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

Stock life insurance corporations

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

Mutual corporations

Mutual organizations are owned by the variable life insurance policyholders. Mutual companies sell "participating" policy which means that dividends may be paid to the policyholder. These dividends are a result of organizations charging too high a premium rate for a particular year. Investment earnings of firms may be higher than expected or companies 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 policy .

Professional, Fraternal and Religious companies

Professional, fraternal and religious organizations 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 policy 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 life insurance purchase from a corporations agent or through a group plan where you are a member of that group.

Individual life insurance

Individual whole 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 insurance policy is given to the individual as proof of being insured.

Group variable life insurance

Group variable life insurance is generally offered as insurance through the group from an insurance corporations and requires no medical examination. Premium costs are lower in a group plan because there are fewer operating expenses. As the employee leaves the job or retires, the protection ends. It is sometimes possible to convert the term group policy to a permanent form of insurance, if done within 30 days of leaving the group.