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Transamerica Life Insurance Review 2018


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Transamerica Life Insurance

  • NerdWallet ranking: No. 16 life insurance company (out of 18 evaluated)
  • It ranked about average in J.D. Power’s customer satisfaction study.
  • It offers a wide range of term and permanent life insurance.

Overview

Transamerica offers individual term, whole, variable universal and final expense life insurance, as well as accidental death policies. Although its headquarters are no longer in San Francisco, Transamerica still uses the image of the city’s iconic Transamerica Pyramid for its logo.

NerdWallet rank: 16th

Transamerica ranked 16 out of 18 companies in NerdWallet’s scoring of the largest life insurance companies. The composite score is based on three elements: the number of complaints to state regulators against the company, adjusted for market share; A.M. Best financial strength ratings; and J.D. Power customer satisfaction scores.

» MORE: The best life insurance companies

A.M. Best financial strength rating: A+ (superior)

Transamerica’s financial strength is “superior,” according to ratings agency A.M. Best.

It’s important to check the financial strength ratings of insurers, especially when buying life insurance. Financial strength indicates a company’s ability to pay claims. Your policy may not pay out for many years, so you want to choose a strong company with staying power.

Consumer complaints: Better than the median

Transamerica drew fewer than the median number of complaints to state regulators. The company’s complaint ratio score from the National Association of Insurance Commissioners was 0.6 for individual life insurance in 2016, the latest year for which data are available. The score is based on the number of complaints to state regulators, adjusted for market share. The national median score is 1. A score lower than 1 means fewer complaints; a score higher than 1 means more complaints.

J.D. Power ratings: Average

Transamerica scored in the middle pack of companies in J.D. Power’s 2017 U.S. Life Insurance Study. The company was rated “about average” across all five categories and overall came in at No. 15 out 24 life insurers evaluated.

Transamerica customer satisfaction scores
Overall satisfaction “About average”
Billing and payment “About average”
Price “About average”
Policy offerings “About average”
Interaction “About average”
Source: J.D. Power 2017 U.S. Life Insurance Study

More about Transamerica

Types of life insurance soldOther products and services
  • Final expense life
  • Term life
  • Universal life (through employers only)
  • Variable universal
  • Whole life
  • Accidental death insurance
  • Annuities
  • Dental insurance
  • Long-term care insurance
  • Medicare supplement plans
  • Mutual funds
  • Retirement planning
  • Life Insurance options

    Two types of term life policies: Both offer up to $1 million in coverage with terms of five to 30 years. The main difference is that the Trendsetter LB gives access to some of the money before death if the insured person is diagnosed with a chronic, critical or terminal illness.

    Permanent life insurance: Whole life policies of $2,000 to $50,000 are available. Variable universal life details are available by contacting an agent. With variable universal life, the policy’s cash value growth is tied to the performance of underlying investments. The company’s universal life insurance is available only through employers.