Most organizations sell the five basic types of life insurance. Keep in mind that life insurance should be purchased from an established and reliable corporations because you pay in the present and expect protection long into the future.

Stock variable life insurance companies

Stock variable life insurance firms are profit-making firms owned by stockholders who are not necessarily policy holders. policys are usually sold as "nonparticipating" insurance, meaning they do not earn policy dividends for policy holders.

Mutual corporations

Mutual corporations are owned by the whole life insurance policyholders. Mutual corporations sell "participating" policy which means that dividends may be paid to the policyholder. These dividends are a result of firms charging too high a premium rate for a particular year. Investment earnings of corporations may be higher than expected or corporations expenses could be less than planned. Dividends may be taken as cash, applied to the following year's premium, used to purchase paid-up additions to the plan , or left to accumulate interest to add to the cash value of the insurance policy.

Professional, Fraternal and Religious firms

Professional, fraternal and religious firms operate in a different state from which you live. Usually all business is done through the mail without the services of a local agent. Costs may seem low but the counseling advice from the agent is missing. It is wise to write for a specimen contract of the plan and examine it carefully before purchase.

Check with the State Insurance Commissioner's office to see if the companies is licensed in your state.

whole life insurance may be purchased as an individual insurance purchase from a corporations agent or through a group plan where you are a member of that group.

Individual whole life insurance

Individual term life insurance sold as an individual purchase from a companies agent offers term, whole life, limited payment and endowment type policies. Medical examinations are usually required before coverage is issued. A certificate called a plan is given to the individual as proof of being insured.

Group life insurance