No Load Life Insurance Explained

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Many people have heard of the concept of a no-load mutual fund but when it comes to life insurance very few people have heard of the no-load life insurance policy. Basically the concept of a no-load insurance policy is to reduce the costs of the premiums associated with the insurance policy through the reduction of the annual fees to the independent insurance agent who then spends the money on things like advertisements and other expenses. No load term life insurance should be one of the cheaper policies you can buy.
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While initially the no-load life insurance policy may have some fees associated with it, in its most basic form the concept of a no-load life insurance policy is basically a no-annual fee policy. By doing it this way, the premiums are substantially lower as well as the cash value of the plan actually increases quicker because of the simple fact that a larger percentage of the premiums you pay go directly to the principal of the policy.

Going for a no load whole life policy should, with everything else being equal, trim some of the expense off a whole life policy, which is usually a more expensive variety of life insurance, especially if you are trying to become insured later in your life.

In order to get a no-load life insurance policy though you often have to bypass the local independent agent and go directly to the insurance company itself. Basically this plan is like a manufacturer-direct sale in which you purchase the plan through the insurance company as well as making your payment of the premiums directly to them.

Thanks to the advent of the internet, buying no-load life insurance policies is much easier than it used to be. In general, this type of plan allows you to purchase the plans from the insurance company much like the agent does and for about the same price minus the “bulk” discount for multiple plans.

So if you are looking to get a whole life insurance plan but you want to save some money in the payment of your premiums then you will most likely want to get yourself a no-load life insurance policy which can only be obtained directly through the insurance company offering the plan. The best part about it though is that most insurance companies also offer company representatives which can help you select the right options that you are in need of and all of this can be obtained online with simplicity.
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Author: Tom

As I was researching life insurance for myself and my family, I decided that it might be helpful to put what I learned into an impartial, unbiased guide so that other people might have a shortcut to learning about life insurance: it's just too easy to get lost in all the information on the internet!

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