No load life insurance quote
A life insurance policy is primarily a product that involves three parties the person insured, the insuring company, and the beneficiary. It is a contract between the former two parties to provide for the security of the third party. The life insuring company agrees to insure the life of the person insured, that is, it agrees to pay a specified sum of money to the beneficiary in case the person insured dies.
People typically take a life insurance policy only if they have dependants. The idea behind a life insurance policy is to create a regular source of income for the dependents in case the provider is no more. The sum that needs to be insured is calculated based on the needs of the dependants. There are many online calculators available for this purpose.
These calculators typically take into consideration the age of the dependents, the number of dependents, their schooling and college education needs, the retirement needs of the spouse, and so on. A readjustment fund and a funeral expenses fund are also added to these to arrive at the final figure of the amount you should be insured for.
The premium or quote or rate is the amount the person insured pays the insuring company to cover the risk. This is typically an annual payment and varies with the age, health, duration, and type of policy taken. All these factors are used to calculate the life insurance quote.
Apart from this the life insurance agent adds a charge to cover the advertising costs and his fees. The sum that is quoted to you as a premium includes this amount as well.
If you are like most people, you will find that the premiums you have to pay to insure yourself for a satisfactory sum is greater than you expected, that is, there is gap between the amount you would like to insure yourself for, and the premium you are willing to pay for this.
If you are looking to minimize your insurance premiums or rates, then you should opt for a no load life insurance policy. Here the agents fee and advertising charges are not added to your premium. The insurance company does not pay the agent for procuring a customer for its products. Instead, the customer pays the insurance agent a small fee for advising him/her on the insurance policy to be opted for.
This method of purchasing an insurance policy is cheaper in the long term as the premiums are lower. When talking to a life insurance agent, you need to ask for a no load insurance quote. Even if you pay the insurance agent a small fee, you will be richer in the long term.
Make use of this `no load option to maximize your sum insured, that is, the amount for which you are insured. Shop around until you are offered this option by a reputable insurance company.
Remember that the insurance company you choose has to be around for longer than you. It has to out live you to be of any use to your dependents. Keep this fact in mind when choosing an insurance company to insure your life. This is necessarily a long term decision.