Mutual of Omaha Insurance vs. Transamerica Life Insurance

Mutual of Omaha and Transamerica are two well-known insurers that provide term and permanent life insurance products. However, there are significant differences between the companies in terms of accessibility, riders and ratings. Understanding how different insurers compare can help you choose the right policy for your needs and family.

Mutual of Omaha Life Insurance Summary

Mutual of Omaha offers term life insurance over 10, 15, 20 or 30-year terms. These policies pay a level death benefit if you die before the end of the term and guarantee level premiums. Mutual of Omaha allows term life insurance customers to convert to a permanent policy when the term ends.

The company also sells two types of permanent coverage. Mutual of Omaha's whole life insurance policies offer level premium payments and a guaranteed death benefit while accumulating cash value on a tax-deferred basis. Meanwhile, its universal life insurance products build cash value while allowing enrollees to adjust their death benefit and premium payments if their circumstances change. You may also be able to access your death benefit early if you become permanently or chronically ill.

Transamerica Life Insurance Summary

Transamerica sells term life insurance policies lasting 10, 15, 20, 25 or 30 years. Its Trendsetter Super policy allows policyholders to convert to a permanent product at the end of the term, while the Trendsetter LB policy provides access to living benefits if you develop a qualifying illness.

Like Mutual of Omaha, Transamerica offers a whole life insurance product that guarantees level premiums and death benefits while accumulating cash value. It doesn't provide regular universal life insurance. However, an index universal life insurance product is available that permits premium and death benefit adjustments in some circumstances. This policy accumulates cash value based on the performance of major stock indexes, which could provide an income stream for retirement.

Mutual of Omaha vs. Transamerica Life Insurance Comparison of Accessibility

You can apply for certain Mutual of Omaha life insurance products online, but some require you to contact an agent. You'll generally need to answer health questions or undergo a medical exam for most policy types, except for its guaranteed whole life insurance policy. This product guarantees to accept all applicants aged between 45 and 85 (or between 50 and 75 in New York) without a medical, but it will likely cost more than many alternatives. However, it could be a good option if you have a health condition that makes it difficult to obtain coverage elsewhere.

You can get an instant quote for most Transamerica life insurance products on the company website, but you'll need to speak to an agent to set up your coverage. You'll usually need to undergo a medical exam, but Transamerica may waive this requirement if you're under a certain age and only want a relatively low coverage amount.

Mutual of Omaha vs. Transamerica Life Insurance Comparison of Company Ratings

Mutual of Omaha holds an A+ (Superior) rating with A.M. Best, reflecting the company's financial strength and strong operating performance. Transamerica has an A (Excellent) rating, recently downgraded from A+. Although A.M. Best considers Transamerica's operating performance adequate, it notes a deterioration compared to its competitors.

Mutual of Omaha also holds the stronger Better Business Bureau (BBB) rating. It has an A+ rating, while Transamerica is unaccredited with a B rating. BBB cites several unresolved complaints as the reason for Transamerica's rating.

Mutual of Omaha vs. Transamerica Life Insurance Comparison of Riders

Mutual of Omaha and Transamerica both offer some of the most common life insurance riders, including child and waiver of premium riders. Mutual of Omaha provides a more substantial portfolio in terms of living benefits riders, and customers have the option to purchase accelerated death benefits and long-term care add-ons. Transamerica offers return of premium and decreasing coverage riders, which could make its products more attractive if you think your needs or financial position may change in the future.

Rider	Mutual of Omaha	Transamerica
Accelerated Death Benefit	x
Chronic Illness	x	x
Terminal Illness	x	x
Critical Illness	x	x
Residential Damage	x
Waiver of Premium for Unemployment	x
Common Carrier Death Benefit Provision	x
Disability Income	x
Disability Waiver of Premium	x	x
Accidental Death Benefit	x	x
Child	x	x
Income Protection Option		x
Return of Premium		x
Decreasing Coverage		x

Choosing the Right Life Insurance Company for You

The type of life insurance that's right for you depends on your financial obligations and budget, so it's essential to do your homework before committing to a company or product. Finding an affordable product is an important consideration, but you should also check to ensure it provides adequate coverage and the issuing company is financially strong. Comparing several companies can help you find the best product to suit your needs and finances.