No Load Term Life Insurance
A no load term life insurance plan, if available, is a direct-buy policy option that costs the least amount of money for protecting the loved ones left behind in the case of a sudden death. Indeed, premiums for this relatively new type of insurance will economically provide quality coverage for beneficiaries. These payments, so-called premiums, are the amounts paid for the coverage. Beneficiaries are namely those who receive the proceeds upon the insured's death. As a rule, but especially in times of economic crisis, it is important to financially cover both family and assets. On the whole, a no load (NL) term life insurance is probably the best bet.
Term life insurance is paid when the insured passes away within a specific time period. There is also what is called discount term life insurance which involves, after self-evaluation and some research, selecting the least expensive policy that the consumer finds. No load term life insurance, also referred to as low load, has certain distinct advantages over the other forms. In this case, a conflict of interest never arises between the consumer and agent. Also, one ends up paying less with no load term life insurance even though a higher fee is paid in the start. And as far as policy loans are concerned, there NL plans also have a definite appeal. Be aware, however, that medical underwriting is still part of the process. This may involve answering questions or even submitting to a physical examination.
To begin with, an agent's fee is usually built right into the coverage policy. In contrast, this kind of insurance is a no commission plan. In other words, an agent receives neither commissions nor cuts of any kind. Usually, an agent multiplies the desired amount of insurance by an age-related premium, and to this result an annual fee is added. Moreover, in this case the consumer makes direct payments to the agent. And, despite the higher starting fee, one not only ends up paying less but it is also possible to expand the protection provided by NL coverage and to make that expanded policy a permanent one. And even though a no load term life insurance is without cash-surrender value, it can be converted. Consequently, once the plan is converted, one will be able to take out a policy loan. Cash-surrender value is money payable to the policyholder, and the policy loan is made on the security of that value. Therefore, it becomes possible to borrow against the converted NL term life insurance plan. Another advantage is that a traditional policy takes longer than a converted one to offer that option. And too, the cash value of a converted no load term life insurance builds faster. "Blessed be the Lord, who daily loadeth us with benefits, even the God of our salvation. Selah." (Psalms 68:19).
As regards acquiring a no load term life insurance policy, it is first necessary to ascertain whether this kind of service is available in the consumers area. If so, they can choose to get estimates by dealing with a professional advisor on this subject. Otherwise, they take advantage of the various Internet sites available and request free quotes. Furthermore, telemarketers contacting the public with NL offers is another possibility. It can also occur that such offers are made through direct mail campaigns. Markedly, where mail campaign applications are concerned it's necessary to cautiously examine whether they are truly NL propositions. This is because a company's attractively inexpensive price may turn out to be aimed towards consumers who are either elderly or else in the midst of medical problems. If this should be the case, then that attractive price is probably meant to first tease and then sharply increase.
Dealing with the professional advisor may also mean one is dealing with a licensed agent. Of course, the advisor - or the licensed agent - charges the no load term life insurance consumer a 'fee for service'. Instead of being built in, the professional advisor's fee might be billed separately. Or perhaps their fee can be distributed over the first payments. In either case, it is easy to see how money will be saved despite the advisor's fee. Some traditional companies also make this consumer-direct offer to purchase plans. In any case, comparison shopping for premium rates, or quotes, is essential if the goal is acquiring the highest quality policy possible. The consumer pays the company's fee, but not just minus the agent's commission. Furthermore, the consumer avoids paying the company's usual annual fees for items such as account managing, marketing, and other expenses.
As has been said, no load term life insurance plans involve no commission or additional company fees while providing the advantage of quality coverage. And again, bear in mind that the acquisition process must begin by making sure this kind of policy is available in that particular state. Among other benefits is the fact that, as time goes on, the payments decrease in size. And with an NL term life insurance plan converting and borrowing is not the only pleasant future prospect: once converted, watching its cash value grow more swiftly is, happily, also a possibility. Added to this, there are no penalties involved with surrendering the cash. Estimates vary but the consumer's time is well-spent carefully examining these various offers. So all things considered, this type of policy or plan is the wisest option to choose for protecting family members and assets against the case of a dire circumstance or fatal event.
Term Insurance PremiumPaying a monthly term insurance premium is a convenient way to provide financial protection for one's family or business partners in the event of an untimely death. Surviving family members need money to replace the loss of income and business associates may need funds to assist with paying off loans or other expenses related to the business. Though insurance companies often quote an annual fee for policies, they generally will set up a monthly payment plan that usually involves an automatic withdrawal from the policy holder's bank account. The process is rather simple because the policy holder can give the agent a voided check or a pre-printed deposit slip for the particular account. With the checking account and bank routing numbers, the company is able to quickly set up the monthly automatic withdrawal. One benefit of making monthly payments is that this ensures that the premium is paid on a regular basis and before the due date. Another benefit is that the amount is a recurring part of the household or office budget; it's easier for most households and businesses to pay the amount each month than to save it up and pay the larger annual term insurance premium in one lump sum.
In the past several years, the amount of a term insurance premium has decreased due to increased competition. Because of these lower premiums, individuals can afford to purchase policies with higher amounts of coverage than ever before. A great deal of this increased competition is due to the internet. Potential purchasers can choose from literally thousands of companies to find the policies that best suit their own requirements. Many company websites offer instant quote information. A potential purchaser can enter basic information, such as height, weight, and general health, then receive quotes from various companies on the annual premiums of different types of policies. These quotes provide a ballpark figure for the purchaser. The exact term insurance premium may be based on the results of a health exam (often administered by a nurse) and perhaps other factors. For example, smokers pay significantly more in premiums than non-smokers. Anyone who hasn't shopped for a life policy in recent years may be paying much more than is necessary in premiums. Completing an instant quote application can help an individual figure out if she is paying too much for a current policy. It's quite possible that the same amount of money will actually purchase a lot more coverage.
Insurance company websites provide more than just quotes. These sites also include a great deal of information about different types of policies, such as the difference between term and whole life policies. A term insurance premium is less expensive than whole life premiums because the latter policies also include an investment component. Part of the premium is invested on behalf of the policy holder. However, the return on these investments is usually much lower than other investment opportunities. That is why so many financial experts advise that individuals separate life insurance coverage from investments. Buying a term life policy is generally seen as a great way to get ample coverage at an affordable price. Most financial experts suggest that individuals buy coverage that amounts from five to ten times their annual income. This is especially important for parents with young children. The proceeds can be used to pay off the mortgage and to pay college tuition and other expenses for the children. Responsible parents care about the economic welfare of children and will seek reputable advice on how to provide for their families. As King Solomon wrote: "When wisdom entereth into thine heart, and knowledge is pleasant unto thy soul; Discretion shall preserve thee, understanding shall keep thee" (Proverbs 2:10-11). Simply paying a term insurance premium can give parents the peace of mind of knowing that the family will be taken care of should something happen to the main breadwinner.
Individuals can purchase different types of term policies. In a decreasing policy, the term insurance premium remains the same, but the coverage decreases as the policy holder gets older. In contrast, with an automatic renewal policy, the premium increases each year, but the coverage remains the same. Policies can be purchased for different terms, for example, one year, five years, ten years, or even more. There are even policies available that will return the premiums paid if the individual is still alive after the policy's ending date. These are called return-of-premium or ROP policies. A potential purchaser should shop around for the policy that best suits his needs based on his age, health, and family situation. Experts often advise that potential purchasers look for a qualified independent agent who has access to quotes from several different companies instead of representing only one. Policies should only be purchased from those companies that have a A or better rating from one of the major rating firms. By following these tips and doing some homework on the variety of options that are available, a potential applicant can find a policy with an affordable and competitive term insurance premium that offers the needed coverage. The family and/or business partners, depending on the particular need for the policy, will be protected in the event something tragic happens to the policy holder. Though money doesn't take away the sorrow or grief of losing a loved one or a trusted business associate, the proceeds will most certainly help provide security and stability to the family or business.