Mutual Life Insurance at a Glance

The origin of Mutual Life Insurance can be traced back to the 17th century in England and the United States of America. Precisely in 1752 in the United States of America, Benjamin Franklin established the Philadelphia contribution ship for the insurance of certain houses lost by fire outbreak. It was after this particular incident the use of Mutual Life Insurance began to spread to all other parts of the world. Companies that engage in this type of life insurance are known to be financially strong.

Acquisition procedure
To acquire a Mutual Life Insurance policy, the procedure undergone is almost the same with other types of insurance policies. The first thing to do when you get a reputable insurance company is to fill a form where you will enter your personal details. Then you are expected to undergo a medical check up which should be done by an experienced medical doctor. The result of the medical check up will now determine the possibility of striking the deal. At this point, the company will consider how risky granting you a policy can be.

After all the necessary negotiations, the policy is granted by the insurance company if the customer agrees to the terms. Looking at the size of premium paid in mutual life insurance, it seems more expensive when compared to term life insurance.

Mode of operation
After all the necessary negotiations, the policy is granted by the insurance company if the customer agrees to the terms. One of the things that do encourage applicants to confirm mutual life insurance policies is its freedom from taxation. Although looking at the size of premium paid in this type of insurance, it seems more expensive when compared to term life insurance but it is very profitable. The tax-free dividends serves as a consolation for the huge sizes of premiums paid. It only becomes inconveniencing when the owner finds it difficult to pay the premiums.

Merits
It pays very well when properly managed by the owner. The policy holders of any mutual life insurance company in fact earn as much as the company earns as they get a handsome share of the profits made in form of dividends.

It is a rewarding investment in that it is a dependable way of keeping your loved ones away from hardship when you are dead. This is with the huge death benefits paid by the insurance company.
It is absolutely free from taxation and allows you access to your incomes without and reduction.
It can be a source of protection to people.

Demerits
The processes undergone in buying it is very difficult and complicated
It is very expensive when compared to the likes of term life insurance.