Security Mutual Life sits in a small and shrinking group. Most of the large mutual life insurers that dominated the twentieth century either demutualized, sold their in-force blocks, or were absorbed into public holding companies. Security Mutual did none of those things, which means a policy issued in Binghamton decades ago is still administered by the same policyholder-owned company that issued it.
That continuity is genuinely useful to a whole life owner deciding what to do next, because the guarantees, the dividend history, and the service department are all in one place. This page explains the ownership history, what the contract options actually are, and where a life settlement fits. Pine Lake Life Solutions is an independent education and policy-review resource and is not affiliated with, endorsed by, or acting on behalf of Security Mutual Life Insurance Company of New York.
In This Article
A Mutual That Never Demutualized
The company was originally incorporated as a mutual assessment association under the name Security Mutual Life Association on November 6, 1886, and began operations on January 3, 1887. It re-incorporated as Security Mutual Life Insurance Company in 1898, was reorganized on December 28, 1899 as a legal reserve mutual company, and adopted its present name, Security Mutual Life Insurance Company of New York, in 1960.
It remains a mutual company owned by its policyholders, headquartered in Binghamton, New York, and licensed across all fifty states plus the District of Columbia and the United States Virgin Islands. Its corporate family includes SML Agency Services, Security Administrators, Inc., and Archway Technology Services, Inc.
Why does that matter to someone holding a policy? Because the most common source of confusion on older contracts, namely a block that was sold, reinsured, or spun off to a third party, does not apply here. If your policy was issued by Security Mutual, Security Mutual services it. There is no successor company to track down and no unfamiliar administrator to identify first.
Financial Strength and What the Rating Means
Security Mutual publishes its own rating page. It states an AM Best rating of A- (Excellent), affirmed September 17, 2025, and notes that A- is the fourth highest of AM Best’s sixteen rating categories, reflecting excellent financial strength, operating performance, and market profile.
Two things follow. First, a rating is a statement about the insurer’s capacity to meet obligations, not a statement about whether your particular policy is a good deal for you today. Those are separate questions. Second, ratings are reviewed periodically. Confirm the current rating at ambest.com or with the company directly before relying on the figure above; it is stamped to 2025 and 2026 for a reason.
For a whole life owner, the practical relevance of financial strength is that guaranteed cash values and guaranteed death benefits are only as good as the company standing behind them. On that measure the contract carries a solid, established insurer.
Guaranteed Cash Value Changes the Comparison
Security Mutual describes its whole life product as providing “death protection for the whole of life,” with “permanent insurance, fixed premiums, guaranteed death benefit and cash value growth,” and notes that policies “develop cash values which may be available to the policyowner” and can be used as collateral for a loan.
Because the cash value is guaranteed rather than market-dependent, the keep-or-sell analysis has a firm floor. Surrendering produces a known number. That number is what any other option has to beat. A life settlement is worth considering only if a licensed provider’s offer meaningfully exceeds the net surrender value after accounting for outstanding loans and any tax consequences, and offers below surrender value should simply be declined.
Set the comparison out on paper: net cash surrender value today, the death benefit, the annual premium, the reduced paid-up death benefit available if you stop paying, and any offer received. Four numbers, one page. Most decisions become obvious once they are lined up.
| Option | Premiums after | Death benefit after | Cash received |
|---|---|---|---|
| Keep paying | Unchanged | Full, plus any paid-up additions | None |
| Policy loan | Unchanged | Reduced by loan plus interest | Loan proceeds |
| Reduced paid-up | None | Smaller, permanent | None |
| Surrender | None | None | Net cash surrender value |
| Life settlement | None for you | None for your heirs | Provider offer, if any |
How Dividends Affect the Math
As a mutual company, Security Mutual may pay dividends on participating policies. Dividends are a return of divisible surplus and are not guaranteed; the board declares them annually and the amount can change.
On a participating whole life policy, dividends can be taken in cash, applied to reduce the premium, left to accumulate at interest, or used to buy paid-up additions. That last option quietly increases both the death benefit and the cash value each year, which means an older policy may be worth considerably more than the face amount printed on the jacket. Check your annual statement for paid-up additions before assuming you know the size of the policy.
The reverse also happens. If dividends have been used to offset premiums, a decline in the dividend scale increases the out-of-pocket premium without any change to the contract. That is a common reason a policy suddenly feels unaffordable. Ask Security Mutual for the current dividend on your policy and whether the policy is participating, since not every form is.
The Options Before You Consider Selling
Whole life contracts carry nonforfeiture options that exist precisely for the moment premiums become a burden. Reduced paid-up converts the accumulated value into a smaller death benefit with no further premiums due. Extended term uses the value to keep the full death benefit for a defined period, then ends. An automatic premium loan provision, where elected, pays a missed premium from the cash value to prevent lapse.
Policy loans keep the coverage in force but accrue interest and reduce the death benefit if unpaid. A loan is not free money; it is a lien. Still, for a short-term cash need it is often preferable to surrendering a policy that took thirty years to build.
A life settlement is a fifth option, not the first one. It typically becomes relevant when the insured is a senior or in impaired health, the death benefit is substantial, the policy is no longer needed for its original purpose, and the surrender value is meaningfully lower than what the secondary market would pay. Eligibility is decided by licensed providers, and no one can promise an offer or an amount.
Security Mutual’s Change of Ownership Process
Security Mutual publishes an Absolute Assignment of Life Insurance Policy, described on its own site as the change of ownership form, among its individual customer service forms for policies whose numbers begin 000, 001, 002, or 00DA. The company instructs that “an original copy must be received by our Home Office unless it states otherwise on the form,” with the Home Office at 100 Court Street, PO Box 1625, Binghamton, NY 13902-1625.
Three details matter in practice. A separate form is required for each policy. All current owners and all new owners must sign. And the absolute assignment does not change the beneficiary designation, so a separate change of beneficiary form is usually appropriate at the same time. If a trust will own the policy, a trust certification with the trust name, date, and trustees is also required.
For help completing forms, Security Mutual lists Individual Client Services at 1-800-765-6668 for policies beginning 000, 001, or 002, and 1-800-632-6567 for policies beginning 00DA. The general company number is 1-800-346-7171. Policies with other prefixes are directed to contact the Home Office for the correct forms.
Frequently Asked Questions
Was Security Mutual Life ever sold or demutualized?
No. The company was incorporated as a mutual assessment association in November 1886, reorganized as a legal reserve mutual company on December 28, 1899, took its current name in 1960, and remains a mutual owned by its policyholders and headquartered in Binghamton, New York. Policies issued by Security Mutual are still serviced by Security Mutual.
How do I change ownership of a Security Mutual policy?
The company publishes an Absolute Assignment of Life Insurance Policy form for policies beginning 000, 001, 002, or 00DA. A separate form is needed for each policy, all current and new owners must sign, and the company states that an original copy must reach its Home Office unless the form says otherwise. Call 1-800-765-6668 for help.
Should I surrender my whole life policy instead of selling it?
Compare the numbers before deciding. Surrender pays the guaranteed net cash value and ends the coverage. A life settlement is only worth pursuing if a licensed provider’s offer clearly exceeds that surrender value after loans and taxes. Reduced paid-up, which keeps a smaller death benefit with no further premiums, is a third option people often overlook.
Are Security Mutual dividends guaranteed?
No. Dividends on participating policies represent a return of divisible surplus and are declared annually by the board, so they can rise or fall. If your dividends have been offsetting the premium, a lower dividend scale increases your out-of-pocket cost. Ask the company whether your specific policy form participates.
What is Security Mutual’s financial strength rating?
The company’s own rating page states an AM Best rating of A- (Excellent), affirmed September 17, 2025, and notes that A- is the fourth highest of sixteen categories. Ratings are reviewed periodically, so confirm the current rating at ambest.com before relying on it.
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Related Reading
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- Sell My Security Mutual Term Policy
- Sell My Security Mutual Guaranteed Universal Policy
- Cash Value Loan Vs Surrender
- Extended Term Nonforfeiture Option
- Keep Or Sell Policy Npv
- Sell My Penn Mutual Whole Life Policy
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.