Transamerica offers permanent and term life insurance for a broad range of needs, from tax-advantages to burial expenses.
Business Insider compared Transamerica Life Insurance to the best life insurance companies and found it to lag behind its competitors in customer satisfaction.
Transamerica Life Insurance Overview
Transamerica is a financial services company that offers various products, including retirement benefits, annuities, and investment products. The company also offers various life insurance products, including term, indexed universal, whole life, and burial insurance.
Transamerica's term life insurance offers competitive premiums on its policies, which offer up to $10 million in coverage with a medical exam and up to $2 million in coverage without an exam. Additionally, Transamerica term policies can be converted to permanent policies, making it more appealing than term-only providers for people who want that added flexibility.
As a life insurance provider, Transamerica underwrites its policies and boasts an A rating for financial strength from AM Best, an A1 rating from Moody's, and an A+ rating from S&P Global. However, its customer satisfaction ratings fall behind its competitors. Transamerica ranked 20th in JD Power's 2023 customer satisfaction survey of 22 insurance companies.
One thing we'll note is that despite Transamerica's negative customer reviews, it's one of the more transparent insurance providers, offering an abundance of information about its policies online.
Transamerica Life Insurance Pros and Cons
Transamerica Life Insurance Pros
- Term life premiums are cheaper than average
- Term life coverage up to $2 million without medical exam
- Term and final expense insurance quotes available online
- Convertible term life insurance
Transamerica Life Insurance Cons
- Whole life insurance does not pay dividends
- Poor customer reviews
Transamerica Life Insurance Plans Available
The primary coverage options from Transamerica include the following:
Types of life insurance | Coverage Length | Builds Cash Value |
Term life insurance | 10-30 years | No |
Index universal life insurance | Lifetime | Yes |
Whole life insurance | Lifetime | Yes |
Final Expense life insurance | Lifetime | Yes |
Read on for an overview of each type of life insurance offered through Transamerica, along with policy details specific to the company.
Transamerica term life insurance
Term life insurance is a life insurance product purchased for a specific time. Generally, it's purchased to protect the family if the policyholder passes during prime working years or if they're paying off a debt like a mortgage. Consumers pay premiums for the duration of the policy, and the death benefit applies for a limited term. As a result, premiums are generally lower than permanent life insurance policies with similar death benefits.
Transamerica offers term life insurance policies availabile to individuals from 18 to 80. Policies last from 10 to 30 years with coverage that ranges from $25,000 to $10 million with a medical exam. Qualified applicants can get up to $2 million in coverage without a medical exam. Term life policies can be converted to a permanent policy, though conversion eligibility depends on the applicant's age and health at the time of conversion.
Transamerica whole life insurance
Whole life insurance from Transamerica offers guaranteed death benefits, cash value accumulation, and level premiums. This permanent life insurance coverage lasts a lifetime, although policyholders can spread premiums over multiple pay durations.
Whole life insurance limits available through Transamerica vary. Therefore, we recommend speaking to a licensed insurance agent to determine your eligibility.
Notably, while most of the best whole life insurance providers pay dividends to its whole life policyholders, Transamerica does not.
Transamerica index universal life insurance
Indexed universal life (IUL) insurance is a type of permanent life insurance that builds cash value according to the performance of various indexes like the S&P 500. This type of coverage also offers flexible premiums, and you can customize your plan with riders to tailor coverage to your needs. In addition, unlike whole or term policies, buyers don't get one set death benefit. Instead, the longer you pay into the policy, the more the death benefit is when a claim is made.
Transamerica offers two indexed universal life insurance options:
Transamerica Financial Choice IUL: This policy covers high earners who want to maximize cash value accumulation and receive life insurance tax-advantaged income distributions. The minimum policy limit for the FCIUL policy starts at $250,000 and includes a 0.25% floor so you're protected against negative market performance. Policyholders can use cash value to take out loans tax-free.
Transamerica Financial Foundation IUL: FFIUL policy covers individuals seeking adequate death benefit coverage, flexible riders, and traditional IUL benefits. The minimum policy limit for the FFIUL policy is $25,000 and includes a 0.75% floor so you're protected against negative market performance.
Transamerica final expense life insurance
Final expense life insurance, also known as burial insurance, is a type of permanent coverage meant to cover the insured's final expenses, including funeral costs and estate expenses. This type of policy does not require a medical exam, and automated underwriting makes life insurance easy. Transamerica allows customers to get a quote for final expense life insurance online without speaking with an agent.
Transamerica offers two final expense options: Final Expense Express and Final Express Immediate.
Final Expense Express: Offers quick coverage, with decisions made as soon as 10 minutes from when your application is submitted. Death benefits range from $5,000 up to $50,000 for applicants 75 and under. Applicants who are 76 to 85 can get $25,000 in coverage.
Transamerica's FE Express policy offers optional funeral planning benefits at no extra cost. This includes online assistance with legal documents, funeral home planning, and secure document storage.
Final Expense Immediate: Offers coverage that starts at $1,000 and goes up to $50,000, though older applicants will have lower death benefit maximums. Additionally, applicants who choose graded death benefits can only access $25,000 in coverage.
Additional coverage options from Transamerica
Customers can customize some Transamerica policies with riders and add-ons. The following coverage options may apply depending on the type of life insurance you purchase, your age, and other factors:
- Accelerated death benefit rider: This rider can help the insured get an accelerated death benefit when diagnosed with a terminal illness.
- Children's benefit rider: Children's benefit riders help the insured add on life insurance benefits for their dependents.
- Chronic illness rider: Policyholders with a chronic illness may be able to access some of their death benefits during their lifetime. The insurer lays out the exact terms to qualify.
- Disability waiver of premium rider: Waive your premium while maintaining your policy benefits if you become permanently disabled during the policy's term.
- Income protection option: Begin paying your family a regular benefit to replace your income upon death.
Transamerica Life Insurance Cost
The cost of life insurance from Transamerica life insurance can vary widely based on factors like the type of policy purchased, the insured's age, and the death benefit. Fortunately, the company makes it possible to get an online quote for some of the coverage options it offers.
We used Transamerica's life insurance quote tool to obtain quotes for someone in excellent health taking out a $500,000, 20-year policy. For comparison, we also included the average cost for the same policy, according to data from Policygenius.
| Age | Sex | Transamerica Quotes | Average Cost |
| 20 | Female | $15.73 | $23 |
| 20 | Male | $19.13 | $30 |
| 30 | Female | $16.15 | $23 |
| 30 | Male | $19.13 | $29 |
| 40 | Female | $24.23 | $35 |
| 40 | Male | $28.48 | $43 |
| 50 | Female | $55.25 | $78 |
| 50 | Male | $70.98 | $102 |
| 60 | Female | $202.30 | $194 |
| 60 | Male | $250.75 | $269 |
Generally speaking, permanent life insurance coverage costs more than term policies. However, permanent life insurance policies offer a death benefit that lasts a lifetime. Some permanent coverage options also pay dividends. The policyholder can borrow against the earned value.
To get a quote for permanent life insurance through Transamerica, you'll need to call the company or fill out one of its contact forms. Then you can speak with one of its agents.
How to File Claims with Transamerica Life Insurance
Transamerica offers several different ways to file a life insurance claim. First, however, you'll need to start the process by gathering the following information:
- Insured's name
- Certificate number
- Social Security number
- Life insurance claim forms
Once you have the required information handy, you can file a life insurance claim with Transamerica using the following strategies:
- File a claim over the phone by calling 855-244-8318
- Submit a claim online
To file a claim online with Transamerica, visit the Transamerica website and create a login and password.
Transamerica Life Insurance Customer Reviews and Ratings
Transamerica has overwhelmingly negative customer reviews, receiving a 1.1 out of five on Trustpilot and its Better Business Bureau page.
It's worth noting that insurance companies often receive poor reviews on third-party review sites, often because reviews are generally left by people who have something to say, which is usually negative.
The National Association of Insurance Commissioners' complaint index rates a company based on how many complaints it receives against its share of the market. The average NAIC complaint index score is 1.00, meaning if a company scores below 1.00, it has fewer complaints than expected for a company of its size. If the company scores above 1.00, it has more complaints than the industry average. Transamerica scored 5.36, indicating that it has far more complaints than expected.
Additionally, Transamerica placed 20th in JD Power's 2023 customer satisfaction survey of 22 life insurance companies. It received a 757/1,000 where the average was 790/1,000. For reference, State Farm placed first with a 843/1,000.
Transamerica Life Insurance Alternatives
Transamerica Life Insurance vs. State Farm Life Insurance
State Farm Life Insurance also offers various types of life insurance to suit your needs, including term life, whole life, and universal life insurance. That said, State Farm doesn't have nearly as many options for people looking for life insurance without having to take a medical exam.
If you compare life insurance companies, this is another highly-rated company that could work well for your insurance needs. State Farm earned the top spot in JD Power's ranking in 2023, with 843 out of 1,000 possible points, while Transamerica scored below the industry average at 757.
Read our State Farm life insurance review.
Transamerica Life Insurance vs. Northwestern Mutual Life Insurance
Northwestern Mutual Life Insurance is another highly-rated life insurance company you can consider, particularly if you want to invest in permanent coverage with an agent for a personalized experience. On the JD Power customer satisfaction survey, Northwestern Mutual scored 790 out of 1,000, which was also the study average. It offers diverse insurance products, and Northwestern Mutual agents are extensively trained and knowledgeable to answer all your questions.
Northwestern Mutual is particularly known for its whole life insurance, which pays out one of the highest dividends in the industry. It is expected to pay $7.1 billion to its whole life policyholders in 2025. Additionally, it has coverage limits up to $80 million. Northwestern Mutual is a stronger choice than Transamerica if you are looking for whole life insurance.
Read our Northwestern Mutual life insurance review.
Transamerica Life Insurance: FAQs
Yes, Transamerica life insurance offers no medical exam life insurance. It offers up to $2 million in term life coverage for qualified applicants with no exam required. Transamerica also offers final expense life insurance coverage with automated underwriting and no medical exams.
Transamerica life insurance is a trustworthy company with solid financial strength ratings. The company boasts an A rating for financial strength from AM Best, an A1 rating from Moody's, and an A+ rating from S&P Global. However, Transamerica's customer satisfaction falls short, with far more complaints expected for its share of the market, according to the NAIC.
Transamerica offers term life insurance, whole life, index universal life, and final expense life insurance.
Transamerica life insurance policies can be purchased from as little as $1,000 for final expense coverage to up to $10 million for some types of term coverage.
Why You Should Trust Us: How We Reviewed Transamerica Life Insurance
The four primary criteria we use to review life insurance providers are affordability, customer service, reliability, and company offerings.
Companies receive five stars for cost when premiums are close to the industry average cost of life insurance. According to our article on the average cost of life insurance, a life insurance policy may run you about $40 to $55 a month. However, cheap life insurance doesn't mean you're getting quality coverage. So, we weigh affordability against the company's offerings, customer service, and other factors.
We used the latest JD Power life insurance study to determine which company offers quality customer service. Approximately 3,000 life insurance customers score insurance companies yearly based on communication, interaction, price, product offerings, and statement satisfaction. Companies ranking above the industry average of 774 points have strong customer service.
We also used AM Best, a renowned credit rating agency, and the NAIC's complaint index to evaluate a company's financial stability and trustworthiness. AM Best tells us a company's financial health, and the NAIC's complaint index scores a company based on the aggregate total of complaints it receives.
Finally, we looked at what each company has to offer, including policy options, riders, and features like medical exam waivers. We also determined which demographic would most benefit from the company based on its products and prices.
Read more about how Business Insider rates life insurance.
