Two documents decide this, and most people never read either one: the conversion provision and the rider schedule. The conversion provision determines whether a buyer could ever acquire something durable, because term coverage expires and an investor needs a contract that will exist at death. The rider schedule determines whether you need a buyer at all, because Transamerica’s Trendsetter LB series was built around accelerated death benefit riders for terminal, chronic and critical illness included with the policy rather than sold separately. People in exactly the health situation that makes a settlement plausible frequently already own a living benefit they have never used.
There is also an identification problem worth clearing up first. Transamerica has absorbed a long list of companies over the past three decades, and policies still circulate under names like Monumental Life, Stonebridge Life, Peoples Benefit Life and Western Reserve Life. Owners of those contracts often believe their insurer disappeared. It did not. This page covers where your contract actually lives, how to find the conversion deadline, what the living benefit riders can do, and the honest answer when the window has closed.
In This Article
- If your policy says a different company name, it is probably still Transamerica
- Check the rider schedule before you check anything else
- Finding the conversion deadline on a Trendsetter policy
- What you are converting into deserves scrutiny
- The honest answer if conversion is gone
- Order of operations
- Frequently Asked Questions
If your policy says a different company name, it is probably still Transamerica
Transamerica Corporation was acquired by Aegon, the Dutch insurance group, in 1999 in a transaction valued at roughly $9.7 billion. Aegon has since consolidated a great many US insurers into the Transamerica name. Policies originally issued by Monumental Life Insurance Company, Stonebridge Life Insurance Company, Peoples Benefit Life, Veterans Life, PFL Life, Life Investors Insurance Company of America, First Providian and Western Reserve Life have all been folded into the group, and Transamerica Premier Life Insurance Company merged into Transamerica Life Insurance Company effective October 1, 2019.
The principal operating insurer today is Transamerica Life Insurance Company, domiciled in Iowa with operations centered in Cedar Rapids, and supervised by the Iowa Insurance Division. New York business is written by Transamerica Financial Life Insurance Company, a separate licensed entity. The US headquarters is in Baltimore, Maryland; the Transamerica Pyramid in San Francisco, which the brand is best known for, was sold in 2020 and is no longer a company facility. Aegon itself relocated its legal seat to Bermuda in 2023 while keeping its head office in the Netherlands.
So a policy from any of those legacy names is a live contract administered by Transamerica on its original terms. Call with the policy number and ask for confirmation of in-force status, the paid-to date, and the current administrator in writing. Our guide on a carrier that merged and who owns the policy now covers exactly what to request.
Check the rider schedule before you check anything else
Transamerica’s Trendsetter LB term series was designed around included living benefit riders rather than optional add-ons. Depending on the version and the state of issue, those riders can allow an accelerated payment of part of the death benefit on certification of a terminal illness, a chronic illness measured by inability to perform activities of daily living or severe cognitive impairment, or a critical illness such as a qualifying heart attack, stroke or cancer diagnosis.
The significance is direct. If the insured’s health has declined enough that a secondary market buyer would be interested, the same decline may qualify for an accelerated payment – available in weeks, with no buyer, no medical record retrieval, no life expectancy report, and no closing. The trade-offs are real and should be understood: the acceleration reduces the remaining death benefit, the amount paid is typically discounted for the time value of money and may carry an administrative fee, and the availability and definitions vary by policy version and state.
Tax treatment is a question for your own advisor. In general, accelerated payments under a rider meeting the requirements of Internal Revenue Code section 101(g) are excluded from income when the insured is certified as terminally ill, while chronic illness triggers have their own conditions and per-diem limits. A lump sum can also affect eligibility for means-tested programs. Read what an accelerated death benefit rider does, then check your own schedule page. If a rider has already been used, that changes the remaining death benefit and therefore any valuation – see when a chronic illness rider has already been used.
Finding the conversion deadline on a Trendsetter policy
Transamerica’s term products have been marketed under the Trendsetter name for many years, including Trendsetter Super in level periods of 10, 15, 20, 25 and 30 years and Trendsetter LB with the living benefit riders described above. Versions change and a contract sold in 2011 is not identical to one sold in 2023 even under the same marketing name, so read your own schedule page rather than a current brochure.
The conversion provision typically permits an exchange into a permanent policy the company is then issuing, without evidence of insurability, until the earlier of the end of the level premium period or a policy anniversary tied to a stated attained age. That attained-age limit is the part that surprises people: a 30-year term issued at 45 may stop being convertible well before year 30. Ask Transamerica to state the final conversion date in writing, along with the plans available and the premium at both the full face amount and half of it.
The value of the right lies in the underwriting class. Conversion is normally done at the class assigned at issue, so an insured who has since become uninsurable converts as though healthy. That embedded advantage is the asset, and it cannot be recreated once the window closes. Our page on what a term conversion rider does covers the anatomy, and a 30-year term ending at 70 works through the timing problem in detail.
| Route | What it pays | How long it takes | What it costs you |
|---|---|---|---|
| Terminal illness acceleration under a rider | A portion of the death benefit, discounted | Weeks | Reduces the remaining death benefit |
| Chronic illness acceleration under a rider | Periodic or lump payments, subject to limits | Weeks to a couple of months | Reduces the death benefit; may affect benefits eligibility |
| Convert, then keep | Permanent coverage | Weeks | A materially higher premium |
| Convert, then market review | Possible lump sum if bids appear | Two to four months, no guarantee | Premium obligation begins immediately |
| Let an unconvertible policy expire | Nothing | Not applicable | Nothing, but nothing is recovered either |
What you are converting into deserves scrutiny
A conversion generally lands on a universal life or indexed universal life chassis, and those contracts are only as durable as their funding and their charges. Two questions belong in the conversion conversation.
First, ask for an illustration of the converted policy run at guaranteed maximum charges, not just current charges, showing the year the policy would exhaust at your planned premium. A minimum-funded permanent contract can look comfortable for a decade and then produce a lapse warning, because the monthly cost of insurance is applied to the net amount at risk at a rate that rises with attained age.
Second, ask about the cost of insurance history on the plan you are converting into. Across the industry, several carriers raised cost-of-insurance scales on older universal life blocks over the past decade, and Transamerica was among the companies that faced class litigation over monthly deduction increases; a settlement in Feller v. Transamerica Life Insurance Company in the Central District of California received approval in 2018, reported at approximately $195 million. Whether any particular current product carries similar risk is not something anyone can promise, but asking the question – has the cost of insurance scale on this plan ever been increased, and what are the guaranteed maximum rates – is reasonable and the answer belongs in writing. Our page on cost of insurance increase litigation explains what those cases involved.
The honest answer if conversion is gone
An unconvertible level term policy has essentially no secondary market value. There is no cash value, no permanent contract for a buyer to maintain, and the coverage will expire before the death benefit is payable in nearly every case. Providers decline these files at intake without ordering medical records, and this is a structural feature of the product rather than a negotiating position.
The narrow exception is a documented terminal or severely advanced illness where death is expected within the remaining level period, which can occasionally support a viatical purchase. It requires medical records and a life expectancy report and it is uncommon. Before pursuing it, check the living benefit riders again – on a Trendsetter LB contract the accelerated benefit often reaches the same result faster and without a third party.
What else remains useful sits inside the contract. Read the renewal provision: most level term policies continue on an annually renewable basis after the level period at steeply increasing rates, which occasionally justifies one bridge year while something else is arranged. Check the reinstatement terms if the policy already lapsed, since many contracts allow reinstatement within a stated period with evidence of insurability and back premiums. Our page on a term policy that is expiring lays out the final-year sequence.
Order of operations
Do these in sequence and stop when you have an answer. One, confirm the administrator and in-force status – especially if the policy names a legacy company. Two, read the rider schedule for living benefits already attached, and get the qualification requirements in writing if the insured’s health has changed. Three, get the final conversion date, available plans, and premiums at full and partial face amounts, in writing. Four, if converting, obtain a guaranteed-basis illustration of the target plan before signing anything. Five, only then consider whether an outside market review is worth the effort.
The last step earns its place when the insured is generally over 70, the converted face amount would be at least six figures, and health has declined materially since the policy was issued. Convert an amount you can carry on your own budget, never an amount that only makes sense if a sale materializes – no sale is guaranteed. Our page on converting term and then selling covers the sequencing errors that cost people money, and selling a term life policy covers the general mechanics.
Pine Lake Life Solutions does not purchase policies and is not licensed in every state. We offer an educational free policy review: send the policy cover page and the rider schedule and we will tell you what living benefits you already own, what the conversion provision appears to allow, and whether a market path is realistic – including when the honest answer is that a rider you already have is the better route. Call (305) 209-7183. Nothing here is legal, tax, or investment advice.
Frequently Asked Questions
My policy says Monumental Life or Stonebridge. Is it still in force?
Very likely yes. Aegon acquired Transamerica in 1999 and has consolidated numerous US insurers into the Transamerica name, including Monumental Life, Stonebridge Life, Peoples Benefit Life, Western Reserve Life and others; Transamerica Premier Life merged into Transamerica Life Insurance Company effective October 1, 2019. Contracts carried over on their original terms. Call with the policy number and request written confirmation of in-force status and the paid-to date.
What are the living benefit riders on a Trendsetter LB policy?
Depending on the version and state, they can allow an accelerated payment of part of the death benefit on certification of terminal illness, chronic illness measured by activities of daily living or cognitive impairment, or a qualifying critical illness. The payment reduces the remaining death benefit and is typically discounted. Read your own rider schedule, because availability and definitions vary considerably by policy version.
Where do I find my conversion deadline?
In the conversion provision of the policy. It is usually the earlier of the end of the level premium period or an anniversary tied to the insured’s attained age, and the attained-age limit is what catches people on longer level periods. Ask Transamerica to state the final conversion date in writing along with the permanent plans available and the premium at the full face amount and at half.
Should I use a living benefit rider or pursue a sale?
Compare them honestly. A rider pays in weeks with no buyer, no medical records retrieval and no closing, but it reduces the remaining death benefit and the amount is discounted. A settlement takes months, is not guaranteed, and requires full medical underwriting, but it transfers the premium obligation away and can pay more on a large permanent policy. Your own tax advisor should weigh in on both.
Why should I ask about cost of insurance on the plan I convert into?
Because universal life durability depends on the charges, and several carriers across the industry raised cost-of-insurance scales on older blocks over the past decade. Transamerica was among the companies that faced class litigation over monthly deduction increases, with a settlement in the Central District of California approved in 2018. Ask for the guaranteed maximum rates and an illustration run at guaranteed charges before you sign.
Does Pine Lake Life Solutions buy Transamerica policies?
No. Pine Lake Life Solutions does not purchase policies and is not licensed in every state. We provide an educational free policy review. Send the policy cover page and the rider schedule and we will identify the living benefits you already own, what the conversion provision appears to permit, and whether a secondary market path is realistic at your numbers. Call (305) 209-7183.
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Related Reading
- Sell Term Life Policy
- What Is A Term Conversion Rider
- Convert Term Then Sell
- What Is An Accelerated Death Benefit Rider
- Carrier Merged Who Owns Policy
- Cost Of Insurance Increase Lawsuit
- Term Policy Expiring
- 30 Year Term Ending At 70
- Chronic Illness Rider Already Used
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.