Transamerica Life Insurance Comprehensive Review 2021
Have you heard about Transamerica? It’s a popular insurance company offering life insurance, investment, and retirement services.
Transamerica was established in 1904 in San Francisco with the objective of providing low-cost banking services.
J.D. Power’s 2018 U.S. Life Insurance Study evaluated the company as having exceptional financial health rankings. But, does it deliver on its promises?
By now, you might be wondering whether Transamerica is best for you… right?
This review has everything you could ask for:
- Wondering about types of burial life insurance offered? Yes, we’ve got that covered
- Interested in knowing the benefits you’ll get? We’ve discussed them all!
- Want to know if the offerings are worth your hard-earned dollars? We have that too!
In a nutshell, every burial insurance company has its pros and cons. Some may be right for you; others – not so much. We’ll help you figure out whether Transamerica is the partner you’re looking for.
Types of Life Insurance offered by Transamerica
Insurance policies from Transamerica are quite appealing on paper. The company sells five different life insurance policies, unlike other businesses that only offer the essentials. It has a wide variety of options available for you. Isn’t that great?
However, today we will discuss burial life insurance by Transamerica in detail so that you can easily decide whether it is worth your time and investment or not.
You can also add riders to your policy to make it more personalized. If you’re shopping for burial life insurance for the first time, Transamerica’s Plan Predictor tool can help you find the best coverage for your circumstances.
Sounds interesting, right? Well, continue reading. We’ve got lots in store for you.
Final Expense Insurance
Final expense life insurance is intended to cover the funeral and burial costs. It is convenient and simple to buy, and there’s no waiting time before coverage begins. Your age and health status are unlikely to affect your acceptance.
Transamerica offers three different health care plans, depending on your needs. These include preferred immediate solution, standard immediate solution, and the Easy Solution program.
The Easy Solution is the most costly of the three options. Overall, your health will determine which plan, if any, you are eligible for. Transamerica’s funeral insurance is available in almost every state in the United States. In a few states, however, some of their packages and riders are not available.
The initial step in getting final expense insurance with underwriting is the health questions. They are the most essential part of the application process, and the questions are divided into three parts.
The first category of questions is the knockout questions. This means that if your response to any of these questions is a ‘yes,’ you won’t be eligible for any of the plans. Moreover, if you take medications for any of the conditions in the knockout questions, they will deny your application.
The knockout conditions are discussed below:
- Is the applicant bedridden, hospitalized, staying in a nursing home facility, long-term care facility, or assisted care facility, receiving home health care or hospice care, or has the applicant been advised by a medical professional or planning to go through inpatient surgery within the coming 2 years?
- Has the applicant ever:
- Been diagnosed with, treated for, or recommended by a healthcare professional to be treated for memory loss, Alzheimer’s dementia, Down’s syndrome, Lou Gehrig’s disease, sickle cell anemia, cerebral palsy, Huntington’s disease, or been found to have a terminal illness that can result in death within the period of next 18 months?
- Tested positive for being exposed to HIV or been diagnosed with AIDS or ARC caused by HIV or other condition resulting from such infection?
- Been in a diabetic coma or advised by a healthcare professional to receive an amputation because of a disorder or disease?
- Received an organ transplant except for corneal or been recommended by a healthcare professional to receive it?
- Within the last 2 years, has the applicant:
- Been diagnosed with, treated for, or been advised by a healthcare professional to undergo treatment for cancer (except for basal cell carcinoma)?
- Been tested by a healthcare professional for which the results haven’t been received or been recommended by a healthcare professional to have a surgical operation, rare diagnostic testing, hospitalization, treatment, or other procedures which is yet to be done?
Easy Solution Plan
If you are between the age of 18 and 80, you can purchase this policy. A maximum of $25,000 can be purchased. This plan isn’t great because it is expensive and comes with a waiting period.
The waiting period is of 2 years. Any policyholder who dies during that period will be repaid all premiums plus 10% of the face value. If a death occurs as a result of an accident, even during the waiting period, the death benefit will be paid in full by Transamerica.
You must not have any knockout condition to be eligible. There is another set of questions that you will have to answer to qualify. These are called C4 questions. If your response to any of the C4 questions is a yes, you’ll be approved for the Easy Solution Plan.
However, if your response to two or more questions is a yes, you won’t be eligible for any coverage.
- Have you been diagnosed with diabetes before 18 years of age by a healthcare professional?
- In the last four years, have you been diagnosed with, received treatment for, or advised by a healthcare professional to be treated for cancer (except for basal cell carcinoma)?
- In the past year, have you:
- Used illicit drugs or received a confirmed diagnosis for, treated for, been advised to be treated for drugs use or abuse, alcohol use or abuse, alcoholism, or muscular dystrophy?
- Received a confirmed diagnosis for or been treated for over 12 seizures or been diagnosed with or treated for or advised by a healthcare professional to be treated for hepatitis B or C, congestive heart failure, cirrhosis, or another liver disease?
- Been diagnosed with or treated for or recommended treatment by a healthcare professional for angina or aneurysm, or been advised to get a heart surgery of any kind, such as pacemaker implant, angioplasty, stent implant, or bypass surgery?
- Been diagnosed with or received treatment by a healthcare professional for stroke, heart attack, or transient ischemic attack?
- Used oxygen for breathing assistance, received dialysis of kidney, or been diagnosed with or treated for or advised to be treated for kidney failure because of a disorder or disease?
- In the last two years, have you used a wheelchair or an electric scooter? If you answer yes to this question, provide details about it on the Supplemental Information with the insurance application.
Standard Immediate Solution Plan
If you’re between 45 and 85 years old, you can buy this Transamerica final expense coverage. Younger people can apply but under stricter underwriting guidelines.
The maximum quantity that can be purchased is determined by age. It’s priced on a sliding scale, so someone in their fifties can get $55,000 in coverage while an individual over 75 will only get $25,000 in coverage. There is no waiting time with this policy, and it provides complete first-day coverage.
To be eligible for Standard Immediate Solution, you must clear all the knockout questions. If you say yes to any of those questions, you won’t be able to qualify.
The next set of healthcare questions that you must answer for the Standard Immediate Solution Plan are discussed below. These are called C3 questions. If your response to any of these questions is a yes, you will be approved for Standard Immediate Solution.
However, if your response to two or more questions is a yes, you will be approved for the Easy Solution Graded Plan.
- In the last two years, have you:
- Been diagnosed with, received treatment for, or been advised by a healthcare professional to be treated for angina, vascular disorder, circulatory disorder, a blood disorder, aneurysm or irregular heartbeat, or been advised to receive any kind of heart surgery like angioplasty, bypass surgery, or pacemaker implant.
- Been diagnosed with or received treatment for a stroke, transient ischemic attack, or heart attack?
- Used insulin or been diagnosed with or received treatment for over 12 seizures, or been diagnosed with, received treatment for, or been recommended to be treated for cirrhosis, congestive heart failure, hepatitis B or C, or any other liver disease?
- Used illegal drugs or received a confirmed diagnosis for, been treated for, or recommended treatment for drug use or abuse (including prescription drugs), alcohol use or abuse, and alcoholism?
- In the last four years, have you been diagnosed with, received treatment for, or been advised to be treated for kidney disease?
- Have you been diagnosed with, received treatment for, or been advised to be treated for multiple sclerosis, Parkinson’s disease, chronic obstructive pulmonary disease, such as chronic asthma, emphysema, black lung, or any other chronic respiratory disease?
The Standard Immediate Solution policy has several really unique riders that are included in the coverage at no additional expense to the insured. These are the following:
Accelerated Death Benefit Rider with Nursing Home Facility
This rider covers the policy face value following a suitable diagnosis or confinement in a licensed nursing home facility, regulated by the state availability.
Any interest discounts, loans, administrative charges, or payments due in the next year upon assessment or nursing facility confinement would be paid first from the total paid.
Accelerated Death Benefit Rider
To qualify, you must be 70 years old or younger to qualify for this rider.
In other words, if the cause of the death is an accident, this rider will give out an extra death benefit.
Accidental Death Benefit Rider
If the policyholder dies in an accident, this rider gives an extra payout. If the fatality is inflicted by a “common carrier,” such as a train or bus, there may be further compensation.
If the policyholder loses sight or limbs because of the accident, this rider provides additional financial assistance.
Grandchildren Benefit Rider
At the end of the day, we all want our lineage to stay safe and healthy (both physically and financially). For your children or grandkids, this rider provides level-term burial insurance.
It is only possible if the grandparent or parent is between the age of 18 and 75, and the child is between the age of 15 days and 18 years.
The 10-Pay Option
The 10 Pay Option is available on both the Standard Immediate Solution and the Preferred Immediate Solution. The coverage can be paid off in ten years.
Keep in mind that your monthly premiums will be roughly twice as much as they would be otherwise, but you will only be paying for 120 months. Payments halt after then, but the benefit continues until the insured dies.
Transamerica final expense also allows policyholders to pay premiums with their Direct Express debit card. This is issued by Social Security, and Transamerica will only recognize this debit card for payment of premiums.
Preferred Immediate Solution
This is another burial insurance plan from Transamerica. To qualify, you must not be suffering from any of the medical problems stated on the policy questionnaire, and your medication history must back this up.
There is no waiting time, and the full benefit is accessible from the first day of your coverage.
The insured is subject to the same age-related limitations on the amount of coverage as the Standard Immediate Solution product. The Preferred Immediate Solution includes the same riders as the Standard Immediate Solution.
The issue we have with this program is that it is much more expensive than other burial insurance providers. You’ll also have to wait a long time to find out if you’ve been accepted or rejected. With other carriers, it’s virtually instantaneous.
Transamerica Insurance Application
You’ll be surprised to know that Transamerica’s website does not include an online insurance application. Disappointed? Yes, we are too.
However, you can call a Transamerica representative and get all the information required to start the application process.
Use Transamerica’s Insurance Plan Explorer to choose a plan before speaking with an advisor by answering a few questions about your household, income, health, and spending plan. It takes roughly three minutes to complete the questionnaire.
You may also acquire an insurance quotation and assess your coverage needs with the Transamerica life insurance tool. A medical exam may be required to qualify for Transamerica insurance.
How Much Does it Cost?
Now comes the most important part – how much will you be paying if you choose to work with Transamerica?
The minimum death benefit for last expenditure plans is $10,000, while the maximum payout varies depending on the plan. A potential death benefit of $25,000 is available under the Easy Solution Plan.
The maximum funeral costs under the 10-Pay Solution and Immediate Solution plans are determined by your age, as follows:
- A death benefit of $50,000 is available to anyone aged 0 to 55.
- $40,000 if you’re between the age of 56 and 65.
- $30,000 if you’re between the age of 66 and 75.
- $25,000 if you’re between the ages of 76 and 85.
Transamerica’s free coverage estimator can help you figure out how much insurance will cost you based on your marital status, family income, children, mortgage or other obligations, retirement goals, and desired level of risk premium.
Elderly people, smokers, and individuals with a history of poor health will have the highest insurance premiums.
Overall, the costs of the final expense products offered by Transamerica are quite high when you compare them with other plans from various firms.
Ratings and Reviews of Transamerica
When it comes to Transamerica insurance rates, there are two primary factors to consider: Financial strength and client reviews. Transamerica performs admirably in terms of financial strength.
AM Best has given the company an A grade, indicating that it has enough stable cash to cover death payments.
Customer reviews, on the other hand, tell a different narrative. J.D. Power has given Transamerica a 2-star rating, which is regarded below average.
Despite having an A-rating from the Better Business Bureau, the company only has a 1.1-star average customer review. According to the National Association of Insurance Commissioners, Transamerica has above-average client complaints. This sure tells us one thing – customers aren’t satisfied with it!
Consult your Transamerica agent or Transamerica’s customer service staff to cancel your insurance. Transamerica offers a 10-day “free-look” provision, which means you have 10 days after receiving your policy to cancel it and receive a full refund of all payments made.
If you cancel everything within the free-look time, Transamerica will regard it as if it never existed and will repay you within a week.
Direct Express Billing
Transamerica is one of the few providers of last expenditure insurance that accepts Direct Express billing. You can transfer your funds straight into your bank account or put them onto the Direct Express Card, which is supplied by the government.
To make monthly payments, most funeral insurance providers require a bank draught. Even if you don’t have a bank account, Transamerica’s final expense insurance can save the day. You must pay a fee, but you can use your government-issued direct express card to do so.
Does Transamerica Life Insurance Pay for Suicidal Death?
Well, this is an interesting question. In general, state regulations governing payouts for suicidal death bind life insurance companies. Policyholders with policies that have been enforced for more than two years are usually qualified to file a claim.
However, because Transamerica’s policy varies depending on the policy type and state, you should contact an insurance agent for further details.
Additional Policies Offered by Transamerica
Transamerica offers a variety of retirement and financial options, including IRAs, mutual funds, annuities, and exchange-traded funds (ETFs). All these qualities make this company a decent life insurance source.
Can I Borrow Money from my Transamerica Life insurance?
Now, this is a tricky question. But we have an answer! It depends on your policy.
Provided you have full life insurance and the cash value is accessible, you may be able to get an advance. Nevertheless, your cash value isn’t always available, and if you draw from your insurance coverage, Transamerica will charge you interest. It is not possible to borrow cash from a term life insurance policy.
Does Transamerica Life Insurance Cover a Drug Overdose?
In practice, state laws governing payment for a drug overdose bind a life insurance company. Policyholders with policies that have been in force for more than two years are usually qualified to file a claim.
However, because Transamerica’s policies aren’t the same for every type of product and each state, it’s best to get in touch with an insurance agent for more details.
Transamerica has a good assortment of burial insurance policies for people of various ages, with a variety of term options and optional riders for more customized coverage. It offers decent packages when it comes to burial insurance.
Although Transamerica’s NAIC and J.D. Power customer satisfaction scores are below average for the sector, its financial soundness and long record in the industry make it a trustworthy burial insurance provider. But, this does not mean that the company’s offerings are the best for you.
If you qualify for the company’s Standard Immediate Solution Plan, you will be eligible for final expense products of other companies.
The rates of all the plans offered by Transamerica are quite high, which is why we recommend you do your due diligence and compare the products available in the market to see where Transamerica stands.