We introduce Heun algebras of Lie type. They are obtained from bispectral pairs associated to simple or solvable Lie algebras of dimension three or four. For $mathfrak{su}(2)$, this leads to the Heun-Krawtchouk algebra. The corresponding Heun-Krawtchouk operator is identified as the Hamiltonian of the quantum analogue of the Zhukovski-Voltera gyrostat. For $mathfrak{su}(1,1)$, one obtains the Heun algebras attached to the Meixner, Meixner-Pollaczek and Laguerre polynomials. These Heun algebras are shown to be isomorphic the the Hahn algebra. Focusing on the harmonic oscillator algebra $mathfrak{ho}$ leads to the Heun-Charlier algebra. The connections to orthogonal polynomials are achieved through realizations of the underlying Lie algebras in terms of difference and differential operators. In the $mathfrak{su}(1,1)$ cases, it is observed that the Heun operator can be transformed into the Hahn, Continuous Hahn and Confluent Heun operators respectively.