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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.
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
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.
*Based on sample rates from Policygenius, August 2019.
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
- 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
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.
|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.
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
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