Transamerica Life Insurance Review (2024)

Transamerica Final Expense Whole Life

Transamerica’s final expense policies are whole life insurance plans. Much as the name implies, they’re designed to last for your whole life. 

With a final expense policy, you can count on having a guaranteed death benefit to cover your burial, funeral, or other end-of-life expenses. Your family members won’t feel burdened by unexpected costs, which today can range from $7,000 to $10,000. 

The premium will not go up over the policy’s life, even if you have some health problems later in life. You’ll also be glad to learn that you won’t have to take a medical exam to get approved. 

Transamerica offers two final expense insurance products: Immediate Solution and Easy Solution. We’re highlighting their features. 

The Easy Solution is a graded policy which is a fancy way of saying the death benefit pays differently in the first two years of the policy than in the years after.

Here’s how it works. If you die for any reason during the first two years of the policy, your beneficiaries will receive 110% of the premiums you paid into the policy. If your death is accidental, they will get the entire death benefit. From the third and every year after, your beneficiaries will receive the entire face amount, whether your death was accidental or not. 

State Eligibility, Ages, & Coverage Amounts

Transamerica’s final expense plans are available in all states and the District of Columbia.

The minimum issue amount for both policies is $1,000. The maximum coverage amounts for the Immediate Solution plan are based on age, as shown below:

• Ages 0 to 55: $50,000 
• Ages 56 to 65: $40,000
• Ages 66 to 75: $30,000 
• Ages 76 to 85: $25,000

The acceptable age range for the Easy Solution plan is 18 to 80, except in New York, where the applicable age range is 50 to 75. The plan offers a maximum death benefit of $25,000. 

Death Benefit

A death benefit, a face amount—they’re all the same thing. Whichever term you use, it refers to the sum of money your life insurance company gives your heirs when you die. 

You can choose from the available death benefit amounts in your age range. 

Cash Value 

Transamerica’s final expense policies are whole life insurance plans with a cash value component. That means with every payment you make, the insurance company puts part of it in a separate account called the cash value account. This part of the policy earns interest over the life of the policy. 

You can tap into your cash value if you need some extra cash and pay it back later when you can. It amounts to taking out a loan from yourself. No banks or finance companies are involved, and no one checks your credit. 

If you opt to borrow from the cash value and you die before you have a chance to pay it back, your beneficiaries aren’t out of luck. They’ll still get the death benefit minus the amount you loaned yourself.  

Riders

Much as it sounds, a rider “rides” onto a policy to give it more coverage and benefits. 

Final expense riders included:

Accelerated Death Benefit Rider with Nursing Home Benefit

This is a living benefit, meaning you can access some of your death benefit funds while living. For example, if you have a serious illness or need care in a nursing home, you will receive payments to help with expenses.

Optional riders include:

Accidental Death Benefit Rider

This rider pays an additional death benefit if you die within 90 days of having an accident. It’s only available for people ages 18-70. 

Children’s and Grandchildren’s Benefit Rider

This rider adds $1,000 or more of term insurance for your children and grandchildren to give you extra funds for their funeral expenses. The rider applies until they reach the age of 25. Your children or grandchildren can also convert their term policy to a whole life policy when they get older and carry it with them for the rest of their lives. 

Check out: Lincoln Heritage’s Funeral Advantage Program

Transamerica Term Life  

During your prime, you’ll likely have more financial obligations than later in life. You may have a mortgage payment or be paying for your children’s college tuition.

As you get closer to retirement, some of your bigger debts may be behind you. A term life policy is designed to cover your outstanding debts for a specific period if you die before paying them off. 

Transamerica offers a term policy called Trendsetter that lets you choose how many years your life insurance lasts to cover your financial obligations during the years it matters most. 

State & Age Eligibility

The Trendsetter policy is available in all 50 states and the District of Columbia. 

If you’re between 18 and 80, you qualify for a Trendsetter Term Life plan.

Coverage Amounts

The minimum coverage for the Trendsetter policy is $25,000. You can purchase up to $2 million without a medical exam, and you can purchase up to $10 million, although you will have to schedule a medical exam. 

Term Lengths

Unlike a final expense whole life policy, a term policy lasts for a specific number of years. The Trendsetter insurance policy lets you choose from terms of 10, 15, 20, 25, or 30 years. The longest term you’re eligible for varies by age, as seen in the table above.

People often choose the number of years based on a major debt they want to cover. Let’s say your mortgage payment is your biggest expense, and you have 15 years left to pay on it. Your spouse or other family members would be able to live better if they didn’t have to keep paying a large mortgage payment if you should die. A 15-year term policy could cover that expense, significantly easing the financial burden on the rest of your family. 

Riders

Riders enhance the basic death benefit of a term policy. The Trendsetter includes three riders at no additional cost:

Riders included: 

Disability Waiver of Premium

With this rider, you won’t have to make payments if you become disabled. 

Accidental Death Benefit Rider

This rider provides an additional benefit if you die because of an accident.

Children’s Rider

You can purchase an extra amount of term insurance to help pay for funeral expenses if one of your children dies. 

Optional riders include:

Income Protection Option

This is a unique rider that pays your family monthly to replace the income you earned before your death. 

Terminal Illness Accelerated Death Benefit Rider

This rider will give you payments in advance of your death to pay for medical bills and other expenses if you are diagnosed with a terminal illness. 

Conversion Option

The conversion option lets you convert your term policy to a whole life policy that lasts your entire life. 

Check Out: TruStage’s Term Life Insurance Options

Check Out: Baltimore Life Insurance Offerings Reviewed

Transamerica Application Process

Transamerica streamlines the application process as much as possible.

If you’re in the market for final expense insurance, you can fill out the application online. The company will process the application immediately, and you’ll be approved quickly. Some people may get an answer as soon as the same day. 

If you’ve decided a term policy best suits your needs, you can still complete an application electronically. Depending on your age and the amount of coverage you’re applying for, you may need to schedule a paramedical examination. 

How Transamerica Will Decide on Your Approval

For the final expense coverage, Transamerica will decide your approval based on your answers to the questions on your application. They’ll also do a quick check on your medical records and prescription drug history. 

On the term policy, they’ll review your application and determine if you need to arrange for a paramedical exam. Once the company has all the necessary information, you’ll know which policies and face amounts you qualify for.

Paying Your Premiums

You can make payments for your policy directly to Transamerica if you wish. If you have a Social Security Direct Express® debit card, Transamerica will debit your account to correlate with your income, so you won’t risk missing a payment. 

Transamerica Pros and Cons

We’ve compiled a list of pros and cons for both products so you can decide whether a final expense or term life policy is best for your situation. 

Transamerica – Final Expense Whole Life Product Pros

• Lasts for your entire life
• Built-in savings account (cash value) 
• Can take loans against cash value with no credit check
• Simplified underwriting = health questions and prescription drug checks instead of medical exam 
• Level premiums for the life of the policy
• No waiting period
• One of the only carriers to accept credit cards for recurring payments, also accepts Direct Express
• Accelerated Death Benefit Rider included
• Optional Children’s and Grandchildren Rider available (Immediate Solution)
• Optional Accidental Death Benefit Rider available (Immediate Solution)

Transamerica – Final Expense Whole Life Cons

• Provides much less coverage per dollar than term life insurance
• Maximum coverage $50,000
• Less coverage available as you age

Transamerica Term Life Pros

• Lower premiums compared to whole life policies
• Choose from 10, 15, 20, 25, or 30-year terms
• Includes Disability Waiver of Premium Rider
• Includes Accidental Death Benefit Rider
• Offers optional rider for Children’s Insurance
• Offers the option to convert your policy to a whole life policy
• Offers optional rider for Income Protection
• Offers optional rider for Terminal Illness living benefits

Transamerica – Term Life Cons

• The policy ends at the end of the specified term
• The policy does not accrue cash value
• Policy ends at the end of the term

Transamerica Ratings & Customer Reviews

Your family members will have to deal with the insurance company after your death, and you’ll want a company that takes good care of them. 

Industry ratings and customer reviews will tell you much about a company’s track record to affirm that you’re making a good decision.

What Does the BBB Say About Transamerica?

The BBB gives Transamerica an A rating. Some of the complaints concern investment or retirement funds rather than life insurance, and others relate to customer service. 

Financial Strength Ratings

Other than making your payments, you probably won’t think about your life insurance policy that often (although it’s a good practice to review every year). Before you fill out your application, it’s always a good idea to check out a life insurance company’s financial strength to be sure your spouse or family members will receive the full benefit. 

The following organizations rate insurance companies on their financial strength. As you can see from the ratings below, Transamerica ranks well. 

• AM Best: A (Stable)
• S&P: A+ (Strong)
• Moody’s: A1 (5th highest rating)

FAQs About Transamerica Life Insurance