Mutual Life Insurance is a type of life insurance policy owned by its policyholders. Unlike stock companies, which are owned by shareholders, mutual companies distribute profits back to policyholders in the form of dividends. This means that policyholders can benefit financially from the company's success. In a mutual life insurance policy, the insured person pays premiums to maintain coverage. Upon the policyholder's death, a death benefit is paid to their beneficiaries. Additionally, policyholders may receive dividends based on the company's performance, which can be used to reduce premiums, purchase additional coverage, or be taken as cash.