No Load Life Insurance
A Money-Saving Option
There are a multitude of options to consider when purchasing life insurance. Determining an adequate limit is tricky, but finding a premium that fits your budget is more difficult. One option that may save you money without sacrificing valuable coverage is "no load life insurance." It's true!
What is No Load Life Insurance?
When an agent or broker calculates your life insurance premium, they typically add annual fees or commissions in return for services rendered, marketing and advertising costs, etc. These fees and commissions also are called a "load."
No load life insurance can be purchased directly from an insurance company, thus reducing or eliminating the load. It also can be purchased from a fee-only financial advisor.
This term also has become synonymous with "Low Load" life insurance, a similar premium-savings tool used by life insurance shoppers. Low load refers to a policy that has no or very limited annual fees charged by the agent except for the policy premium.
Does No Load Life Insurance Pay Any Commission At All?
While costs associated with commissions-agent or broker fees, etc. -are not built into the policy premium, it is still possible the agent will charge a fee for his or her services. This is why policies purchased through these individuals are more accurately described as "low load" policies.
Can No Load Life Insurance Save Me Money?
Yes. Generally, no load life insurance is available if purchased directly from an insurance company. This allows the insurance company to reduce fees normally paid to agents and pass the savings in the form of a lower policy premium to you. These savings may be substantial. First, the premium is lower, allowing you to use the savings for whatever you want, including purchasing higher limits of life insurance.
In addition, no load life insurance allocates less of your premium dollars to policy loads and more toward building cash value-what you really want from your money.
Is No Load Life Insurance a Good Idea?
Purchasing no load life insurance directly from an insurance company may sacrifice the feeling of individual attention many people want from their life insurance agent. This is an important consideration when deciding if no load life insurance is right for you. If you want personal service, then this type of policy is not for you.
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