AIG Life Insurance Review

AIG is faster-than-average to get from application to signed policy, and an electronic application allows you to perform several other actions online.

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Overview

Transamerica, an A+ rated company founded in 1904, offers unique options, with a few of their term life products, such as Living Benefits for early access to death benefits in the case of terminal or chronic illness; Income Protection Options to allow customers to select from a combination of income stream and lump sum payouts for beneficiaries; no required medical exams for policy amounts below $250,000; and low, $25,000 minimum face amount requirements.

Financial Strength

  • Founded: 1904
  • Policyholders: 7,200,000
  • A.M. Best: A+
  • BBB Rating: A+
  • J.D. Power: 2 of 5

Accolades

In 2016, Transamerica won a technology innovation award from InformationWeek for its innovation in mapping the customer journey. “This technical innovation… will enable us to provide more personalized, customer-focused solutions in a rapid environment,” said Gerard Rescigno, CTO for Transamerica.

Finding the best rates

Each insurer approaches health conditions differently. One insurer might ignore a heart attack from a few years ago, whereas a different insurer might rate you as a higher risk for the same thing. Here are the details of how Transamerica treats a variety of common health conditions from an underwriting perspective.

Pricing for health conditions

HEALTH CONDITIONPRICING
Survivor/Family HistoryExcellent
Recent Weight LossGood
Heart AttackGood
DiabetesFair
Sleep ApneaFair
Former Tobacco UseFair
High Blood PressureGood
High CholesterolFair
  • Excellent - Above average; company provides excellent coverage for clients with this condition.
  • Good - Spot on; company doesn’t look at this condition unfavorably in underwriting.
  • Fair - Could use some work; clients with this condition may be issued a lower health rating, and subsequently higher rates than other insurers.

Compare Transamerica to other top carriers

Find head-to-head comparisons of Transamerica and other top-rated life insurance companies to help you make the right decision.

Transamerica Company Details

Transamerica features a very quick application turnaround time. Once you get the policy, you have to update it with paper forms. Transamerica doesn’t make you do a medical exam if your coverage is less than $249,999. They also allow much smaller life insurance policies, with a minimum face amount at $25,000.

How's the application process?

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Pros

  • Electronic application (Note: Final expense policy requires paper mail application)
  • Average number of application forms
  • Faster than average application approval (24 days)

Cons

  • Policy delivery by mail

How's the customer service?

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What you can do online

  • Changing address (Note: Final expense policy requires phone call for address change)

What you can’t do online

  • Updating beneficiaries requires paper forms
  • Policy cancellation requires paper forms with witness signature
  • Changing payment info requires paper forms

Transamerica Term Life Plan Details

Common features

This policy, like all term life policies offered on our site, provides life coverage for a specific period of time (the term). The key features of this policy are standard across all the term policies we offer:

  • Level premium - which means the cost of the policy (the premium you pay) is fixed for the entire term of the policy. It will not increase during the term of the policy.
  • Good value - term life policies are significantly less expensive for the same amount of death benefit coverage than permanent life policies.
  • Regulated - the cost of this term life policy, for a given coverage amount and term, will always be the same for you regardless of who you buy it from. That’s because the policy will be priced based on the underwriting table the insurer files with the state insurance regulator.
  • No-risk obligation for you - you, as the policyholder, can cancel your policy at any time if you decide you don’t want it anymore. The insurer, however, cannot cancel your policy as long as you pay the premiums on time.
  • No exclusions - except for suicide during the first two years of the policy (which is standard by law across life insurance policies).
  • Terminal illness benefit - you can access a portion of the policy’s death benefit while you’re still alive if you’ve been diagnosed with a terminal illness. You might see this referred to as an "accelerated death benefit."
  • Convertible - which means, if you choose to, you can convert the term life policy to a permanent life policy. The conversion will generally cost you more and is subject to certain conditions.

Cost comparison

Quote for: $500,000, 20-year term life insurance policy for healthy, nonsmoking individuals, in California, monthly premiums

COMPANYPLANMALE - AGE 30MALE - AGE 40MALE - AGE 50FEMALE - AGE 30FEMALE - AGE 40FEMALE - AGE 50
AIGSelect-a-Term$21.11$30.62$79.93$18.08$28.46$59.60
AIGROP Select-a-Term$91.21$150.77$281.97$75.80$124.95$261.56
Banner LifeOPTerm$21.44$32.38$94.07$18.19$26.60$58.62
John HancockTerm$26.95$34.65$81.70$24.20$34.00$78.99
Lincoln FinancialLifeElements$28.44$38.94$78.75$23.63$30.63$58.63
Lincoln FinancialTermAccel$21.00$29.75$78.75$17.94$25.81$57.31
Mutual of OmahaTerm Life Answers$21.66$33.47$85.53$23.41$28.66$64.09
Pacific LifePacific PROMISE Term$20.84$29.59$77.09$19.18$26.68$61.67
PrincipalTerm$22.75$31.94$79.63$20.04$27.56$59.24
ProtectiveCustom Choice UL$20.37$28.91$76.82$17.93$25.25$55.75
ProtectiveClassic Choice Term$20.21$28.38$75.68$17.63$25.94$55.47
PrudentialTerm Essential$34.20$43.65$88.65$27.90$38.70$76.95
PrudentialReturn of Premium Term$101.00$143.62$291.99$88.12$130.04$253.37
SBLILevel Premium Term$21.32$40.05$96.06$24.48$34.71$65.87
TransamericaTrendsetter Super$22.36$37.85$79.12$18.06$30.96$62.78
TransamericaTrendsetter LB$24.95$38.27$92.89$20.65$34.84$73.11

Trendsetter Super

Unique features

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  • Competitive underwriting for a range of applicant health profiles
  • No medical exam required for amounts up to $99,999
  • Low minimum face amount requirement ($25K) and multiple terms available for policy personalization
  • Income Protection Option allows you to select from a combination of income stream and lump sum payouts for your beneficiaries
  • Selection of riders available to personalize coverage

Details

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  • Annual Payment Discount - 3%
  • Payment methods available - Check; Auto bank draft; Credit card only for first payment
  • Is coverage available without a medical exam? - Yes, up to $99,999
  • What is the rule for converting the policy? - The policy is convertible to the earlier of the end of the initial level premium period or 70th birthday (75th birthday for the Preferred Plus class).
  • Is temporary coverage available? - Yes, up to $1,000,000

Available riders

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Riders are additions to your overall life insurance policy that turn a basic life insurance policy into something that covers more circumstances.

  • Child Protection Rider - You can get life insurance for all children (ages 15 days - 18 years old) in one rider in increments of $1,000, up to a maximum of $99,000 or the base policy coverage (whichever is less).
  • Disability Waiver of Premium Rider - If you become totally disabled as a result of a qualifying event, premiums are waived if you become totally disabled (after a 6 month waiting period).
  • Accelerated Death Benefit Rider - Pays an additional death benefit if the insured dies as a result of an accidental bodily injury. Double this additional amount is payable if the accidental bodily injury occurs while you're a fare-paying passenger on a common carrier.

Trendsetter LB

Unique features

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  • No medical exam required for amounts up to $249,999
  • Unique "Living Benefits" feature built into the policy allows you to access the death benefit for terminal illness, chronic illness or critical illness care
  • Competitive underwriting for a range of applicant health profiles
  • Low minimum face amount requirement ($25K) and multiple terms available for policy personalization
  • Selection of riders available to personalize coverage

Details

View
  • Annual Payment Discount - 3%
  • Payment methods available - Check; Auto bank draft; Credit card only for first payment
  • Is coverage available without a medical exam? - Yes, up to $249,999
  • What is the rule for converting the policy? - The policy is convertible to the earlier of the end of the initial level premium period or 70th birthday (75th birthday for the Preferred Plus class).
  • Is temporary coverage available? - Yes, up to $1,000,000

Available riders

View

Riders are additions to your overall life insurance policy that turn a basic life insurance policy into something that covers more circumstances.

  • Child Protection Rider - You can get life insurance for all children (ages 15 days - 18 years old) in one rider in increments of $1,000, up to a maximum of $99,000 or the base policy coverage (whichever is less).
  • Disability Waiver of Premium Rider - If you become disabled, this pays a monthly benefit up to $2,000 or 2% of the base policy amount (whichever is less).
  • Accelerated Death Benefit Rider - Allows you to accelerate up to 50% of the death benefit (up to a max of $250,000) if you've been diagnosed with a terminal illness, with a max life expectancy of 12 months.
  • Accidental Death Benefit Rider - Pays an additional death benefit if the insured dies as a result of an accidental bodily injury. Double this additional amount is payable if the accidental bodily injury occurs while you're a fare-paying passenger on a common carrier.

Transamerica Whole Life Plan Details

Common features

This policy is a final expense whole life policy and provides coverage for the duration of your life. Key features of this policy include:

  • Fixed premiums - once you’ve been approved, the cost of the policy (the premium you pay) can never change.
  • No medical exam required - you will not be asked to undergo a medical exam or to visit any laboratory for tests for underwriting.
  • No expiration date - whole life policies don’t expire. Your policy will last as long as you continue to pay the premiums on time.
  • Best price guarantee - the cost of this policy, for a given coverage amount and customer, will always be the same regardless of who you buy it from. Prices are government-regulated, and based on underwriting tables the insurer files with state agencies.
  • Cancel at any time - you can cancel at any time if you decide you don’t want the policy anymore. The insurer, however, can never cancel your policy as long as you pay the premiums on time.

Cost comparison

Quote for: $20,000, whole life insurance policy for healthy, nonsmoking individuals, in California, monthly premiums.

COMPANYPLANMALE - AGE 50MALE - AGE 60MALE - AGE 70FEMALE - AGE 50FEMALE - AGE 60FEMALE - AGE 70
AIGGuaranteed Issue$101.85$124.33$184.28$69.66$88.27$138.83
Mutual of OmahaLiving Promise$55.11$82.31$144.20$46.14$62.53$103.28
TransamericaFinal Expense$59.42$85.58$147.27$48.60$65.40$105.94

Final Expense

Unique features

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  • Fast-track eligible.
  • Competitive pricing & eligibility standards for certain health conditions.
  • Underwriting review is expedited, in some cases you can be approved in 1 to 2 days.

Details

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  • Annual Payment Discount - 2%
  • Payment methods available - Check; Auto bank draft
  • Is coverage available without a medical exam? - Yes, up to $50,000
  • What is the rule for converting the policy? - N/A
  • Is temporary coverage available? - N/A

Available riders

View

Riders are additions to your overall life insurance policy that turn a basic life insurance policy into something that covers more circumstances.

  • Child Protection Rider - Provides level term insurance for children and/or grandchildren (ages 15 days - 17 years old) up to $5,000
  • Accelerated Death Benefit Rider - Allows you to receive a portion of the death benefit if you are diagnosed with a qualifying terminal illness.
  • Accidental Death Benefit Rider - Pays an additional death benefit on top of the base policy’s death benefit if the death resulted from qualifying accidental injuries.