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

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

Mutual companies

Mutual firms are owned by the insurance policyholders. Mutual firms sell "participating" insurance policy which means that dividends may be paid to the policy 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 firms 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 firms

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 policy and examine it carefully before purchase.

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

term life insurance may be purchased as an individual term life insurance purchase from a organizations 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 insurance policy is given to the individual as proof of being insured.

Group whole life insurance