Mutual Benefit Association
Definition - What does Mutual Benefit Association mean?
A mutual benefit association is a group that provides certain benefits to its members, including financial reimbursement for specific types of loss.
Mutual benefit association members do not pay insurance premiums; however, they usually have to pay a membership fee, which serves a similar function.
Insuranceopedia explains Mutual Benefit Association
Membership in a mutual benefit association is a good option for people who want to receive some financial coverage for risks without having to pay expensive premiums to insurance companies. When a loss occurs, it is assessed by the association and a decision is made about whether or not to reimburse it.
Mutual benefit associations are often structured around social groups, companies, or agencies.