Have you ever wondered what the “mutual” in MassMutual means – and why MassMutual is important to Haven Life?
Haven Life is owned by MassMutual, a mutual life insurance company that has provided the financial foundation for insurance needs since 1851. The policies offered through Haven Life are issued by MassMutual or its subsidiary CM Life.
What is a mutual company? Essentially, a mutual prioritizes long-term security over short-term gains. Because mutuals don’t have shareholders, they put their policyholders first—which is one of the reasons MassMutual has been financially secure since the nineteenth century.
Want to know more? Here are three reasons why mutual companies should be important to you:
A mutual focuses on its policyholders
Some financial companies are more interested in creating short-term profits for shareholders than long-term financial security for policyholders. MassMutual puts its policyholders first. Because MassMutual is a mutual company, the company can make decisions that benefit those policyholders directly—instead of making decisions that also benefit outside shareholders.
However, that̵7;s not the only reason MassMutual has been able to succeed over the long term—and it’s not the only reason a mutual is important.
A mutual prioritizes long-term stability
What is the oldest MassMutual life insurance policy on the books? Believe it or not, MassMutual still actively manages a policy that was issued on September 23, 1929. The ability to maintain a single life policy for nearly a century—not to mention every other life policy issued in the past 100 years—requires a single-minded focus on long-term financial stability.
When MassMutual makes an investment—in the market, in technology, in customer service—it does so with a long-term eye. Remember that a mutual company’s primary focus is its policyholders. This may mean avoiding a short-term dividend in favor of long-term growth.
This is one reason why MassMutual has been able to maintain a solid financial footing for so long, and why the mutual company has maintained a superior rating from AM Best – the highest possible rating offered by the agency.
But that’s still not the only reason a reciprocity is important.
Security in uncertain times
During periods of uncertainty—pandemics, recessions, market turbulence—a company with a solid financial foundation and a history of member-focused, long-term decision-making may be more attractive.
It is also likely to have the resources it needs to help others. MassMutual was able to sustain operations through the Civil War, both World Wars, and the Great Depression—not to mention the 1918 flu pandemic and, of course, COVID-19. During these uncertain times, the company continued to provide the financial security necessary to offer peace of mind—and, in the worst case scenario, helped give people the financial resources to navigate the loss of a loved one.
MassMutual’s financial stability helped life insurance beneficiaries receive $7 billion in life insurance payouts and annuities last year—and many of those funds went to people who were most in need.
That’s why a mutual is important—and why Haven Life is proud to work with MassMutual to provide simple, affordable, and reliable life insurance to as many people as possible.