Stock life insurance organizations

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

Mutual firms

Mutual companies are owned by the variable life insurance policyholders. Mutual companies sell "participating" insurance policy 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 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 policy, or left to accumulate interest to add to the cash value of the insurance policy.

Professional, Fraternal and Religious companies

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 plan and examine it carefully before purchase.

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

term life insurance may be purchased as an individual insurance purchase from a firms 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 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 insurance policy is given to the individual as proof of being insured.

Group life insurance

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