Transamerica Life Insurance Company Review

Advertiser Disclaimer

Certain links on this page will refer you to products we might recommend. This creates no additional cost to you, and helps provide us an income so we can continue to bring valuable information to your fingertips. For more information on how we're paid, click our link below.
Full Disclosure

Though its customer satisfaction ratings are less impressive, with a strong foundation and forward-thinking strategy, Transamerica looks to stay ahead with its versatile range of coverage options and fair underwriting.

A.M. Best

A

BBB

A-

J.D. Power

732

The Good

  • Financial security
  • Competitive term rates
  • Versatile product lineup
  • Non-med policies
  • High-risk underwriting

The Bad

  • Below-average customer satisfaction
  • Limited online tools

Product Availability

Policy Types
  • Term
  • Universal
  • Whole
  • Final Expense
Riders
  • Accelerated death benefit
  • Accidental death benefit
  • Children’s insurance
  • Disability income
  • Income protection
  • Term conversion
  • Waiver of premium

Review Breakdown

Overall

4.17

Price/Value

3.8

Financial Strength

3.4

User Experience

2.4

Product Availability

4.4

Brand/Size

4.0

Price/Value

What you pay for a life insurance policy depends on a list of factors.

The type of policy you choose and the amount of coverage you need significantly alter the cost of coverage, as do the risk factors below:

  • Age
  • Sex
  • Height and weight
  • Health conditions
  • Family health history
  • Job and hobbies

Your rates also depend on which company you choose, as each one looks at the factors above differently.

Transamerica is one of the most reasonable underwriters for health conditions that often put people in poor rating classes with other providers.

Their underwriting is particularly great for cancer survivors and individuals with a negative family health history.

In general, most applicants will find that Transamerica’s rates are below the industry average, especially for term life insurance.

Financial Strength

When you set out to pick a life insurance company, you should be sure you’re partnering with a financially stable one.

With its history of success in the life insurance industry, it’s no surprise that Transamerica touts impressive financial ratings across the board.

With “A” or better scores from A.M. Best, Fitch, Moody’s, and Standard & Poor’s, Transamerica is among the top life insurance companies in the United States.

Here is a quick snapshot of those rankings:

A.M. Best A
FitchA+
Moody’sA1
Standard & Poor’sAA-

Transamerica’s financial performance is another strong indicator of its fortitude.

The company has greater than $131 billion in assets, with over $6 billion in reserves and over $452 billion in revenue-generating investments.

Based on Transamerica’s financial performance and ratings, you can count on the company to keep its promises to you as a policyholder.

User Experience

In addition to providing affordable coverage, life insurance companies should make researching their policies and applying for them quick and easy.

To assess Transamerica’s user experience, we looked at its website, application, and ratings.

Ratings

J.D. Power and the BBB rated Transamerica’s user experience as follows:

  • J.D. Power: 2 / 5
  • BBB: A-

The J.D. Power Life Insurance Study is one of the best measures of a company’s user experience, as its ratings are based on a survey of actual customers.

The study looks at factors like a company’s website, application process, communication with clients, price, and products.

In all categories but pricing, Transamerica scored a 2 out of 5, indicating its customer service is below average.

While Transamerica is not BBB-accredited, their “A-” ranking with the Better Business Bureau does indicate the company is dedicated to settling customer complaints.

Website

Transamerica’s website provides the basic details you might expect about the company and its financial products.

You can find essential information about Transamerica’s life insurance plans, such as policy names and benefit amounts.

Beyond those details, you can calculate your life insurance needs and get quotes.

Transamerica’s website functionality is a bit more limited for policyholders.

While most policyholders can update their address online, the changes below have to be made by phone or mail:

  • Address update for final expense
  • Beneficiary update
  • Change of payment info
  • Policy cancellation

Beneficiaries may also have a hard time locating important forms for claims and other policy updates on the site as they aren’t easy to find.

Application

When you search for quotes from Transamerica, you’ll be prompted to fill in a few details about yourself.

Based on your answers, you’ll be presented with quotes and told whether or not you’ll have to undergo a medical exam.

From there, you can contact an agent to start the application process, which will begin with a phone interview.

If you’re applying for less than $100,000 of coverage, you may not be required to undergo a medical exam depending on your risk factors.

Larger policies will warrant a quick paramedical exam, which can be scheduled at your convenience.

The turnaround time for underwriting is reasonable, though it may take a bit longer than the industry average in more complicated underwriting situations.

Product Availability

Transamerica also has an impressive policy lineup, with life insurance products to meet every need.

They include:

  • Term
  • Universal (and Indexed Universal)
  • Whole Life
  • Final expense

Let’s take a closer look at each policy and what it has to offer.

Term

Transamerica’s term life insurance policies provide you with flexibility, affordability, and robust coverage at just the time you need it.

Coverage ranges from $25,000 to $10 million and potentially higher on a case-by-case basis.

These policies come with level premiums and a death benefit, with term lengths between 10 and 30 years.

There are two variations to the product:

  • Trendsetter Super: Up to a $10 million death benefit and the option to convert to permanent coverage, potentially without a medical exam.
  • Trendsetter LB: Up to $2 million of coverage and accelerated death benefits for critical, chronic, or terminal illness in qualifying cases.

Universal

Among the many types of permanent life insurance, the most basic and affordable is universal life insurance.

Universal coverage is one of the most cost-effective ways to guarantee lifetime premiums and a death benefit that won’t decrease.

In addition to the death benefit, these policies come with a cash value component, which accumulates tax-deferred.

You can choose between two universal options with Transamerica: employer-sponsored group coverage or indexed universal life insurance.

The latter allows you to allocate premiums to multiple index-based accounts to help your funds grow.

Whole

If the idea of growing cash is appealing, but you’d like a safer avenue with more guarantees, then whole life insurance may be worth considering.

It’s the most stable option, with the ability to grow cash tax-deferred, access funds, and still gain the benefits of a tax-free death benefit.

In exchange for all of these advantageous guarantees comes a high price tag, which is true of whole life insurance industry-wide.

Transamerica requires you to get whole life quotes directly from an agent rather than online.

Their individual whole life policies offer coverage between $25,000 and $2 million, and their group whole life insurance coverage comes in amounts up to $25,000.

Final Expense

Transamerica is one of the leading burial life insurance companies in the U.S.

Final expense insurance is intended to protect your family from end-of-life expenses as they plan your funeral and tie up loose ends.

These small permanent policies allow you to lock in premiums for the duration of coverage.

When you purchase final expense insurance, you don’t have to worry about a waiting period as your coverage takes immediate effect.

Transamerica’s policies come with three flexible payment options, allowing you to pay for your coverage in one lump sum or over a period of time.

Brand/Size

Transamerica got its start when a young entrepreneur with a heart to help the people who needed it most founded the Bank of Italy in 1904.

Amadeo P. Giannini wanted to make financial advising and banking services affordable and accessible to everyone.

His institution would later merge with a name we all recognize today, Bank of America.

Bank of America eventually acquired and renamed the Occidental Life Insurance Company through its holding company, the Transamerica Corporation.

Up to the 90s, the company found success in various niches including airlines, vehicle rentals, and more, but would ultimately choose insurance as its primary line of business.

In 1999, Transamerica Life Insurance Company became a part of Aegon N.V., an industry giant with a global insurance market.

Transamerica is responsible for the company’s insurance business across the Americas, with 12 million U.S. customers alone.

Outside of its primary life insurance market, Transamerica offers additional financial tools through affiliates, independent financial partners, and consultants.

Among these products, you can get the following:

  • pensions
  • 401(k) and 403(b)
  • IRAs
  • Roth IRAs
  • mutual funds
  • annuities

Aimed at becoming a full financial powerhouse for its clients, Transamerica hosts both national and international offices.

Though the company is headquartered in Baltimore today, you can still see its roots in the company logo, branded with the San Franciscan skyline building where it all began.

Philanthropy

The company also maintains its founder’s heart for communities and individuals in need.

Year after year, Transamerica throws millions of dollars of financial support behind organizations and platforms like MIT and the American Heart Association, dedicated to helping people to be healthy, educated, and equipped for life.

In 2019, the Aegon Transamerica Foundation donated over $7 million to these organizations and other philanthropic efforts.

Brand Recognition

Brand recognition is another factor you may want to consider in your choice of life insurance company.

Transamerica is a popular name in life insurance and the financial industry at large.

It’s also popular among the public, with half a million followers on Facebook and a presence on Twitter, Instagram, and Youtube.

The company primarily uses these platforms to educate followers on financial topics.

Consensus

With a strong foundation, impeccable reputation, and excellent products, Transamerica prides itself on adding value in every way it can for individuals, small families, business owners, and corporations.

Despite these attributes, Transamerica doesn’t have the highest consensus rating, falling short of many financial experts’ lists of top companies.

The company’s below average customer experience ratings are likely to blame.

Despite that shortcoming, you can feel confident you’re dealing with a financially sound and solvent company while accessing competitive life insurance products.

Transamerica Life Insurance Company Review

Phone
(800) 797-2643
Address
4333 Edgewood Road NE
Cedar Rapids, IA 52499

Company Name (and subsidiaries)

  • Transamerica Corporation
  • Transamerica Financial Life Insurance Company
  • Transamerica Premier Life Insurance Company
  • Transamerica Advisors Life Insurance Company
  • Transamerica Investors Securities Corporation
  • Monumental Life Insurance Company
  • Stonebridge Life Insurance Company
  • Western Reserve Life Assurance Co. of Ohio
  • Transamerica Life Canada

Author:

Avatar

Jason Fisher

Jason Fisher is the founder and CEO of BestLifeRates.org, LLC. and a multi-state licensed life insurance agent who has helped over a million Americans seek out affordable coverage, compare quotes, or get their family and businesses covered.