As of August 31, 2009, Beneficial Life Insurance stopped selling new life insurance policies. However, the company plans to honor all existing policies until there are no more beneficiaries remaining, notes KSL.com.
Beneficial Life began in 1905, founded by The Church of Jesus Christ of Latter-day Saints to help protect children and widows from a father's death. The company honored policy loan requests, death claims and surrender payments during the 1929 stock market crash and World War I and World War II, states BeneficialFinancialGroup.com.
Beneficial Life, unlike larger insurance firms, has a smaller field of investment opportunities and products. The financial market meltdown that began in autumn of 2008 made matters worse, and the president of Deseret Management Corporation announced in June 2009 that the company would stop offering new policies and begin laying off employees on August 31 of that year.
The company has let most of its employees go over the years, initially projecting to lay off 150 employees at its Utah headquarters over time. Beneficial Life has also negotiated with larger insurance companies to find jobs for nearly 1,000 agents who worked on commission for it. The company's president stated in 2009 that all policies will be honored until the final beneficiary passes away.