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Archive for September, 2011

When you buy a life insurance policy, you typically pay more than just the cost needed for the life insurance to remain profitable while still offering you benefits. You also pay for commissions and various other fees that agents charge. However, you can get around those fees if you know about no load term life insurance.

No Load, Low Load

No load is sometimes called low load, because there is a small fee. “No load” is not entirely accurate, but the term seems to stick in the mind of consumers better than “low load.” You can’t get no load life through an agent who takes commissions. You can find coverage like this online through sites offering life insurance quotes. You pay a nominal handling fee plus the cost to insure you.

Calculating life insurance involves taking your age and multiplying by a risk factor determined by company actuaries based on the amount of coverage you wish to buy. Then agents tack on various fees to win their share of the pie. Agents often fail to tell consumers about these fees, which can include commissions, advertising expenses and other sales costs.

How Much Can You Save?

By eliminating annual fees that can run as high as $100, consumers can save money on life insurance or decide to buy more coverage for the same amount of money. Agency fees are often charged every year, not just when you take out the policy. That means you’re paying as much as $3,000 extra for a 30-year term policy. No-load term life eliminates those fees. You pay one fee up front and never pay anything more than the cost of insuring your life.

Avoid High Pressure Sales

No load also takes a strong conflict of interest out of the equation. Agents receive commissions that are a percentage of the amount of coverage you buy. This leaves a strong incentive to sell you more insurance than you may need. With a flat fee, such as with no load policies, the agent gets the same fee no matter how much coverage you buy. The policy salesperson becomes an ally who simply wants to get you into the right policy.

Not every insurance company sells no load life insurance. Some work solely through agents and would prefer the high-pressure sales tactics to sell more policies. However, no load policies aren’t very hard to find. You just have to know about them.

Now that you are in the know, hop online and get a few quotes to compare what you could be paying with what you pay now. You might find that switching saves you thousands over the term of the policy.

TermLifeInsuranceNews.com offers life insurance information, news and advice to help consumers make smarter life insurance buying decisions.