Saving You Money For Life

A lot of financial advisors tend to say that one of the biggest problems with term life insurance is its high commission and recommend low-load or no load policies.  They often say that you can cut this cost by buying a “low-load” policy directly from the insurance company or from a financial adviser. And that with a low-load policy, insurance premium payments typically are lower, and your cash value, or the savings account portion of the policy, often grows in value significantly faster.

But that’s not always the case.  And as with all types of life insurance policies, low load and no load life insurance policies have both pros and cons.

Low-load funds such as Ameritus or USAA are sold by agents that are non-commissioned based.  Many financial planners recommend consumers try these places out because there is thought to be “no pressure” selling tactics.  However the real story is that these agents only sell their products and obviously have a vested interest in selling it.  Most of the time, these products are not the best product for that particular individual.  And typically, these policies are more expensive.

My last minute thoughts – make sure you’re educated. Shop around for price. And before buying any type of insurance policy, always evaluate the financial strength of the company you’re considering. In addition, examine the quality of service and whether you are obtaining all the features and services you need.

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