No-Load Annuity

DEFINITION of 'No-Load Annuity'

A type of variable annuity that charges much lower fees and expenses than traditional annuity contracts. No-load annuities are seldom if ever sold by brokers or commission-based planners because they do not pay a commission to the salesperson. These contracts usually have little or no back-end surrender charge associated with them.

BREAKING DOWN 'No-Load Annuity'

No-load annuities are generally marketed directly by the issuing insurance company or through fee-based financial advisors. Investors who purchase these contracts directly from a carrier can generally expect a fairly low level of customer service. For this reason, they are probably most appropriate for experienced investors who understand the characteristics and use of annuities, and can allocate their assets among the subaccounts themselves.

RELATED TERMS
  1. Annuity

    A financial product that pays out a fixed stream of payments ...
  2. Valuation Period

    The time between the end of the business day of the first business ...
  3. Variable Annuity

    An insurance contract in which, at the end of the accumulation ...
  4. Indexed Annuity

    A special class of annuities that yields returns on your contributions ...
  5. Annuity In Advance

    An amount of money that is regularly paid at the beginning of ...
  6. Annuity In Arrears

    An annuity that has periodic payments of either interest and/or ...
Related Articles
  1. Personal Finance

    Make No-Load Annuities Your Viable Alternative

    These alternative retirement funds provide diversification with no fees, so what's the catch?
  2. Financial Advisor

    How to Avoid Overpriced Annuities

    The key to not paying excessive fees for annuities is understanding how they work. Here's what you need to know.
  3. Investing

    DIY Annuities: What You Need to Know

    Annuities are attractive because they can give you a stream of income, but they can be tricky to buy.
  4. Markets

    Taking The Bite Out Of Annuity Losses

    If this investment product has caused you sleepless nights, it's time to consider alternatives.
  5. Retirement

    Variable Annuities: The Good, The Bad and the Ugly

    An in-depth guide to everything you need to know and watch out for with variable annuities.
  6. Retirement

    Who Benefits From Retirement Annuities

    Annuities guarantee some degree of fixed income in retirement. But is the security worth the fees and less favorable tax treatment? How to decide.
  7. Retirement

    5 Mistakes to Avoid When Shopping for Annuities

    Annuities give retirees guaranteed income but they aren't all created equal.
  8. Trading

    Getting the Whole Story on Variable Annuities

    Variable annuities are another way to save money tax-deferred - but don't jump in blindly!
  9. Financial Advisor

    Advising FAs: Explaining Annuities to a Client

    Conceptually speaking, annuities can be thought of as a reverse form of life insurance.
  10. Financial Advisor

    Annuities and Baby Boomers: The Pros and Cons

    The pros and cons of annuities that Baby Boomers seeking retirement income need to know.
RELATED FAQS
  1. What percentage of my total portfolio (approx. $1.2 M in assets) should be invested ...

    I recently rolled over a portion of my 401k into a variable annuity. I am considering rolling over additional money, since ... Read Answer >>
  2. What are the risks of annuities in a recession?

    Distinguish between the most common types of annuities, and understand which types of annuities pose the most risk during ... Read Answer >>
  3. Are variable annuities a good retirement investment?

    Discover the basics of variable annuities, the positive and negative aspects associated with them, and who is best suited ... Read Answer >>
  4. Are variable annuities safe?

    Discover how several layers of protection are instituted, and how regulatory laws by FINRA and the SEC are utilized to make ... Read Answer >>
  5. What are the main kinds of annuities?

    Learn about the four basic types of annuities, and why the different investment and payout options are suitable for different ... Read Answer >>
  6. How safe are variable annuities?

    Discover more about variable annuities, what they offer individuals entering retirement and what forms of protection are ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center