You have probably heard of Transamerica Life because they do a great job of advertising. Whether it’s from commercials or sponsoring PGA events, their name is one of the most recognizable life insurance companies their is.
Transamerica has one of the most competitive term products on the market which makes them a great company to work with for our clients. Not only is their term great, but they have a final expense policy that has very favorable underwriting.
When I say favorable underwriting, I mean they will take high risk cases that most companies won’t touch. This is a great option to have for clients with health problems and just need to cover burial expenses. They also offer indexed & variable universal life policies.
We will discuss there indexed universal life product, but since we think variable universal life is the worst product out there we will not even highlight it.
Transamerica is also a financially stable company. With the top 3 rating agencies, they earned the top financial strength scores. This means you can count on them to pay claims when the time comes.
With that said, their customer service leaves a little to be desired. In a recent JD Power Power’s poll, they earned “about average.” This can be a problem, but one solution is to have a great agent who is willing to go the extra mile when their clients need it the most. Let them deal with customer service and relieve you of the headaches.
We are going to talk about all their products but want to let you know we only recommend their term and final expense product. You can find better universal life products from other companies. Transamerica prides themselves on a “range of flexible products that suit your personal needs.”
Transamerica Term Life
Transamerica’s term policies are very flexible. They range from 10 to 30 years in length and you can choose a death benefit from $25K up to $2mil. There term policies can be a stand-alone term, or you can have the living benefits rider added.
This product is there Living Benefits Term. The living benefits term will cover also if you were to have an unexpected critical illness (such as heart attack, stroke, cancer, etc.). These types of policies allow you to access 24% of the face amount if one of these illnesses occur to help pay for any unexpected expenses or being out of work.
You can access this each year that you unable to perform 2 of 6 activities of daily living (toileting, feeding, transference, etc.). This is a great benefit, especially since with modern medicine we are living with these illnesses longer, but that doesn’t guarantee we able live a normal life.
Transamerica’s term is priced very affordable compared to all the other carriers out there. It is still a good idea to get multiple quotes when shopping for term. You can also add these riders to Transamerica’s term:
• Waiver of premium
• Disability Income
• Accidental Death
• Child Insurance Rider
Transamerica Final Expense
This product is exactly like it sounds. It is a simplified issue whole life policy that has face amounts or $10K-$50K depending on your age. This policy is mainly used for burial insurance.
Some of the key features are its simplified issue underwriting process. This process allows you to have some medical problems unlike a traditionally written policy. This allows some people who never dreamed of being able to qualify for life insurance, not only qualify but at an affordable rate.
This policy is a non-participating policy which means it does build up cash value but does not earn dividends. Great policy for the unhealthy and someone looking for burial insurance. You can also add these riders to your final expense policy:
• Waiver of premium
• Accidental Death
Transamerica Indexed Universal Life
If you’re not sure what a universal life policy is, please read our blog here. Transamerica indexed universal life policy works just like any other indexed UL policy except you don’t have as many options as you do with other similar policies with different carriers.
Index universal life insurance offers flexible insurance premiums, which may be allocated among a basic interest account and two index accounts (S&P 500 & Nasdaq). The index accounts provide the potential for interest crediting based on changes in the value whichever index you choose.
The main problem with these types of policies are the premiums are not guaranteed. This means that if the indexes don’t perform you could be looking at a higher premium down the road or even worse, the policy could lapse leaving you with no coverage when you will need it the most.
We give them a thumbs up. Transamerica overall is a very strong company. They have great financial ratings which means the capacity to pay claims. This is huge when choosing a carrier.
Their customer service is not the greatest but with an experienced agent you can get around this. Overall, they have great term products with many bells and whistles attached. Their final expense product is one of the best on the market and priced accordingly.
The one product we would stay away from is the Indexed Universal life. You can find a much better Indexed UL with a guaranteed premium and many more index options. We hope this helps you when your trying to figure out which company is best. If we can be of help, please give us a call!