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

Stock life insurance companies

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

Mutual companies

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

Professional, Fraternal and Religious corporations

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 insurance policy and examine it carefully before purchase.

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

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

Individual life insurance

Individual 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 policy is given to the individual as proof of being insured.

Group insurance