What’s a mutual life insurance company?
Here’s an area that doesn’t get talked about as much any more. The reason why, I believe, is that there are not many mutual life insurance companies left. A mutual life insurance company is an interesting corporate idea. It’s based on one of the great human attributes – the spirit of community.
Mutual companies are called that because they are mutually owned by the policyholders. There are no stockholders. Dividends are paid to the policyholders on most policies especially long term policies like whole life insurance.
Some of the largest and well known life insurance companies are mutual companies such as New York Life, Guardian Life, Northwestern Mutual Life and Mass Mutual. A bunch of other companies used to be mutual life insurance companies but then “demutualized” and became stock life insurance companies these include Metropolitan, Prudential, Equitable (Axa) and others. When do you choose a mutual company? You should consider a good mutual company for whole life insurance.
We at lifeinsure.com can help you with choices in that area. Also, if you’re thinking of converting (changing over) your term life insurance to whole life at some point, it may make sense to go with a mutual company for your term life insurance because you can change to whole life under a conversion privilege without any new medical checkups or questions.
