In a nutshell, Transamerica Life Insurance provides clients with a satisfaction rating that is significantly lower than the industry average despite the existence of a diverse selection of policy options.
Available policies
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Strength in terms of finances
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Complaints
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Online availability for purchase
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| Term‚ permanent, no-exam. |
Strong |
More than expected. |
None |
Individuals can purchase term, indexed universal, and whole life insurance from Transamerica and cover final expenses. While Transamerica's corporate offices are no longer located in San Francisco, the company's logo continues to feature the recognizable Transamerica Pyramid that the city is known for.
Transamerica life insurance
Transamerica received three out of a possible five stars for its overall performance. The formula for determining scores considers ratings for financial strength, data on customer complaints obtained from the National Association of Insurance Commissioners, and customer experiences.
The advantages and disadvantages of Transamerica life insurance
Pros
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Cons
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| There is a wide variety of life insurance products available, as well as a variety of term lengths. |
We were surprised to receive a higher number of complaints given the size of the organization. |
| Options for a somewhat high death benefit are available. |
When compared to other types of insurance, customer satisfaction for life insurance is below average. |
Transamerica life insurance
With Transamerica, there are two different options of term life insurance policies available. 10, 15, 20, 25, and 30 years are the available term lengths.
- The Trendsetter Super policy provides coverage of up to $10 million and, in some cases, even more, depending on each individual's situation.
- Suppose the insured person is diagnosed with a chronic, severe, or terminal illness. In that case, the Trendsetter LB policy provides access to a portion of the money in the policy before the insured person passes away. The policy provides coverage of up to $2 million.
You may add numerous riders to whole life insurance plans, and the maximum coverage amount can reach $2 million. These include riders that expedite the death benefit for people who have chronic illnesses, critical illnesses, or terminal illnesses.
You can obtain details regarding indexed universal life insurance by contacting an agent. The rise of the cash value in indexed universal life insurance policies is linked to a market index, such as the S&P 500.
The death benefits of a whole life policy for final expense insurance are typically low. Depending on the policyholder's age, they can range anywhere from $1,000 to $50,000. Buyers can submit applications up until the age of 85, except for residents of New York, where the coverage is not offered.
In addition, the company provides group life insurance for employers and their employees.
Complaints from Transamerica customers and their level of satisfaction
According to a study of data provided by the National Association of Insurance Commissioners, Transamerica has been the subject of a more significant number of complaints filed with state regulators than would be expected for a firm of its size.
According to the 2021 U.S. Life Insurance Study conducted by J.D. Power, Transamerica came in at position 19 out of 21 businesses in terms of total customer satisfaction.
Additional information regarding Transamerica's life insurance
You can discover in-depth information on the company's policies. You can do this with a tool called Plan Explorer on the Transamerica website, which you can use to choose which choice best suits your needs. Only the Trendsetter Super plan is available for online price quotations.
Annuities, mutual funds, exchange-traded funds (also known as ETFs), retirement planning, and workplace benefits are just some of the various financial products and services available from Transamerica.
How we evaluate companies that provide life insurance
Our editorial staff considers both the policyholder and the life insurance provider while writing life insurance evaluations. Among the many considerations, we give attention to are the following:
Available policies:
There is a wide variety of life insurance available, and one may break it down into the following three main categories:
- Term life insurance provides temporary coverage. The policy also includes a payout guarantee if the policyholder passes away while the policy is still active.
- Permanent life insurance is designed to cover the policyholder for their whole life. It accumulates cash value that can be used to secure future loans.
- No-exam life insurance policies do not involve a physical or medical examination.
Strength in terms of finances:
We use A.M. Best ratings to validate the long-term financial health of an insurer and their capacity to pay claims. Companies with a rating lower than a B are not ones that we would suggest. The breakdown is as follows:
- Exceptional: A+, A++
- Strong: A, A-
- Moderate: B+, B
Complaints:
According to data collected over three years by the National Association of Insurance Commissioners, these ratings are determined by the number of complaints submitted to state regulators compared to the size of the company. Complaints received by the leading providers of life insurance are significantly lower than the industry average.
Online availability for purchase:
This indicates whether an insurer allows you to apply for and purchase insurance entirely online, including the application and the purchase.
Purchasing guide for life insurance
Decide the kind of life insurance policy you need, such as term or whole life, before comparing different providers. Make a decision regarding which riders you would like to be added to the life insurance policy. Please do the math to determine how much life insurance you require and how many years you want it to protect you. Check to see if the prospective insurance companies can provide the level of protection that you require.
When you are comparing prices, you want to make sure that all of the estimates you are looking at are for the same amount of coverage for the same amount of time. In addition to this, it is essential to check that the medical requirements of the coverage are suitable for your situation. For instance, if you want to avoid the medical exam for life insurance but are willing to answer questions about your health, you should ensure that the application procedure for each of the policies you are evaluating is consistent with your preferences.
It's possible that price wasn't the primary factor in your choice to make a purchase. Examine the number of customer complaints that each company has received, as a high number of complaints may indicate that the service is of poor quality.
Check out our shopping guide for more information and advice on life insurance.
Methodology for rating life insurance companies
Our ratings for life insurance are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company's ability to pay future claims. The complaint index scores come from the National Association of Insurance Commissioners for individual life insurance. We consider the ease of communication and website transparency as part of the consumer experience category. Website transparency examines the breadth of policy details that are available online. We readjusted the scores to a skewed 5-point scale to determine the ratings for each insurance.
These ratings should be used as a guide, but you should still shop around and get many bids on insurance to get the policy that suits your needs at the most affordable price.
Methodology for examining complaints with insurers
During 2018-2020, we investigated the complaints submitted to state insurance regulators. We presented our findings to the National Association of Insurance Commissioners. The NAIC calculates a complaint index each year for each subsidiary of an insurance company. This index compares the company's share of total complaints to its size, as measured by its share of total premiums in the industry. This index aims to evaluate how different insurers compare to one another. Over the course of three years, we computed a comparable index for each insurer, weighting it according to the market share of each subsidiary. This allowed us to examine the complaint history of each company. The ratios for car, home (including renters and condo), and life insurance are all computed independently.
