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Mutual of Omaha vs. Transamerica: Which is better?

With these reputable insurers, your decision will come down to the type of policy you want to purchase.

Updated

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These big-name insurers are similar when it comes to their rates and riders. Mutual of Omaha keeps it simple with term, whole and universal life insurance options, while Transamerica gives permanent policyholders the chance to invest their cash value more aggressively by offering indexed universal policies.

Life insurance products offered by Mutual of Omaha and Transamerica

Mutual of Omaha
Transamerica
Term
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Whole
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Universal
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Indexed universal
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Final expense
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Costs

Your premium is a product of your age, gender, occupation and lifestyle. These insurers have similar price points, but you might be charged a slightly higher rate with Transamerica.

If you’re a healthy nonsmoker, here’s what you might pay monthly for a $250,000, 20-year term life policy.

Gender Age
Mutual of Omaha
Transamerica
Male 20
$16.77
$19.35
Male 30
$17.20
$17.20
Male 40
$24.51
$30.32
Male 50
$54.83
$57.83
Male 60
$157.38
$127.49
Gender Age
Mutual of Omaha
Transamerica
Female 20
$14.62
$13.33
Female 30
$14.84
$14.62
Female 40
$19.78
$24.94
Female 50
$44.08
$47.08
Female 60
$113.31
$125.78

*Based on sample rates from Policygenius, August 2019.

Compare life insurance rates

Compare quotes for life insurance policies starting at $15/month.

Policy riders

Each insurer allows you to customize your coverage with common riders. Mutual of Omaha stands out for offering a long-term care rider, while Transamerica caters to different needs with return of premium (ROP) and decreasing coverage riders.

Mutual of Omaha

  • Waiver of premium rider
  • Accelerated death benefit rider
  • Accidental death benefit rider
  • Child rider
  • Other insured extension rider
  • Long-term care rider
  • Disability and unemployment waiver of premium rider

Transamerica Riders

  • Waiver of premium rider
  • Estate protection rider
  • Final expense rider
  • Child and additional insured rider
  • Return of premium rider
  • Decreasing coverage rider
  • Whole life guaranteed insurability rider

Financial strength

It’s essential to choose a financially strong insurer because your beneficiaries might not file a claim for many years. Mutual of Omaha and Transamerica score high ratings with the major rating agencies, meaning they have the funds to pay out claims.

In J.D. Power’s latest life insurance study on customer satisfaction, Mutual of Omaha ranked fifth of 23 insurers surveyed. Transamerica landed in 18th place, which indicates there is room for improvement.

Mutual of Omaha
Transamerica
A.M. Best A+ (Superior) A (Excellent)
Moody’s A1 (Good) A1 (Good)
Standard & Poor’s AA- (Very strong) AA- (Very strong)
Fitch N/A A+ (Very high quality)
J.D. Power 4 out of 5 circles or “better than most” 2 out of 5 circles or “the rest”

Customer reviews and reputation

Mutual of Omaha boasts an A+ rating from the Better Business Bureau for its customer service and interaction. The BBB hasn’t recorded any reviews or complaints to date.

Transamerica has an A- rating, and the BBB records 394 complaints over the past three years — many of which had to do with billing issues and the claims process. Customers award the insurer 1.5 out of 5 stars.

Bottom line

These insurers have reasonable rates and a robust range of riders to choose from. Mutual of Omaha has a better reputation with its customers, but it only offers term, whole and universal life insurance. If you’re looking for a policy outside this lineup, Transamerica might be the natural choice.

To weigh up your options, compare life insurance providers.

Compare life insurance providers

Name Product Issue age Minimum Coverage Maximum Coverage Term Lengths Medical Exam Required
Prudential
18 - 75 years old
$100,000
$10,000,000
10, 15, 20, 30 years
Yes
Customize your term life insurance with a long list of life and disability riders. Get a free quote on Policygenius.
Transamerica
18 - 75 years old
$25,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on policy
Purchase a policy worth anywhere from $25,000 to $10 million, with the option to skip the medical exam. Get a free quote on Policygenius.
MassMutual
18 - 80 years old
$2,000
$10,000,000
10, 15, 20, 25, 30 years
Depends on policy
Purchase term life insurance up to age 80 with Finder's #1 ranked company. Get a free quote from this A+ rated insurer on Policygenius.
AIG
AIG
20 - 85 years old
$5,000
$2,000,000
10, 15, 20, 25, 30, 35 years
Yes
Buy term life insurance all the way up to age 85, and choose a policy that lasts up to an incredible 35 years. Get a free quote on Policygenius.
John Hancock
18 - 65 years old
$25,000
$1,000,000
10, 15, 20 years
Depends on policy
Score a low rate on term life insurance with discounts and rewards for your healthy habits. Get a free quote on Policygenius.
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