Transamerica Life Insurance Review

Transamerica (AEGON) Ratings at a Glance

Term life insurance

Transamerica has term durations ranging from 10 to 30 years in five-year increments. Coverage ranges from $25,000 to $10 million, and no medical exam is required for qualifying applicants who want up to $2 million in coverage. The policies also have conversion periods that let you seamlessly turn them into permanent life policies.

Whole life insurance

Whole life is the most comprehensive policy and the most expensive. Every policy has three guarantees: a death benefit, cash accumulation value and level premium. The insurer helps consumers customize their whole life insurance policies based on their preferences.

Universal life insurance

You can have your benefit grow in an index fund over time. The financial foundation index universal life (FFIUL) policy has a $25,000 minimum policy amount, and the FCIUL policy has a $250,000 minimum amount. Both accounts have living benefit riders. The financial choice index universal life (FCIUL) insurance policy is not available in New York.

Final expense life insurance

The policy helps people cover unexpected expenses and has a face value between $1,000 and $50,000, depending on the type of coverage you want. The policy also comes with a guaranteed death benefit. 

Riders

• Disability waiver of premium rider: If for any reason you become disabled and cannot make your payments, your premiums are waived. This rider has a six-month waiting period.
• Accelerated death benefit rider (with nursing home benefit): If you find yourself in a nursing home, this rider pays an accelerated death benefit at face value, minus any loans, interest or premiums for the first year.
• Return of premiums rider: For approved term life policy holders, premiums get returned if they outlive their policy. This does not include substandard premiums, rider premiums and outstanding loans.
• Children's and grandparents’ benefit rider: Transamerica offers term life insurance for children through this rider via their grandparents if the grandparent is younger than 75 years old and the child is between 15 days and 18 years old.
• Accidental death benefit rider: This rider pays an additional benefit if the policyholder dies in an accident. Death on a train or bus pays even more.
• Monthly disability income rider: This rider stipulates that if the policyholder becomes disabled for 90 days or more, they may be eligible for up to $2,000 monthly in income for a period of two years.

While the company offers a large selection of life insurance products, customer service ratings are not the highest. Transamerica does not offer 24/7 phone claims and long wait times are often reported.

You can contact Transamerica through the company’s form or phone number. The hours of operation are weekdays from 9 a.m. to 6 p.m. Eastern. Transamerica’s phone number is 1-800-797-2643.

Transamerica has a complaint index of 0.58 from the National Association of Insurance Commissioners (NAIC) Complaint Index. The median score nationwide is 1, so Transamerica has a low number of complaints overall.

Sample quotes for nonsmokers in excellent health, using a 20-year term policy with a death benefit of $500,000, show that Transamerica is competitive with other companies in the marketplace, including Prudential Financial Inc. (NYSE: PRU), MassMutual and John Hancock Life Insurance Co.

Average premiums for a 30-year-old nonsmoking male, with $500,000 in coverage, shows Transamerica rates at just $275 per year compared to as much as $318 for its competitors. Rates rise to $520 for age 40 (about 20% higher than the average competitor) and $1,110 per year for age 50, also slightly higher than its competitors.

Premiums for smokers are among the lowest in the business. Rates for smokers (same other statistics as above) show Transamerica as much as 20% lower than its main competitors. Males smokers age 30 and in excellent health pay just $845 for the same 20-year term life policy with $500,000 in coverage. Compare this to competitors like Prudential, MassMutual and John Hancock who charge on average as much as $941. 

Transamerica policyholders can apply online for no-medical-exam, instant-issue and guaranteed-issue life insurance policies. Otherwise, the application process takes anywhere from three to six weeks, which is the industry standard. 

The company offers online and mobile applications through its LifeSales Mobile Application. The process is quick and easy. Just answer a few simple questions like:

• Name
• State
• Smoking status
• Gender
• Date of birth
• Age
• Risk class
• Face amount

Then click RUN QUOTE. That’s all there is to it. A sample run brought the following results:

For a $500,000 policy, a 55-year-old  non-smoking male in the standard risk class would pay:

• $1,960 for a 10-year term policy
• $2,350 for a 15-year term policy
• $3,095 for a 20-year term policy
• $4,360 for a 25-year term policy
• $5,005 for a 30-year term policy

(Sample run utilized without selecting the income protection option)

Transamerica vs. Competitors

When it comes to life insurance policies for young people and smokers, Transamerica has lower rates than its competitors. It insures seniors up to age 80 (85 for final expenses) and children (through its children’s benefits rider) from 15 days to 18 years of age.

Compared to the industry average, Transamerica offers lower premiums for healthy, nonsmoking males ages 20 to 50 (based on a $500,000, 20-year term policy). The company is especially affordable for people with:

• Anxiety or depression
• Hepatitis
• Kidney stones
• Seizures (5 years out)
• Conditions treated with CBD or marijuana (three times per week max)

Overall, Transamerica rates 4.5 out of 5 stars. While the company has very competitive pricing when it comes to seniors and smokers, it lags behind its main competitors in other categories. The company sells a wide variety of riders and even offers term life policies with no medical exams. Eligible ages for term and permanent life insurance are from 18 to 80, with children as young as 15 days covered under the children’s benefits rider. 

The company also offers temporary coverage for applicants between the ages of 16 and 65, with up to $1 million in coverage. Whole life policies are convertible until the policyholder’s 70th birthday or the end of the term, whichever comes first. Policyholders can even negotiate lower rates if their health improves.

Transamerica: Additional Options

Transamerica offers more than just life insurance. In fact, the company only got into the life insurance game recently, relatively speaking. Transamerica is even more well-known for its wide array of financial products like 401Ks, individual retirement accounts, annuities and mutual funds.

In the insurance field, Transamerica sells more than just life insurance, offering Medicare supplement plans and long-term care as well. Transamerica has been in the investment and wealth-protection business since 1906.

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Is Transamerica Life Insurance Right for You?

Transamerica offers several insurance policies and lets consumers customize them. The company has some bad reviews online on sites like Trustpilot, but this seems to be the trend for insurance companies. The company offers flexibility with its life insurance policies and has solutions for people who do not want to take a medical exam. Consumers can benefit from keeping Transamerica in mind but should shop around before committing to a policy.

Frequently Asked Questions