An American holding company for over 100 years, the Transamerica Corporation includes various investment firms and life insurance companies throughout the United States, providing supplemental health and life insurance policies, retirement services, and investments.
Transamerica Company History
In 1904, a young entrepreneur by the name of Amadeo Giannini established the Bank of Italy in a San Francisco saloon. Giannini’s vision was to offer financial services to everyone, which he did just that. After the devastating earthquake and fire of 1906, the pioneer constructed a temporary bank on the San Francisco docks. Here, Giannini secured the loans that he willingly gave to residents with just a handshake.
This altruistic nature established his role within his city and among the residents, and as a result, his legacy and business flourished. In 1928, Giannini turned his bank into what we know as Bank of America. Two years later, Transamerica Corporation, a newly established holding company, seized the Occidental Life Insurance Company.
By 1946, Amadeo Giannini’s bank had become the largest private bank in the world. In 1956, the Bank Holding Company Act stated that the Transamerica Corporation would have to choose whether to dismantle from its banks or its non-bank investments. By choosing insurance, the Transamerica Corporation shocked the financial world.
Aegon – a multinational life insurance, pension, and asset management company based in the Netherlands – acquired Transamerica in 1999. In its entirety, Transamerica and its parent company, Aegon, offer financial products and services in well over 30 global markets.
Today, the Transamerica Corporation offers products such as life insurance, retirement planning, mutual funds, and other options, for instance, dental insurance, and supplements for Medicare. These products are all sold by financial professionals and licensed agents throughout the U.S., while term life insurance is available for purchase directly over the phone or online.
Financial Strength Ratings
The Transamerica Corporation has been awarded high financial strength ratings from the most respected independent rating services. The ratings listed below are a strong indicator of the financial strength and performance of Transamerica insurance companies:
- M. Best – A+ (2nd highest rating offered, July 2017)
- S&P Global – AA- (May 2017)
- Fitch – A+ (March 2017)
- Moody’s – A1 (September 2017)
- Comdex ranking – 90
The Transamerica Corporation does not have official accreditation with the Better Business Bureau (BBB), but the organization does give Transamerica an “A+” rating. There were a total of 80 complaints involving billing, service issues, and collections in a 3-year period, and all complaints have been resolved satisfactorily.
Why do financial strength ratings matter for you the consumer? These ratings indicate that you are securely protected with Transamerica Life Insurance. As of December 2016, the insurance company has $1,055 billion of policies in force. Trust that this company will be able to pay your death claim.
What Exactly is Final Expense Life Insurance?
No one likes to discuss end-of-life matters, but it is crucial to plan for them. Final expenses, such as funeral service, burial, and caskets, can put a significant financial burden on your loved ones. Purchasing final expense insurance provides protection for your loved ones from having to cover those costs. In 2017, the average funeral cost between $7,000 and $10,000.
Final expense insurance is a type of permanent life insurance, which is used to provide coverage for funeral and burial costs, caskets, transportation, flowers, and other end-of-life expenses, such as uninsured medical expenses.
Final expense insurance policies do not expire but are traditionally more expensive than term life insurance, which does expire. As long as the premiums are paid, the policy will remain in force. Another attractive feature is the lack of medical exam or health questions, which makes final expense insurance a guaranteed issue policy.
This type of insurance also carries a cash value benefit, which accrues over time similar to investment products, and is then paid to your beneficiary upon your death. You are also able to cash out the policy or borrow money against the policy for unforeseen circumstances.
Final Expense Insurance Review – Transamerica
Obtaining a final expense life insurance policy from Transamerica is simple, and your health and age might not necessarily affect your approval for coverage. Transamerica offers three types of final expense life insurance options, which can be used in combination with another life insurance policy, or it can be used alone for those with preexisting medical conditions that make obtaining coverage difficult.
Immediate Solution Preferred and Standard Rates: Offers lifetime payments, in that the premiums and coverage will remain the same for your lifetime. The death benefit is 100% payable once coverage begins and the policy is in force.
- Available for applicants ages 0 to 85
- Coverage amounts available decrease with age
|0 – 55||$1,000 – $50,000|
|56 – 65||$1,000 – $40,000|
|66 – 75||$1,000 – $30,000|
|76 – 85||$1,000 – $25,000|
- The Children’s and Grandchildren’s Benefit rider is available for an additional $2/year for every $1,000 of coverage purchased. The parent/grandparent must be between 18 and 75 years of age, and the child specified must be at least 15 days old, but under 18 years old.
- Accelerated Death Benefit and Nursing Home Benefit available at no additional cost, however, some won’t qualify for the Nursing Home Benefit if you’re already in need of assistance for activities of daily living, such as eating, bathing, dressing, and transferring. Coverage ranges from $1,000 to $5,000 for up to nine children.
10 Pay Solution Preferred and Standard Rates: Offers same benefits as the Immediate Solution, however, the payments are paid for 10 years with the options to pay monthly, quarterly, or annually. The premiums are higher than lifetime payments, but coverage is guaranteed for life. Purchased at the appropriate time when you are younger and have more spendable income, this is a fantastic choice if you want to minimize your expenses once you retire. The death benefit is 100% payable once coverage begins and the policy is in force.
*Application age requirements, coverages, and available riders are the same as the Immediate Solution policy.
Easy Pay Solution: A graded benefit life insurance policy, which means it will become active after 2 years. In the event that you pass within the first 2 years, your beneficiary will receive all premiums paid plus 10% interest. Often the last resort for those not qualifying for other types of life insurance, the maximum death benefit is $25,000 with issue ages between 18 and 80 years of age. Coverage amounts also range from $1,000 to $25,000.
There are many advantages to a final expense life insurance policy provided by Transamerica. None of the policies require a medical examination, making them obtainable in spite of preexisting medical conditions or age. Additionally, there is no waiting period for coverage to begin and there will never be an increase in premium due to age.
Everyone’s coverage needs, health, and budget are different. Transamerica is an outstanding insurance company with strong financial ratings, great customer service, and superior comprehensive products.