Definitions for "Mutual Life Insurance Company"
A life insurance company without stockholders whose management is directed by a board elected by the policyholders. Mutual companies generally issue participating insurance.
A life insurance company owned by the policyholders. Policyholders of a mutual life insurance company may participate in the “divisible surplus” of the life insurance company as owners. They can receive dividends, most commonly on whole life policies, which can enhance the cash value, increase the insurance amount or lower premiums.
An insurer organized and incorporated under a state's laws and which has no stockholders. The policy owner is the customer and, in effect, an owner, in contrast to a stock company, where the policyowner is a customer only.