No-Load Life Insurance

AAA

DEFINITION of 'No-Load Life Insurance'

A type of life insurance that charges much lower fees and expenses than conventionl life policies. This is due primarily to the absence of a commission for the selling agent. No-load life insurance mirrors traditional life insurance in all other aspects.

INVESTOPEDIA EXPLAINS 'No-Load Life Insurance'

No-load policies allow cash value to accumulate faster inside the policy because of their lower cost. However, although its lower cost allows no-load life insurance to provide an affordable alternative to lower-income policyholders, carriers of no-load policies should be examined for financial stability. No-load policies also typically offer very little in the way of customer service.

VIDEO

RELATED TERMS
  1. Appleton Rule

    A regulation initiated in 1901 by Henry D. Appleton, a New York ...
  2. Cash-Value Life Insurance

    A type of life insurance policy that pays out upon the policyholder's ...
  3. Group Life Insurance

    Life insurance offered by an employer or large-scale entity (i.e. ...
  4. Commissioners Standard Industrial ...

    A mathematical table used by actuaries to calculate the nonforfeiture ...
  5. No-Load Annuity

    A type of variable annuity that charges much lower fees and expenses ...
  6. Life Insurance

    A protection against the loss of income that would result if ...
Related Articles
  1. Make No-Load Annuities Your Viable Alternative
    Home & Auto

    Make No-Load Annuities Your Viable Alternative

  2. What's the difference between a load ...
    Investing

    What's the difference between a load ...

  3. 5 Ways To Ace 2015's Health Insurance ...
    Insurance

    5 Ways To Ace 2015's Health Insurance ...

  4. What are the tax implications of a life ...
    Insurance

    What are the tax implications of a life ...

Hot Definitions
  1. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  2. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  3. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  4. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  5. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
  6. Macroeconomics

    The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena ...
Trading Center