Springfield, Mass. —
“MassMutual remains strategically committed to providing our policyholders with high-value products and services, and this includes providing strong dividends to our eligible participating policyholders, even during these uncertain and turbulent economic times,” says Stuart Reese, chairman, president and CEO, MassMutual. “Our approved 2009 dividend payout reflects MassMutual’s commitment to help provide financial stability and security to our policyholders, and demonstrates the company’s continued strong financial position.”
As a mutual company, MassMutual is owned by its policyholders—meaning they share in the ownership of the company.
“To borrow from the company’s brand position, we view our dividend payout as the result of a ‘good decision’ by our participating policyholders in choosing to do business with MassMutual,” says William Glavin Jr., co-COO of MassMutual and EVP of the company’s U.S. Insurance Group.
Customers who purchase participating products from MassMutual receive an equitable share of a portion of the company's divisible surplus in the form of dividends as approved by MassMutual's board of directors each year. The dividends, which are not guaranteed, come primarily from three sources: investment results, mortality savings and savings on expenses. Dividends for a given policy are influenced by such factors as policy series, issue age, policy duration, policy loan rate and changes in mortality experience. The majority of MassMutual's dividends are paid to those who have purchased whole life insurance, according to the company.
“With a guaranteed death benefit and cash value that grows over the life of the policy, whole life insurance provides valuable benefits as individual needs evolve over time,” Glavin says. “Whole life insurance offers living benefits that provide flexibility and security, two attributes that people highly value as they seek to make good decisions about their financial future.”
Source: Massachusetts Mutual Life Insurance Co.
