TransAmerica Life Insurance Review | The motley fool (2023)

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This life insurance company is a good fit for:Consumers interested in extra protection in case of terminal illness.


Best for extra protection against deadly diseaseTransamerica

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4.00 stars

Our ratings are based on a 5-star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. That's why our ratings are biased toward offerings that deliver versatility while reducing direct costs.
TransAmerica Life Insurance Review | The motley fool (12) TransAmerica Life Insurance Review | The motley fool (13) TransAmerica Life Insurance Review | The motley fool (14) TransAmerica Life Insurance Review | The motley fool (15) TransAmerica Life Insurance Review | The motley fool (16)= Best
TransAmerica Life Insurance Review | The motley fool (17) TransAmerica Life Insurance Review | The motley fool (18) TransAmerica Life Insurance Review | The motley fool (19) TransAmerica Life Insurance Review | The motley fool (20)= excellent
TransAmerica Life Insurance Review | The motley fool (21) TransAmerica Life Insurance Review | The motley fool (22) TransAmerica Life Insurance Review | The motley fool (23)= Good
TransAmerica Life Insurance Review | The motley fool (24) TransAmerica Life Insurance Review | The motley fool (25)= Fair
TransAmerica Life Insurance Review | The motley fool (26)= Bad

Full TransAmerica review


  • Accelerated death benefits are available as a standard option with lifetime coverage
  • High coverage limits with $10 million in protection or more available to qualified consumers
  • Medical exams may not be required for up to $2 million in coverage


  • Low customer ratings from JD Power
  • Online quotes are not available for all coverage types
  • TranAmerica does not offer insurance options other than life insurance
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TransAmerica life insurance at a glance

  • Average cost:$22.36 per month for a 35-year-old male non-smoker purchasing a $500,000 Trendsetter Super term life insurance policy
  • Whole Life Policy Limits:$25,000 to $10 million or more
  • Whole Life Policy Limits:$25,000 to $2 million
  • Riders/Add-ons:Income Protection Option, Waiver of Premium Rider, Child Benefit Rider, Accidental Death Rider, Monthly Income Disability Rider
  • Eligibility:Life insurance policies with non-medical insurance are available for people aged 18 to 55 years
  • Possible discounts:No
  • Other insurances offered:Index universal, final expense insurance

Top perks

Accelerated death benefits included as standard option

TransAmerica offers two periodlife insurancepolicies, both of which offer an accelerated death option that pays out a portion of the money while the policyholder is alive.

With the Trendsetter LB policy, these accelerated death benefits are paid in the event of terminal illness, critical illness or chronic illness. With the Trendsetter Super policy, it is paid only in case of terminal illness.

Many insurance companies offer accelerated death benefits as add-on coverage. This requires consumers to purchase a rider to get this protection. But TransAmerica includes it as a standard option.

Consumers can purchase high coverage limits

It is possible to obtain life insurance with a death benefit as high as $10 million or more. This is a higher limit than some competitors offer. This ensures that policyholders can provide full protection to their loved ones when they are covered through TransAmerica.

Many policies are available without a medical exam

TransAmerica allows policyholders to purchase up to $2 million in life insurance coverage without a medical exam. This is much greater no-exam coverage than many competitors offer.

This does not mean that the cover is a guaranteed issue policy. TransAmerica will still take a detailed medical history and may order medical records from the Medical Information Bureau and conduct a prescription check. But it can eliminate the hassle of going through a medical exam that most competitors require.

What could be improved?

Better customer service

TransAmerica received low ratings from JD Power's overall customer satisfaction rankings. In fact, TransAmerica was near the bottom in terms of customer service. Only AIG and Brighthouse Financial had worse results. It was ranked well below the industry average.

Easier access to online offers

TransAmerica only allows customers to get an online quote for one type of insurance: Trendsetter Super. Those interested in TransAmerica's other policy periods or whole life policies should work with an agent directly to find out how much coverage would cost.

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More insurance options

TransAmerica only offers life insurance, not home, auto or renters insurance. This creates limited opportunities to bundle coverage to receive discounts. It also means that consumers will not be able to handle all of their coverage needs with one insurance company.


TransAmerica offers competitive rates, especially for whole life policies for young and healthy individuals.

Cost Coverage
$22.36/month $500,000 in coverage for a 35-year-old male non-smoker over a 20-year period
$38.70/month $1 million in coverage for a 35-year-old male non-smoker for a 20-year period

Source: TransAmerica

Alternatives to consider

If you want a life insurance company that offers better customer service, State Farm receives the highest ranking in overall customer satisfaction from JD Power. But keep in mind that State Farm may not offer as much coverage without requiring a medical exam.

Policy options

Trendsetter Super Term Life Insurance

Trendsetter Super provides up to $10 million in life insurance coverage. The insurance provides level premiums throughout the coverage period. Part or all of the cover can be converted to whole life insurance without additional guarantee.

Trendsætter LB Term Life Insurance

Trendsetter LB offers up to $2 million in life insurance coverage. The policy provides an accelerated death benefit that is paid out during a policyholder's lifetime in cases where the policyholder is diagnosed with a terminal illness, critical illness or chronic illness.


Possibility of income protection

This rider is available on both the Trendsetter Super and Trendsetter LB policies. It can provide a monthly income with effect from the first month after the policyholder's death. This monthly income is in addition to the death benefit.

Handicapfritagelse for Premium Rider

This is also available on both TransAmerica life policies. This provides premium waiver if the policyholder develops a qualifying disability.

Child benefit rider

Both term life insurance policies offered by TransAmerica offer the option to insure a child benefit rider. This provides life insurance to a policyholder's child.

Accidental death rider

This rider is also available on the Trendsetter Super and Trendsetter LB policies. This rider pays out extra in the event that the policyholder dies in an accident rather than from other causes.

Monthly disability income rider

This rider is only available with the Trendsetter LB Policy. This provides a monthly income to the policyholder in the event of a covered disability.

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Application process

Consumers can get a Trendsetter Super Policy quote online. To get a quote on any other policy, they must contact a TransAmerica agent.

TransAmerica offers non-medical insurance for many policies. This means that while an applicant's medical information will be reviewed, they may not be required to undergo a medical examination. This sets TransAmerica apart from many competitors.

Who is eligible for TransAmerica life insurance?

TransAmerica has different eligibility rules for different types of insurance. Life insurance policies with non-medical insurance are available for people aged 18 to 55 years.

Customer service and ratings

TransAmerica received one of the lowest rankings of anyoneinsurance companyin JD Power's overall customer satisfaction ranking. The insurance company has also only received a B rating from the Better Business Bureau. And the average customer rating on the BBB website gave the insurer 1.08 out of 5 potential stars.

Reviewers complained about poor customer service response times. They also described long wait times, defensiveness from customer service representatives, and outsourcing of compensation payouts to companies that make the process difficult.

(Video) The Tax Advantages of Life Insurance

This life insurance company is a good choice for:

Customers interested in whole life cover with an accelerated death benefit.

TransAmerica is best suited for people who:

  • Does not want to undergo a medical examination
  • Want accelerated death coverage included in their policy
  • You shouldn't mind working with an agent to get offers

But you might want to consider State Farm if you prefer an insurance company with better customer service or Geico if you want an insurance company that offers multiple types of coverage, so it's possible to meet all of your insurance needs from one company.

Our insurance expert

TransAmerica Life Insurance Review | The motley fool (27)

By:Christy Bieber


Christy Bieber is a full-time personal finance and legal writer with more than ten years of experience. She holds a JD from UCLA as well as a degree in English, Media and Communications with a certificate in Business Management from the University of Rochester. In addition to writing for The Ascent and The Motley Fool, her work has also been featured regularly on MSN Money, CNBC, and USA Today. She also ghostwrites textbooks, serves as a subject matter expert for online course design, and is a former college instructor.

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How trustworthy is Transamerica? ›

On the financial strength side, Transamerica has a solid A (Excellent) rating from AM Best, which indicates that it has historically been able to meet its financial obligations. On the other hand, the company came in second-to-last in J.D. Power's 2022 Individual Life Insurance Study.

How long does it take to get life insurance payout from Transamerica? ›

Please include the insured's name, the Policy/Certificate number, the signature of the policyowner, and the date of the request. Please allow up to 3 weeks to receive a check for the cash value of your policy.

Who owns Transamerica life insurance? ›

What is the number one life insurance company in the United States? ›

Northwestern Mutual is the largest life insurance company, according to 2021 NAIC data, holding nearly 9% of market share.

Does Transamerica have high fees? ›

Its all-in cost was 2.60% of plan assets each year, with each participant paying $1,104.48 in annual administration fees. While this plan's per-capita admin fee is already much higher than the study average of $422.30, that number can easily grow much higher due to the way these fees are charged.

Can I cash out my Transamerica life insurance? ›

Provided the policy is not and does not become a modified endowment contract (MEC), 1) withdrawals are tax-free to the extent that they do not exceed the policy basis (generally, premiums paid less withdrawals) and 2) policy loans are tax-free as long as the policy remains in force.

Can you cash out life insurance before death? ›

Can you cash out a life insurance policy before death? If you have a permanent life insurance policy, then yes, you can take cash out before your death.

Does Transamerica pay death benefits? ›

Transamerica whole life insurance

All policies come with a terminal illness accelerated death benefit rider that pays out a portion of your death benefit if you're diagnosed with a terminal illness. You can further customize your coverage by adding one or more of the nine riders currently available.

What rating is Transamerica? ›

Transamerica ranked No. 21 out of 22 companies for customer satisfaction in J.D. Power's 2022 U.S. Individual Life Insurance Study. J.D. Power. 2022 U.S. Individual Life Insurance Study.

What is Transamerica pyramid scheme? ›

World Financial Group (WFG), owned by Transamerica, is a multi-level marketing (MLM) company that sells financial products like life and health insurance. MLMs like WFG use a direct selling strategy, “person-to-person selling” outside the traditional retail setting (using social media, at home etc.), to sell a product.

Is Transamerica the same as Vanguard? ›

Vanguard owns and possesses all rights in the name "Vanguard Variable Annuity." The Transamerica Value Variable AnnuitySM may be known as the Vanguard Variable Annuity, issued and administered by Transamerica, in your state. All guarantees are based on the claims-paying ability of the issuing insurance company.

How much does a $100000 life insurance policy cost per month? ›

The average monthly cost of life insurance for a 10-year $100,000 policy is $11.02 or $12.59 for a 20-year policy.

What is a good amount of life insurance? ›

Most insurance companies say a reasonable amount for life insurance is at least 10 times the amount of annual salary. If you multiply an annual salary of $50,000 by 10, for instance, you'd opt for $500,000 in coverage. Some recommend adding an additional $100,000 in coverage per child above the 10x amount.

What is the most used life insurance? ›

Term life insurance

This is the most popular type of life insurance for most people because it's affordable, only lasts for as long as you need it, and comes with few tax rules and restrictions. Term life insurance is one of the easiest and cheapest ways to provide a financial safety net for your loved ones.

What is Transamerica known for? ›

The Transamerica Corporation is an American holding company for various life insurance companies and investment firms operating primarily in the United States, offering life and supplemental health insurance, investments, and retirement services.

What company took over Transamerica? ›

Aegon entered the United States in 1983. In 1999, it acquired Transamerica, one of the best-known insurers in the United States.

Is Fidelity better than Transamerica? ›

When it comes to financial strength, both companies are solid. Fidelity has a strong credit rating from several independent rating agencies, indicating a high level of financial stability. Transamerica also has a strong credit rating and has been recognized for its financial strength and stability.

What happens when you cancel Transamerica life insurance? ›

If you cancel your life insurance policy, the insurance company will send you a check for your policy's cash value. The cash value is the money you have paid into the policy minus any fees or charges.

Is Transamerica life insurance going to increase? ›

Starting on your next policy anniversary date after February 28,2022, your original monthly deduction rate will increase by approximately 61%. The increase is in addition to customary increases associated with age.

Do you pay taxes on life insurance? ›

Life insurance payouts generally aren't subject to income taxes or estate taxes.

Which insurance company denies the most claims? ›

  1. ALLSTATE. Allstate CEO Thomas Wilson admits that his priority is the shareholders—not the insured parties who have claims. ...
  4. STATE FARM. ...
  5. ANTHEM. ...
  6. UNUM. ...

Does life insurance pay for funeral? ›

Does life insurance cover burial costs? Yes, life insurance policies will pay a lump sum when you die to a beneficiary of your choice. That money can be used to pay for your funeral or for any other general financial needs of your survivors.

Does life insurance pay for death by old age? ›

Life insurance covers death due to natural causes. If you die of a heart attack, cancer, an infection, kidney failure, stroke, old age, or some other natural cause, your beneficiaries will receive the insurance payout.

What is the cash value on a $25000 life insurance policy? ›

Example of Cash Value Life Insurance

Consider a policy with a $25,000 death benefit. The policy has no outstanding loans or prior cash withdrawals and an accumulated cash value of $5,000. Upon the death of the policyholder, the insurance company pays the full death benefit of $25,000.

How much does a $1 million dollar whole life insurance policy cost? ›

The cost of a $1 million life insurance policy for a 10-year term is $32.05 per month on average. If you prefer a 20-year plan, you'll pay an average monthly premium of $46.65. In addition to term length, factors such as your age, health condition or tobacco usage may affect your rates.

How do I use my life insurance while I'm alive? ›

While life insurance does pay out a death benefit when you pass away, you could also use your policy while you're alive in certain cases. You may be able to withdraw accumulated cash value, take a loan against your coverage, access a living benefit rider or sell your policy.

Does Transamerica life insurance require medical exam? ›

With Transamerica, there are no medical exams or health questions in order to get coverage, and you're guaranteed to get a policy if you are between 18 and 80.

Who gets the money if life insurance beneficiary dies? ›

If the primary beneficiary dies before you do, then the secondary or alternate beneficiaries receive the proceeds. And if the secondary beneficiaries are unavailable to receive the death benefit, you can name a final beneficiary, such as a charity, to receive the insurance proceeds.

How is life insurance paid out after death? ›

Your beneficiaries will receive a single payment that includes the entire death benefit. Specific income payout. In this scenario, the death benefit will be placed by the insurer into an interest-bearing account, and beneficiaries receive monthly or annual payments of an amount they choose.

Which is better Transamerica or New York life? ›

Compare company reviews, salaries and ratings to find out if New York Life or Transamerica is right for you. New York Life is most highly rated for Work/life balance and Transamerica is most highly rated for Compensation and benefits.
Overall Rating.
Overall Rating3.73.5
3 more rows

Is Transamerica a life insurance? ›

Life insurance from Transamerica helps protect people's financial future with solutions through every stage of life. Explore our range of cost effective options below, and rest easy.

Why is Transamerica rated R? ›

Movie Details

MPAA explanation: sexuality, language, nudity, drug use.

What rank is Transamerica on Fortune 500? ›

FORTUNE 500 appearances:
FORTUNE 500 DATA$ millionsRank
Stockholders' Equity4,299.9123
Market Value5,204.7226
2 more rows

Is Transamerica FDIC insured? ›

Also, withdrawals will reduce the benefits and value of the contract. Life insurance is not FDIC insured. It is not insured by any federal government agency or bank or savings association.

Is Transamerica a fiduciary? ›

An employer participating in the GPS retains certain fiduciary responsibilities, including responsibility for retaining and monitoring the 3(16) plan administrator, for determining the reasonableness of its fees, and for periodically reviewing the plan as a whole. Transamerica does not act as a 3(16) fiduciary.

Is Transamerica being sold? ›

Transamerica Sells its Corporate Venture Portfolio to Montana Capital Partners. Baltimore - March 31, 2021 - Transamerica announced today that it has reached an agreement to sell its portfolio of fintech and insurtech companies to Swiss-based private equity firm Montana Capital Partners.

Is Transamerica part of Fidelity? ›

Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company are not affiliated with Fidelity Investments.

Is Transamerica on the S&P 500? ›

The fund invests in securities through an underlying master fund. It invests approximately the same percentage of its assets in each stock as the stock represents in the S&P 500® Index.

How much is $500,000 life insurance a month? ›

The cost of a $500,000 20-year term life insurance policy for someone in good health is about $20 to $30 per month. Of course, the price will vary depending on your age, health, and other factors.

How much cash is a $100 000 life insurance policy worth? ›

The cash value of your settlement will depend on all the other factors mentioned above. A typical life settlement is worth around 20% of your policy value, but can range from 10-25%. So for a 100,000 dollar policy, you would be looking at anywhere from 10,000 to 25,000 dollars.

How much is $50000 worth of life insurance? ›

A $50,000 life insurance policy costs around $7.63 per month for a 36 year old female in excellent health looking at a 10 year term and $9.21 per month for a male in excellent health looking for the same coverage. The term length you choose and your current health can also affect your rates.

What age should you get life insurance? ›

Generally, the younger and healthier you are when buying life insurance, the more money you'll save. As we age, we're at increased risk of developing health conditions, which can result in higher mortality rates and higher life insurance rates. You'll typically pay less for life insurance at age 25 than at age 40.

Does a 70 year old need life insurance? ›

If you retire and don't have issues paying bills or making ends meet, you may not need life insurance. If you retire with debt or have children or a spouse that is dependent on you, keeping life insurance is a good idea. Life insurance can also be maintained during retirement to help pay estate taxes.

Which is better whole life or term life insurance? ›

If you only need life insurance for a relatively short period of time (such as only when you have minor children to raise), term life may be better, as the premiums are more affordable. If you need permanent coverage that lasts your entire life, whole life is likely preferred.

What is the hottest thing in life insurance? ›

Indexed universal life is one of the insurance industry's hottest products. It accounted for a quarter of all individual life sales as measured by premium for the first nine months of 2019, according to research firm Limra, up from 20% in 2014.

Who is the number 1 life insurance company in the US? ›

Northwestern Mutual is the largest life insurance company, according to 2021 NAIC data, holding nearly 9% of market share.

Which company is best in life insurance? ›

Best Life Insurance Companies In India
  • Life Insurance Corporation of India. ...
  • HDFC Life Insurance. ...
  • Max Life Insurance. ...
  • ICICI Prudential Life Insurance. ...
  • Kotak Life Insurance. ...
  • Aditya Birla SunLife Insurance (ABSLI) ...
  • TATA AIA Life Insurance. ...
  • SBI Life Insurance.
Apr 4, 2023

Who is Transamerica affiliated with? ›

Part of the Aegon family

Our parent company, Aegon, brings a legacy of financial services expertise to their relationship with us. Based in The Netherlands, Aegon has been a leader in the space since 1844. They acquired Transamerica in 1999, and today, we're proud to represent their U.S. operations and largest market.

Is a Transamerica annuity safe? ›

Transamerica Annuity Review

All in all, Transamerica Annuity is a highly reputable company with over 100 years of experience in the life insurance and annuity industry.

Is Vanguard now Transamerica? ›

Vanguard Annuity Owners Now Use Transamerica Annuity Login

“Client service and account administration for the Vanguard Variable Annuity transitioned to Transamerica, the issuer of the annuity.

What happened to Transamerica Insurance Company? ›

Part of the Aegon family

We're a better business for our customers because of the strength of Aegon, our parent company. Bringing nearly 180 years of financial services experience to the table, Aegon is based in The Netherlands and acquired Transamerica in 1999.

Are annuities better than life insurance? ›

One way to think about an annuity is that it provides the opposite type of protection as life insurance. Life insurance provides protection for loved ones when you die; annuities provide a guaranteed lifetime income for yourself, which means you won't outlive your assets or money.

Are life annuities worth it? ›

Annuities can be a helpful solution for many retirees. They provide premium protection, which means your benefits will never go down, even if the market is downturned. In addition, annuities offer income for life, which can give you peace of mind knowing that you will have a steady income to cover your expenses.

Do millionaires worry about FDIC insurance? ›

At the end of the business day, the private bank, as custodians of their various accounts, sells off enough liquid assets to settle up for that day. Millionaires don't worry about FDIC insurance. Their money is held in their name and not the name of the custodial private bank.

Is Transamerica a life insurance company? ›

Life insurance from Transamerica helps protect people's financial future with solutions through every stage of life. Explore our range of cost effective options below, and rest easy.

How does Transamerica rank? ›

Transamerica ranked No. 21 out of 22 companies for customer satisfaction in J.D. Power's 2022 U.S. Individual Life Insurance Study.


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