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

Stock insurance corporations

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

Mutual firms

Mutual companies are owned by the whole life insurance policyholders. Mutual corporations sell "participating" plan 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 corporations 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 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 plan and examine it carefully before purchase.

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

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 variable life insurance

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

Group variable life insurance

Group term life insurance is generally offered as term life insurance through the group from an term life insurance organizations 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 term life insurance, if done within 30 days of leaving the group.