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

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

Mutual companies

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

Professional, Fraternal and Religious firms

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 insurance 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.

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

Individual variable life insurance

Individual variable 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