There are many excellent life companies doing business in the United States today. Over the last 20 years quite a few new subsidiaries have sprouted up offering new plan designs and benefits. In this life insurance company review, we are going to go over one company that has created new and innovative policies that are in a class by themselves. We are going to put the Transamerica Life Insurance Company under the spotlight and examine their superior line of well-designed life insurance products.
Transamerica has been providing some of the best life insurance products for over 112 years.
Many years ago in 1904 an Italian entrepreneur named Amadeo Giannini founder the Bank of Italy in a converted saloon in the city of San Francisco. His mission was to offer a full line of financial services to the working class and not just the wealthy people as many of the other companies have done. Amadeo was successful at his new endeavor and everything was falling into place.
In 1906, the city of San Francisco was almost completely destroyed by an earthquake which developed into a devastating fire. Amadeo had to set up a temporary bank on the San Francisco docks where he gave loans to the residents that were forced to rebuild. This is where it all began and later in 1930 he initiated the Transamerica Life Insurance Company name. The corporation grew and developed into the investment and financial empire it is today.
What makes the Transamerica Life Insurance Company so unique and special today?
Transamerica offers a very special line of life insurance products that have excellent benefits for the living along with the death benefits that would be contained in conventional life insurance. These policies are also referred to as Hybrid life insurance due to the fact it has new and additional benefits not normally found in a standard Term life insurance policy.
The low cost Term life insurance products are what we are mainly going to focus on.
The two main categories of Term life insurance offered by the Transamerica life Insurance Company are:
- Trendsetter Super Series
- Trendsetter LB (Living Benefits)
Both of these two products are offered in a 10, 15, 20, 25 and 30-year term period.
Trendsetter Super: is a convertible Term life insurance policy.
Trendsetter Super is a conventional Term life insurance policy that offers up to $1,000,000 in face amount coverage. The face amount that you choose is guaranteed to remain the same throughout the entire policy term period. At the end of the term period, you may be able to convert the policy to a universal life insurance policy without having to take any physical examinations or answer any application type questions.
You will be able to easily convert your Term policy to a permanent policy which you can now have for the rest of your life.
Trendsetter LB: on the other hand, is also a Term life insurance policy but with the addition of “Living Benefits”. This policy also offers up to a $1,000,000 face amount.
The living benefits provide you with the option to receive an accelerated death benefit in the event of a qualifying chronic, critical or terminal illness, while you are still alive. This is where the considerable difference is between these two policy designs.
Let’s take a look at the definitions of the terminology between Critical Illness, Chronic Illness and Terminal Illness so it will be easier to understand.
For example, being critically ill means that the policyholder has been diagnosed with one or more of the following health conditions: heart attack, stroke, cancer, major renal failure, major organ transplant, amyotrophic lateral sclerosis, blindness or paralysis.
*The maximum amount that may be accelerated is the lesser of 90% of the face amount of the policy or $500,000, and the minimum face amount that may be accelerated is $2,500.
Becoming chronically ill means that the policyholder is not able to perform, without substantial assistance from another person for a period of at least 90 days, at least two out of the six activities of daily living or requires substantial supervision from another person, for a time period of at least 90 consecutive days, to protect the insured from threats to health and safety due to severe cognitive impairment.
*The maximum amount that can be accelerated over the lifetime of the insured is the lesser of 90% of the face amount of the policy or $500,000, and the minimum face amount that can be accelerated is $1,000 annually.
Being terminally ill means that the policyholder has a medical condition, resulting from bodily injury or disease, or possibly both, which is expected to result in the death of the Insured within a period of 12 months of the diagnosis. The condition must be first diagnosed by a Physician and must be demonstrated by clinical, radiological, laboratory or other evidence of the medical condition.
This must be considered satisfactory to the Transamerica Life Insurance Company and cannot be curable by any means available by the medical profession.
*The maximum amount that can be accelerated is the lesser of 100% of the face amount of the policy or $500,000, and the minimum face amount is $5,000.
Below you will find the premium breakdown of a conventional Term plan design and the Living Benefits plan design.
For this example, we are going to use a 35 year old male with a preferred non-tobacco rate class with a 20 year and a 30 year term period.
*Trendsetter Super 20 – $365.00
*Trendsetter LB 20 – $415.00
*Trendsetter Super 30 – $555.00
*Trendsetter LB 30 – $640.00
The increase in premium from the Trendsetter Super which is a standard Term insurance design to the Trendsetter LB with Living Benefits breaks down to 15%. The increase in premium is minimal when you consider that the benefits of the LB policy has incredible advantages over the traditional term plan design that we have all know for many years.
Example of LB Benefits:
Here is an example of the Living Benefits policy in action just like it would be in the real world.
Jim Ryan has a Trendsetter LB policy with a $500,000 face amount and a 20-year term period.
Jim has been inflicted by a major heart attack was hospitalized and sent home after one week in the hospital. No surgery will be necessary for Jim. His doctor said to take some time off from work and take it easy for about two weeks. The major heart attack would have triggered the Critical Illness rider on Jim’s Transamerica policy and could have provided him with a check for up to $450,000 while Jim is alive and recovering from his heart attack. Jim could have taking a lesser amount also which would have been at his discretion.
The remainder of the face amount which in this case would have been $50,000 would be left as a death benefit for Jim’s dependents.
The big decision is, would there be enough of an advantage to warrant paying an extra 15% in premiums?
I would have to say absolutely. In this scenario, you have just observed Jim receive $450,000 instead of absolutely nothing for the major heart attack that he has encountered. Another factor to consider is your actual budget. If cannot easily afford an extra 15% in premium dollars, then a traditional Term life insurance policy will do a great job for you.
You can visit the Transamerica website to review more information on this impressive life insurance company https://www.transamerica.com/individual/.
Feel free to complete our life insurance quoting form on the right to view these excellent Transamerica plans and how they compare to the other major life insurance companies. You can compare Term life insurance rates from over 40 trusted carriers side by side.
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