While life insurance is known for being an extremely valuable resource for mitigating financial burden as a result of the loss of a loved one, approximately 102 million people say they still need it — or more of it — according to the 2024 Insurance Barometer Study.
This presents a huge opportunity for service providers to not only educate consumers about policies and how they work, but to market affordable coverage plans and options.
Most people don't start thinking about life insurance until major life milestones, such as getting married, purchasing a home, or having children.
When they begin researching coverage, they're often met with a range of providers, many of which seem quite similar on the surface.
However, what often goes unnoticed are the distinctive benefits and specialized plans available through fraternal insurance organizations.
What is a fraternal organization?
A fraternal insurance company offers many of the same products as traditional insurers, including:
♦ Life insurance.
♦ Annuities and other retirement solutions.
♦ Medicare supplement insurance.
♦ Final expense products
A fraternal organization is a unique business model that combines financial services with a mission of community support and engagement for members.
Unlike traditional insurance companies, they are not-for-profit, and members tend to share common bonds or interests — from values to occupations to volunteerism.
Fraternal organizations exist to serve their members, not maximize profits. They invest what would be profits to support local communities and give back to others.
They also provide members with numerous tools and resources to help them build a strong financial future.
How do members benefit?
Profits go back into member communities.
Since a fraternal organization is not-for-profit, earnings go back to communities and members, rather than to shareholders.
This happens through community investment, fraternal benefits, and support of local projects.
Members are supported through community impact.
Community engagement is at the heart of fraternal organizations, which means supporting the communities they serve.
They do this through volunteering, providing educational scholarships, fighting hunger, honoring and celebrating veterans and first responders, and providing flags to schools and other civic and non-profit organizations.
Members enjoy extra benefits.
Beyond financial products, the heart of a fraternal organization lies in the meaningful benefits it provides to its members.
Above and beyond insurance, these organizations focus on delivering genuine support — offering community engagement opportunities, access to educational resources and scholarships, assistance after loss, such as a natural disaster benefit or a first responder benefit, access to free templates for creating wills and health care directives, and programs dedicated to mutual aid.
Members are welcomed into a network built on shared values and collective well-being, gaining more than just financial security: they become part of a community that is committed to uplifting each other and creating a legacy of real impact.
What truly sets a fraternal organization apart is its unwavering commitment to people and communities above all else.
Members enjoy financial security rooted in shared values, and benefit from an environment where support and service are woven into everyday experiences.
This focus empowers individuals and families to create lasting legacies for their loved ones and take genuine pride in their contributions to their communities.
Denise M. McCauley is the chair, president and CEO of WoodmenLife and a member of the LIMRA/LOMA board.
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