Stock term life insurance companies

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

Mutual firms

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

Professional, Fraternal and Religious corporations

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 companies 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 insurance

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

Group whole life insurance