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No Load Life Insurance: Can It Help You Save Money?

Updated: June 25, 2018

For individuals who are looking to save money on life insurance by any means necessary, no load life insurance is a welcome option.

This is a form of life insurance where individuals get policies directly from companies, instead of dealing with agents.

The absence of agents results in the absence of agent commissions, which lowers the cost of each policy for the insurance provider.

As the insurance provider has lower costs per policy, they are able to offer lower premiums and other advantages to the policyholder.

But no load life insurance comes with some drawbacks, such as a lack of customer service and the need to conduct ample research yourself.

What is No Load Life Insurance?

No load life insurance is a type of life insurance policy where the same level of coverage is often available for much less money. The reason why no load life insurance becomes cheaper than regular life insurance is because there are no insurance agents involved.

If the individual ends up liking one of the policies, the agent will help them fill out all the forms, perform the health check-ups and eventually sign the insurance deal.

In order to understand no load life insurance, we must look at the mechanisms associated with a typical life insurance policy. How do people go about buying life insurance?

In most cases, people will request quotes online and get assigned an agent who represents a particular life insurance company. The agent will ask questions and request further information to provide the individual with an accurate quote for different life insurance policies.

If the individual ends up liking one of the policies, the agent will help them fill out all the forms, perform the health check-ups and eventually sign the insurance deal.

Whenever an agent sells an insurance policy to an individual, family or group, they receive a commission. This commission often increases the cost of auto insurance for the individual, because the company must compensate for what they need to pay the agent.

How Can You Save Money with No Load Life Insurance?

Now we take this information and apply it to no load life insurance. Since there are no agents involved with no load life insurance, the companies can charge a lower rate to individuals who get one of these policies.

If someone is debating whether to get insurance, no load is a good option that will not impact your wallet too much.

An individual will not deal with an agent when they are getting no load life insurance. They will simply fill out forms online or in person and receive quotes for the different policies available to them. As they agree to a policy, they will complete the deal directly with the insurance company.

This is a slightly more complicated process, which comes with its own set of drawbacks.

But no load life insurance is a great way for someone to get greater insurance protection while paying a low premium. If someone is debating whether to get insurance, no load is a good option that will not impact your wallet too much.

A no load policy will also accumulate its cash value much faster than a regular policy, because of the lower cost to the insurance company.

What are the Drawbacks of No Load Life Insurance?

Despite those advantages, many drawbacks exist to no load life insurance. While many people do not like insurance agents, they are a valuable asset in helping people understand the different terms and conditions in insurance policies.

Since there is no insurance agent who brought you to the company, you do not have a specific person you can call when something goes wrong related to the policy.

If someone is doing a deal without an agent, they will need to complete a lot of research on the different policies before they can make an informed decision.

A no load life insurance policy will also come with almost no customer service. Since there is no insurance agent who brought you to the company, you do not have a specific person you can call when something goes wrong related to the policy.

For individuals who know exactly what they want, but also want to save money, no load life insurance makes perfect sense.

But if you have little knowledge of life insurance and the different types of policies in existence, you will need some outside help if you are to select the right policy for yourself and your family.

How to Get a No Load Life Insurance Policy?

Getting a no load life insurance policy is as simple as going online and searching for the relevant companies in your state that offer this policy.

Going with a company that is on unstable financial footing is not a sensible idea, because there is a good chance this company will go out of business before you pass away.

When you have compiled a list of these companies, you will make a quote request to all of them and wait for their response. In the meantime, you can conduct some research into the companies to see whether they are reliable and longstanding providers of life insurance.

With the absence of an agent and in-depth customer service, it is even more important to choose the right provider for no load life insurance.

Going with a company that is on unstable financial footing is not a sensible idea, because there is a good chance this company will go out of business before you pass away.

It is not always a good idea to try and get the lowest rate on life insurance, because you may be sacrificing quality service and the benefit of dealing with a reputable company that has been around for many decades.

Advantages of Life Insurance

Everyone knows that life insurance provides a benefit to your loved ones when you pass away. But what other advantages do these policies offer?

The best insurance policies have a guarantee that you will get access to the base cash value you are generating in your policy, even if the insurance provider’s investments go awry.

Many whole life insurance policies come with a cash value, which increases as you keep making premium payments. This cash value is also boosted through interest-driven investments that the insurance company makes with your money.

The best insurance policies have a guarantee that you will get access to the base cash value you are generating in your policy, even if the insurance provider’s investments go awry.

For those who have whole life insurance for many decades, their cash value has built up sufficiently to provide them with many options. They have a choice between withdrawing the money, converting it into annuities or keeping part of it safe as a death benefit.

And the best part about whole life insurance is the permanency of the benefits. As long as the policyholder is current with their premiums, their policy is intact until they pass away.