Types of Life Insurance Sold by Transamerica
Transamerica made Forbes Advisor’s best life insurance companies list and offers these types of life insurance products:
- Term life
- Whole life
- Indexed universal life
Transamerica Term Life Insurance
Term life insurance is a smart choice for people seeking steady rates for a specific time period. For example, if you want life insurance to cover the mortgage if you die and have 20 years left before it is paid off, a 20-year term policy would be an option. You can renew after the level term expires but prepare for a significant increase in premiums.
Term life insurance does not build cash value, and, as a result, it is often the cheapest life insurance to purchase.
Transamerica, included in Forbes Advisor’s best life insurance companies list, offers two term life insurance policies:
Transamerica’s Trendsetter Super Series policy offers a minimum of $25,000 in coverage for terms of 10, 15, 20, 25 or 30 years. You can get up to $2 million in coverage without a medical exam if you qualify.
The Trendsetter Super Series policy includes an automatic terminal illness accelerated death benefit endorsement. You can also further customize this policy with one of four available riders:
- Disability waiver of premiums rider
- Income protection option
- Children’s benefit rider
- Accidental death benefit rider
Transamerica’s Trendsetter LB policy was named “Best Overall” in our Forbes Advisor review of the best term life insurance. The policy offers $25,000 to $2 million in coverage with terms of 10, 15, 20, 25 or 30 years. Like the Super Series term policy, qualifying applicants may be able to forgo a medical exam if they are purchasing $2 million dollars or less in coverage.
The Trendsetter policy automatically includes three health-based riders that make a portion of the death benefit available if the insured becomes terminally, chronically or critically ill. Trendsetter LB customers have access to the same optional riders made available through the Super Series policy with the addition of a monthly disability income rider.
| Transamerica Trendsetter Super Series | Transamerica’s Trendsetter LB | |
|---|---|---|
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Best for
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Those who want term coverage with the option to add riders
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Those who want term coverage with living benefit riders built in for chronic, critical and terminal illness
|
|
Death benefit
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$25,000 to $2 million
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$25,000 to $2 million
|
|
Term options
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10, 15, 20, 25 or 30 years
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10, 15, 20, 25 or 30 years
|
|
How to apply
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Through an independent broker, or online depending on the product
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Through an independent broker, or online depending on the product
|
|
Available for applicants
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18 to 80 years old
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18 to 80 years old
|
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Option to convert to a permanent policy
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Yes
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Yes
|
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Rider options
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Accidental Death, Children’s Term, Disability Waiver of Premium, Income Protection, Terminal Illness (included)
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Accidental Death, Children’s Term, Disability Waiver of Premium, Income Protection
|
Transamerica Whole Life Insurance
If you’re looking for a life insurance policy with a guaranteed death benefit, guaranteed minimum rate of return on cash value and fixed premiums, whole life insurance works as an option for you.
With Transamerica’s Lifetime whole insurance policy, you can purchase between $25,000 and $2 million in coverage.
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. These include a children’s benefit rider as well as an income protection option (IPO) that allows you to control how and when your beneficiaries receive their death benefit.
If you’re considering Transamerica whole life insurance, you can use the company’s iGO e-App to take advantage of its streamlined application process. The company also uses Express Protect Underwriting, making it possible for some applicants to get same-day approval.
Transamerica Indexed Universal Life Insurance
Indexed universal life insurance (IUL) is a permanent life insurance policy with an investment-focused approach to cash value accumulation. There are several characteristics that differentiate indexed universal life insurance from other permanent policies:
- The policy’s accumulated cash value is linked to the performance of an index, like the S&P 500, meaning the cash value will increase alongside the index. The index’s rate of return is used by the insurance company to determine how much the account should be credited.
- Cash value gains and losses generally have a floor (minimum) and cap (maximum) rate at which the cash value can increase, regardless of the market.
- Both the policy premium and the death benefit can be adjusted in accordance with the policy terms and conditions.
Transamerica’s Financial Foundation IUL policies are available with coverage between $25,000 and $2 million. The maximum coverage amount of $2 million is only available to individuals between ages 18 and 45. Applicants ages 46 and 55 can apply for up to $1 million in coverage.
The cash value of an IUL policy grows tax deferred and transfers between accounts within a policy are tax free.
Cash value accumulation is based on the three primary indexes: S&P 500, EURO STOXX 50, and the Hang Seng Index. The portion of premiums invested in the index funds can be allocated to three separate account options:
- Basic Interest Account, which is the annual interest rate determined by the insurer. It has a 2% floor but does not have a cap.
- Global Index Account, which has a 13% cap and a 0.75% floor
- S&P 500 Index Account, which has a 12% cap and 0.75% floor
Financial Foundation IUL policies include a terminal illness rider. You can choose to add other riders, including a base insured rider or the Concierge Planning Rider. The Concierge Planning Rider is exclusive to the Financial Foundation IUL. It provides help with funeral planning, access to tools that can help draft wills and document storage services.
Transamerica’s Financial Choice IUL is a new policy created for those with high income who seek flexibility and the potential for tax-free supplemental income. Cash value accumulation is based on the performance of a variety of domestic and global index options. The minimum coverage amount is $250,000, and your cash value can be invested in various index options:
- Basic Interest Account, which has a rate declared by the insurer but cannot go below 1%.
- Fidelity Small-Mid Multifactor Index Account, which is uncapped and has a .25% floor.
- Global Index Account, which has a 10.75% cap and a .25% floor.
- S&P 500 Index Account, which has a 9.5% cap and a .25% floor.
- Global Plus Index Account, which has a 14% cap and a .25% floor.
- S&P 500 Plus Index Account, which has a 12% cap and a .25% floor.
How Much Does Transamerica’s Insurance Cost?
Transamerica’s Term Life Insurance Rates vs. Top Competitors
Transamerica’s Trendsetter Super costs an average of $190 a year for a 20-year, $500,000 policy for a healthy 30-year-old female, based on Forbes Advisor’s analysis. That’s only slightly higher than most other top companies’ rates.
Here’s a comparison of Transamerical’s term life insurance rates and other top competitors.
Compare Transamerica With Other Insurers
1
Transamerica
Stock
A (Excellent)
2
Lincoln Financial
Stock
A+ (Superior)
3
Mutual of Omaha
Mutual
A+ (Superior)
Transamerica’s Life Insurance Riders
Here are examples of life insurance riders available from Transamerica, depending on the policy type.
- Accidental Death Benefit Rider. This rider pays your beneficiaries the death benefit as defined by the rider if your death is the result of an accidental bodily injury. Term and permanent life insurance policyholders can add this rider.
- Additional Insured Rider. This rider allows you to add level term life insurance for up to five family members. This rider is only available with index universal life policies.
- Base Insured Rider. Available to index universal life insurance policyholders, this rider adds additional level term coverage at the current term rate.
- Children’s Benefit Rider. Adds a term life insurance policy for your child as long as they are between 15 days and 18 years of age. Rates are fixed and the rider is available on permanent and term life insurance policies.
- Chronic Illness Accelerated Death Benefit Rider. With this rider, a policyholder can have early access to part of the death benefit if they are diagnosed with a chronic illness. This rider is automatically included in Transamerica’s Trendsetter term life policy. It is also available with permanent life insurance policies.
- Concierge Planning Rider. Exclusive for qualifying index universal life policies, this rider extends policy benefits to include the Everest Funeral Package, LLC. This package offers services like funeral planning and document storage, as well as access to will preparation tools.
- Critical Illness Accelerated Death Benefit Rider. This rider gives the policyholder access to part of the death benefit early if they are diagnosed with a critical illness. This rider is automatically included in Transamerica’s Trendsetter LB term life policy. It is also available with permanent life insurance policies (but note that the Chronic Illness Rider and Long Term Care Rider are not available on the same policy).
- Disability Waiver of Premium. Available to permanent and term life insurance customers, this rider waives the policyholder’s monthly premiums if they are diagnosed with a disability. Payments are waived through the duration of the disability.
- Income Protection Option (IPO). With this rider, term and permanent life insurance customers can choose preplanned payments to control how beneficiaries receive the death benefit. Payment structures include an initial lump sum, a final lump sum, a guaranteed monthly payment for up to 25 years or a combination of the payment options.
- Guaranteed Insurability Benefit Rider. Permanent life insurance policyholders can add this rider if they want the flexibility to increase their coverage at specified intervals without additional underwriting.
- Overloan Protection Rider (OPR). If there is an outstanding loan against your policy, this rider can help prevent a policy lapse and the loan from being taxed, ensuring there is at least some death benefit available for beneficiaries. This rider is only available to index universal life policyholders.
- Terminal Illness Accelerated Death Benefit Rider. Transamerica policies automatically include this rider. It gives policyholders early access to a part of the death benefit if they become terminally ill.
- Term Insurance Rider. Choosing this rider with your whole life insurance policy adds level term life to your coverage at term rates.
How Do I Buy Life Insurance From Transamerica?
Transamerica life insurance policies are sold mostly through independent brokers, and some products are available directly to consumers, such as online.
How to File a Claim with Transamerica
You can initiate a life insurance claim with Transamerica by calling their toll-free number (800) 527-9027, or filling out the form on their website.
Transamerica Company History
Transamerica’s roots go back to 1904 when founder Amadeo Giannini opened his first bank in San Francisco. Over the next few years, Giannini’s financial endeavors would serve as the foundation of the Bank of America and include the purchase of the Occidental Life Insurance Co., setting the stage for Transamerica’s role as a life insurance provider.
In 1956, Transamerica migrated away from the banking world to focus exclusively on insurance, and in 1999 it became part of Aegon N.V., an international financial services group.
Today, Transamerica serves more than 11 million U.S. customers, providing life insurance, investment and retirement products.
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Methodology
To find the best life insurance companies, we evaluated term life and permanent life insurance for each company:
- For term life insurance rate analysis, we used our own research. and data provided by AccuQuote, a national online life insurance agency. AccuQuote has been in business for over 30 years and works only with insurance companies that have top financial strength ratings.
- For cash value life insurance analysis, we used data provided by Veralytic, an independent publisher of life insurance research and analytics. Veralytic measures the competitiveness of permanent life insurance products and can provide a customized analysis to you and your financial advisor of policies you own or are considering buying.
Our evaluation was based on:
Term life insurance rates (50% score): We used term life insurance rates for healthy buyers ages 30 and 40 for policies for 10, 20 and 30 years. The coverage amounts analyzed were $250,000, $500,000, $1 million and $2 million.
Financial strength (10% of score): This measure incorporates the insurer’s financial strength ratings from four major ratings agencies: AM Best, Fitch, Moody’s and Standard and Poor’s. Financial strength is particularly important when you’re relying on a company’s ability to pay claims many decades from now.
Cost competitiveness of cash value policies (10% of score): This measures the level of premiums and internal policy charges, including the cost of insurance, fixed administration expenses and cash value-based wrap fees.
Reliability of policy illustrations (10% of score): This factor measures the reliability over time of the company’s illustrations for its permanent life insurance products. When you plan to be holding on to a policy for decades and counting on cash value to accumulate, you want an illustration that’s accurate.
Historical performance (10% of score): This measures whether the historical performance of the company’s investments that fuel cash value growth are superior to other companies’ comparable products.
Access to cash value (10% of score): This measure evaluates the liquidity of cash value and a policyholder’s access to it. Some policies will build cash value better in the early years, and with other companies you may be waiting several years before you have meaningful cash value within a policy. Generally speaking, the higher the liquidity, particularly in early policy years, the better—but some insurers charge more for greater liquidity, so consider the possible tradeoff.
