No Load Life Insurance
Life always presents people challenges that deal with preparation and security. Today’s standards of being prepared and having a sound mind requires life insurance, but there are many different types of life insurance policies to choose from. It’s no wonder people get confused and lost when trying to determine what type of life insurance policy will be right for them. However, by taking the time to understand each different type of life insurance plan, individuals will be able to choose appropriately. Whole life insurance, term life insurance, permanent life insurance, no load life insurance and many other types of policies are all designed to different goals and agendas that people have.
No load life insurance is definitely unique when compare to how all other types of life insurance policies are paid. Traditional life insurance policies like whole life insurance and term life insurance have fees, commissions and other expenses that the policy holder must pay in order to keep the insurance current. On the other hand, no load life insurance policy is associated with having much lower fees when compare to other types of life insurances. The load of a policy is considered the amount in which the policy holder pays for fees and commissions that are typically charged by an agent.
No load life insurance policies eliminate these fees and commissions because no selling agent is used at all on the policy. Here is where the no load life insurance policy gets interesting. Like whole life insurance, no load life insurance pays the policy holder cash value benefits. However, a percentage of these cash value benefits is paid to a selling agent with whole life insurance. On the other hand, no load life insurance has zero agent fees and commissions. In other words, no percentage is taking out of the cash value benefits to pay for a selling agent.
Furthermore, cash value benefits grow faster with no load life insurance because no fees are deducted. In addition to cash value benefits growing at a faster rate, the cost of buying no load life insurance is cheaper than other life insurance policies like whole life insurance. Lower income investors who are interested in life insurance are attracted to no load life insurance policies because of the low cost and the rate in which cash value benefits build. However, the downside with no load life insurance is customer service.
There are very little options with customer service when purchasing no load life insurance. If the policy holder wishes to adjust their policy or make any changes, they will miss out on the luxury that customer service provides. Whole life insurance is easier for the policy holder to make changes and adjustments to their policy. For example, if beneficiaries of the policy need to be changed, the policy holder simply calls their agent to notify them of the changes. The agent will do all the paper work necessary to complete the wishes of the policy holder.
No load life insurance still carries some fees and expenses that are associated with other policies as well. This type of life insurance operates much like other life insurance policies with the only exception of costs and very little to no customer service. In order to get the best rates possible on no load life insurance, it’s highly encouraged to go online and obtain quotes from multiple companies. By looking over all the quotes individuals are able to compare rates between companies. Life insurance is an important decision for anyone, and learning how these policies work will help anyone make the right decision when buying life insurance.