Stock term life insurance organizations

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

Mutual firms

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

Professional, Fraternal and Religious companies

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 firms is licensed in your state.

term life insurance may be purchased as an individual whole life insurance purchase from a companies 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 companies 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 whole life insurance