.

Transamerica’s Final Expense Solutions Portfolio policy is for ages 0 to 85. The minimum death benefit starts at $1,000 and can go as high as $50,000, depending on your age. 

The Easy Solution policy, available for ages 18 to 80 (50 to 75 in New York), comes with a graded death benefit, meaning if you die (not from an accident) within the first two years of the policy, your beneficiary will only receive the premiums paid, plus 10% interest (less any outstanding loan balance). The 10-Pay Solution policy only requires payments for 10 years, after which it's fully paid, while the Immediate Solution policy spreads payments out until age 121.

Does Transamerica Require a Life Insurance Medical Exam?

Most Transamerica life insurance policies require a medical exam, but some applicants can qualify for up to $2 million in life insurance with no exam. After you complete the application, health questionnaires, and telephone interview, Transamerica will first complete the underwriting process using its accelerated underwriting method. This process may check databases for your prescription history, driving record, credit history, and Medical Information Bureau file. 

Healthy and low-risk applicants may get approved without a medical exam. If you don’t pass the accelerated underwriting process, Transamerica will ask you to complete a paramedical exam and may request statements from attending physicians to determine your premium. 

Available Riders From Transamerica

Life insurance riders provide extra benefits to tailor your policy to your needs. Here are some of Transamerica’s top riders.

• Terminal illness rider: Pays part of the death benefit to use while you’re still alive if you get diagnosed with a terminal illness
• Chronic illness rider: Allows you to access some of the policy death benefit if you’re diagnosed with a qualifying chronic illness
• Critical illness rider: Provides access to part of the death benefit if your doctor diagnoses you with a qualifying critical illness
• Guaranteed insurability rider: Gives you the option to buy more life insurance at certain ages or life events without undergoing a medical exam or answering health questions
• Children’s insurance rider: Allows you to buy life insurance coverage for your child under your policy. Transamerica will cover your child under your policy until they turn 25
• Accidental death benefit rider: Increases the death benefit paid to your beneficiary if you die an accidental death
• Disability waiver of premium rider: Waives your premium payment if you become disabled and are unable to work

How Much Does Transamerica Life Insurance Cost?

Compared to the other 45 companies we analyzed, Transamerica has below-average life insurance premiums for 30-year-olds. But for 40- and 55-year-olds, Transamerica’s rates are a few dollars above the average. Transamerica may be a good choice for younger adults, though your personal and family health history, among other factors, will determine your actual cost of life insurance.

How Much Does Transamerica Life Insurance Cost for Older Adults?

Life insurance typically costs more the older you get. Transamerica offers term life insurance for older adults up to age 80. Its 15-year term life insurance quotes for 65-year-olds are below average for males, but slightly above average for females. Companies like Protective, SBLI, and Pacific Life may offer cheaper term life insurance policies for older women.

How Does Transamerica Compare to Other Life Insurance Companies?

How to Buy Life Insurance From Transamerica

You can buy life insurance from Transamerica by calling its customer service department or contacting a Transamerica agent. Transamerica has an agent locator tool to help you find a local agent. Once you purchase a policy, you can create an account to access your life insurance policy.

Customer Service

Transamerica also has a contact form to ask policy questions, which you can fill out on its website. After entering your full name, email, city, country, and reason for reaching out, you’ll provide your question or comment in the message box.

The Bottom Line

Transamerica is a great life insurance company if you want a small-dollar permanent life insurance policy. Some applicants can get same-day approval, and healthy applicants who apply for up to $2 million can typically get approved without a medical exam or lab work. The company offers a robust term life insurance policy with average premiums, though younger applicants can usually get more competitive rates.

That said, it has below-average customer satisfaction and receives more complaints than expected for a company of its size.

Frequently Asked Questions (FAQs)

Is Transamerica Reliable?

Transamerica has an A rating with AM Best, which shows that it is stable enough to pay its debts, including life insurance claims. However, it has a poor customer service record. 

Does Transamerica’s Life Insurance Build Cash Value?

Yes. Transamerica offers whole life, final expense, and indexed universal life policies, which build cash value. You can speed up your cash value growth with an IUL policy, which comes with a guaranteed minimum interest rate.

Is Transamerica Life Insurance Expensive?

Life insurance premiums depend on individual factors, like age, health and tobacco status, lifestyle choices, and family health history, meaning your personal rate can vary significantly. Transamerica’s term life insurance rates are average, though older applicants may see higher-than-average premiums.

How We Review Life Insurance Companies

To compile our list of the best life insurance companies, Investopedia first conducted preliminary research on dozens of life insurance companies and determined that 45 met our minimum standard for financial strength, customer satisfaction, and online transparency. For each of these, we then gathered a total of 70 evaluation criteria, resulting in 3,150 data points altogether. Data was collected between May 20 and July 3, 2024, and sourced from company webpages, media representatives, third-party rating agencies (AM Best, NAIC, and J.D. Power), and customer service calls.

We combined subject matter expertise, consumer survey and company survey data, and industry research to create a quantitative model that scores each company based on six major categories:

• Application and Online Service Features: 15%
• Policy Types: 22%
• Policy Features and Riders: 35%
• Financial Stability: 6%
• Customer Satisfaction: 10%
• Cost: 12%

For more information, read our full methodology explanation.