No Load Life Insurance Maximizes Your Benefits

2007-03-08 10:33:40

( Financial )



Before you buy any life insurance, it is important for you to determine the amount and kind of life insurance you need. There are several issues to consider: the amount of premiums you can afford to pay, your tax bracket and the amount of taxes you may defer through the life insurance investment, the possibility that you may not qualify for insurance later, and your willingness to shop around for no load life insurance policies.

Once you've decided, you can obtain life insurance through various ways: an insurance agent; direct purchase from direct marketers, which are companies that sell insurance on a no load basis with no agent's commission; fee-for-service providers (who can select a no load or low load product for only a modest fee); and, group insurance, with your co-employees or through associations (if you're self-employed).

No load life insurance are policies that carry fewer expenses, principally agent commissions and marketing fees, very much like no load mutual funds. By purchasing from direct marketers, you are not dealing with an agent and the company saves on the cost of sales commissions and marketing expenses. You deal instead with the company's salaried representative, who can provide information about their insurance products. Note, though, that some representatives are knowledgeable, but others may not offer a high level of expertise.

No load life insurance products may give you more benefit beyond cost savings. You may gain added flexibility and control in your investment.

If you are purchasing life insurance for asset accumulation purposes, you must look out for the first-year values. The conventional policy contains zero surrender-value on its first year, since most of your first-year premiums go towards paying off expenses; with a no load life insurance policy, your first year surrender value would be much higher. You can work out the numbers with the company representative.


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