What is the primary function of fraternal insurers?

Fraternal insurers primarily aim to provide social welfare and charitable services to their members. These organizations operate on a not-for-profit basis and are often structured as societies or associations that offer insurance benefits to their members, who typically share a common bond, such as a religion, profession, or ethnicity.

The foundational principle of fraternal organizations is mutual aid and support among members. They not only provide life insurance and other financial products but also engage in community service activities and charitable works, emphasizing the importance of helping one another and supporting communal initiatives. This mission aligns with their goal of fostering a sense of belonging and community among members, which is a key distinguishing feature from other types of insurers that may prioritize profit maximization over social objectives.

Other options, such as focusing solely on financial investments or offering high-risk insurance products, do not reflect the core mission of fraternal insurers, which is rooted in mutual support and charitable engagement rather than purely profit-driven motives or specific market segments.