Who owns a mutual life insurance company?

A mutual life insurance company is owned by its policyholders, which means that those who hold life insurance policies in the company collectively have ownership rights. These policyowners are able to elect a governing body, often referred to as a board of directors, which makes key decisions for the company. This structure fosters a sense of community among policyholders because they share in the company's profits, typically through dividends or reduced premiums.

In contrast, in stock life insurance companies, ownership is held by shareholders who possess stock shares, which is not the case in mutual insurance companies. The government does not own mutual life insurance companies, nor do independent agents who sell policies; they act as intermediaries and do not hold ownership rights in the company. Thus, the correct choice reflects the unique ownership structure of mutual life insurance companies, highlighting the democratic aspect where policyholders have a voice and stake in the organization’s future.