Life Insurance Benefits of Buying from a Mutual Life Insurance Company

Consider the Benefits of Buying from a Mutual Life Insurance Company


Everyone knows the primary benefits of life insurance, especially during the unexpected death of a loved one. But what many overlook are the long-term benefits of owning permanent insurance vs. term insurance.
Unlike term insurance, which provides coverage for only a specified period, permanent insurance policies provide you with coverage for your entire life, as long as your premium payments are paid.

Permanent insurance also offers cash value that accumulates as your policy grows. You can borrow against your cash value in the form of a loan or you could surrender a policy's cash value for cash. This flexibility gives you the option to rely on your accumulated cash value for emergencies or to use it whenever a great opportunity presents itself.

 

The mutual life insurance advantage
When evaluating your insurance options, you'll also want to look at the benefits of owning a policy with a mutual life insurance company Ė one that is owned by its policy owners, not stockholders.
One benefit of having a policy with a mutual company is if the company does well during the year, it's able to return money to its policy owners in the form of dividend payouts.
For example, Mutual Companies announced that it will be paying out a record dividend to its policy owners in 2006.
Mutual's practice of mutuality allows it to take a longer-term view than many institutions, particularly public companies. Its mutuality allows for a longer-term strategy for its general account, which over time has produced higher returns and greater policy owner value in the form of industry-leading dividend payouts.
 
The company will also continue to pay a dividend interest rate of 7.5 percent on unborrowed funds on most permanent life insurance policies for the second straight year.
And about 98 percent of the company's 3.9 million participating permanent life insurance policies that received a dividend in 2005 are expected to receive a larger dividend in 2006.
Mutuality is what makes this possible. As a mutual company a Mutual is completely committed to its policy owners. With their interests in mind, the company works hard to minimize operating expenses and maximize investment returns.

 

Retirement and disability Information for your Future

Saving for College with a 529 Plan Keeps Getting More Attractive

Understanding and Buying Long Term Care Insurance

Special planning is a must for individuals with special needs

What are some tips for getting the best deal, or the most appropriate coverage?

 Special planning is a must for individuals with special needs

How much does a nursing home cost an individual?

What are the long-term care policy product offerings like?

 Nonforfeiture benefits

Death benefits

Uninsurable tomorrow

What are the typical caveats and restrictions of Long-term Care Insurance?

What is Inflation protection for long term care insurance?

least a limited amount of mental health care.

There are limits to mental health coverage

What plans are good about providing mental health coverage?

What health insurance plans provide benefits to help my autistic child?

ANNUITY  Terms

Why buy life insurance?

Long-term care insurance is widely sought by people who hope to
extend their life expectancy and shoulder more of the living expenses that
they might need during retirement.

Life and your life insurance at 65

Women must take an active role in securing their financial futures

There's more to life insurance than just a death benefit

Retirement Solutions