Life insurance is an important financial product that provides financial security for your loved ones in the event of your passing. Two major life insurance providers are New York Life and Transamerica.
But which one is the better choice for your needs? This comprehensive guide will compare New York Life and Transamerica on key factors like financial strength, products offered, ratings, and more.
A Brief Comparison Table
| Category | New York Life | Transamerica |
| Financial Strength | A++, AAA ratings (Superior) | A+, A+ ratings (Superior) |
| Products Offered | Term, whole, universal, variable, and survivorship life | Term, whole, universal, variable, and index universal life |
| Cost/Rates | Above average premiums | Below average premiums |
| Customer Service | Excellent reputation | Decent reputation |
| Third Party Ratings | Top scores from J.D. Power, Comdex, BBB | Average scores from J.D. Power, Excellent Comdex |
| Pros | Highest financial strength, wide selection of policies, top-tier customer service, strong ratings | Very good financial strength, competitive pricing, decent policyholder satisfaction |
| Cons | Premiums higher than some competitors, medical exam required | Not as strong service reputation, some complaints about customer service |
Company Overviews
First, let’s take a quick look at the history and reputation of each company.
New York Life
New York Life Insurance Company is one of the largest and oldest life insurance companies in the United States. Founded in 1845, New York Life has been in the business for over 175 years. It is currently the 3rd largest life insurance company in the United States and ranks #69 on the 2021 Fortune 500 list.
New York Life offers a wide range of life insurance products including term, whole, universal, and variable universal life insurance. The company is known for its strong financial strength, high ratings, and excellent customer service reputation.
Transamerica
Transamerica Life Insurance Company is the U.S. division of the Aegon insurance group based in the Netherlands. Transamerica was founded in 1904 and has been selling life insurance in the U.S. for over 100 years.
Transamerica offers term, whole, universal, and variable life insurance policies. They are not as large as New York Life but still have a significant market share in the U.S. life insurance industry. Transamerica is rated highly by the major independent rating agencies.
Financial Strength And Stability
When choosing a life insurance policy, you want to be confident the company will be around to pay claims far into the future. Financial strength is essential.
New York Life
New York Life has exceptionally strong financial ratings that indicate long-term stability:
- A.M. Best: A++ (Superior)
- Moody’s: Aaa
- Standard & Poor’s: AA+
- Fitch: AAA
These top-tier ratings mean New York Life has a superior ability to meet its ongoing policy and contract obligations. The company has paid dividends to policyholders every year since 1854.
Transamerica
Transamerica also has very strong financial ratings:
- A.M. Best: A+ (Superior)
- Moody’s: A1
- Standard & Poor’s: A+
- Fitch: A+
While not quite as high as New York Life, these ratings still indicate Transamerica has a superior ability to meet its financial commitments. They have a stable outlook from the rating agencies.
When it comes to financial strength, both companies are very strong but New York Life edges out Transamerica slightly.
Life Insurance Products Offered
The types of life insurance policies available is another important consideration.
New York Life
New York Life offers an extensive range of permanent and term life insurance:
- Term life – New York Life has affordable 10, 15, 20, and 30-year term life options.
- Universal life – Customizable permanent life insurance with flexible premiums.
- Whole life – Traditional whole life insurance that builds cash value.
- Variable universal life – Combines death benefit with variable investment accounts.
- Survivorship life – Coverage for two insureds in a second-to-die policy.
They also offer annuities and long-term care insurance options.
Transamerica
Transamerica also provides a full suite of life insurance products:
- Term life – 10, 15, 20, 25, and 30-year term life insurance.
- Whole life – Permanent protection with guaranteed death benefits.
- Universal life – Flexible premiums and adjustable coverage.
- Variable universal life – Investment account with market-linked gains.
- Index universal life – Interest crediting tied to index performance.
Transamerica also offers fixed and variable annuities to help protect retirement savings.
When it comes to policy types, both New York Life and Transamerica offer extensive and competitive options. The offerings are very similar between the two companies.
Also Read: Comparison Between Transamerica and Fidelity
Cost And Rates
Premium costs are also an important factor when comparing insurers.
New York Life
New York Life is not the cheapest option when it comes to pricing for life insurance. As a large mutual company they prioritize financial strength over rock-bottom pricing.
However, New York Life’s rates are very competitive for people in good health. Term life rates start as low as $160 annually for a 10-year $250,000 policy for a healthy 30-year-old.
Permanent life insurance policies like whole life have higher premiums due to the cash value component. But the guaranteed growth can be attractive for long-term savings.
Transamerica
Transamerica tends to have slightly lower premium costs for life insurance on average compared to New York Life.
For example, a 10-year $500,000 term life policy could cost around $220 annually for a healthy 40-year old. Permanent life products like indexed universal life also have competitive premiums.
While not the cheapest, Transamerica offers affordable rates while still maintaining strong financial ratings.
Customer Service Reputation
You want an insurer that will be easy to work with if you ever need to file a claim. Customer service is crucial.
New York Life
New York Life has built a reputation for excellent customer service over its long history. They invest heavily in agent training to provide knowledgeable support.
Policyholders give New York Life high marks for easy to work with, responsive service. The company has low complaint levels registered with regulatory groups like the NAIC.
Transamerica
Transamerica also has relatively good customer service ratings and fewer official complaints than many competitors. However, satisfaction is not quite as high as New York Life.
Some customers report communication issues with Transamerica when submitting claims or paperwork. But overall, they provide decent customer support.
For service reputation, New York Life is the winner with their long track record of superb policyholder support.
Third Party Ratings
Independent ratings from expert third-parties can give insight into an insurer’s quality and service.
New York Life
- J.D. Power – Rated #1 in customer satisfaction for individual life insurance companies (tied with Northwestern Mutual) in 2022.
- Comdex Score – Comdex score of 98 out of 100, indicating a superior reputation.
- BBB – A+ rating from the Better Business Bureau.
Transamerica
- J.D. Power – Scored 799/1,000 points in the 2022 life insurance customer satisfaction survey, which is about average.
- Comdex Score – Currently has a Comdex score of 94, which is considered excellent.
- BBB – A+ rating with BBB but has a higher complaint ratio than competitors.
While both companies have excellent financial strength, the third party ratings give New York Life an edge in terms of service quality and satisfaction.
Pros And Cons Of New York Life And Transamerica
Let’s summarize some of the key pros and cons of New York Life and Transamerica:
New York Life
Pros:
- Highest financial strength ratings
- Wide range of policy options
- Excellent customer service reputation
- Strong third party ratings
Cons:
- Premiums can be higher than competitors
- Requires medical exam for policies
Transamerica
Pros:
- Very good financial strength
- Competitive pricing and rates
- Decent policyholder satisfaction
Cons:
- Not as strong service reputation as New York Life
- Communication issues noted by some customers
- Lower third party ratings
Overall, New York Life comes out ahead in several categories but costs more on average. Transamerica provides quality life insurance at slightly cheaper premiums but lags in service ratings.
Also Read: Comparison Between Edward Jones And Raymond James.
Frequently Asked Questions (FAQ)
Yes, Transamerica has a strong reputation as an established life insurance provider. They have very good financial strength ratings and offer competitive rates. While not as highly rated for service as New York Life, most customers are satisfied with Transamerica.
New York Life is considered one of the top life insurers in the industry. They have exceptional financial stability, a wide range of offerings, and an excellent reputation for customer service. Their long history and strong third party ratings give them top marks for quality.
Transamerica ranks in the top 20 largest life insurance companies in the U.S. In terms of new business premiums written, Transamerica ranked #13 in 2021, writing over $1.6 billion in new coverage. They have a significant market share although not as large as giants like New York Life.
Yes, Transamerica is a reputable life insurance provider known for competitive pricing and very good financial strength. They have lower customer satisfaction scores than top-rated insurers but overall have a good reputation. Transamerica has been in business over 100 years and sells quality life insurance products.
Also Read: Comparison Between MetroPlus And Fidelis.
The Verdict
So which life insurance company is better? Here are some guidelines:
- If your top priority is rock-solid financial strength, choose New York Life. They edge out Transamerica slightly in financial ratings.
- If you want top-tier service and policyholder satisfaction, go with New York Life. Their customer service reputation is hard to beat.
- If you want to minimize costs, Transamerica offers competitive pricing, especially for healthy applicants.
- If you want a wide range of permanent and term life options, both companies have extensive offerings.
For most people, New York Life is worth considering if you want the exceptional financial strength and customer service. But don’t rule out Transamerica, especially if pricing is your main factor – their premiums may save you money.
Ultimately, shopping and comparing quotes from multiple insurers is wise. But both New York Life and Transamerica are leading life insurance companies that offer financial protection you can count on.
