Transamerica Agrees to $57 Million Settlement Over Universal Life Insurance Rate Hikes

Transamerica Life Insurance Co. has agreed to a $57 million settlement to resolve a class action alleging the company quietly raised the cost of insurance on certain universal life insurance policies in 2022 and 2023, breaching its contracts with policyholders.

The lawsuit, Estate of Handorf v. Transamerica Life Insurance Company, claims Transamerica jacked up "cost of insurance" and "monthly deduction" rates on dozens of universal life products without justification — pulling more money out of policyholders' accounts every month. Transamerica denies any wrongdoing but agreed to settle to avoid further litigation.

If this sounds familiar, it should. Transamerica paid $195 million in 2018 and another $88 million in 2020 to settle nearly identical lawsuits over earlier rate hikes. This is the third time in under a decade.

Who qualifies

You may be eligible if you currently own or previously owned a Transamerica universal life policy that had a rate increase between November 1, 2021 and the date of final court approval, and you received written notice from Transamerica about a rate hike that took effect in 2022 or 2023.

The settlement covers a long list of products, including AGRI-VIP, Freedom UL, Inflation Fighter, LifePro UL Plus, Transadvantage, the Transultra series, Ultima Protector UL, Universal Accumulator, and dozens more. The full product list is available through the settlement notice you should have received in the mail.

What you could get

The minimum payout is $200 per qualifying policy. Your actual share depends on how much you were allegedly overcharged and how many people end up in the class. Higher overcharges mean a bigger check.

How to file your claim

You don't have to. Checks will be mailed automatically to the address Transamerica has on file. If you've moved, update your address with the settlement administrator so your check doesn't get lost.

The opt-out deadline is May 30, 2026, and the final approval hearing is set for July 13, 2026. Checks should go out within 60 days of final approval.

Download ClassyAction to stay updated on this settlement and get notified when checks start hitting mailboxes.