No Load Term Life Insurance
No load term life insurance is one of the least costly types of life insurance available today.
This type of insurance provides individuals with the ability to protect their family from financial loss if they should die unexpectedly, but does so at a lower price.
The policy often goes by "low load life insurance" as well.
The key difference in no load term life insurance and traditional life insurance is that the policy is a direct buy, not often sold based on a commission basis. This translates into lower costs for the insured.
Key Aspects Of No Load Term Life Insurance
As with all types of term life insurance, no load is applicable insurance only for a specific amount of time.
The term may range from five years up to 30 years and in most cases is renewable.
Individuals who purchase the insurance will pay premiums to the insurance company. These premiums are considerably lower for this form of life insurance compared to others like it.
The policy owner names a beneficiary (or more than one) who will receive a death payment at the time of the insured party's death.
There are several benefits to using no long term life insurance when compared to other forms of term life insurance;
- Since the buyer purchases the term life insurance directly from the company, there is no conflict of interest involved with an insurance agent. The agent is not trying to sell too much or a higher costing policy to get a higher commission.
- A higher fee is paid to initiate the policy, compared to other forms of term life insurance, but this also equates to a lower premium payment over the lifetime of the insurance policy. The insured person ends up paying less for this form of insurance.
- The agent's commission is built into the cost of the insurance, which means no long term commission is paid by the insured to the insurance agent.
Like most other forms of term life insurance, there is a medical exam required, though some policies allow the insured individual to answer a few health related questions. The costs for the policy range from one company to the next.
No load term life insurance is often the ideal fit for those who want the least expensive type of insurance policy and who do not want to deal with haggling with an insurance agent. It is the right option for many people, and should have a careful comparison with other policies.
No Load Insurance Tip
Before purchasing no-load insurance, it is important you do your homework.
What may seem the 'cheapest' might be in the short term, but over the life of the policy, cost you thousands of dollars more.
See Insurance Tips and Traps for more information.
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