Pros / It offers financial planning assistance.
Cons / Your beneficiary can’t file a claim online – they have to call Transamerica.
Verdict / Transamerica has average premium rates but doesn’t offer as many additional services as other insurers.
Transamerica is a 90-year-old life insurance company with an A+ rating from A.M. Best. As such, it is on sound financial footing and can be trusted to pay out claims in the future.
Transamerica offers term life insurance policies as well as permanent policies. A term policy is the most common type, and it pays a set amount to your beneficiaries if you die during a pre-determined period of time.
Permanent insurance, which Transamerica offers as both whole and universal policies, lasts for as long as you pay your premium and includes an investment component that increases in value the longer you own it. Universal policies are more flexible than whole policies. For example, you can adjust the premium depending on your financial situation. Expect to pay as much as 10 times more for a permanent policy than you would a term policy.
Each policy is different, and your premium is based on your health, age, income, savings, debt and what you need to provide for your beneficiaries. To get an idea of what you can expect to pay for a Transamerica policy, we contacted the company to get quotes for a 45-year-old male who smokes but has otherwise good health and a 33-year-old woman in excellent health. All the term life insurance quotes we got were for a policy with a $250,000 value and a 20-year term.
Transamerica’s term policy quotes were the closest to the average we saw. Across all the companies we reviewed, the 45-year-old man’s average term premium was $148 per month and the 33-year-old woman’s premium was $20 per month. Transamerica’s quote for the man was $148 per month, and its quote for the woman was $24 per month.
There was more variation in the permanent policy premiums. The average for our 33-year-old woman was $186 per month, and Transamerica quoted us exactly that. However, the gap was wider for the 45-year-old man – the company quoted us $534 per month, compared to the average of $488 per month.
In the event of your passing, your beneficiary needs to call Transamerica to file a claim. Some other insurers allow claims to be filed online.