Prudential Life Insurance vs. Transamerica Life Insurance

Prudential and Transamerica are both highly reputable life insurance companies with long-standing reputations in the industry for quality products and financial stability. Both companies are competitive in their pricing and diverse in their product offerings.

If you are in the market for life insurance, you should check out Prudential and Transamerica and get quotes from both companies. While both have great products, one might be better than the other based on your unique needs and circumstances.

This guide offers a broad overview of the two companies, reviewing what products they offer, how much they charge, how they treat various health conditions, what policy riders they offer and how financially stable they are.

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Compare Prudential Life Insurance vs. Transamerica Life Insurance: Product Offerings

Prudential and Transamerica both offer term life insurance and several forms of permanent life insurance. The list below describes the specific life insurance products offered by each company.

Life Insurance Products Offered by Both Companies

• Term life insurance: Term life insurance provides coverage for a set period of time and is the most cost-effective way to protect your family with a large death benefit. Because most term policies expire while the policyholder is still alive, insurance companies can safely charge low premium rates for high coverage amounts. Depending on the terms of your policy, you might be able to convert it to whole life insurance or roll it into a new term when it expires.
• Universal life insurance: Universal life insurance is permanent life insurance with flexible premiums and death benefits. During periods of your life when you need more coverage, such as while your kids are still young, you can pay higher premiums to increase your death benefit. As your needs change, you have the option to save money by paying less in premiums, which lowers your death benefit. Universal life policies also accrue cash value over time.
• Indexed universal life insurance: Indexed universal life insurance has the same features as traditional universal life insurance, with one difference. The cash value, rather than growing at a fixed and guaranteed interest rate, is pegged to a market index.

Life Insurance Products Offered by Prudential Only

• Variable universal life insurance: Variable universal life insurance is another variation of universal life. With a variable policy, the cash value is invested directly into market equities, such as stocks and money markets. This makes it the riskiest of all the universal life products and the one with the highest growth potential.
• Survivorship life insurance: A survivorship policy is a type of life insurance taken out by a couple that doesn't pay a benefit until both spouses have died. It can be advantageous for estate-planning purposes, as the surviving spouse doesn't have to pay taxes on the benefit after the first spouse dies.

Life Insurance Products Offered by Transamerica Only

• Whole life insurance: Whole life insurance provides coverage for the rest of your life and gives you a fixed death benefit and fixed premium rates. If you prioritize safety and stability, whole life insurance might be the best option for you.
• Final expense insurance: Final expense insurance is a type of whole life insurance targeted to older policyholders, as it has a lower death benefit and easy underwriting terms. It is typically used to cover funeral and burial costs.

How Much Are Life Insurance Premiums With Prudential and Transamerica?

Both companies offer competitive premium rates, but Transamerica's tend to be lower for a healthy, nonsmoking policyholder. That said, Prudential is known for having lower rate increases for certain health conditions and tobacco use. Because life insurance premiums are so individualized, you should always compare quotes closely before deciding on a policy.

The table below shows the average monthly premium costs for a healthy nonsmoker buying a 20-year, $500,000 term life policy.

Source: Policygenius

How Much Extra Do Prudential and Transamerica Charge If You Have Health Conditions?

Your medical history, including current or former tobacco use, impacts your life insurance premiums significantly. Every company has its own formula for adjusting premiums based on preexisting health conditions and tobacco use. The table below indicates which of these two companies on average has more competitive premiums for policyholders with various health conditions.

What Policy Riders Are Available Through Prudential and Transamerica?

Prudential and Transamerica both offer policy riders to customize your coverage by providing extra protection for specific life events. Here are some riders to consider.

Policy Riders Offered by Both Companies

• Child protection rider: The child protection rider provides a death benefit for your child if they die while still a minor. The benefit amount is usually sufficient to cover funeral expenses.
• Accidental death benefit rider: The accidental death benefit rider pays your beneficiary a defined extra amount if your death results from a qualifying accident.
• Disability waiver of premium rider: This rider waives your premiums but keeps your death benefit in place if you develop a disability.

Policy Riders Offered by Prudential Only:

• Accelerated death benefit rider: The accelerated death benefit rider gives you the option to take your death benefit while still alive if you develop a terminal or critical illness.

Prudential Life Insurance vs. Transamerica Life Insurance: Financial Stability

When shopping for a life insurance policy, the financial stability of the company matters because it impacts its ability to pay death benefits promptly and in full. Fortunately, both Prudential and Transamerica have high financial stability ratings from A.M. Best. Prudential receives an A+ (Superior) rating, and Transamerica receives an A (Excellent) rating. These are the two highest marks the company gives, and the difference between them is insignificant enough that it shouldn't factor into a buying decision.

Prudential Life Insurance vs. Transamerica Life Insurance: Making a Final Buying Decision

The ultimate decision of whether to buy life insurance from Prudential or Transamerica comes down to which company offers the best policy at the best premium rates for your family's unique needs. A financial advisor can help you build and compare quotes from both companies and make the best buying decision.