Transamerica Life Insurance Company In-Depth Review for 
Most Americans have heard of the Transamerica Life Insurance Company. They are an excellent choice because they have excellent rates and “living benefit” riders that most other companies don’t offer. There are many excellent life companies doing business in the United States today. Over the last 20 years, quite a few new subsidiaries have offered new plan designs and benefits.
Our Transamerica Life Insurance Company Review will allow you to see the excellent benefits of this unique insurer, creating new and innovative policies in a class by itself.
We will put the Transamerica Life Insurance Company under the spotlight and examine its fine line of well-designed life insurance products. Transamerica maintains an A+ rating with the AM Best reporting agency.
Table of Contents
- Did You Know Transamerica is One of the Best Rated Carriers?
- What Makes Transamerica So Special?
- Trendsetter LB: Life Insurance Benefits for the Living
- Examples of Transamerica Living Benefits
- Is It Worth Paying the Extra Dollars for Living Benefits?
- Comparing Transamerica’s Rates With Other Companies?
- What Should I Do if I Have Medical Conditions?
- In Conclusion
Many years ago, in 1904, an Italian entrepreneur named Amadeo Giannini founded the Bank of Italy in a converted saloon in San Francisco. His mission was to offer complete financial services to the working class, not just the wealthy, as many other companies have done before.
Amadeo was successful at his new endeavor, and everything was falling into place. Then, in 1906, the city of San Francisco was almost destroyed by an earthquake which developed into a devastating fire. Amadeo had to set up a temporary bank on the San Francisco docks. This is where he gave loans to residents 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 an investment and financial empire today.
Transamerica offers an exceptional line of life insurance products with excellent benefits for living and death benefits contained in conventional life insurance. These policies are also referred to as Hybrid Life Insurance because they have new and additional benefits not typically found in a standard-term life insurance policy.
We will focus on low-cost term life insurance products.
The two main categories of term life insurance offered by the Transamerica Life Insurance Company are:
Trendsetter Super Series
Trendsetter LB (Living Benefits)
These two products are offered on 10, 15, 20, 25, and 30-year terms.
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 you choose will remain the same throughout the policy term. At the end of the term, you may convert the policy to a universal life insurance policy without taking any physical examinations or answering any application-type questions.
On the other hand, Trendsetter LB 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.
Living benefits allow you 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 look at the terminology definitions 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 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 $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 at least 90 days, at least two out of the six activities of daily living or requires substantial supervision from another person for 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 insured’s lifetime 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 insured’s death within 12 months of the diagnosis. The condition must be first diagnosed by a physician and demonstrated by a 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 a premium breakdown of the conventional Term plan and the Living Benefits plan design.
For this example, we will use 35-year-old males with a preferred non-tobacco rate class with a 20- and 30-year term period.
- Trendsetter Super 20 – (20-years) – $365.00
- The Trendsetter LB 20 -(20-years) with living benefits) – $415.00
- Trendsetter Super 30 – (30-years) – $555.00
- The Trendsetter LB 30 – (30 years with living benefits) – $640.00
The increase in premium from the Trendsetter Super, a standard Term insurance design, to the Trendsetter LB with Living Benefits breaks down to 15%. The premium increase is minimal when you consider that the benefits of the LB policy have incredible advantages over the traditional term plan design we have all known for many years.
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.
A major heart attack has been inflicted on Jim, who 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. A major heart attack would have triggered a Critical Illness rider on Jim’s Transamerica policy.
It could have provided him with a check for up to $450,000 while Jim was alive and recovering from his heart attack. Jim could have also taken a lesser amount, 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.
I would have to say absolutely. In this scenario, you have just observed our example of “Jim,” who received $450,000 instead of absolutely nothing for the major heart attack he encountered. Another factor to consider is your actual budget. If you cannot easily afford an extra 15% in premium dollars, then a traditional Term life insurance policy will do an excellent job for you.
Just think about it for a minute; you probably know many people who have had a stroke, cancer, heart attack, kidney failure, and many other severe medical conditions that lived and had life insurance but received no compensation. I know quite a few people who could have taken advantage of a Living Benefits policy but had only had conventional term life insurance.
You must activate our instant life insurance quoting tool to compare Transamerica’s Trendsetter plans with no living benefits to their LB living benefit plan designs. You will also be able to compare Transamerica’s rates with the other companies.
Suppose you have any medical conditions. We would suggest having us run a medical pre-screen to determine how your condition will affect your rates if you apply. Then, you can either use our simple form to email it to us or call us on the telephone, and we can go over your medical conditions if they could affect your rates.
The Transamerica Life Insurance Company would make an excellent choice for life insurance. We work with over 40 of the most competitive companies in the nation. Contact us will any questions you may have, and we will be happy to answer them for you seven days a week. Thank you for taking the time to read this blog post.
All the Best,
If you have questions about the Transamerica Life Insurance Company or anything else, contact us today and let us help you with no cost or obligation. We are brokers and work only for our clients, not insurance companies. Our job is to help you get approved for the best policy with the lowest rates possible. You can also set up a time at your convenience to talk.