Life insurance is sold in individual and group plans. If an individual policy is chosen, you are able to pick the company, plan and features and benefits that you think would best fit your family's and your needs. Sometimes you can even choose to buy through the same company who you use to insure your home, business or auto. Although this wont qualify you for any discounts it may still simplify your financial life in that just one advisor will be handling all of your insurance benefits.

If you choose to use an individual policy they are usually sold through brokers and insurance agents. When buying policies through these brokers and agents you usually end up paying a commission that is built into your premium rate. The commission is used in order to compensate the broker or agent for the time that they are spending advising you on the type of insurance you need and how much, application process and for services followed in the coming years in order to help keep you up to date.

There are also two more ways in which you can buy individual life insurance. If you live in Massachusetts, Connecticut or New York you can buy directly from a savings bank. Also, you can buy your policy through an insurance company or a financial advisor who charges a fee only and no commission. Although there is no commission for these policies there are still other built in charges to cover their expenses. Finding insurance company's like this is usually not a very easy task, searching on the internet for these will usually just lead you to agents and brokers.

Not only is life insurance sold in individual plans but it is also sold in group plans. Group plans may be a result of a major company, such as your employer. When comparing individual and group plans, more advantages are seen when buying through a group plan. You usually end up with a lower rate to pay for given death benefits, there are almost no health qualifications in order for you to receive group coverage and premiums are usually by a deduction to your payroll(for employer type plans) or linked to payments(e.g, credit cards) which lowers the possibility of a payment being missed.

Many group plans through employers are term insurance, so if you happen to leave your current employer your current state may have a requirement that allows you to change your policy to a type of whole insurance with the same company that provides you with group life insurance. You would then be required to pay premiums to the company directly while keeping your insurance in tact. This could be a very good advantage especially if you happen to be older or have experiences certain health problems since you are given the opportunity to qualify for whole life insurance without any medical exams.

Some lending institutions and credit cards may have life insurance available which offers to pay off any outstanding loans after your death. This is usually available in two different ways, as part of your loan without extra charges and as an option with extra charges.