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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

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No-load life insurance

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: What is the advantage of a no-load life insurance policy and how much does it cost get one?

A: Traditional life insurance policies pay a sales commission equal to about one year's premium. No-load insurance policies do not include this commission expense, so they are less expensive. That is really the only difference. In some cases a traditional insurance company includes a "surrender charge" if you discontinue your policy. No-load policies no not include a surrender charge. There is no charge for a no-load insurance policy except for the cost of insurance premium itself. Most people use an accountant or non-commissioned financial adviser to help select and apply for a policy so this will add few hundred dollars to the cost. But overall, this is still a great way to save on the cost of life insurance. The net savings for a typical individual life insurance policy are about $1,000.00 but could be much larger for business policies.


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