Most insurance companies out there today are just like any other publicly traded company. They are owned by stock holders. When the insurance company makes money, the stock holders make money. While this is inconsequential to those of us who have term life insurance, it does make a difference if you have a “Whole Life” insurance policy.
A mutual insurance company does not have stock holders. The owners of the company are the same people that own the life insurance policies. Depending on how much life insurance you own, you own that much of the insurance company.
One of the main benefits to a whole life insurance policy is its accumulation of cash inside the policy. You are actually paid by the insurer a portion of their profits. When you take out the stock holders, there is more money to go around and the faster the cash value in YOUR policy goes up! I know everyone can appreciate a little more cash.
There aren’t too many mutual companies left out there today. Some examples are Guardian Life, Ohio National, & New York Life. For more information on whole life insurance, send us an email.