Most companies sell the five basic types of variable life 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 term life insurance corporations

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

Mutual corporations

Mutual organizations are owned by the variable life insurance policyholders. Mutual firms sell "participating" plan 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 companies may be higher than expected or companies 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 organizations

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 organizations is licensed in your state.

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