How Life Insurance Rates Work, and Why a Fraternal Insurer Is a Smarter Choice
Провидіння – неприбуткове братське товариство, яке служить українській громаді з 1912 року. Ми розмовляємо українською.
The short answer: Every life insurer prices coverage from your age, health, tobacco use and the amount of coverage. What’s different is who the company works for. Commercial stock insurers build shareholder profits into their business. As a not-for-profit fraternal benefit society, Providence Association has no stockholders. We charge no administrative fees or loads, and our earnings go back to our members, the Ukrainian Catholic Church and our community. Contact us for a free, personal quote.
How insurance companies set life insurance rates
Whether you buy from a big national brand or a small company, your premium comes from the same building blocks:
1. Mortality tables
Insurers start with the expected risk for people your age and sex. The younger you are, the lower the starting price.
2. Underwriting class
Your health, height and weight, medications, family history, driving record and hobbies place you in a class such as Preferred Plus, Preferred or Standard. Tobacco users can pay up to three times more.
3. Coverage and policy type
Term life covers a set number of years and builds no savings. Whole life covers you for life and builds cash value, so it costs more up front.
4. Company costs
Agent commissions, advertising, overhead and, at stock companies, profit for shareholders are all built into what you pay.
Health class details are from Policygenius. To see how premiums are calculated step by step, visit our life insurance premium calculator page.
Who owns your insurance company matters
There are three main kinds of life insurers. The difference is who they answer to:
| Stock insurance company | Mutual insurance company | Fraternal benefit society (Providence) | |
|---|---|---|---|
| Owned by | Shareholders | Policyholders | Its members. No stockholders, and run not-for-profit |
| Earnings go to | Shareholders and the company | Policyholders (dividends) and the company | Members, charitable causes and the community |
| Your voice | You’re a customer | Policyholders elect the board | Members take part in branches and can be elected to the board |
| Beyond insurance | Usually none | Usually none | Scholarships, community support, church and charitable giving |
| Regulated by | State insurance departments | State insurance departments | State insurance departments |
Fraternal benefit societies are recognized by the IRS under section 501(c)(8). They must operate through local branches, or lodges, and provide life, sick or accident benefits to their members (IRS). Learn more: What is a fraternal benefit society?
Why Providence is a smarter choice
- No stockholders, no fees, no loads. Providence charges no administrative fees or loads, so every dollar you pay works for you and your family.
- Coverage that lasts a lifetime. Our whole life insurance locks in your premium, builds cash value and protects your family for life.
- Savings that grow at 4%. Members can save in annuities and IRAs and Roth IRAs earning 4%, with a 3% lifetime guaranteed minimum and a $1,000 minimum deposit.
- Plans for every generation. These include children’s life insurance such as the Gift of Love Life Plan, and final expense coverage for parents and grandparents.
- Real people who speak your language. Our office staff answer the phones and emails themselves, in English or Ukrainian. You won’t talk to an AI agent or a call center.
- Member scholarships. Providence awards college scholarships to members every year.
- Your money stays in the community. Providence’s capital improvement programs have helped build more than 175 churches, schools, convents and monasteries. In the past 10 years, we have donated over $200,000 to Ukrainian churches and community causes.
- Over a century of stability. Founded in 1912 by Bishop Soter Ortynsky, Providence has served members through the Great Depression, two world wars and many market downturns. Read our history.
Questions to ask any life insurance company
Whoever you buy from, compare more than the monthly price:
- Is the policy term or permanent? Does the premium ever go up?
- Does the policy build cash value, and can I borrow against it?
- What fees, loads or surrender charges apply?
- Who owns the company, and where do its profits go?
- Will I reach a real person when my family needs help?
Providence is happy to answer every one of these. Not sure how much coverage you need? Start with our life insurance needs guide, or read The Simple Guide to Life Insurance.
Get your free, personal quote
Tell us your age, whether you use tobacco, and how much coverage you’d like. We’ll explain your options and give you your exact Providence premium, with no pressure.
Call 877-857-2284 or (215) 627-2445, or email sales@provassn.com. Our office is at 817 N. Franklin Street, Philadelphia, PA 19123. Ми розмовляємо українською.
Providence Association of Ukrainian Catholics in America is a not-for-profit fraternal benefit society licensed in Pennsylvania, New Jersey and Michigan. Why Providence? · Fraternal benefits · Life insurance FAQs
Life insurance rates and fraternal insurers FAQ
How do life insurance companies set their rates?
Insurers price policies from mortality tables (the expected risk based on your age and sex), your underwriting class from health, tobacco use, family history and lifestyle, the amount and type of coverage, and their own costs. Those costs include agent commissions, overhead and, at stock companies, profit for shareholders.
What is a fraternal benefit society?
A fraternal benefit society is a not-for-profit membership organization that provides life insurance and other benefits to its members. It operates through local branches (lodges) and puts its earnings back into its members and community. Fraternal societies are licensed and examined by state insurance departments, like insurance companies.
How is a fraternal insurer different from a stock insurance company?
A stock insurance company is owned by shareholders, and part of its earnings goes to them. A fraternal benefit society like Providence Association has no stockholders. It is run for its members, who have a voice in how it is governed, and its earnings support members, charitable causes and the community.
Why choose Providence Association for life insurance?
Providence is a not-for-profit Ukrainian Catholic fraternal benefit society founded in 1912. Members get permanent whole life coverage, savings products that earn 4% with no fees, personal service in English and Ukrainian, member scholarships, and the knowledge that earnings support the Ukrainian Catholic Church and community.
Does Providence charge fees or loads?
No. Providence charges no administrative fees or loads on its products, so every dollar you pay works for you and your family.
How do I get a quote from Providence Association?
Call 877-857-2284 or (215) 627-2445, email sales@provassn.com, or use the Contact Us page at provassn.com/contact-us. Providence will give you a personal quote and answer your questions in English or Ukrainian.
This page is general information about how life insurance is priced. It is not a quote, and it is not tax, legal or investment advice. Premiums depend on age, sex, tobacco use, health, coverage amount and plan, and all coverage is subject to underwriting and approval. Rates and terms can change. Last updated October 2026.