Most public facing insurance companies today are organized as stock-held companies. 🏢 Many mutual carriers have reorganized as mutual holding companies.
What does this mean for you? Example: You get a whole life policy from a mutual carrier. BUT then the contract says your policy was issued by a stock company! You still participate/receive dividends + have voting rights as a mutual policy holder, so what just happened?
No cause for alarm. If you chose a mutual holding company, this is normal. Here’s how a typical mutual holding structure works and what you should know as a policy holder with a company organized in this manner.
Topic #2: What is the 7-pay test?
One of you recently asked a question about the 7-pay test. Today you get the answer + hear why some people intentionally want policies that are Modified Endowment Contracts. And yes, this does make sense sometimes.