Banner Life and Transamerica consistently rank as two of the cheapest term life insurance companies in the country. If you’re choosing between them, here’s how they actually compare.
Quick Comparison
| Banner Life | Transamerica | |
|---|---|---|
| Parent company | Legal & General America | Aegon |
| AM Best rating | A+ | A |
| Typical pricing | Among the lowest available | Among the lowest available |
| Max term length | Up to 40 years available | Up to 35 years available |
| Customer satisfaction | Generally strong | Trails some larger competitors |
Pricing: Essentially Tied
Both insurers regularly trade the #1 and #2 spots for the cheapest average premium on a 20-year, $500,000 term policy — often within a dollar or two of each other for a given age and health profile. Neither is reliably cheaper across every age, health class, and coverage amount, which is why it’s worth quoting both directly rather than assuming one always wins. See our full cheapest life insurance companies breakdown for exact figures.
Financial Strength: A Real, If Modest, Edge for Banner Life
Banner Life, backed by Legal & General America, generally holds a slightly higher AM Best rating (A+) than Transamerica (A). Both ratings fall within AM Best’s “Excellent” tier, so the practical difference in claims-paying ability is small — but Banner Life’s edge is real and consistent across recent rating cycles.
Term Length Options
Banner Life offers some of the longest term lengths available in the industry, including options up to 40 years — useful for younger buyers who want to lock in coverage through a very long time horizon. Transamerica’s maximum term lengths are slightly shorter but still cover the vast majority of buyers’ needs.
Customer Experience
Independent surveys have generally rated Banner Life’s customer satisfaction somewhat higher than Transamerica’s, though both remain solidly within acceptable ranges for a major insurer. If customer service history is a deciding factor for you, this is worth weighing alongside price.
Frequently Asked Questions
Which one is actually cheaper for me?
It depends on your specific age, health class, and coverage amount — there’s no universal winner. Get quotes from both directly to see which comes out ahead for your situation.
Does the AM Best rating difference matter in practice?
Both A and A+ are considered “Excellent” financial strength by AM Best. Unless you’re specifically prioritizing the highest possible rating, this difference rarely affects a real-world claims outcome.
The Bottom Line
Banner Life and Transamerica are both legitimate, low-cost options worth quoting side by side. Banner Life carries a modest edge in financial strength ratings and term length flexibility; Transamerica remains fully competitive on price for many applicants.
Compare your actual rates from both in about five minutes.