Stock life insurance corporations

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

Mutual companies

Mutual organizations are owned by the life insurance policyholders. Mutual corporations sell "participating" plan which means that dividends may be paid to the plan holder. 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 organizations 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 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 insurance 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.

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

Individual 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