Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Pacific Life vs. Transamerica life insurance
The battle between two companies best known for their universal life insurance policies.
Updated . What changed?
Pacific Life and Transamerica are both financially strong insurers with decades of experience in the life insurance industry. They have similar offerings, but their differences in rates and riders might affect your decision.
Life insurance products with Pacific Life and Transamerica
Your rate is tailored to you and will reflect your age, gender, occupation and lifestyle. But generally, Pacific Life offers cheaper premiums than Transamerica.
If you’re a healthy nonsmoker, here’s an idea of what you can expect to pay for a $250,000, 20-year term life policy.
*Based on sample rates from Policygenius, August 2019.
Transamerica has a more robust selection of riders than Pacific Life. Depending on your policy, you might be able to customize your coverage with these add-ons.
Pacific Life Riders
- Waiver of premium rider
- Accelerated death benefit rider
- Conversion rider
- Child rider
- Long-term care 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
As a policyholder, you want to be sure your insurer has the financial resources to pay your beneficiaries when you die. Both Pacific Life and Transamerica scored good ratings with the four major financial ratings.
As for customer satisfaction, Pacific Life edged out Transamerica in J.D. Power’s latest life insurance study, ranking ninth out of 23 companies surveyed.
|A.M. Best||A+ (Superior)||A (Excellent)|
|Moody’s||A1 (Good)||A1 (Good)|
|Standard & Poor’s||AA- (Very strong)||AA- (Very strong)|
|Fitch||AA- (High quality)||A+ (Very high quality)|
|J.D. Power||3 out of 5 circles or “about average”||2 out of 5 circles or “the rest”|
Customer reviews and reputation
Both insurers have work to do in terms of customer service. While Pacific Life has an A- rating with the Better Business Bureau (BBB), customers award the company 1 out of 5 stars. But the BBB records only three complaints in the past three years, which is relatively low for an insurance company.
It’s a similar story with Transamerica. Also rated A- by the BBB, the insurer was awarded 1.5 out of 5 stars by its customers. They filed 363 complaints against the company in the last three years, with many of the complaints pointing to a frustrating claims process.
These insurers offer a diverse product lineup and stand out for their universal policies and lenient underwriting standards. While they’re similar in many ways, Pacific Life’s policies tend to be cheaper, while Transamerica has a longer list of riders.
To find the policy that best suits your budget and needs, compare life insurance companies.
Compare life insurance companies
More guides on Finder
Permanent life insurance policyholders can now funnel more money into cash value
A new change to the tax code quietly went into effect on January 1, lowering the minimum interest rate for permanent life insurance policies.
How to use life insurance to pay for retirement
A permanent life insurance policy’s cash value can be used as a retirement income supplement, though using it reduces your policy’s death benefit.
Whole life insurance vs. guaranteed life insurance
Guaranteed life insurance often has lifelong coverage just like whole life insurance, but comes with a high price tag since there is no medical exam required.
Whole life insurance vs. variable life insurance
Two permanent life insurance policies that provide lifelong coverage, though variable life is a riskier investment option than whole life.
Workers’ compensation vs. life insurance
These coverage options serve different functions but have one benefit in common.
Mortgage life insurance vs. term life insurance
Mortgage life insurance may be a good fit for people with serious health conditions, otherwise term life insurance offers more value and flexibility.
How to get life insurance as a freelancer
As a freelancer you may have unpredictable cashflow, but you can still find income protection with term life insurance.
Life insurance portability vs. conversion
Leaving your job doesn’t have to mean leaving your group life insurance behind.
How to combine life and disability insurance
Ensure your loved ones’ financial future is protected with both life and disability insurance.
Life insurance for people with anxiety
Having anxiety might result in higher life insurance rates, but you can get coverage with most companies.
Ask an Expert