Stock variable life insurance organizations

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

Mutual firms

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

Professional, Fraternal and Religious firms

Professional, fraternal and religious firms 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 firms is licensed in your state.

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

Individual whole life insurance

Individual whole life insurance sold as an individual purchase from a organizations agent offers term, whole life, limited payment and endowment type policies. Medical examinations are usually required before coverage is issued. A certificate called a plan is given to the individual as proof of being insured.

Group term life insurance

Group whole life insurance is generally offered as variable life insurance through the group from an whole life insurance companies 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.