What Is A Mutual Life Insurance Company?
12689 POINTSview profileTed RatliffOwner, SFS Associates,A mutual company is a company owned by the policyholder rather than stock holders. A mutual company will pay its excess profits back to the policy holder in the form of dividends. A stock company pays its dividends to the stock holders. While mutual companies premiums may be just a little more than a stock company, the cash value, because of dividends, can be far greater and more options are available within the policy.Answered on May 11, 2013flag this answer
0 POINTSContact Meview profileDavid RacichPROFountain Hills, ArizonaMutual life insurance companies are owned by the company’s policy holders, in contrast to stock life insurance companies, who are owned by their stock holders. Mutual life insurance companies maintain a board of directors that declare an annual dividend to their policy holders. A dividend is a return of unused premium. During the early formation of the US, mutual companies were less expensive to capitalize than stock companies, so there was a proliferation of mutual companies. But in recent times there has been a movement in the industry to demutualize to attract more capital.Answered on May 11, 2013+01+1 this answer
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