What type of policies does a stock life company primarily sell?

A stock life insurance company primarily sells policies that are designed to generate profits for its shareholders, which is characteristic of non-participating life insurance products. Non-participating whole life policies and term life policies do not offer policyholders dividends; instead, the profits are retained by the company.

These policies involve fixed premiums and guaranteed death benefits but lack the additional features that come with participating policies, such as the potential for dividends. Stock life insurance companies primarily focus on these non-participating products because they align with the company's goal to generate returns for investors rather than policyholders.

In contrast, participating whole life policies, universal life policies, and variable life policies involve a structure that provides more flexible benefits or the potential for dividends, which are not the primary focus of stock life companies. Understanding this distinction highlights how stock life insurance companies operate within the insurance market, catering primarily to the interests of their shareholders through non-participating policies.