Transamerica Long-term Care Insurance

Transamerica Long-Term Care Insurance Review

Transamerica opened in 1904 as a small bank, then grew to make financial services available to anyone as the Bank of America. A little over two decades later, the company ventured into the insurance industry so customers could handle their banking and insurance conveniently in one place. The Bank Holding Company Act of 1956 required Transamerica to choose to offer banking or insurance services, and the company opted to remain in the insurance field with long-term care insurance as one of many financial protection products.

Today, Transamerica is a leader in the insurance industry and ranks among the top 10 long-term care insurance companies with nearly 300,000 policies in force. Transamerica’s TransCare III Long-Term Care insurance offers many benefits and rider options, explained below. The company also sells life insurance, mutual funds, annuities and other retirement savings solutions.

Transamerica Life Insurance Company earned impressive marks for long-term financial stability from AM Best, Fitch, Moody’s and S&P Global. Transamerica’s parent company, Aegon, is also highly rated for financial stability.

Transamerica offers coverage regardless of age. TransCare III Long-term Care insurance helps to protect your finances from life’s unexpected circumstances and the high costs of long-term care services.

Pros
  • Wide selection of riders to customize your long-term care policy
  • Sign up for coverage as early as age 18 or as late as age 79
  • Plans don’t lapse due to age or health changes
  • 3-year automatic rate guarantee

Cons
  • No online quotes on website

Transamerica TransCare III Long-term Care Standard Benefits

Long-term care insurance plans typically have maximum daily benefits (MDB), elimination periods (EP) and policy maximums. The MDB caps the amount paid out each day, and the EP is a waiting period between when you become ill or injured and when the insurance starts paying benefits. Policy maximums define the amount of time over which benefits are paid or limit the total dollar amount in benefits over the life of the policy. MDB, EP and policy maximums vary depending on the coverage you decide to buy. Some of the benefits with all TransCare III Long-Term Care insurance policies are subject to these limitations, which is standard practice.

TransCare III Long-Term Care policies include these basic care benefits:

  • Long-Term Care Facility: pays for each day of nursing home care or another qualifying facility.

  • LTC Facility Bed Reservation: pays when the insured is absent for any reason except discharge from a long-term care facility. Reserves a room up to 60 days per year.

  • Home Care/Adult Day Care (HC/ADC): pays for care in the insured’s home or at an adult day care.

Some TransCare III Long-Term Care standard benefits protect you from premium costs, like the ability to reduce benefits or the benefit period if premiums rise substantially. Another notable feature is should you die before turning 67 years old, your beneficiary receives a payment in the amount of all premiums paid minus the value of claims paid out.

Building a Transamerica TransCare III Long-term Care Policy

A snapshot of Transamerica’s TransCare III policy features include:

  • Issue Ages: 19-79
  • MDB: $50-$500 except for Vermont ($75-$500), Wisconsin ($60-$500) and Massachusetts ($50-$500 unless you’re a Mass Health participant, in which case it is $125-$500).
  • Maximum Amount (Pool of Money): $18,250-$1,095,000 for all states except the Pool of Money in Maryland, Massachusetts, and Oregon is between $36,500 and $1,095,000; in Vermont $27,375 and $1,095,000; and in Wisconsin $21,900 and $1,095,000.
  • Payment Method: Lifetime
Transamerica TransCare III Standard Benefits
Out-of-Pocket expenses paid unless otherwise noted
Benefit Description
Cash Benefit Pays cash each month equal to 10 times the MDB in place of all other benefits, except Optional Care Coordination
Accident Benefit Pays up two times the MDB for qualified long-term care services if you are injured before your sixty-seventh birthday. No combining with some other benefits
Respite Care Benefit Pays for temporary stays in a long-term care facility, community-based program like adult day care, or in-home care, up to 30 days per year
Remain at Home Benefit Reimburses costs for home modifications, volunteer caregiver training, therapeutic devices or technology, or a medical alert system. Lifetime maximum equal to 60 times the MDB
Alternate Plan of Care Benefit Gives Transamerica the discretion to consider new, alternative long-term care services not covered when policy is issued
Waiver of Premium Benefit Monthly premiums waived once LTC facility, Accident Benefit, HC & ADC, Cash Benefit or Hospice Care benefits begin
Hospice Care Benefit Pays out of pocket expenses for each day of care from a hospice care provider, up to 180 days

Transamerica Long-term Care Insurance Optional Riders

TransCare III Long-Term Care offers several benefit riders you can add to your policy to receive a customized long-term care insurance plan.

  • Nonforfeiture Benefit: Allows the insurance plan to continue on a limited basis if you stop paying premiums. The policy must be in effect for a minimum of three years to use the Nonforfeiture Benefit Rider.

  • Return of Premium Upon Death: This rider must be continuously in force from its effective date. The policy beneficiary receives a payment when you die amounting to the sum of all premiums paid minus payments you waived and benefits paid out.

  • Monthly Benefit: This rider pays monthly instead of daily benefits.

  • Shared Care: Couples with identical Transamerica long-term care insurance policies can share benefits if one exhausts their benefits.

  • Full Restoration of Benefits: This one-use rider restores benefits when claims are paid in full unless the insured is chronically ill and hasn’t received qualified long-term care services for 180 consecutive days.

  • Joint Waiver of Premium: Couples who hold identical long-term care policies with Transamerica can waive premiums during the same months.

  • Elimination Period Credit: This rider can lessen or satisfy your elimination period with credit for days you received the HC or ADC Benefit.

Transamerica Long-term Care Payment Options

Transamerica offers several payment options on TransCare III Long-Term Care plans. You can opt to pay annually, twice yearly, quarterly or each month. Your premium payment method must be approved during the underwriting process before your application gets approved.

Transamerica logo

Source: Transamerica

Transamerica Complaints

The Better Business Bureau gives Transamerica a “B”. Many reviews sites rate Transamerica long-term care insurance well. We saw ratings of 9 out of 10 stars with one site rating Transamerica the “Best for Affordable Policies.” The company has a 1.6 out of 5 stars on ConsumerAffairs.com based on 64 reviews. The majority of the complaints seem to revolve around being denied coverage and policyholders who felt it took too long for the insurance to pay out. TheBalance lists Transamerica among the top four long-term care insurance companies, citing affordable benefits starting as low as $18,000 and no waiting period for home health benefits when provided by an approved agency.

Transamerica Q&A

  • How do I purchase long-term care insurance from Transamerica?
    You can talk to an independent insurance agent about a TransCare III Long-Term Care policy or call Transamerica at the number on the website to ask questions and apply.

  • Does Transamerica offer any discounts on long-term care insurance?
    The discounts Transamerica offers can lower your long-term care insurance premiums substantially. Transamerica offers a couples discount of up to 30 percent if spouses or partners apply together and are both approved for TransCare III Long-Term Care. You may qualify for a 15 percent discount if you are part of a couple and only you apply for a policy. If you’re in good health and satisfy specific health-related underwriting criteria, you may be eligible for up to a 10 percent discount.

  • Why should I consider TransCare III Long-Term Care insurance when I have Medicare?
    Transamerica long-term care insurance is designed specifically to protect you financially from the costs Medicare doesn’t pay for when it comes to long-term care. Even Medicare Supplement insurance does not cover many long-term care expenses.

  • If my spouse and I get the shared care rider on a Transamerica long-term care policy, what happens to the benefits when one of us dies?
    If one TransCare III Long-Term Care policyholder with the shared care rider dies, the remaining pool of money transfers to the survivor with no further premium payments on the rider.

  • When would I receive benefits from Transamerica long-term care insurance?
    There are two ways policyholders qualify for TransCare III Long-Term Care benefits:

    1. You need considerable supervision to protect you from threats to your health and safety due to a severe cognitive impairment.

    2. You need substantial assistance performing at least two of the six Activities of Daily Living (bathing, continence, dressing, eating, toileting, and transferring to and from the bed) for at least 90 days due to a loss of functional capacity.

Conclusion

According to the Administration on Aging, 69 percent of all seniors will need on average three years of long-term care at some point in their life. With long-term care costs currently ranging from $20 an hour for homemaker services to $7,698 per month for a private room in a nursing home, the expenses add up quickly and could wipe out retirement savings altogether. TransCare III Long-Term Care insurance from Transamerica can help you plan for retirement years with confidence while removing financial stress from your loved ones.

Transamerica Reviews

Recent Reviews

March 28 2021 1:25PM

Transamerica is the worst possible company to work with! My folks purchased long term care insurance through them, and it's been nothing but trouble. As POA, I have been on the phone time after time after time to straighten out their mistakes.

The latest is that they are declaring both my parents dead...so they do not have to pay on the claims. First it was my Mom, twice declared dead. Hours on the phone to straighten it out.

Now it's my Dad...they are demanding a death certificate in 20 days or will close the file. Nasty letter! Now the State Insurance Commissioner is involved as they are committing insurance fraud.

Delores S.
Bismarck, ND
February 04 2021 3:57PM

Policy dates to 1988. Mother recently diagnosed with altered mental state. Transamerica has lost documents submitted, sent a nurse to evaluate Mom who simply changed questions when she could not answer them, and CS does not return calls when they commit to doing so.

Many hours on hold trying to get through to someone. Always encounter excuses such as 'we sent that up for review'; or 'that has to go to a committee' for review and then they cannot tell us when committees meet.

This is a company that has designed processes to deny valid claims instead of honoring the contracts they have been collecting on for decades!

Peter N.
Wausau, WI
February 01 2021 8:52PM

I will never, NEVER do business with this company again. I am a therapist who treated someone who had Transamerica's Supplemental insurance. They could not change my address despite my sending letter after letter to them for over 8 months.

I finally just gave up and considered the revenue lost. I will no longer take Transamerica as a supplemental insurance. In addition, for two years in a row I have erroneously received a 1099 for someone's long-term care benefits.

I wasted another pile of time trying to get it straightened out last year and it never was corrected. What this means is that Transamerica Life has violated this person's confidentiality and has made no attempt to correct it.

So for all you folks reading these reviews, not only will they treat you badly, they will mishandle your paperwork and disclose your personal business to random strangers.

Laura L.
Outthere, MN
January 06 2021 1:50AM

Transamerica Long Term Care Insurance is undeniably Elder Abuse!!! Promised assistance when their health attenuates and need assistance with ADL’s Doctors, Providers and Social Workers have all documented needed assistance with ADL’s that should qualify insurance benefit to be utilized.

Continued rejection despite documentation required, has been submitted Parents memory, stamina and ability to make decisions on their own is waning rapidly.

This is directly causing undue anxiety, despair and significant quality of life issues. It is axiomatic, that this is flat out Elder Abuse and represents neglect and taking advantage of elderly for profit and revenue.

Greg H.
Arlington, TX
December 15 2020 10:28PM

My mother in law has long term insurance. When she went from independent living to assisted living we had no problems. Recently she has moved to a memory care facility. This is now a nightmare with her policy. She transferred October 15th.

As to date we have been told that she has to start a new claim. Her new facility sent in all paperwork October 28th. We checked with Transamerica the end of November and were told that they had everything and they were just finishing the processing.

Yesterday we reserve a letter stating that two documents were still missing dated December 4th but postmarked December 11th. These were sent October 28th.

Yesterday we also received a letter that her premiums are no longer waived. We have been on the phone multiple times with Transamerica for hours.

Her facility has sent the paperwork again over twice today but no one can tell us if they have received it. So how did it get to this point that neither her facility nor we knew there was a problem, it been almost 6 weeks.

No one wants to take responsibility , that's OK, all we ask is that someone tell us what is going on and they have everything to move forward and get this corrected.

Rose A.
SPRING, TX
October 30 2020 5:38PM

I’ve just started to deal with this company for my cousin's ltc policy. First I put in request to pay for home device she wears because of falling. I sent in all requested documents. When I called they wanted more or said they DIDN'T receive them.

Eventually I gave up because it was always something more required. I’m not worried after she’s paid for 20 years whether they’ll pay for any type of care. So sad. The company shouldn’t be suited and reported to the state.

Diane G.
Palm Coast, FL
October 05 2020 6:52PM

It is understandable that some individuals are upset with the customer service reps who are, at times, unable to answer questions, but I will tell you that I have also found reps who were genuinely helpful.

I did not mark 5 stars because it did take me more than one call to have a copy of my policy mailed to me. My original was in our lockbox, and I was unable to go there. I wanted another copy to review before my move to an assisted living facility due to several medical issues.

According to my policy I should receive a fixed daily amount which increases annually. The best part is that it is deposited to my bank account every month. There was one month that it did not arrive in a timely fashion (I think we had mailed in the wrong statement).

However, the next month it arrived along with interest with that month's amount. Yes, paperwork - the facility verification and itemized statements - have to be submitted monthly, but I am very satisfied with Transamerica and most likely will recommend it to our children.

Diana S.
LONDON, KY
August 10 2020 5:35PM

PLEASE DO NOT BUY LONG TERM CARE FROM TRANSAMERICA LONG TERM CARE!!!! Once they get your money, if you make a legitimate claim, they make you do multiple things to delay the process and to make you prove you "qualify" for their LT care benefits.

We have escalated with Transamerica multiple times and appealed their decision to decline benefits. Each time they come back with my mother is living at an Assisted Living facility and not a Nursing Home so the benefit is declined.

I have asked what my mother's current assisted living facility does not provide that a Nursing home does, and Transamerica only responded with the Texas state's definition of a Nursing Home versus an Assisted Living facility.

Considering my mother is a type 1 diabetic and her current "assisted living" facility monitors and administers injections multiple times a day to manage her blood sugar levels, provides physical therapy, cleans and bathes her, feeds her, dresses her, and provides all of her medication prescribed by the primary care physician who visits the facility, not sure I understand why they decline the claim.

She is considered in Extended Care and no one from Transamerica has advised what a nursing home provides that she is not getting at her assisted living/extended care facility today.

Lastly, important to note she is wheelchair bound, has no mobility in her right shoulder and arm due to a fall in March 2020. In multiple discussions with Transamerica representatives, a couple of the reps have even stated they did not understand why our claim was denied.

Cathy M.
Plano, TX
July 29 2020 7:17PM

The bad reviews are true. After over 20 years of paying premiums, my father was admitted to a nursing home. He has Parkinsons and dementia, which have been clinically diagnosed.

But TA will still send someone to the nursing home to "observe" the claimant, even though either of these conditions will qualify you.

They finally started reimbursing my parents the contract amount for his nursing care, but you have to constantly call them and request the latest month's payment. Each time you call, you get a recording that puts you on hold forever, sometimes over an hour.

Then, when you finally speak to someone, it's someone you've never spoken to before and you have to tell them the whole story that you told the person the last time you called, and the person before that, etc.

Sometimes they act like they know what they're doing, sometimes they don't. Sometimes they are nice, other times they are rude. My father's policy was for one year of nursing home care, and two years of home care. I must have called Transamerica 100 times.

Do not believe them when they say they will look in to something and call you back. Not once have they called back.

Some pointers: --- READ THE CONTRACT over and over until you understand it. It is very important that you know what you're talking about with them or they can just tell you things that might not be true.

--- TAKE NOTES of every time you talk to them, including their name, the date and time, why you were calling them and what their responses were. I had to refer to my notes constantly and I think it would have been impossible without them.

--- Keep a calendar with each day that you receive service that is reimbursed. They only provide for a certain amount of time, and sometimes they count wrong.

--- If they take longer than a month to pay after they get the claim, make sure they also pay you interest. Sometimes they "forget".

Kimberly F.
Abingdon, MD
July 15 2020 8:40PM

After reading the one (1) Star reviews on the web site, I am questioning myself as to why I asked for information about a long term care policy??? Were these reviewers some of those people that ask for everything and even some impossible things???

I just want my wife or I to be well taken care of and funds available in order that a nursing home will not lay claim against our estate and our daughter be left with nothing and no way to afford us living in long term care. I don’t think this is a bad question, it’s just one that seems very important to answer!!!

James S.
Little Rocxk, AR
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