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

Stock insurance organizations

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

Mutual corporations

Mutual organizations are owned by the term life insurance policyholders. Mutual organizations sell "participating" policy which means that dividends may be paid to the policyholder. 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 firms 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 corporations

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 firms is licensed in your state.

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

Individual insurance

Individual 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 term life insurance

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