- Transamerica life insurance scores a 4.4 out of 5 according to Reviews.com methodology.
- However, Transamerica lacks in customer satisfaction, ranking near the bottom according to J.D. Power.
- Transamerica’s index universal life insurance combines cash growth potential and traditional life insurance death benefits.
Transamerica is a financial services company offering a wide variety of life insurance products, including term and whole life insurance policies as well as flexible options from Transamerica FFIUL. The index universal life insurance policy offered by the Transamerica Financial Foundation IUL® (FFIUL) also features policy value accumulation, which earns interest as the market index value increases.
A notable feature of Transamerica is the availability of high coverage; in some cases, policyholders can get more than $10 million of coverage. On the other end of the spectrum, Transamerica FFIUL policies can be as low as $25,000 with affordable premiums.
Reading a full Transamerica FFIUL review helps you learn more about the company, typical benefits, and how the company compares to competitors.
Transamerica Life Insurance Overview
Transamerica Financial Foundation IUL reviews from customers aren’t great. In J.D. Power’s 2020 Life Insurance Satisfaction Study, it scored well below the industry average of 763 and the National Association of Insurance Commissioners reports more complaints than average for the company on its scale. That being said, Transamerica’s index universal life insurance policies may allow people to grow their policy’s value and tap into tax-free loans and withdrawals. Customers who want whole or term policies may want to look elsewhere.
- Multiple policy options: Transamerica offers while life, term life, universal life, index universal and final expense insurance policies for a wide variety of coverage needs.
- Index universal life insurance available: Index universal life insurance combines the death benefits of a traditional life insurance policy with potential cash value growth.
- Interactive coverage finder tool: Potential clients can walk through a simple survey to find out which type of life insurance is right for them.
- Lower-than-average customer service ratings: J.D. Power ranked Transamerica much lower than the industry average in 2020.
- Higher-than-average amount of customer complaints: NAIC reports more than average customer complaints against Transamerica.
- No child life insurance policies: Transamerica has limited family riders, including child rider policies.
Transamerica Life Insurance Highlights
Transamerica offers whole life insurance, two types of term life insurance, universal life insurance, index universal life insurance, and final expense life insurance. Whole life insurance guarantees coverage for the policy holder’s whole life as long as the premiums are paid, while term insurance keeps policyholders covered for a period between 10 and 30 years. Customers can also take advantage of the Concierge Planning Rider, which includes features like will preparation and 24/7 funeral assistance.
According to the J.D. Power 2020 U.S. Life Insurance Study, Transamerica ranks near the bottom of all providers based on application and orientation, communications, interaction, price, product offering, and statements. The company earned a customer satisfaction index rating of just 734 out of 1,000 (industry average is 763). And, according to NAIC, there were 162 complaints against the life and annuity policies offered by Transamerica in 2019.
Most Transamerica term life insurance policies require a medical exam. But according to its website, “…if a person is under a certain age and coverage amount, they may be able to get term life insurance without a medical exam.” However, for whole life insurance, clients can’t get an online quote — customers can only get a policy by calling an agent.
Transamerica Life Insurance vs. The Competition
|Provider||Reviews.com Score||In business since||AM Best||J.D. Power*|
Information accurate as of March 2021
*J.D. Power’s 2020 U.S. Life Insurance Satisfaction Study. Based on a 1,000-point scale.
Transamerica vs. State Farm
Transamerica and State Farm both offer term, whole, and universal life insurance policies. State Farm, however, fares far better than Transamerica on the J.D. Power customer satisfaction rating, earning 838 out of 1,000 compared to Transamerica’s 734.
On the upside, Transamerica offers policies in all 50 states, even where there are no active agents (customers can purchase by calling the nearest office instead of visiting). On the other hand, State Farm is no longer signing new insurance policies in Massachusetts or Rhode Island.
Transamerica vs. Northwestern Mutual
Northwestern Mutual is a mutual company, which means it is not owned by shareholders. This may allow policyholders to benefit from annual dividends when the company is financially successful. Transamerica invests in the stock market, so any policy value accrues through Wall Street investments.
In terms of policies, both companies have term, whole, and universal life insurance offerings, but Northwestern Mutual scored much higher in J.D. Power’s customer satisfaction study, ranking fourth behind State Farm, Globe Life, and Nationwide.
Transamerica vs. Nationwide
Nationwide also has a variable insurance policy, which puts your money in sub-accounts that are similar to a mutual fund.
Nationwide offers more policy bundles, so if you want to pair your auto insurance with your life insurance policy, you can do so and receive a potential discount. Both Transamerica and Nationwide have term, whole, and universal life insurance options. Again, Transamerica ranks far behind Nationwide in customer satisfaction, in which Nationwide ranks third behind Globe Life and State Farm.
Transamerica Life Insurance FAQ
Yes, Transamerica is a legitimate life insurance company. The company has earned an A rating from AM Best for financial strength. Customers can get term, whole, and universal life insurance.
Many Transamerica life insurance policies allow you to withdraw money as a loan or tax-free withdrawal. Contact an agent for more information about how to get a policy that allows money withdrawal.
Transamerica offers real life insurance policies. Policy holders can get up to $10 million in coverage. While Transamerica may recruit new insurance sales people, you are not required to participate in the company to have a policy.
We evaluated Transamerica Life Insurance based on riders, coverage, resources, financial strength and customer satisfaction to determine Reviews.com scores and create our best life insurance reviews. To compare life insurance companies with other providers across the board, we calculate each Reviews.com score based on the following:
- Number of Riders: The more riders a life insurance company has, the higher it scores in our Reviews.com methodology.
- Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each life insurance company’s financial stability.
- Customer Satisfaction: With J.D. Power’s 2020 Life Insurance Satisfaction Study, we assigned a score to each company based on the rating it received.
- Coverage: Life insurance companies scored higher if customers can convert term to whole and if they offered multiple options under different types of life insurance policies.
- Resources: Reviews.com compared website functionality for life insurance companies based on ability to receive online quotes, submit online claims, and read information on different policies available.