Transamerica Life Insurance Review (2025): Products, Ratings & Features

Transamerica is an innovative insurance company with a storied history and one of the largest portfolios of in-force life insurance in the U.S. In this Transamerica review, we will explore the company’s history, strong ratings, its exceptional services and numerous products, including its life insurance policies, and the additional features offered.

About Transamerica

The first thing you see when you head to the company’s website under “who we are” is this statement: Helping people to be healthy and build wealth. And that is exactly what Transamerica has done over the company’s 120+ year history.

Starting back in 1903, Transamerica was started in San Francisco about the time of the great earthquake. The founder offered loans to the people of San Francisco to help them rebuild, with nothing to secure the loan apart from a handshake.

Transamerica continued to flourish and in 1999 was bought by global financial leader Aegon, one of the top 10 insurance companies in the world. This allowed Aegon to expand into the North American market under the Transamerica brand. Today, Transamerica Life Insurance Company ranks as one of the top 10 largest providers of annuities, universal life, and term life in the U.S.

In early 2025, Transamerica introduced a refreshed brand identity, including a new logo symbolizing its commitment to supporting middle-income households and financial security for Americans. The company continues to focus on growth in the U.S. market, particularly in life insurance and retirement services.

Transamerica Ratings & Financial Strength

Transamerica is a top-rated life insurance company. The company currently has the following ratings as of 2025:

• A.M. Best: A (Excellent)
• Fitch: A+ (Strong)
• Moody’s: A1 (Good)
• S&P Global: A+ (Strong)
• Comdex Rating: 87

These ratings reflect the company’s solid financial foundation and claims-paying ability. With $427.3 billion in revenue-generating investments as of December 31, 2023, Transamerica maintains a strong position in the industry and demonstrates the financial strength necessary to meet its obligations to policyholders.

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2025 Product Updates

Next Generation IUL Products

In October 2024, Transamerica launched its next generation of Indexed Universal Life products:

• Financial Foundation IUL II – An updated version of their popular cash value accumulation IUL with enhanced features and improved index account options
• Financial Choice IUL II – A flexible premium IUL designed to provide both protection and growth potential

These new IUL products feature updated designs to better meet client needs and include fully customized illustrations for greater transparency and client understanding. The refreshed products continue to offer the growth potential linked to market index performance with downside protection that IUL policies are known for.

New Final Expense Solution

In September 2024, Transamerica introduced FE Express Solution, a new final expense product with several innovative features:

• Rapid digital policy delivery within 10 minutes of approval
• Optional funeral concierge service at no extra cost
• Budget-friendly whole life policies designed specifically for covering funeral and burial costs
• Simplified underwriting for faster approval

This product enhancement demonstrates Transamerica’s commitment to meeting the needs of seniors looking for affordable, accessible final expense coverage with added value services.

Digital Application Enhancements

Transamerica has made significant improvements to its digital application processes:

• iGO® e-App – A streamlined, responsive digital application platform that enables faster processing and improved client experience
• No Medical Exam Options – Expanded simplified underwriting with no medical exam required for up to $2 million in coverage for qualified applicants
• Automated Underwriting – Enhanced algorithms to expedite policy approval for eligible applicants

These digital enhancements reflect Transamerica’s focus on improving customer convenience and reducing friction in the application and policy issuance process.

Transamerica Life Insurance Products

Transamerica offers both term life and permanent life insurance. The company has a large offering of permanent cash value coverage including whole life, universal life, indexed universal life, and variable universal life.

Term Life Insurance

Trendsetter Super Term Life

Term life insurance offers an initially low premium, with fixed rates for the life of the term. Transamerica offers guaranteed level premiums for 1, 10, 15, 20, 25, and 30-year term lengths. Available for ages 18-80 depending on term length. Upon expiry of the initial term, the policy can be renewed annually until age 105.

Transamerica’s Trendsetter Super is convertible term life insurance. This offering allows you to convert all or a portion of the policy to permanent coverage. You must exercise the conversion option either by the end of the initial term period or by age 70 (75 if rated preferred plus).

Recent enhancements include simplified underwriting with no medical exam required for up to $2 million in coverage for qualified applicants, living benefit riders included on policies, and an improved conversion option that allows policyholders to convert to permanent coverage without a new medical exam.

Trendsetter Super Endorsements

Income Protection Option: Rather than the typical lump sum payout upon death, you can choose to pay your beneficiary the death benefit as a monthly income stream. This option must be chosen at issue and can be advantageous if you are concerned with your beneficiary receiving a lump sum payment.

Benefits of Term Life Insurance:

• Lower Initial Cost
• Income Protection
• Mortgage Protection
• Conversion Option

Whole Life Insurance

Transamerica offers whole life insurance with lifelong coverage, fixed premiums, and cash value accumulation. These policies are designed for those seeking guaranteed protection and the ability to build cash value over time.

Key features include:

• Guaranteed death benefit that never decreases
• Level premiums that never increase
• Cash value that grows at a guaranteed rate
• Ability to access cash value through loans or withdrawals

If you are looking for whole life, check out our best whole life insurance companies article.

Universal & Indexed Universal Life

Financial Foundation IUL II & Financial Choice IUL II

Transamerica’s newest IUL products provide permanent coverage with cash value growth linked to market index performance. These policies offer premium flexibility and downside protection with several key features:

Account options include:

• Basic Interest Account (2% guaranteed floor)
• S&P 500 Index Account (.75% guaranteed floor)
• Global Index Account (.75% guaranteed floor)
  • S&P 500 Index
  • EURO STOXX 50 Index
  • Hang Seng Index

The cap on the different index accounts can fluctuate and is set at the beginning of each segment period, which lasts for a 12-month period.

No Lapse Period: The Financial Foundation IUL offers different no lapse periods based on your age at issue. For ages 0-45, the no lapse period is 20 years. Ages 46-60 have a no lapse period to age 65. For ages 61+ the no lapse period is 5 years.

2 Death benefit options:

• Option A: level death benefit
• Option B: increasing death benefit

Indexed Universal Life vs Variable Universal Life

Both IUL and VUL policies offer coverage, pay a death benefit, and accumulate cash value. Both policies provide flexibility, allowing you to adjust your premium payments and your death benefit protection to accommodate lifestyle changes.

The primary difference between IUL and VUL is how your cash value is utilized within the policy:

• With IUL policies: The cash value is applied to the policy’s fixed account, where it will earn interest based on the company’s declared rate. From there, you can transfer all or a portion of your cash to different indexed accounts. The indexed accounts follow, in part, the performance of major equity indexes, such as the S&P 500. You are not directly investing in the stock market. Your cash value is protected due to a floor and a cap. The floor is a guaranteed rate, usually around 0-2% determined by the specific account your money is in. The cap is the maximum return your IUL can deliver, typically around 12-14%.
• With VUL policies: The cash value is also applied to the policy’s fixed account, which you then transfer to variable investment options, much like mutual funds. The VUL variable accounts are directly investing in the stock market. There is no minimum floor and no maximum cap. Your cash value account will increase (or decrease) in step with the variable accounts you invest in.

Final Expense Insurance

Transamerica offers final expense insurance, which is basically a simplified issue whole life insurance policy. There are four different final expense insurance policies offered: Immediate Solution, 10-Pay Solution, Easy Solution, and the new FE Express Solution.

• Ages Available: 45-85 (NY may have different requirements)
• Coverage Amount: $1,000 – $50,000 based on age and product
• The new FE Express Solution offers policy delivery within 10 minutes and an optional funeral concierge service

Annuity Products

Transamerica is a significant player in the annuity market, offering several types of annuities to meet various retirement planning needs:

Variable Annuities

Transamerica offers four main variable annuity products:

• B-Share
• Principium IV
• Axiom III (exclusive to Transamerica)
• I-Share II (for fee-based advisors)

These annuities feature flexible premiums, a range of living and death benefit options, and low minimum premiums starting at $1,000 for qualified accounts.

Registered Index-Linked Annuity (RILA)

The Structured Index Advantage® allows clients to select crediting periods and index allocations, with customizable protection buffers against market downturns and optional benefits like return of premium and performance lock features.

Retirement Plan Annuities

In 2024, Transamerica became the first recordkeeper to offer State Street’s Retirement Income Builder target-date fund series, embedding a lifetime income annuity into the glide path for workplace retirement plans.

Benefits of Transamerica Permanent Insurance

Tax-Free Life Insurance Policy Loans

Tax-free life insurance loans are available from the carrier by using your cash value as collateral. Your loan will be charged either a fixed or variable interest rate. Any unpaid interest due will be applied to your principal.

Tax-Deferred Cash Value Growth

Based on IRC 7702, cash value in your policy grows tax-deferred. In addition, tax-free policy loans are available.

Tax-Free Death Benefit

Life insurance is not taxable regarding the proceeds paid to your beneficiary from the death benefit. However, one way a death benefit is taxed is if your estate exceeds the federal estate tax exemption limit. For large estates, it is recommended to put a plan in place to protect your assets, such as utilizing an irrevocable life insurance trust.

Transamerica Life Insurance Policy Riders

The following life insurance riders are not available on all types of policies:

• Children’s Benefit Rider – you can add term life insurance for kids to your coverage at one set price no matter how many children you have.
• Overloan Protection Rider – if you meet certain requirements your policy cannot lapse due to excessive policy loans. This rider is free unless you choose to use it.
• Terminal Illness Accelerated Death Benefit Endorsement – allows access to 75% of your death benefit or $500,000 maximum if you have a life expectancy of 12 months or less due to illness or injury.
• Disability Waiver of Monthly Deduction Rider – premium is waived if you become totally disabled before age 65.
• Guaranteed Insurability Benefit Rider – guarantees the addition of more coverage at certain ages and life events with no evidence of insurability. You can choose to add more coverage on your 22nd, 25th, 28th, 31st, 34th, 37th, and 40th birthdays. Alternatively, you can add additional coverage for marriage, birth or adoption of a child, or college graduation.

Transamerica Review Conclusion

Transamerica is a top-rated company, offering some of the most popular and best life insurance policies. Recent product innovations, including next-generation IUL products and enhanced final expense solutions, demonstrate the company’s commitment to meeting evolving consumer needs. The digital application enhancements and streamlined underwriting options also make Transamerica products more accessible than ever.

The question remains…

Is Transamerica the right company for you?

Perhaps.

But without speaking to you and discovering your goals, needs, and objectives, we cannot say which company will best suit your needs.

Do you have questions or would you like to see an illustration of Transamerica or any of the other top cash value life insurance companies we represent? Give us a call today for a complimentary life insurance consultation.