No Load Term Life Insurance
If you're reading this, you're likely wondering what a no load term life insurance policy is and how it could potentially affect your life.
A no load term life insurance policy is an affordable option for those seeking coverage for their family or themselves. A no load term life insurance policy typically requires a monthly premium and small additional payment at the time of purchase for coverage to begin. It pays out claims up to the amount of the death benefit with absolutely no commission. Most people are eligible for these policies and they don't have medical examination requirements prior to purchase like whole or universal life insurance does, which may be helpful if you have any health conditions that might raise your rates or deny your application altogether.
Term insurance provides coverage for a specified period of time, which may be anywhere from one to 30 years. It has no cash value, so if you need money, you will have to borrow against it. If you die within the period of time specified in your policy without ever making a claim, the death benefit paid is tax-free and goes directly to your beneficiaries. If you pass away before that period ends and have paid premiums for the life of your policy, then your beneficiaries would receive the face amount plus any dividends paid out on the cash value. Term insurance is flexible in that it is easy to purchase and can be canceled at any time without penalty. It is also less expensive than whole or universal life, and can be more affordable than term life with a permanent cash-value component.
You may find that this type of policy suits you. If it does, it is a great way to preserve your financial future and protect the people you care about most in the event of the unexpected. You should always do your own comparison shopping so you are well informed about any product or policy that might benefit you.
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This article was originally published April 26, 2015 at www.askasuranceagent.com/guide/premiums/life_insurance_without_load.html . It has been updated and expanded for accuracy.
Title: Term Life Insurance (no cash value)
ARTICLE START
You have a term life insurance policy with a $100,000 death benefit. You have paid $5,000 in premiums over the years. Your beneficiaries will receive $100,000 if you die before the policy expires, but if you pass away after it expires they will get nothing because there is no cash value associated with this type of insurance. If you require long-term coverage or want your beneficiaries to be able to access the money in order to avoid probate or cover funeral costs, a whole life insurance policy may be right for you.
Term life insurance is the most basic kind of life insurance on the market. It provides coverage for a specified period of time, which may be anywhere from one to 30 years. It has no cash value, so if you need money, you will have to borrow against it. If you die within the period of time specified in your policy without ever making a claim, the death benefit paid is tax-free and goes directly to your beneficiaries. If you pass away before that period ends and have paid premiums for the life of your policy, then your beneficiaries would receive the face amount plus any dividends paid out on the cash value. Term insurance is flexible in that it is easy to purchase and can be canceled at any time without penalty.