Whats a Fraternal Benefit Society?
At the beginning of the 20th century, life insurance was a largely unfamiliar and unaffordable concept. Fraternal benefit societies were formed so people with a common bond—typically religious, ethnic or occupational—could help one another when tragedy struck. Fraternal benefit societies also provided opportunities for people to socialize and helped recent immigrants acclimate to America. Members belonged to local “lodges” or meeting places where they could come together as a community and celebrate their common bond. Official definitions of a fraternal benefit society: • The IRS defines a fraternal benefit society as “one whose members have adopted the same or a very similar calling, avocation, or profession…working in union to accomplish some worthy object.” The IRS also notes that members of a fraternal band together as a society to “aid and assist one another and promote the common cause” and engage in activities of a “beneficial and fraternal character.” • The National Fraternal
