Transamerica Final Expense Product Review
Transamerica offers cost-effective burial insurance for seniors that accommodates common health issues found in older individuals. While their application process may be more comprehensive, it proves beneficial for qualifying individuals. Discover the workings of their coverage, estimated costs, advantages, disadvantages, and whether their final expense insurance is a prudent investment.
How does Transamerica final expense product work?
Transamerica final expense life insurance, aka funeral or burial insurance, is a no-exam required whole life policy meant to cover your end-of-life expenses.
To qualify, you only need to answer health questions. In addition to the health questions, Transamerica will review your prescription history because that gives them a clear picture of your overall health.
If you die while the policy is in force, Transamerica will pay out the death benefit directly to your beneficiaries (or funeral home if you’d like). The money is paid tax-free and comes with no restrictions. That means they can spend the money on medical bills, outstanding credit card debts, funeral costs, or anything else. Also, any money left over is theirs to keep.
Transamerica funeral insurance has three health ratings that might qualify for:
Preferred: This is their least expensive option and has no waiting period. You must be able to answer no to all health questions to qualify for the preferred plan.
Standard: This option is more costly than the preferred plan, but it still has no waiting period. The standard rating will only be offered if you have specific health issues mentioned in the application.
Graded: This is their most expensive option and has a full two-year waiting period. The modified plan will only be offered if you have very high-risk conditions which appear in the application.
| Coverage Details | Preferred | Standard | Graded |
|---|---|---|---|
| Policy Type | Whole Life Insurance | ||
| Policy Duration | Lifetime | ||
| Fixed Premiums | Yes | ||
| Builds Cash Value | Yes | ||
| State Availability | All states | ||
| New Applicant Age Range | 45-85 | ||
| Minimum Coverage Amount | $1,000 | ||
| Maximum Coverage Amount | 0-55: $50k 56-65: $40k 66-75: $30k 76-85: $25k | $25,000 | |
| Free Built In Riders | Terminal illness | ||
| Optional Riders | Accidental Death (2X the payout for accidental death) | ||
| Where to Apply | Agencies licensed to sell Transamerica Life products (you can’t buy this plan directly from them) | ||
| Phone Number to Apply | 1-800-644-2926 | ||
| Medical Exam Required | No | ||
| 2-Year Waiting Period | No (subject to underwriting approval) | Yes | |
| Application Approval Time | 15 Minutes | ||
| Brochure | Transamerica Final Expense Brochure | ||
| Sample Application | Transamerica Final Expense Application | ||
How much does Transamerica burial insurance cost?
Transamerica calculates the cost of their funeral life insurance based on several factors including your precise age, health condition, gender, state of residence, tobacco usage history, and the desired coverage amount.
Displayed below is a table illustrating sample final expense prices for their coverage. These rates are presented as monthly premiums for a $10,000 death benefit.
| Age | Preferred | Standard | Graded |
|---|---|---|---|
| 50 | F: $24.23 M: $30.55 | F: $27.67 M: $34.66 | F: $62.75 M: $75.79 |
| 55 | F: $27.60 M: $35.76 | F: $34.12 M: $42.37 | F: $72.63 M: $91.43 |
| 60 | F: $32.71 M: $43.49 | F: $39.42 M: $51.11 | F: $83.12 M: $106.90 |
| 65 | F: $40.77 M: $53.97 | F: $49.35 M: $66.43 | F: $101.79 M: $136.46 |
| 70 | F: $52.88 M: $69.78 | F: $69.68 M: $101.90 | F: $125.55 M: $177.08 |
| 75 | F: $70.94 M: $97.30 | F: $93.74 M: $135.00 | F: $155.88 M: $231.67 |
| 80 | F: $101.26 M: $136.34 | F: $135.32 M: $190.34 | F: $218.84 M: $334.63 |
| 85 | F: $158.59 M: $213.94 | F: $202.25 M: $280.60 | N/A |
Common conditions still eligible for no waiting period coverage:
Afib
Angina (chest pains)
Aneurysm (if surgically repaired)
Arthritis
Asthma
Bipolar disorder
Blindness
Blood clots
Blood thinners
Cancer > 4 years ago
Chronic bronchitis
Circulatory surgery > 1 year ago
COPD
Crohn’s disease
Depression
Diabetes (type 2)
Diverticulitis
Epilepsy
Fibromyalgia
Grave’s disease
Heart attack > 1 year ago
Heart surgery > 1 year ago
Hepatitis
High blood pressure
High cholesterol
Kidney disease (no dialysis)
Lupus
Multiple sclerosis
Pacemaker (installed > 1 year ago)
Parkinson’s disease
Schizophrenia
Scleroderma
Seizures
Sleep apnea
Squamous/basal cell skin cancer
Stroke/TIA > 1 year ago
Tumors
The Pros and Cons or Transamerica Final Expense Insurance
The advantages of Transamerica’s burial insurance plans are numerous:
- Both the preferred and standard plans offer immediate coverage with no waiting period.
- Qualification is solely based on answering health questions; no medical exam is necessary.
- Approvals are typically processed within 15 minutes or less.
- Convenient payment options include the use of a Direct Express credit card.
- Affordable premiums, especially for seniors over 70 seeking burial life insurance.
- Coverage is available in all 50 states, including Washington D.C.
- Lifelong coverage guarantees that the policy won’t expire or increase in cost.
- Favorable underwriting criteria accept a variety of high-risk health issues without imposing a waiting period, such as COPD, kidney disease, Parkinson’s, and more.
- High coverage amounts of up to $50,000 are available for applicants aged 55 and younger.
While Transamerica’s burial insurance plans have notable advantages, there are also some drawbacks to consider:
- At certain ages, other insurance carriers may offer more affordable options.
- The graded plan can be significantly more expensive compared to similar offerings from other providers.
- The use of antipsychotic medications, regardless of the reason for prescription, may lead to being offered the graded plan instead of the preferred options.
- There is no guaranteed acceptance option, which may limit eligibility for some individuals.
- The application process for Transamerica’s burial insurance is longer compared to many other burial insurance companies, potentially adding complexity and time to the enrollment process.
Our Thoughts
If you qualify for Transamerica’s preferred or standard plan, their burial insurance is definitely worth considering.
Transamerica has earned a spot on our list of the top 12 best funeral insurance companies due to their competitive pricing and lenient underwriting policies.
Keep in mind: While Transamerica is a reputable company, it’s always wise to compare multiple providers before making a final decision. Each company has its own pricing and underwriting standards, and what works best for one person may not be the ideal choice for another.
Overall, Transamerica offers one of the most cost-effective final expense plans, similar to Mutual of Omaha. Additionally, many seniors with medical issues can still qualify for coverage through Transamerica.
However, their graded plan may not be the best option as it tends to be more expensive.
Financially, Transamerica is a stable company, giving you peace of mind that they’ll be able to fulfill your claim when the time comes.
