Life Insurance Company Types
Mutual Or Stock Life Insurance Companies
Home
Want to know more about your life insurance company? Most life insurance sites give you a list of life insurance companies when approaching this subject. They usually try to show you which are the largest or which are the safest to do business with. To be honest I have also been guilty of that as well. I do think, however, it would be more meaningful to you if I were to give you a better understanding of the different types of life companies and allow you to decide which is best for you.
Before we get to the different types I think it would be helpful if you took a look at this fact. All insurance carriers are not the same. There are some which involve themselves in every conceivable type of insurance. They sell life insurance, auto insurance, home insurance etc. This is okay but it seems to me that those carriers that specialize are much stronger than those that tend to dabble in every type of life insurance. I may be wrong but I have never heard of a life insurance company that sold only life insurance that went bankrupt. It would take a nationwide catastrophe, millions of people dying, to cause that to happenThere are two types of life insurance companies. There are mutual companies and there are stock companies. Mutual companies are owned by the policy owners and stock companies are owned by shareholders. - Mutual Companies
The policy owners of a mutual company participate in the good fortune or lack thereof of the life insurance carrier. If you own a participating policy and the company does well with their investments you get a higher dividend. If you prefer term policies you will likely see a decrease in the premiums on any new policy purchased. You can therefore conclude that you will do pretty well if you buy your policy from a mutual life insurance company. - Stock Companies
As mentioned above stock life insurance carriers are owned by stockholders. These stockholders participate whenever the company keep expenses down and perform well with their investments. You can therefore see that if you own a policy with this type of company you are likely to get a lower dividend that you would expect from a mutual company. Your term premiums are likely to be a little higher than in the former situation. Stock companies tend to sell non-participating life policies.
In recent years an unusual phenomenon has befallen the life insurance business. Some of the more highly successful mutual life insurance carriers have gone through the process of converting to stock companies. This, in my humble opinion, could not be for the benefit of the policy owners but rather for the benefit of greedy executives of the companies and the shareholders.America is in a state of crisis today and it is this type of activity that has helped bring this about. One very large company dabbling in every type of life insurance, trying to rake in all the dollars they can without the wherewithal to back it up had to turn to the American people to bail them out. On the other hand just take a look at the old giants, the Prudential, Met Life, Northwestern Mutual and Massachusetts Mutual and the like, this recession has not even phased them. When choosing a life insurance company think on these things.
Guarantee Your Family's Financial Security - Shop And Compare Quality Term Life Insurance From Highly Rated Carriers -
Save Up To 70%!
|
Home
|
Life Insurance Companies
|
Life Insurance Company
|
