What is a fraternal benefit society?
Fraternals were developed in the 1800s as a way for people — many of them immigrants who were new to the United States — to work alongside those with common ethnic, religious, and other backgrounds. The nonprofit organizations provide “mutual aid” to individuals and families. That includes insurance against death, disability, and illness (traditional offerings of any life insurance agent’s business) but also involves a lodge system where members — policyholders and their families — meet for social and charitable events. According to the National Fraternal Congress of America (NFCA), an organization that represents 73 fraternal benefit societies in the U.S. and Canada, fraternals raised nearly $17 million in the wake of the Sept. 11 attacks and more than $17 million in donations and materials for victims of hurricanes Katrina, Rita, and Wilma. In 2006, fraternal benefit society lodge members donated nearly 95 million volunteer hours, worth an estimated $1.6 billion. But despite their ad
Many aspects of a fraternal benefit society can be explained in terms common to a traditional life insurance company. But, while it offers financial products, it offers even more. Community and human needs, not always met by governmental bodies, are often addressed by fraternals. Through hands-on charitable and patriotic work, fraternals make a difference in the lives of individuals, communities and the nation. Approximately 10 million men, women and children belong to fraternal benefit societies in the United States and Canada. Fraternals often share an ethnic, religious or occupational background; but Equitable Reserve, as a general fraternal, serves people who share a commitment to volunteerism and who support our common member bond.
Fraternal benefit societies are tax exempt membership organizations that offer life insurance and other financial products to their members. All fraternal benefit societies must comply with state and federal regulations with regard to their financial services, and must be licensed by the insurance department of the state or states in which they operate. Please view our About Fraternal Benefit Societies page for more info.
