Transamerica Life Insurance

Transamerica Life Insurance With Pros & Cons

The Transamerica Corporation is one of the biggest holding companies for various life insurance companies. It offers the customer’s term, whole and universal life policies. Headquartered in Baltimore, MD, U.S., the company operates primarily in the United States. Unlike most insurers who exclude smokers from getting a policy, Transamerica issues a policy by needing them to pay a slightly higher premium. 

Pros of Transamerica Life insurance

Transamerica life insurance is the best choice if you want to get coverage right away without any medical exam. One can get coverage of up to $50,000 with Transamerica’s final expense life insurance policy. The process of underwriting is automated, and henceforth, the coverage can begin right away.

Moreover, it also offers Transamerica’s Plan Explorer tool, which can help identify the right insurance plan for your family, health, and budget. This tool can help you in proper decision-making when you are confused about whether you should buy a term, whole, universal, or a final expense plan.

Many other life insurance companies require a person to speak to an insurance agent about the pricing. At the same time, Transamerica allows one to get quotes online for the selected policies.

Cons of Transamerica Life insurance

According to the best rating agency, which focuses on the performance of the insurance industry, AM had downgraded the Financial strength rating of Transamerica from A+ to A for the year 2019.

However, another disadvantage of Transamerica life insurance is that it doesn’t provide an online quote with term life insurance. It requires you to speak to the Transamerica agent to get the pricing for whole, universal, final expense or index universal life insurance.

It doesn’t give a consultation with financial professionals for decision-making which several other insurance companies provide. 

Life Insurance plans offered by Transamerica

Transamerica provides a range of insurance policies with multiple coverage options to choose from. The company has eight different plans for life insurance.

Term Life

In this plan, you need to select a policy term between 10 and 30 years, for which you have to pay premiums towards the end of the term. If someone passes away while the policy is still in effect, the beneficiary is entitled to the death benefit. The company provides two-term life options:

• Trendsetter Super – One can get a coverage of up to $10 million which can be converted into permanent coverage by the end of the term and that too, without any medical exam.

• Trendsetter L.B. – This provides a person with death benefits of up to $2 million. One can also get living benefits on having a qualifying terminal, chronic or critical illness.

Whole Life

This gives permanent life protection and the feature of accumulating cash value that can be taken off during an emergency. The whole life policy provided by Transamerica ranges from $25,000 to $ 2 million. One can also lend a loan from the policy’s cash value, which decreases the policy’s death benefit.

Universal Life

The Universal life policy comprises of two parts which include a guaranteed death benefit and a cash value component. A person gets a guaranteed death benefit with Transamerica’s Index Universal Life Policy.

Once you make the payment for your premium, you can distribute the payment to a fundamental interest account or an index account. Through excess index interest, one can grow the policy value. While the cash deferred grows through cash value earnings by the time cash is withdrawn.

Transamerica Financial Foundation Index Universal Life Policy

The difference between Transamerica’s other policies and the Financial foundation index is that the latter one provides a minimum guaranteed rate interest. Moreover, it also offers certain tax benefits, including tax deferral on any earning, tax-free loans and withdrawals, and tax-free transfers among different account options.

Final Expense Insurance

This insurance is dedicated to covering the burial expenses when one passes away. For this purpose, Transamerica provides coverage of up to $50,000 without any medical exam. Additionally, there is no waiting period for the beginning of coverage and no increase in premium due to age. 

There are three options of final expenses:

  • Immediate Solution: Available to people up to 85 years of age. The coverage is entirely paid by the age of 121.
  • Easy Solution: Available to people between 18 to 80 with a graded death benefit. 
  • 10-Pay: Herein, the policy is available to people between the ages of 0 to 85, for which premium is payable for ten years.

Transamerica Insurance also provides the customers with modifications and additions referred to as riders, which can customize the policy. Some of the riders offered are Accelerated death benefit with Nursing home benefit, Accidental death benefit, Children’s benefit rider, chronic illness accelerated death benefit, Disability Waiver of premium, and Terminal illness accelerated benefit. 

Consumer complaints and ratings 

According to the National Association of Insurance Commissioners (NAIC) complaints ratio, Transamerica’s ratio had continuously been over 1.0 since 2017, worse than the average. The company was ranked 18 out of 23 individual life insurance companies in the J.D. Power 2020 Life insurance study.

Transamerica insurance company had been the eighth largest life insurance company in context to factors like communication, coverage options, and pricing.

Although, if you’re looking for a flexible life insurance policy, you should consider Transamerica. It offers multiple life insurance options that include no-exam coverage.

However, if you need more guidance about the policies, it would be better to check out some other insurers and get quotes to prevent yourself from overpaying for coverage. For more Insurance Reviews keep visiting Our website.

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