Stock or Mutual Insurance Company?
Most public facing insurance companies today are organized as stock-held companies. \U0001f3e2 Many mutual carriers have reorganized as mutual holding companies.
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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?
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No cause for alarm. If you chose a mutual holding company, this is normal. Here\u2019s how a typical mutual holding structure works and what you should know as a policy holder with a company organized in this manner.
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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.
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Resource:
Here\u2019s the link to order Winning Your Financial GAME - Book and Study Guide