Most organizations 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 variable life insurance corporations

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

Mutual firms

Mutual companies are owned by the term 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 companies charging too high a premium rate for a particular year. Investment earnings of firms 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 policy, or left to accumulate interest to add to the cash value of the insurance policy.

Professional, Fraternal and Religious corporations

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.

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

Individual term life insurance

Individual whole life insurance sold as an individual purchase from a firms 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 term life insurance

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