What is the purpose of a fraternal benefit society?

A fraternal benefit society primarily serves members of a specific organization, typically offering insurance and other benefits to those who share common bonds, such as ethnicity, religion, or a shared interest. Unlike traditional insurance companies that operate for profit, fraternal societies usually function on a not-for-profit basis, focusing on providing benefits to their members rather than to the general public. This unique structure allows them to foster a sense of community among their members while providing valuable services and support.

The benefits provided by a fraternal benefit society often include life insurance, health insurance, and other financial products, but they are specifically tailored to individuals who belong to the society, thus reinforcing the societal bond. Members often participate in additional activities and mutual aid, further emphasizing the organization’s purpose of fostering community rather than simply functioning as a commercial insurer.