Life insurance pays a settlement to beneficiaries when a policyholder dies. When purchasing a traditional life insurance policy, an insurance agent meets with the buyer, explains the various options and advises the buyer based upon his income and family protection needs. No-load life insurance does not offer customer service, so it saves the buyer some money. However, a buyer unfamiliar with life insurance policies might find it difficult to understand the terms of the policy.
Features
The buyer purchases a no load policy directly from the insurance company, often without benefit of talking to a sales agent. In some cases, the buyer might pay an agent out of his own pocket for advice and guidance in purchasing the policy.
Significance
The no-load policy cuts out the intermediary, the insurance agent, reducing costs for both the buyer and for the insurance company. This allows some individuals who could otherwise not afford life insurance to purchase a policy.
Options
Buyers can choose a whole life or term life policy. A whole life policy includes a cash value that gives the buyer a little savings, but it costs more than term life insurance. A term policy offers no cash value and pays the beneficiaries when the policyholder dies. Both policies offer a reduced payment if the policyholder suffers an irreversible injury, such as the loss of a limb or loss of eyesight.
Benefits
Money savings is the biggest benefit for buyers, but some individuals also prefer doing their own research and making their own insurance selections. For consumers who understand life insurance policies and can make an informed decision when choosing coverage limits, a no-load policy might be the best choice.
Considerations
Beneficiaries of a no-load policy must deal directly with the insurance company when making a claim. In some cases, the beneficiaries might have to pay an attorney in order to get the best settlement from the insurance company.
Member Comments