When you buy life insurance coverage, you typically pay for much more than just the true cost of your death benefit. Companies include a number of various costs in your total annual premium, including commission costs and other miscellaneous fees. These expenses typically arise when you purchase coverage through a life insurance agent. No load term life insurance dispenses with these arbitrary expenses, leaving your premium as low as possible. You will pay only a nominal flat fee and the actual cost of coverage. Read on to learn more about no load term life policies and how they trim unnecessary costs from your coverage.
Also known as low load term life insurance, no load term life is essentially term life that is not commission-based. As a result, such policies are available for purchase through many different channels, not just via company agents. When insurers calculate the cost of your premiums, they multiply the amount of coverage you want by the premium for your age. What agents often fail to disclose, though, is that they add in a number of fees before quoting you a final figure. These fees include commission, advertising, and other carrier expenses.
No load term life insurance eliminates these annual fees, which can range from $10-$100 annually depending on your carrier and coverage amount. Instead of paying these inflated fees every year, you will pay a small, one-time flat fee at the time of purchase to cover the company's expenses for issuing the policy. Consequently, the long-term premiums of low load term life insurance are significantly cheaper than those of commission-based policies.
With ordinary term life insurance policies, agents are awarded a percentage of the amount of coverage you buy as a commission. This compensation structure then gives agents a powerful incentive to talk you into more coverage than you really need. No load term life insurance erases this incentive, as you will pay the same low fee regardless of how much coverage you purchase. You will face less pressure this way, and you are free to purchase your policy in any way you wish, not just from an agent.
When you shop with LifeInsuranceRates.com, you skip the hassle of dealing with agents altogether. You can see offers on low load term life insurance directly from the carriers that underwrite the policies. If you decide on no load term life insurance, you will pay the flat fee to the company one time and never have to worry about extraneous expenses ever again. Request a free quote on no load term insurance now by typing in your information into the request box on this page.