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

Stock whole life insurance companies

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

Mutual companies

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

Professional, Fraternal and Religious organizations

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

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 life 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 term life insurance