When I meet with families exploring their life insurance options, I often get questions about Occidental Life Insurance. It’s a company that’s been around for decades, and many people remember their parents or grandparents having policies with them. But here’s what’s important to understand: the Occidental Life Insurance you might remember isn’t exactly the same company operating today.
For a complete overview, see our comprehensive term life guide.
Let me walk you through everything you need to know about occidental life insurance—its history, what happened to the original company, and what options you have today if you’re looking for reliable life insurance coverage.
The History of Occidental Life Insurance
Occidental Life Insurance Company of California was founded in 1906 and grew to become one of the larger life insurers in the United States. For decades, they provided term life insurance, whole life, and other insurance products to millions of American families.
The company built a solid reputation for paying claims and providing reliable coverage. Many families trusted Occidental with their financial protection needs, and the company became a household name in the insurance industry.
However, like many insurance companies over the past few decades, Occidental went through significant changes that affected policyholders and the company’s future.
What Happened to Occidental Life Insurance?
Here’s where the story gets more complex. In 1997, Occidental Life Insurance Company was acquired by Transamerica Corporation. This acquisition meant that existing Occidental policyholders became Transamerica policyholders, though their original policy terms and benefits remained intact.
Then in 2018, Transamerica itself was acquired by Aegon N.V., a Dutch financial services company. So while your Occidental policy might still say “Occidental” on it, the company backing it is now part of the Aegon family of companies.
What This Means for Existing Policyholders
If you have an old Occidental Life Insurance policy, here’s what you should know:
- Your policy is still valid - The acquisition doesn’t void your coverage
- Benefits remain the same - Your death benefit, cash value (if applicable), and policy terms haven’t changed
- Claims are still paid - Transamerica/Aegon honors all existing Occidental policies
- Customer service - You’ll now deal with Transamerica for any policy questions or changes
I’ve worked with several clients who had old Occidental policies, and in my experience, the transition has been handled professionally. The claims-paying ability is actually stronger now under the Aegon umbrella.
Current Options for New Life Insurance
If you’re shopping for new life insurance coverage and were considering Occidental, you’ll want to look at what’s available in today’s market. Since Occidental no longer writes new policies, here are the options I typically recommend to clients:
Top-Rated Life Insurance Companies
When I help families find the right coverage, I focus on companies with strong financial ratings and competitive products:
Mutual of Omaha - A mutual company that’s been around since 1909, with excellent financial strength ratings and competitive term life rates.
AIG (Corebridge) - Offers both term and permanent life insurance with flexible underwriting and good rates for healthy applicants.
Prudential - One of the largest insurers in the country with a wide range of products and strong financial backing.
Lincoln National - Known for competitive rates and streamlined underwriting processes.
Transamerica - Ironically, the company that acquired Occidental now offers some very competitive life insurance products.
Types of Life Insurance Available Today
The life insurance market has evolved significantly since Occidental’s heyday. Here are the main options available:
Term Life Insurance - Pure protection for a specific period (10, 20, or 30 years). This is usually the most affordable option and what I recommend for most families just starting out.
Whole Life Insurance - Permanent coverage with guaranteed cash value growth and level premiums for life.
Universal Life Insurance - Flexible permanent coverage where you can adjust premiums and death benefits within certain limits.
Indexed Universal Life - A type of universal life that links cash value growth to market indexes while providing downside protection.
How to Choose the Right Life Insurance Company
Having worked in this industry for years and seeing companies come and go, here’s what I tell my clients to look for when choosing life insurance:
Financial Strength Ratings
This is crucial. You want a company that will be around to pay claims decades from now. I always check ratings from:
- A.M. Best - Look for ratings of A- or better
- Moody’s - Aa3 or higher is preferred
- Standard & Poor’s - AA- or better
- Fitch - AA- or better
Product Variety and Flexibility
Different families have different needs. Some need basic term coverage, others want permanent protection with cash value growth. The best companies offer multiple options so we can find the right fit.
Underwriting Philosophy
Some companies are more lenient with certain health conditions. Others excel with specific age groups or coverage amounts. As an independent agent, I can shop multiple carriers to find the one most likely to offer you the best rates.
Customer Service and Claims Handling
You want a company that makes it easy to manage your policy and, most importantly, pays claims promptly. I pay attention to customer satisfaction ratings and claims-paying history.
The Underwriting Process Explained
Whether you’re replacing an old Occidental policy or getting coverage for the first time, understanding the underwriting process helps set proper expectations.
Medical Underwriting
Most life insurance applications require:
- Medical questionnaire - Detailed questions about your health history
- Medical exam - Usually done at your home or workplace at no cost to you
- Blood and urine tests - To check for health markers and confirm information
- Prescription database check - Verifies medications you’re taking
Simplified Issue Options
For smaller amounts (usually under $50,000), some companies offer simplified issue policies that skip the medical exam. These have:
- Limited health questions (typically 8-15 questions)
- Faster approval (sometimes same-day)
- Higher premiums than fully underwritten policies
- Stricter health requirements for approval
Rate Classes and Pricing
Life insurance companies use different rate classes based on your health and lifestyle:
- Preferred Plus - Best rates for excellent health
- Preferred - Good rates for very good health
- Standard Plus - Better than average rates
- Standard - Average rates for typical health
- Table ratings - Higher rates for elevated health risks
Common Questions About Life Insurance Today
“How much life insurance do I need?”
This depends on your specific situation, but here’s a quick guideline I use:
- Replace income - 10-12 times your annual income if you have dependents
- Pay off debts - Enough to cover mortgage, credit cards, and other debts
- Future expenses - College costs, final expenses, and other planned needs
- Final expenses only - $10,000-$25,000 if you just want to cover burial costs
“Is term or permanent life insurance better?”
For most families I work with, term life insurance makes the most sense because:
- It’s affordable - You can get substantial coverage for relatively low premiums
- It covers your highest-need years - When you have young kids, a mortgage, and other debts
- You can convert later - Most term policies let you convert to permanent coverage if needed
Permanent life insurance makes sense when you have:
- Estate planning needs that will last your entire lifetime
- High income and you’ve maxed out other tax-advantaged savings
- Business planning needs for key person or buy-sell agreements
“What if I have health issues?”
Don’t assume you can’t get coverage. I work with carriers that specialize in different health conditions:
- Diabetes - Many companies offer standard rates for well-controlled Type 2 diabetes
- Heart conditions - Depending on the specifics, coverage may be available at reasonable rates
- Cancer survivors - After a certain period, many cancer survivors can get standard rates
- Mental health - Treated depression and anxiety often don’t prevent coverage
Making the Right Decision
Here’s what I’ve learned after helping hundreds of families with their life insurance needs: the “best” company is the one that offers you the best combination of rates, coverage, and financial strength for your specific situation.
That’s why I don’t typically recommend one company over another without knowing your details. Instead, I shop multiple carriers to find the best fit.
Questions to Ask Any Agent
When you’re talking with an agent about life insurance, ask:
- “How many companies do you represent?” - Independent agents can shop multiple carriers
- “Can you show me quotes from different companies?” - This ensures you’re seeing competitive options
- “What are the financial ratings of these companies?” - Make sure they’re focusing on strong, stable insurers
- “What happens if my health changes?” - Understand conversion options and policy flexibility
- Understand that Occidental Life Insurance no longer writes new policies after being acquired by Transamerica in 1997, which was later acquired by Aegon in 2018.
- Keep your existing Occidental policy active as it remains fully valid with the same benefits, death benefit, and policy terms under Transamerica/Aegon backing.
- Contact Transamerica directly for any customer service needs, policy questions, or changes related to your old Occidental Life Insurance policy.
- Explore alternative insurers like Mutual of Omaha, AIG (Corebridge), or Prudential if you’re shopping for new life insurance coverage since Occidental is no longer available.
- Research the claims-paying ability and financial strength of any new insurer, as the backing company behind your policy affects long-term security and service quality.
The Bottom Line
While you can’t get a new Occidental life insurance policy today, there are many excellent options available from financially strong companies. The key is working with someone who can help you navigate the choices and find coverage that fits your needs and budget.
Remember, the best life insurance policy is one you can afford to keep in force. It’s better to have adequate coverage from a solid company than to stretch for the “perfect” policy that becomes unaffordable later.
Life insurance is one of those things you want to get right the first time. I help families compare options from multiple top-rated carriers so they can make confident decisions about protecting their loved ones.
Want help finding the right coverage? Reach out for a free quote and let’s talk about your options. I’ll shop multiple companies to find you the best rates and coverage for your specific situation.
