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

Stock term life insurance companies

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

Mutual organizations

Mutual organizations are owned by the life insurance policyholders. Mutual corporations sell "participating" insurance 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 organizations may be higher than expected or organizations 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 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.

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

Individual insurance

Individual term life insurance sold as an individual purchase from a corporations 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 variable life insurance

Group variable life insurance is generally offered as whole life insurance through the group from an term life insurance firms 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 variable life insurance, if done within 30 days of leaving the group.