The proprietary companies are corporations organized by a number of men to conduct life insurance as a business enterprise.
Such a company must be regularly chartered, and is under the supervision of the state department of insurance.
Mutual companies, as the name implies, are organized and are meant to be managed for the benefit of the policy holders, who are also regarded as stock holders, with the right to vote in the election of officers and other company affairs.
Aiming to create a strong reserve fund to secure the policy holders, the mutual life insurance companies usually charge a little more in the way of premiums.
Many rich men have their lives insured for great amounts. This is done that their heirs may not be forced to break up the estate, at death, in order to settle the ordinary liabilities.
If it can be afforded, it is always well to carry some life insurance.
CHAPTER XX
FIRE AND ACCIDENT INSURANCE
We hear and know much about life insurance because, no doubt, it has to do directly with the individual, and so has a personal appeal; but there are other forms of insurance, forms that have to do with things material, that play an important part in the world's business.