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ByLena Borrelli Contributing Writer

Lena Borrelli is a former wedding planner turned freelance writer who devoted her entire career to small business management before following her dreams to be a full-time writer.

Transamerica Life Insurance Review

Transamerica provides life insurance policies that are both well rounded and flexible. We love that it offers term life coverage ranging from 10 to 30 years in length and from $25,000 to $10 million in death benefits. This is a wider range than most companies on both counts. Since term life insurance is meant to provide affordable coverage as long as you need it (and no longer), Transamerica’s flexibility is key.

Transamerica has the credentials to back up its offerings, too. The company earned top financial strength scores from three separate ratings agencies, meaning it can be counted on to pay out if you need to file a claim. The only place Transamerica falls a little short is in customer service, polling below average in J.D. Power’s customer satisfaction survey. That may be something to look out for if excellent support is high on your list of must-haves.

Pros
Cons
Top-rated financial strength
Good online resources
Limited conversion options
Poor customer service

The Life Insurance Factors We Analyzed

Customer experience

Transamerica holds a low score of two out of five with J.D. Power in its 2019 life insurance survey, which measures customer satisfaction with product offerings, price, agent interaction and communication, and more. Transamerica falls well below the industry average, coming in 20th place out of 24 companies officially ranked. To top it off, Transamerica also had more complaints than average registered with the National Association of Insurance Commissioners in 2018. It's still possible that Transamerica could offer you the best coverage or the most affordable premium, but know that your experience with the company as a whole may not be to the same standard as with companies like New York Life or State Farm.

Coverage and rider information

Transamerica term life policies start at a death benefit of just $25,000 — one of the lowest entry points we've seen — with terms available from 10 to 30 years in five-year increments. That gives customers the opportunity to purchase a small-size, super-affordable policy. It also offers add-on "riders" like disability waiver of premium, accelerated death benefit with up to $10 million in benefits, accidental death insurance, and long-term care insurance.

Many term policies are eligible for conversion if you wish to convert your policy into a more permanent solution, and you may even be able to skip the medical exam otherwise required for new policies — a convenient option if you decide at the end of your term that you'd still like to be insured.

Life insurance coverage features

Insurance types offered Term, whole, variable universal, index universal life, universal (restricted to employers only)
Term lengths offered 10, 15, 20, 25, or 30 years
Standout coverage features Final expense insurance
Accelerated death benefit
Disability rider
Flexible term lengths

Transamerica Life Insurance Overview: Financial Strength, Availability, and History

Although Transamerica's customer service scores are well below average, it does make up for them somewhat with great financial health. The insurer earns high marks from A.M. Best, S&P Global, and Moody's, meaning it is financially solvent enough to pay out on any claims. This is despite a $195 million payout made in 2018 for increasing policy premiums up to 38% without warning. Because of this, some may be wary of a Transamerica index universal life policy.

  • In business since: 1904
  • S&P Global financial strength rating: AA-
  • Moody’s financial strength rating: A1
  • A.M. Best financial strength rating: A
  • States served: 50 plus Washington, D.C.

The Competition

A.M. Best Financial Strength Rating
J.D. Power 2019 U.S. Life Insurance Study Score
NAIC Customer Complaints
Transamerica
A
2/5
More complaints than average
New York Life
A++
4/5
Fewer complaints than average
State Farm
A++
5/5
Fewer complaints than average

All information accurate as of January 9, 2020.

The Bottom Line

Transamerica provides a variety of coverage, including term, whole, and universal life insurance. Its online tools are also fairly robust, allowing you to research, purchase, and manage coverage. However, as a whole, Transamerica has poor customer satisfaction ratings, meaning your experience with the company may be frustrating. It never hurts to get a quote to see what Transamerica can offer you, but we recommend looking into highly rated companies like New York Life and State Farm as well.

Transamerica Life Insurance FAQ

Is Transamerica a good life insurance company?

Transamerica is a well-known and popular provider for life insurance. It offers customizable policies and add-ons, and its low barrier of entry could be an attractive option for people searching for affordable insurance. Just know that Transamerica has poor customer satisfaction ratings and receives more than the average number of complaints for a life insurance company.

What types of life insurance does Transamerica offer?

Transamerica offers several forms of insurance to meet a number of needs, including term life, whole life, index universal life, and variable universal life insurance. And with a bevy of life insurance riders, there are many ways to customize your policy.

What is the average life insurance cost per month with Transamerica?

There is no set cost for a Transamerica life insurance policy, because life insurance is a highly individualized service. To see what your life insurance premium will look like, get a quote online or call a Transamerica representative.

Does Transamerica pay out dividends to its policyholders?

Some insurance companies pay dividends to their policyholders, but Transamerica is not one of them.

Does Transamerica life insurance require a medical exam?

A medical exam is required for many Transamerica life insurance policies, although you may be exempt depending on your age, desired coverage, and policy type.

Can you cancel Transamerica life insurance?

Unlike many other companies, Transamerica allows you to cancel your term policy at any time. If you’d like to cancel a whole life or universal life policy, call a Transamerica representative or consult your policy documents for the terms of your policy — it’s possible that you will have to surrender some or all of your cash value.

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