Few companies have remained at the top of their industry for decades on end.
Transamerica Life Insurance Company has.
With a strong foundation and forward-thinking strategy, Transamerica looks to stay ahead with its coverage options and underwriting methods.
Whether or not they’re the right provider for you depends on both their financial outlook and policies and your unique life insurance needs.
Continue reading below for an overview of the company’s history, financial strength, and products.
Our Transamerica Life Insurance Company Review
A young entrepreneur with a heart to help the people who needed it most founded what was 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 over 13 million U.S. customers alone.
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.
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.
Financial Strength and Ratings
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 and Poor’s, Transamerica is among the top life insurance companies in the U.S.
Here is a quick snapshot of those rankings:
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.
While Transamerica is not BBB-accredited, they do have an “A-” ranking with the Better Business Bureau.
Transamerica also has over $461 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.
Transamerica also has an impressive policy lineup, with life insurance products to meet every need.
- Term Life Insurance
- Universal (and Indexed Universal Life Insurance)
- Whole Life
- Final expense
Let’s take a closer look at each policy and what it has to offer.
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 in coverage to $10,000,000 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.
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.
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 cash tax-free, 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 $2,000 and $3 million, and their group whole life insurance coverage comes in amounts up to $25,000.
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.
Outside of its primary life insurance market, Transamerica offers additional financial tools through affiliates, independent financial partners, and consultants.
Among these are pensions, retirement plans like 401(k) and 403(b), IRAs and Roth IRAs, mutual funds, and annuities.
Aimed at becoming a full financial powerhouse for its clients, Transamerica hosts both national and international offices.
Transamerica has a lot to offer, but it isn’t the only company worth your consideration.
To ensure you get the best policy for your family, you may also want to consider some of the alternatives below.
- Banner Life: If you’re looking for the most affordable term life insurance, Banner Life should be at the top of your list, with inexpensive policies, riders, and conversion options.
- Haven Life: If you want to skip the agent interaction altogether, potentially avoid a medical exam, and get an instant online decision on term life insurance, you can’t go wrong with Haven Life.
- Protective: Transamerica is known for its affordable universal policies, but so is Protective. Their universal policy prices and customization options are hard to beat.
There are several advantages to working with Transamerica.
Here are some of the biggest benefits of opting for coverage from the industry giant:
- Financial strength: Transamerica is rated by all four of the biggest credit rating agencies, securing A-level ratings from each of them. You’re in good hands if you choose to purchase a policy from Transamerica.
- Online resources: Transamerica’s website clearly presents information on its policies, like terms, face value amounts, and riders. Their comparison and quoting tools can also help you make a decision.
- Product lineup: With both temporary and permanent coverage options like term, universal, whole, and final expense policies, Transamerica has something for everyone.
- Affordability: Transamerica’s policies, particularly their term and universal ones, are very affordable, among the most competitively priced products in the industry.
Though Transamerica is a strong contender, it still comes with a few potential disadvantages.
Keep the following drawbacks in mind as you consider the company:
- No exam: If you’re looking for coverage beyond a small final expense policy, you may have to undergo a medical exam. Several top-tier providers offer large term life policies without medical exams.
- Online limitations: While many of Transamerica’s competitors allow you to manage your policy online, any change of beneficiaries and updates to payment info require you to mail in a paper form. Your policy will also come in the mail.
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.
As a consumer, you can feel confident you’re dealing with a financially sound and solvent company while accessing competitive life insurance products.
Before you settle on Transamerica, take a few minutes to compare quotes from other top providers in the industry.
Doing so allows you to lock in the best rates and policy tailored to your needs.