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

Stock variable life insurance companies

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

Mutual organizations

Mutual corporations are owned by the life insurance policyholders. Mutual firms 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 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 plan , or left to accumulate interest to add to the cash value of the plan .

Professional, Fraternal and Religious firms

Professional, fraternal and religious corporations 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.

variable life insurance may be purchased as an individual whole life insurance purchase from a corporations 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 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 insurance

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