Transamerica Life Insurance Review (2026)
Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294Last reviewed · Published October 3, 2026
Editorial review by a licensed agent who may earn a commission. No insurer pays for placement or grades. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy.
Transamerica at a glance
Transamerica Life Insurance Company sells term, IUL and final expense coverage through independent agents. In 2025 it ranked No. 4 in IUL new premium ($397 million) and No. 2 by number of IUL policies sold (LIMRA), so it is a mainstream choice for middle-income families.
Companies: Transamerica Life Insurance Company
AM Best financial strength: A, affirmed 2/13/2026 (AM Best: Transamerica rating affirmation (2/13/2026)).
Market position: No. 4 in 2025 IUL new premium ($397M); No. 2 by policy count (LIMRA: 2025 full-year top 20 IUL company rankings).
On the record:
- Changed caps on some older in-force IUL policies effective 12/16/2023, some up and some down (carrier notice reposted by a brokerage). (Dec 16, 2023, NFG Brokerage: Transamerica IUL cap rate changes effective 12/16/2023)
| Product | Type | Provisional Goldstein Index |
|---|---|---|
| Financial Foundation IUL II | IUL | Pending 40% graded |
An honest presentation of anything non-guaranteed uses words like "up to", "could" or "illustrated at". If you hear "will" about cash value, index credits, loan income or a living-benefit payout ("this policy will pay you 80%", "you will have $1 million at 65"), treat it as a red flag. Only the guaranteed column and the contract's stated guarantees are promises; ask the person to show you where the word "guaranteed" appears.
AI voices. Education, not tax or legal advice. Hans is paid a commission if you buy a policy through him. Comment LIVING on the video for the checklist.
Living benefits: Transamerica shows the math
Financial Foundation IUL II includes a terminal illness benefit automatically, and chronic and critical illness benefits at no cost until used. Chronic illness payments are limited to 24% of the face a year and 90% over the life of the policy. Like most no-charge riders, the payout is discounted based on life expectancy, and Transamerica's own brochure shows how much (FFIUL II brochure, 07/25):
| Example in the carrier's brochure | Amount accelerated | Paid | Share |
|---|---|---|---|
| Terminal illness, age 53, 8 months to live, $500,000 policy | $500,000 | $462,103 | 92% |
| Heart attack at 48, 10-year life expectancy, $250,000 policy | $225,000 | $122,258 | 54% |
| Chronic illness at 45, $300,000 policy | $75,252 | $22,285 | about 30% |
Carrier hypothetical examples, not a quote. Your payout depends on your age, condition, life expectancy and policy values at claim. An older Transamerica guide showed 23% for the same heart attack case and 12% for the chronic case, so the current design pays more than the old one.
The lesson is the keyword on every living-benefits brochure: "up to." A terminal diagnosis pays close to the full amount; an illness you are expected to live with for years pays much less. That is still real money at a hard time, and it costs nothing until used. It is not long-term care insurance; see living benefits vs long-term care.
Is your Transamerica policy on track at today's caps?
Send your email and I'll send the in-force illustration request letter. Return the illustration and I'll grade it within one business day.
We’ll email it to you. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
Goldstein Scorecard: Financial Foundation IUL II
Goldstein Scorecard · Goldstein Index v1 · graded Oct 3, 2026 · how we grade →
Transamerica · vs. other indexed universal life policies · Draft grades on public data. Grades are shown on the page only and are Hans's editorial view.
| Dimension (weight) | Grade | One-line take |
|---|---|---|
| Cap / participation strength (15%) | Pending | No current public cap sheet found; Hans to pull the current rate sheet |
| Floor and guaranteed minimums (5%) | B+ | 0.75% floor, above the usual 0% (secondary source). [1] as of Jul 2025 re-grading |
| Loan options and current loan rate (15%) | B+ | Low-cost standard loan (2.75% charged, 2% credited) and a cheaper preferred loan after year 10 (secondary source). [2] as of Feb 2026 re-grading |
| COI and charge drag (15%) | Pending | Charge schedules are in the policy form and illustration, not public; graded from the standardized case |
| Living-benefit riders (10%) | B | All three triggers at no upfront cost, with the carrier's own examples showing the discount: 92% terminal, 54% heart attack, about 30% chronic. [3] as of Jul 2025 re-grading |
| Overloan protection (5%) | Pending | No overloan protection rider found in public materials; confirm |
| Illustration conservatism (AG 49-A/B) (10%) | Pending | Graded from the illustrated rate in the standardized case vs peers |
| Carrier strength (10%) | B+ | AM Best A, affirmed 2/13/2026. [4] as of Feb 13, 2026 re-grading |
| Cash value at years 10/20 vs peers (standard case) (15%) | Pending | Needs Hans's standardized illustration (WinFlex/iPipeline), on file before grading |
| Guaranteed minimum cap disclosed (disclosure, not weighted) | No | Not publicly disclosed. Ask for it: it is the lowest the cap can ever go. |
| OVERALL | Incomplete | No overall grade yet: only 40% of the Index weight can be graded from public data (those dimensions average B+). The overall grade waits for Hans's standardized case (M45 preferred nonsmoker, $12,000/yr to 65, max-funded Option B to A, plus a minimum-funded case at the same death benefit). |
On public data, Financial Foundation IUL II grades strongest on no single dimension yet. 5 of 9 dimensions wait for a standardized illustration, so treat this as a starting point, not a verdict. Neutral summary of the scorecard, not a personal recommendation.
Best for: Families who want living-benefit triggers built in at no upfront charge on a mainstream IUL.
Look elsewhere if: You want a charged chronic or LTC rider that pays close to full value, or caps from a carrier-published (not brokerage-hosted) sheet.
- Ask: what is the guaranteed minimum cap and the guaranteed minimum participation rate in the contract for each index account? Not today's cap, the floor the cap can never go below.
- Why it matters: today's cap is not guaranteed. The insurer can lower caps on your policy over time, all the way down to that contractual minimum. Guaranteed minimum caps we have seen published run from 0.25% to 4% (insurer documents, 2024 to 2026), and several insurers don't publish theirs at all. That is a very different worst case.
- Many agents cannot answer this question on the spot. If yours can't, ask them to find it in the policy form or the illustration's guaranteed assumptions before you sign.
Where the insurer publishes it, the Goldstein Scorecard shows the guaranteed minimum cap; otherwise it says "not publicly disclosed". Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change.
The 2023 cap changes, and the COI history, on the record
Effective December 16, 2023, Transamerica changed caps on some older in-force IUL policies, some up and some down (carrier notice reposted by NFG Brokerage). Separately, in 2018 Transamerica agreed to a $195 million class action settlement over 2015 cost-of-insurance increases on older universal life policies (Top Class Actions, 10/8/2018, secondary). This is allowed: an IUL's caps are not guaranteed beyond the contract's guaranteed minimums, and every insurer can adjust them. It is also exactly why I show the guaranteed column next to the illustrated one. If you own an older Transamerica IUL, request an in-force illustration at today's caps to see whether your premium still carries the policy to age 100.
Where the premium goes, and the cost of insurance ladder
In this model a male 45 paying $10,000 a year loses about 15% of the first 10 years of premium to charges when the policy is max-funded, and about 22% when the same premium buys three times the death benefit. The surrender charge is extra: in year 1 the cash surrender value is about $4,245 of $10,000 (max-funded) and $0 (target-funded), which is why early cash value can feel like half the premium disappeared. A common rule of thumb is that roughly half of early premium goes to charges; in this model that is close for year-one surrender value, and too high for the ongoing charges in a well-funded design.
Hypothetical. Not an illustration of any specific policy. Not a quote. Model on current (non-guaranteed) charges: premium load 10% (years 1-10) then 5%, $10 a month fee, per-$1,000 charge for 10 years, current COI at 80% of 2017 CSO select rates, 6% illustrated crediting. Guaranteed maximum charges are higher. Ask your insurer for the policy's actual charge schedule.
Read it like a ladder. The insurance part of the policy gets more expensive every year: the guaranteed maximum rate is about $8 per $1,000 at 65, $24 at 75 and $82 at 85 (2017 CSO). Each step is small until the late 70s, then the ladder curves up sharply. In a well-funded policy the cash value grows faster than the charges, so the policy carries itself with no extra premium (green). In an underfunded policy the charges eat the cash value from the inside, and the owner must pay more or the policy lapses (red, at 79 here). Real results usually land between those lines, which is why an in-force illustration every few years matters.
Hypothetical. Not an illustration of any specific policy. Not a quote. Male 45, preferred nonsmoker. Charges per the stated model; COI is charged on the net amount at risk (death benefit minus cash value), so the dollar cost depends on both the rate and how much coverage the cash value has not yet replaced. Source for rates: Society of Actuaries, 2017 CSO table 3291.
Term: Trendsetter and conversion
Transamerica's living-benefit features on term differ by product, so check the rider list on your own policy. Per an April 2024 industry compilation (secondary source), Trendsetter Super can be converted until the earlier of the end of the level period or age 70 (75 for Preferred Plus) (Tritium). Converting needs no new medical evidence, which locks in your health. Confirm the deadline in your own policy; see the conversion deadline checker.
Owners: what to check this year
- IUL owners: request an in-force illustration at current caps and guaranteed values to age 100 (template letter).
- Term owners: note your conversion deadline and the products you can convert to.
- Before claiming a living benefit, ask for the carrier's sample calculation for your condition and age.
Who Transamerica fits
Transamerica fits families who want living-benefit triggers built in at no upfront charge, on term or IUL, from a mainstream insurer. If you want a charged chronic or LTC rider that pays closer to full value, or the highest published caps, compare the best IUL list by buyer type.
Own a Transamerica policy?
Send the statement or in-force illustration. Within one business day you get a written read: is it on track at today's caps, what your living benefits would pay, and your conversion deadline if it is term.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer
Frequently asked questions
Sources
- AM Best: Transamerica rating affirmation (2/13/2026)
- Transamerica Financial Foundation IUL II living benefits brochure (07/25)
- Transamerica: older chronic illness rider guide
- NFG Brokerage: Transamerica IUL cap rate changes effective 12/16/2023
- LIMRA: 2025 full-year top 20 IUL company rankings
- Tritium: term conversion privileges by carrier (April 2024 compilation)
Hans Goldstein, CA Insurance License #4273294 · NPN 20602398 · Goldstein & Co. LLC dba Goldstein Insurance Services, CA License #6016830
Contact: hans@hansgoldstein.com · 213-414-2808
General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Guarantees apply only to the contractual terms of the policy. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy. Product and company names are trademarks of their owners. Goldstein Insurance Services is an independent agency, not affiliated with or endorsed by any insurer named here. Life insurance requires underwriting; not everyone qualifies. This page describes products in general terms; read the policy and the insurer's disclosures before you buy.