Explanation Of No Load Life Insurance

No Load Term Life Insurance Discissed

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What is no load life insurance? Most life insurance policies are front end loaded. I will give you an explanation in a moment. There is one policy, however, that is considered a no load policy. This is as close to pure life insurance as one is likely to get.

• Yearly Renewable Term

  The annual renewable term policy is really a one year term policy that you have the option to renew each year without having to qualify all over again. The face amount is level throughout but the premium increases each year.

  The older you get the more life insurance costs. The older you become the more likely you are to develop some illness that could be terminal.

• Level Term Policies

  The other level term policies all have level face amounts but most have level premiums as well. In order to keep the premiums level the life insurance companies total the actual premium cost over the term period and divide the total by the number of years the policy will last.

  Let us use the 10 year term policy as an example. The premium for this policy is level throughout as well as the face amount. The premium is arrived at by taking a total of the actual premium cost for the yearly renewable term policy over 10 years and dividing it by 10.

  The 10 year term policy is front end loaded. You are actually charged more than the insurance costs in the first year. You are charged less than it should cost in the tenth year. All level premium policies work this way. They are loaded in th first few years.

Guarantee your family's financial security, get low cost life insurance.