Mutual

[insurancemet]

Hello, I was informed by someone in Mutual of Omaha that
it is best to go with a mutual company like theirs, Mass Mutual, NY Life.
Do you know how this would have any direct bearing on
the products, marketing etc?

 

[xrac]

Hello, I was informed by someone in Mutual of Omaha that
it is best to go with a mutual company like theirs, Mass Mutual, NY Life.
Do you know how this would have any direct bearing on
the products, marketing etc?

Not necessarily! Mutual companies may has some advantages. (1)Mutual companies as a general rule may be financially stronger because they are more conservative in their investment approaches. (2)Mutual companies may be better for policy holders with participating policies because historically the dividends are stronger. Mutual companies pay out profits in the form of dividends to policy holders. Stock companies pay out profits in the form of dividends for the stock holders. (3)Stock companies have to try to produce good performance results each quarter for the stock market. Mutual companies can take a longer more conservative approach to business. Companies like NYL, MM, NWML, and Guardian are mutuals that are some of the oldest, financially strongest, and most well respected companies in this business.

If I had two opportunities that seemed equally attractive between either a stock or mutual company I would chose the mutual. If I had an opportunity that a stock company seemed a better fit than a mutual I would choose the mutual.

 

[insurancemet]

Thanks, but as far as selling products to the client, is it usually always better that those products are better for them than non mutual? Also, do you find that mutual products sell better generally than non?

 

[briko3]

I think you have good products for either. The advantage to a stock company is they can always sell more stock to raise capital. I don't think the average Joe knows the difference or cares unless someone spins it for them one way or the other.

 

[xrac]

Thanks, but as far as selling products to the client, is it usually always better that those products are better for them than non mutual? Also, do you find that mutual products sell better generally than non?

As far as selling the product it won't make a difference to most people.

 

[Norwayguy]

If I had two opportunities that seemed equally attractive between either a stock or mutual company I would chose the mutual. If I had an opportunity that a stock company seemed a better fit than a mutual I would choose the mutual.

My only disagreement with xrac's advice is If both companies offer the same opportunity I would be more swayed by your manager, It doesn't matter if we talk about NYL which is a Mutual or MetLife a stock company if you are new to this business a good manager/mentor can be a huge difference and a bad manager can blow you right out of this industry...There are many great companies out there by and large the mutuals listed offer great products, good training etc that does not mean stock companies like Met, Pru (not sure if they still have captive agents) can also offer good products and good training for me it comes down to your local manager.