$57M Transamerica Life Insurance Rate Increase Settlement, Are You Eligible? Policyholders will Automatically Receive a Check in the Mail

Transamerica Life Insurance Co. agreed to pay $57 million to settle a class action lawsuit alleging it improperly raised cost of insurance (COI) and monthly deduction rates (MDR) on certain universal life insurance policies in 2022 and 2023. Consumers who owned a qualifying Transamerica universal life insurance policy subject to a rate increase since November 1, 2021, may be eligible. The best part: you do not need to file a claim. Eligible policyholders will automatically receive a check in the mail.

Quick Facts

Field	Detail
Settlement Amount	$57,000,000
Claim Deadline	No claim filing required
Who Qualifies	Universal life insurance policyholders who received a COI/MDR rate increase notice for 2022 or 2023
Minimum Payout Per Person	$200 per qualifying policy
Proof Required	No — payment is automatic
Settlement Status	Preliminarily Approved
Opt-Out Deadline	May 30, 2026
Final Approval Hearing	July 13, 2026
Administrator	TLIC MDR Settlement, c/o Settlement Administrator
Official Website	www.handorfcoiclassaction.com

Current Status & What Happens Next

• The court will hold a Final Approval Hearing on July 13, 2026, at 1:30 p.m. Central Time, in the U.S. District Court for the Northern District of Iowa, Cedar Rapids.
• The deadline to exclude yourself (opt out) from the settlement is May 30, 2026. If you opt out, you will not receive a payment but you retain the right to sue Transamerica separately.
• Settlement checks will be mailed within 60 days after the court grants final approval, assuming no appeals delay the process.

What Is the Transamerica Life Insurance Lawsuit About?

The lawsuit, Estate of Handorf, et al. v. Transamerica Life Insurance Company (Case No. 2:23-cv-00032-CJW-MAR), alleges that Transamerica breached its contracts with certain policyowners by improperly imposing COI and MDR rate increases in 2022 and 2023. COI stands for “cost of insurance” — the monthly fee insurers deduct from a policy’s cash value. MDR stands for “monthly deduction rate” — a broader charge that covers the cost of maintaining the policy.

Policyowners received written letters from Transamerica announcing that their policies would be subject to the 2022/23 MDR increases. The plaintiffs claim these increases violated the terms written into their original policy contracts.

Transamerica denies all allegations and asserts its actions were consistent with the policy contract terms and caused no damages. The company agreed to settle to avoid the costs and delays of further litigation. The court denied Transamerica’s motion for partial summary judgment in April 2025, which pushed both sides toward a negotiated resolution.

Who Is Eligible for the Transamerica Life Insurance Settlement?

You may qualify if you meet all of the following:

• You may qualify if you currently own or previously owned a qualifying Transamerica universal life insurance policy.
• You may qualify if your policy experienced a COI or MDR rate increase on or after November 1, 2021, through the date of final court approval.
• You may qualify if you or your representative received a written notice from Transamerica about a COI or MDR increase taking effect in 2022 or 2023.
• You may qualify if you owned the policy at any time from November 1, 2021, through the final approval date.
• You may qualify if your policy is one of the specific products listed in the settlement (see the full product list at handorfcoiclassaction.com).

You do NOT qualify if:

• You are a policyowner who has a pending or already-resolved separate lawsuit against Transamerica challenging the 2022/23 MDR increases (other than this action).
• You are a Transamerica officer, director, or immediate family member of the presiding judge.

Not sure if you qualify? Contact the Settlement Administrator toll-free at (833) 386-6507 (available 24/7) or email [email protected] for free help.

Related article: Southern Illinois Healthcare MyChart Privacy Settlement, Are You Eligible For $17.50 Cash Payment? File a Claim by June 15, 2026

Which Transamerica Policy Products Are Covered?

The settlement covers dozens of specific product lines, including AGRI-VIP, Freedom UL, Inflation Fighter, LifePro UL Plus, Transadvantage, Transultra series, Ultima Protector UL, Universal Accumulator, and many others. A complete, searchable product list is available on the official settlement website.

How Much Money Will You Receive?

Each class member’s share is based on their proportion of the total alleged overcharges across all class members. The minimum payment is $200 per qualifying policy. If your calculated share is less than $200, you will still receive $200.

Your actual payout could be higher depending on:

• How much you overpaid due to the 2022/23 MDR increases
• The total number of valid class members who participate

The $57 million settlement fund will first cover administration costs, up to $19,000,000 in attorneys’ fees, and up to $25,000 each for three class representatives (up to $75,000 total). The remainder goes to eligible class members.

No portion of the final settlement fund will revert to Transamerica. If any funds remain after initial payments, the settlement administrator will make additional distributions to class members who cashed their checks.

Non-Cash Benefits — What Many Articles Miss

Beyond the money, Transamerica also agreed to important policy protections:

• Transamerica agreed not to raise COI rates or MDR schedules on policies in the settlement class for five years from the date the parties reached the settlement, unless ordered by a state regulator.
• Transamerica also agreed not to cancel, void, or deny a death claim based on alleged lack of insurable interest or misrepresentation in the original application process.

These protections give policyholders real, ongoing security — not just a one-time check.

How to Receive Your Payment (No Claim Required)

You do not need to do anything to receive your payment. A check will be mailed to the address in Transamerica’s records. However, there are a few steps to make sure you don’t miss out:

Step 1 — Confirm your mailing address is current with Transamerica. If it is outdated, contact the Settlement Administrator immediately.

Step 2 — Contact the Settlement Administrator to update your address:

• Mail: TLIC MDR Settlement, c/o Settlement Administrator, P.O. Box 25226, Santa Ana, CA 92799-9958
• Email: [email protected]
• Phone: (833) 386-6507 (toll-free, 24/7)

Step 3 — Decide whether to stay in the settlement or opt out by May 30, 2026 (opt out only if you want to sue Transamerica separately).

Step 4 — Wait for your check. After final court approval on July 13, 2026, checks will be mailed within 60 days (subject to any appeals).

Step 5 — Cash your check promptly. Uncashed checks may not be redistributed.

Estimated time to take action: Under 5 minutes to verify/update your address.

Important Deadlines & Dates

Milestone	Date
Settlement Class Period Begins	November 1, 2021
Preliminary Approval	TBD (already granted)
Opt-Out Deadline	May 30, 2026
Objection Deadline	June 1, 2026
Notice of Intent to Appear Deadline	June 29, 2026
Final Approval Hearing	July 13, 2026, at 1:30 p.m. CT
Expected Check Mailing Date	Within 60 days of final approval
Estimated Payment Receipt	Late 2026 (subject to appeals)

Frequently Asked Questions

Do I need to file a claim to get my money? 

No. You do not need to do anything to receive your settlement payment. The administrator will automatically mail a check to the address Transamerica has on file for you. Just make sure your mailing address is up to date.

Do I need a lawyer to participate in this settlement? 

No. Class Counsel from Susman Godfrey L.L.P. is already appointed to represent all class members at no direct cost to you. You may hire your own attorney if you wish, but it is entirely at your own expense.

Is this Transamerica settlement legitimate?

 Yes. This settlement is pending in the U.S. District Court for the Northern District of Iowa before Chief Judge C.J. Williams, Case No. 2:23-cv-00032-CJW-MAR. The official settlement website is managed by Simpluris, a court-appointed settlement administrator.

When will I receive my Transamerica settlement payment? 

The Final Approval Hearing is July 13, 2026. If the court approves the settlement, checks will be mailed within 60 days of final approval — though any appeals could delay that timeline. Most recipients can expect payment by late 2026.

What if I opt out of the settlement?

 If you opt out by May 30, 2026, you will not receive any payment from this settlement, but you retain the right to bring your own lawsuit against Transamerica for the rate increases. Opting out makes sense only if you plan to take separate legal action.

What if I received a rate increase notice but no longer have the policy? 

Former policyowners who previously owned a qualifying policy during the settlement class period may also be eligible, as long as they received written notice of the 2022/23 MDR increases. Contact the administrator to confirm.

Will my Transamerica settlement payment be taxed? 

The settlement FAQ advises that you consult your own tax advisor regarding the tax consequences of any settlement payments and any tax reporting obligations you may have. The tax treatment of insurance-related settlement payments can vary by situation.

What is the difference between opting out and objecting?

 Opting out means you leave the settlement entirely and give up your right to receive payment. Objecting means you stay in the settlement but ask the court to change something about it. You can only object if you have not opted out.

Sources & References

1. Official Settlement Website — HandorfCOIClassAction.com
2. Official Settlement FAQ — HandorfCOIClassAction.com/faq
3. Settlement Agreement & Important Documents
4. PACER Docket — U.S. District Court, Northern District of Iowa, Case No. 2:23-cv-00032-CJW-MAR

Last Updated: April 18, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.