Stock variable life insurance firms

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

Mutual corporations

Mutual organizations are owned by the whole life insurance policyholders. Mutual companies sell "participating" policy which means that dividends may be paid to the insurance policyholder. These dividends are a result of organizations 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 plan , or left to accumulate interest to add to the cash value of the 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 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.

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

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

Group term life insurance