Mutual Benefit Association

What Does Mutual Benefit Association Mean?

A mutual benefit association is a group that offers certain benefits to its members, such as financial reimbursement for specific types of losses.

While members of a mutual benefit association do not pay insurance premiums, they typically pay a membership fee, which serves a similar purpose.

Insuranceopedia Explains Mutual Benefit Association

Joining a mutual benefit association is a viable option for individuals seeking financial coverage for risks without incurring the high premiums charged by insurance companies. When a loss occurs, the association evaluates it and determines whether reimbursement is warranted.

These associations are often organized around social groups, companies, or agencies.