Own Your Mutual Insurer Benefits

What exactly does it mean to be mutual? And then why would that be important for people to understand?

A mutual insurer is an insurance company that is owned by its policyholders, its participating policyholders. And so what does that mean, to be owned? Well, that's where we get our capital. And in most businesses, in particular large organizations, the company's capital is provided by shareholders. The capital is invested, and then a profit is earned on the goods and services, and the profit is returned to the shareholder, which is fine. That works very well for most industries. Life insurance insurance is unique, and participating insurance, in particular is unique. The capital provided by the policyholder in the form of the premium payments. That means we don't need shareholders. And so the mutual is owned by the PAR policyholders because they've provided the capital for the organization, which means they get the profits of the organization.