This is the process of changing the legal structure of an insurance company from a mutual form of ownership to a stock form of ownership.

A mutual form of ownership is when the people who have whole life policies are the mutual "owners" of the company. If you have a whole life type of insurance policy with such a company, then you should receive "free" stocks at the time of demutualization.

Upon receiving these stocks, the policy holder would still have their policy, still make payments as necessary, but now receive dividends as could be payable from the stocks they have received.

When you purchase your life insurance, you should be aware if the life insurance company is a mutual form or a shareholder form of company.