What aspect characterizes Fraternal Benefit Societies?

• A. For-profit insurance services
• B. Mutual aid and charitable activities
• C. Government-owned organizations
• D. Commercial banking

Answer: (B)

Fraternal Benefit Societies are primarily characterized by their focus on mutual aid and charitable activities. This type of organization is typically established by members of a specific group, such as those sharing a common religion, ethnicity, or other similar affiliations. These societies operate on a not-for-profit basis, meaning that their primary aim is not to generate profit but rather to provide financial assistance and support to their members in times of need, such as during illness or the death of a member.

In addition to offering life insurance and other financial products, Fraternal Benefit Societies often engage in social and community activities that promote the welfare of their members and the community at large. This charitable aspect distinguishes them from for-profit insurers, which operate solely to maximize profits for shareholders. Hence, the commitment to mutual support and community service is a defining characteristic of Fraternal Benefit Societies.