Transamerica Life Insurance Review (2023)
- Updated: January 6, 2023
- Rikin Shah | Licensed Life & Health Insurance Agent
- Fact-Checked (see our Editorial Guidelines)
- Industry-low rates: For many demographics, Transamerica offers the lowest rates of any final expense insurance carrier
- Transamerica is a well-established company with over 100 years of experience
- The company has a positive A.M. Best rating (A)
- The 2-year graded death benefit plan is too expensive
- It is only available to US citizens and permanent residents
- There are too many complaints
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Who is Transamerica Life?
Transamerica is an insurance company with over a century of experience helping people feel better about the future. Since its establishment in 1904, Transamerica is built on the idea that everyone has a right to financial security. To achieve this noble goal, the organization has remained innovative through the years to deliver a wide range of solutions. The company offers retirement, life insurance, and investment solutions to over 11 million Americans.
According to their official website, Transamerica is in the business of helping Americans live well by empowering them to create a better future through the health and financial-related habits that they form today. The company’s purpose is to help people achieve a lifetime of financial security by offering the appropriate services, tools, and strategies.
| Company 101 | Details |
|---|---|
| Founded | 1928 |
| Address | 6400 C Street SW Cedar Rapids, IA 52499 |
| NA | |
| Phone | 800-797-2643 |
| Website | https://www.transamerica.com/contact-us |
| BBB Rating | B |
| A.M. Best Rating | A |
Transamerica’s final expense life insurance solutions are designed to help protect your family from unexpected burial expenses when a loved one passes. The products are meant to help make life easier for your loved one when you die by helping fund your end-of-life costs.
The insurance policies are available to people between the age of 15 days and 85 years. Unlike most final expense insurance policies which set the minimum age as high as 50 years, Transamerica is available to even babies as young as 15 days.
There are three Transamerica final expense life insurance plans:
Transamerica Immediate Solution Brochure
[pdf-embedder url="https://getsure.org/wp-content/uploads/securepdfs/2022/07/Transamerica-Final-Expense-Brochure.pdf"]
Transamerica Final Expense Immediate Solution Overview
This is an easy and fast option that helps protect your family from unexpected funeral expenses. The Transamerica Life Immediate Solution offers guaranteed death benefits, level premiums and coverage ranging between $1,000 and $50,000 for people of different ages, health levels, and lifestyles.
Level premiums mean that the premium amount will never change regardless of the insured’s changes in health and age.
State Eligibility
This plan is available in all states, which means that every American who meets the age eligibility requirements is free to apply for a Transamerica Life Immediate Solution policy.
Age Eligibility
Immediate Solution by Transamerica is available to all Americans aged between 15 days and 85 years. That means that it is available to children and adults alike.
Coverage Amounts
The coverage amounts for the Immediate Solution policy range between $1,000 and $5,000. Although the $1,000 minimum coverage is constant across all age groups, the maximum coverage varies with age. The maximum coverage amount is $50,000.
| Age | Coverage Amount |
|---|---|
| 0-55 | $1,000 - $50,000 |
| 56-65 | $1,000 - $40,000 |
| 66-75 | $1,000 - $30,000 |
| 76-85 | $1,000 - $25,000 |
Death Benefit Terms
This plan is available in all states, which means that every American who meets the age eligibility requirements is free to apply for a Transamerica Life Immediate Solution policy.
Cash Value
The plan accumulates cash value from every premium you pay. The cash value serves as a savings account that allows you to borrow loans from the insurers at an interest rate not exceeding 8%. The loan interest rate is variable, but it will never exceed 8%.
Available Riders
Here are the additional benefits/riders that come with the Transamerica Life Immediate Solution final expense insurance plan:
| Rider | Cost | Description |
|---|---|---|
| The Accelerated Death Benefit Rider with Nursing Home Benefit | Yes | This rider will pay the policy’s face amount less any loans, interest discount, administrative charge, and premium that would have been due the next policy year after confinement in a nursing home or after diagnosis of a qualifying illness. The rider is available in all states except New York, Florida, and California. |
| The Accelerated Death Benefit Rider | Yes | This rider is only available in Florida and pays the policy’s face amount less any loan, interest discount, premium, and administrative charges that would have been due the next year after diagnosis of a qualifying health condition. |
| Terminal Illness Accelerated Death Benefit Rider | Yes | The rider is only available in California and pays the policy’s face amount less any loans, interest discount, premiums, and administrative charges due the next year if death is expected within 12 months following a qualified physician’s statement. |
| Accidental Death Benefit Rider (ADR) | No - Additional Cost | The rider is only available to policyholders aged between 18 and 70 years. It offers payment of an extra amount in addition to the policy’s face amount in the event of death caused by an accident and independent of other causes. For the rider to hold, the policy must be in force and death has to occur within 90 days following the accidental bodily injury. ADR is an optional rider. |
| Children’s and Grandchildren’s Benefit Rider (CGR) | No - Additional Cost | Available to ages 18 to 75, you can add a term life policy for your child or grandchild. To qualify, the child must be 15 days to 18 years old. Please note that the rider does expire on the child or grandchild's 25th birthday. There is an opportunity to convert to a permanent policy before expiration. |
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Transamerica Final Expense 10-Pay Solution Overview
This final expense insurance plan by Transamerica guarantees death benefits, cash value, and level premiums. As the name suggests, the plan lets you pay the policy’s premium over 10 years. 10-Pay is an affordable plan if you do not have money to make a single lump sum premium payment.
Being a level plan, your premiums will never change regardless of changes in your age and health.
State Eligibility
Like the Immediate Solution plan, the Transamerica 10-Pay Solution final expense insurance plan is available in all states.
Age Eligibility
Transamerica’s 10-Pay Solution is available to people aged 0-85 years. zero in this case represents infants of 15 days through 12 months.
Coverage Amounts
The plan’s coverage amount ranges between $1,000 and $50,000 for people of varying age groups. The $1,000 minimum is constant for everyone, but the maximum coverage amount varies depending on your age group. Below is a breakdown of the maximum coverage amounts for different age groups:
| Age | Coverage Amount |
|---|---|
| 0-55 | $1,000 - $50,000 |
| 56-65 | $1,000 - $40,000 |
| 66-75 | $1,000 - $30,000 |
| 76-85 | $1,000 - $25,000 |
Death Benefit Terms
After the death of the insured or policyholder, the full death benefit will be paid to surviving beneficiaries to help with burial costs. The death benefit is paid less any unpaid loan or any other charge. Death benefits are paid promptly.
Cash Value
Like with the Immediate Solution final expense insurance by Transamerica, your 10-Pay Solution insurance policy will accumulate a cash value after every premium payment.
This somewhat saving account allows you a chance to borrow money from the insurance company for everyday expenditures. The interest rate for loans is variable, but it will never exceed 8%.
Available Riders
Unlike the several riders from Immediate Solution plan, 10-Pay Solution only offers two. The Accelerated Death Benefit Rider will pay the face amount should you meet a qualifying event. For example, you can use your life insurance death benefit while confined in a nursing home facility. The Terminal Illness Accelerated Death Benefit Rider is only offered in California. This rider will allow you to receive 100% of the face amount if death is expected within 12 months. Both riders provide additional protection for you and your family from the financial burden.
Transamerica Final Expense Easy Solution Overview
Unlike the first two plans, Easy Solution’s final expense insurance policy by Transamerica does not cover children. It is a graded death benefit plan that’s only available to adults with more severe health conditions.
However, it is not available to senior citizens who are over the age of 80 years. It is also a level premium plan, which means that your premiums will never change no matter what.
State Eligibility
Like the Immediate Solution and the 10-Pay Solution, Transamerica’s Easy solution end-of-life expense insurance plan is available in all states and Washington DC.
Age Eligibility
In most states, the plan is available to people aged between 18 and 80 years. in New York, however, the age eligibility is 50-75 years.
Coverage Amounts
The coverage amounts for this final expense insurance plan by Transamerica ranges between $1,000 and $25,000. The maximum coverage amount for this plan is relatively lower compared to the other two plans because the policy targets people with serious health conditions.
| Age | Coverage Amount |
|---|---|
| 18-80 | $1,000 - $25,000 |
Death Benefit Terms
The policy’s death benefit during the first two years is based on the face amount for accidental death. When death is not accidental, the death benefit is limited to 110% of the sum of premiums paid less the loan balance. After the first two years of the policy, the death benefit is based on the face amount less the loan balance regardless of the cause of death.
Cash Value
A part of your premiums will contribute to your policy’s cash value, which is a form of saving account. If you ever need any financial help, you can borrow loans from Transamerica against your cash value.
Available Riders
There are no available riders for this end-of-life expense insurance policy by Transamerica Life Insurance Company.
Transamerica Insurance Application Process
The application process is pretty straightforward. You can secure a whole life insurance policy with no lab tests or medical examinations, provided that you meet the insurer’s eligibility requirements.
With the company’s electronic application process, you can get same-day approval, which will be confirmed via an MRAS email notification.
Transamerica Final Expense Application
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How Transamerica Will Decide On Your Approval
Although no medical examination or lab tests are required for Transamerica’s final expense insurance products, you will be asked a series of health questions to help determine your eligibility. In other terms, your eligibility will depend on how you answer the said health questions.
Transamerica employs an underwriting program known as Express Protect Underwriting. This system helps with reviewing and verifying your medical history using third-party data, which explains the potential for same-day approval. For instance, the company can access your record from the Medical Information Bureau (MIB) to analyze your health condition.
Once the underwriter has reviewed your application form, you will receive a notification confirming your status.
Paying Your Premiums
After completing the application process and getting approved, you will need to schedule your first premium payments. You can have the first premium drawn from your account immediately or schedule for another day within the first month after approval of your policy.
You can pay the first premium via a personal check, bank draft, or credit/debit card. However, all recurring payments are made via bank draft (EFT).
Transamerica Ratings & Customer Reviews
What Does The BBB Say About Transamerica Life?
As of this writing, Transamerica Life Insurance Company holds a B rating with the Better Business Bureau (BBB). According to the bureau, the reasons or justifications for a B rating is that the company has a total of 5 unresolved complaints filed against the business. Transamerica is not BBB accredited.
Transamerica Life A.M. Best Ratings
A.M Best is a global credit rating agency, data analytics provider, and news publisher focusing on the insurance industry. As of this writing, Transamerica holds an A financial strength rating with A.M Best.
Frequently Asked Questions
-
Is final expense life insurance worth it?
Yes. Purchasing a final expense life insurance is a guarantee that your family or loved ones will not suffer financial problems after your death. A final expense policy offers death benefits that will help your family pay for burial expenses.
-
Is Transamerica a legit insurance company?
Yes. Transamerica is an American insurance company that has been in business since 1904.
-
What is the rating for Transamerica insurance?
The company is rated B by the BBB and A by A.M Best. The low BBB rating is due to the high number of customer complaints. The A rating by A.M. Best shows that the company has a strong financial footing.
-
At what age should you buy final expense insurance?
The good this with Transamerica’s final expense insurance is that it is available for ages 0 to 85 years. Since death is unpredictable, you can buy a final expense insurance coverage at any time.
-
Does Transamerica pay death benefits?
Yes. The company will pay the full-face amount of your policy less any loan balance. Accelerated death benefit riders have different terms.
- Better Business Bureau. (n.d.). Business Profile Transamerica Life Insurance Company
- Guide to Best's Financial Strength Ratings. (n.d.). AM Best
- Transamerica. (n.d.). Final Expense Life Insurance
- Transamerica. (n.d.). Company Overview
Rikin Shah
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Burial Insurance
15 companies competing for your business
97% of the time we beat Colonial Penn
30 days to get your money back, no questions asked
* Based on website quote requests, through 2/28/23.
(Check your rate to see their rates vs. ours)