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.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.