Mutual Life Insurance Explained

Mutual Life Compared With Stock Life Insurance

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There are 2 types of life insurance companies, mutual life insurance companies and stock life insurance companies. Mutual life companies are owned by the policy owners and stock life companies are owned by stockholders.

Both types of companies pay dividends if you own participating policies but mutual companies, if efficiently run, tend to pay higher dividends than stock companies. Dividends are not guaranteed regardless of which type of carrier you buy from.

They depend on the performance of the companies, how well they do with their investments and how effective they are in keeping expenses down.

Although mutual companies tend to perform best there are some stock companies that are so efficiently run they do as well as mutual companies and in some cases better. These cases are unusual though.

Protect your family with low cost life insurance.