Most firms sell the five basic types of whole life insurance. Keep in mind that term 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 firms

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

Mutual organizations

Mutual companies are owned by the whole life insurance policyholders. Mutual corporations sell "participating" insurance policy which means that dividends may be paid to the policy holder. These dividends are a result of firms charging too high a premium rate for a particular year. Investment earnings of companies 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 policy, or left to accumulate interest to add to the cash value of the insurance policy.

Professional, Fraternal and Religious companies

Professional, fraternal and religious companies 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 corporations is licensed in your state.

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

Individual life insurance

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

Group life insurance is generally offered as term life insurance through the group from an whole 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.