Why buy insur­ance from a mutu­al company? 

When an illness or injury upends your life, it may feel as though you’re going it alone.

Medical decisions need to be made in short order. Out-of-pocket medical bills come due, right at the time you may need to step away from work.

This is the point where supplemental insurance can make a crucial difference, protecting you from the financial fallout of a serious disease or health event.

But it’s not just the insurance policy that matters. If your insurance policy is provided by a mutual insurance organization such as Assurity, you (as a policyholder) are actually an owner of the company, which means you have a voice in how its run. If you have an Assurity policy, congratulations, you’re one of our owners. Mutual insurance companies are governed by their board of directors who are elected by, and sometimes comprised of, its policyholders.

Mutual organizations like Assurity were built on the premise of bringing people together to support one another in need. Everyone shares a little so there's enough to help when someone needs a lot. Because we’re owned by our members, we’re not accountable to shareholders and stock values. We operate in the customers’ best interests by design.

All of which means you’re definitely not going it alone.

In this article we'll share more about:

• History of the mutual company concept
• Why should I buy insurance from a mutual company?
• Where do I start?

History of the mutual concept

One of the best ways to understand the value of a mutual insurance company is to look at its origins and longevity.

Let’s back up to the beginning, which is generally linked to Benjamin Franklin. Franklin helped form the first mutual insurance company in America in 1752. He saw the wisdom of taking a mutual approach toward fire prevention and loss. The company he founded - the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire - is still in business!

Franklin called a mutual insurance company one where “every man might help another without any disservice to himself.”

Assurity was built on the same assertion more than a century ago. Our founders knew that pooling individual resources helps to protect each other in difficult times. That stability and financial strength allows Assurity to create and offer policies that match today’s world, including Assurity’s Critical Illness Insurance or our newest Term Life Insurance 3-in-1 bundle, StartSmart, a wonderful starter plan for Millennials that’s simple and affordable. These types of insurance policies provide you a source of stability when you or your family need it most – and you can use the money however you wish.

These policies are particularly useful for households with High Deductible Health Plans (HDHPs) so they have cash on hand to help cover the deductible costs and the out-of-pocket expenses that may follow.

You work hard to keep your family safe and secure – but what if life takes an unexpected turn? Insurance will help you and your loved ones carry on through a difficult time.

Why should I buy insurance from a mutual company?

No matter what type of life or health insurance you're looking to add on to your core healthcare plan, a mutual insurance company is a good place to start. Many have lasted more than a century and for good reason. When selecting a mutual insurance organization, some of the reasons to consider Assurity are:

• We’re stable and secure, with a history dating back to 1890.
• We put customers first and work with people who reflect our values.
• Our mutual structure gives us built-in accountability. Our policyholders elect our board of directors.

On top of all of that, Assurity is also a Certified B Corp. As it turns out, being a mutual insurance organization made us the perfect candidate for B Corporation status. We’ve always done things this way – working for whatever is best for our customers instead of whatever will make us the most money. And because we’re committed to our home here in Lincoln, we’ve always invested in the environment and community here at home. As a result, we qualified for B Corporation status the first time we took the B Impact Assessment, and it was an easy decision for us to continue down the path of socially responsible business.

In 2015, Assurity became the world’s largest insurance company to be named a Certified B Corp. Simply put, we make decisions that put people and planet above profit, focusing first on using our business as a force for good.

Where do I start?

You can learn more about Assurity's story or reach out to your Assurity agent to get started now with one of our essential life or health insurance policies to protect you and your loved ones.