Life Insurance

It's human nature to want to enjoy a comfortable lifestyle throughout life. But as we all know, achieving this goal can sometimes be challenging. Studies show that most people have three financial concerns: budgeting/debt reduction, planning for retirement, and illness/death.1 Did you know life insurance can help with all three and provide peace of mind to you and your loved ones?

Whole life versus Term

Life insurance can be divided into two major categories: permanent insurance, like whole life or universal life, and term. While both categories provide a death benefit, the proceeds of which usually pass income-tax free to beneficiaries, only whole life insurance provides these three important guarantees:
  • Guaranteed premiums (guaranteed never to increase for the life of the policy)

  • Guaranteed death benefit, and

  • Guaranteed cash value—and in the case of participating policies issued by mutually structured companies like Mutual Trust, non-guaranteed dividends, both of which accumulate on a tax-deferred basis.2

Policyowners can borrow against the cash value in their whole life policies (often without incurring taxation) and withdraw the values generated by dividends throughout their lives for any purposes they choose, including emergencies, to help pay debts or a mortgage, or even to supplement retirement income. Having liquidity, access and control of your money during your life, whenever you need it, can give you financial flexibility and peace of mind.

Term insurance, on the other hand, only provides a death benefit for a finite number of years. If death occurs during the term of the policy, the insurance company pays out a specific amount of money—the death benefit—to your beneficiaries. It does not provide the benefits of cash accumulation nor access to these funds.

Term policies can be useful for people on a tight budget or who need to cover financial responsibilities that have a predetermined endpoint, like a mortgage or business loan because they are less expensive than cash value policies. Mutual Trust’s term policies also offer the possibility of converting to whole life–without evidence of insurability–should the policyowner’s needs change.

As you can see, not all life insurance products are created equal and neither are insurance companies. That’s why it’s important to check the financial strength and reputation of the company and review your needs with an experienced life insurance representative before making a purchasing decision. Mutual Trust was founded in 1904 on the principles of mutuality and policyholder participation, values we continue to embrace today. We take great pride in designing life insurance products that maintain value over time and providing our policyholders protection and wealth management for the long-term.

For more information on how Mutual Trust can help you reach your financial goals, click here.


"Living the Middle Class Dream," LIMRA, March 2017.


While dividends are never guaranteed nor required by law, Mutual Trust has been paying them for more than 100 years.

Our Life Insurance Products

Whole Life Insurance

Term Life Insurance


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