Our life insurance reviews at NerdWallet are thorough and consider both the perspective of the customer and the insurer. Here are the key factors we take into consideration:
Types of Policies: There are various types of life insurance available, broadly categorized into:
- Term Life Insurance: Provides temporary coverage with a guaranteed payout if the policyholder dies during the specified term.
- Permanent Life Insurance: Offers lifelong coverage and accrues cash value that can be borrowed against in the future.
- No-Exam Life Insurance: Provides coverage without requiring a medical exam.
Financial Strength: We rely on AM Best ratings to assess an insurer’s long-term financial stability and its ability to fulfill claims. NerdWallet generally recommends considering insurers rated A- or higher, classified as follows:
- Exceptional: A+, A++
- Strong: A-, A
- Moderate: B, B+
Complaints: Ratings are based on the number of complaints to state regulators relative to the company’s size, using three years’ worth of data from the National Association of Insurance Commissioners. The best companies have fewer complaints than expected.
Online Purchase Option: Indicates whether an insurer allows customers to apply for and purchase a policy entirely online.
For instance, Transamerica offers term life, indexed universal, and whole life policies, including coverage tailored for foreign nationals. Despite relocating its headquarters away from San Francisco, Transamerica continues to feature the iconic Transamerica Pyramid in its logo.
Trust in NerdWallet: Our writers and editors adhere to strict editorial guidelines to ensure the accuracy and fairness of our content. This commitment enables you to confidently make informed financial decisions and select products that best suit your needs. For transparency, here’s a list of our partners and how we generate revenue.
Transamerica’s Performance and Insurance Offerings
Transamerica has received a 3-star rating out of 5 for its overall performance according to NerdWallet’s assessments, which are formulated by our editorial team. Our scoring methodology takes into consideration consumer feedback, complaint data sourced from the National Association of Insurance Commissioners, and evaluations of financial strength.
Transamerica offers a variety of life insurance policies:
Term Life Insurance:
- Transamerica provides two types of term life insurance policies, offering terms ranging from 10 to 30 years:
- Trendsetter Super: Offers coverage up to $10 million, depending on individual circumstances.
Trendsetter LB: Offers up to $2 million in coverage and allows access to funds before death if the insured is diagnosed with a chronic, critical, or terminal illness.
Whole Life Insurance:
Transamerica offers whole life insurance policies with coverage up to $2 million, featuring various riders including accelerated death benefits for chronic, critical, or terminal illnesses, term life riders, waiver of premium, child term riders, and more.
Final Expense Insurance:
This is a whole life policy with death benefits ranging from $1,000 to $50,000, tailored for individuals up to age 85.
Indexed Universal Life Insurance (IUL):
Transamerica provides two types of IUL policies:
- Financial Choice: Aimed at high-net-worth individuals, offering multiple index options with coverage starting at $250,000.
- Financial Foundation: Positioned as a versatile life insurance option for families, with a minimum policy amount of $25,000.
Various riders can be added to these policies, such as accelerated death benefits, guaranteed insurability, additional insured, child term, waiver of premium, and concierge planning.
Group Life Insurance:
Transamerica also sells group life insurance through employers.
Life Insurance for Foreign Nationals:
Foreign nationals working or frequently visiting the United States, or owning property in the country, may qualify for Transamerica’s policies. Applicants must be from one of 47 qualifying countries and have a global net worth of $1 million.
These offerings reflect Transamerica’s commitment to providing diverse life insurance solutions tailored to different needs and circumstances.
Transamerica Life Insurance Details
Here are the monthly rates for a 20-year, $500,000 term life insurance policy from Transamerica. These rates are based on samples for a non-smoking man and woman in excellent health. Your actual quote will vary based on factors such as age, health, lifestyle, occupation, and driving record.
Customer Feedback on Transamerica
According to NerdWallet’s analysis of data from the National Association of Insurance Commissioners, Transamerica has received a higher number of complaints to state regulators over the past three years than expected for a company of its size.
In the 2022 U.S. Individual Life Insurance Study by J.D. Power, Transamerica ranked 20th out of 22 companies for customer satisfaction.
Further Insights into Transamerica
For comprehensive details on Transamerica’s policies, visit their website, where you’ll find extensive information. Online quotes are accessible exclusively for the Trendsetter Super plan.
In addition to life insurance, Transamerica provides a range of financial products and services, such as:
- Annuities
- Mutual funds
- Retirement planning services
- Workplace benefits
Guide to Buying Life Insurance
Before you start comparing insurance companies, determine the type of life insurance you prefer—whether term or whole life—and consider any additional riders you may need. Calculate the coverage amount and duration that best fit your needs, ensuring that the insurers you’re evaluating offer the specific coverage you seek.
When comparing rates, ensure the quotes are for identical coverage amounts and durations. Also, verify that the medical requirements of each policy align with your preferences. For instance, if you prefer skipping the medical exam but are open to answering health questions, confirm the application process for each policy.
While price is important, it shouldn’t be the sole factor influencing your decision. Assess the number of consumer complaints received by each company, as high complaint volumes can indicate potential service issues.
For more detailed guidance, refer to our comprehensive life insurance buying guide.
Methodology for Life Insurance Ratings
NerdWallet’s life insurance ratings incorporate consumer feedback, complaint indices from the National Association of Insurance Commissioners (NAIC) specific to individual life insurance, and weighted average financial strength ratings that gauge an insurer’s ability to meet future claims. Within consumer feedback, factors considered include communication ease and website transparency, assessing the availability of comprehensive policy details online. Each insurer’s rating is adjusted to a standardized 5-point scale.
These ratings serve as a helpful reference, but we recommend comparing multiple insurance quotes to find the most suitable rate for your needs. NerdWallet conducts reviews independently and does not receive compensation for evaluations. For more information, review our editorial guidelines.
Insurer Complaints Methodology
NerdWallet analyzed complaints reported to state insurance regulators and compiled by the NAIC from 2020 to 2022. The NAIC calculates a complaint index annually for each subsidiary, measuring its complaints relative to its market share of total premiums in the industry. Similarly, NerdWallet calculated a weighted index over a three-year period to assess each insurer’s complaint history, independently analyzing data without NAIC endorsement. This approach evaluates ratios separately for auto, home (including renters and condo), and life insurance categories.
Frequently Asked Question
What types of life insurance does Transamerica offer?
Transamerica offers a variety of life insurance options, including term life insurance, whole life insurance, and indexed universal life insurance. They also provide final expense insurance and policies tailored for foreign nationals.
What are the key features of Transamerica’s term life insurance policies?
Transamerica’s term life insurance policies come in several varieties with flexible terms ranging from 10 to 30 years. They offer high coverage limits, such as up to $10 million with the Trendsetter Super plan, and options like the Trendsetter LB plan that allows access to funds for chronic, critical, or terminal illnesses.
What additional financial products and services does Transamerica offer?
In addition to life insurance, Transamerica provides a range of financial products and services, including annuities, mutual funds, retirement planning solutions, and workplace benefits.
How does Transamerica perform in terms of customer satisfaction and complaints?
According to recent data, Transamerica has received a higher than expected number of complaints to state regulators over the past three years. In the J.D. Power 2022 U.S. Individual Life Insurance Study, Transamerica ranked 20th out of 22 companies for customer satisfaction.
Where can I find more information about Transamerica’s life insurance policies and get a quote?
Detailed information about Transamerica’s life insurance policies, including online quotes for certain plans like the Trendsetter Super, can be found on their official website. It’s recommended to review the specific policy details and compare quotes to determine the best fit for your needs.
Conclusion
Transamerica offers a diverse range of life insurance products designed to meet various needs, including term life, whole life, and indexed universal life insurance. Their policies feature flexible terms and high coverage limits, catering to individuals and families alike. However, recent data indicates that Transamerica has experienced a higher volume of complaints compared to industry norms, which may impact customer satisfaction. In the J.D. Power 2022 U.S. Individual Life Insurance Study, Transamerica ranked lower in customer satisfaction compared to many of its peers.