A federal judge in Los Angeles gave preliminary approval to a deal that Transamerica Life Insurance Co. reached with policyholders, including many seniors, who claimed the company improperly increased monthly withdrawals from their life insurance policies.

As part of the proposed settlement approved Monday by U.S. District Judge Christina Snyder of the Central District of California, Transamerica agreed to establish a fund of up to $88 million to compensate about 7,800 policyholders who owned its TransUltra 115 98/99 or TransSurvivor 115 97/98/99 universal life insurance policies.