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Inside this Article
Individual
Life Insurance Policy
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When you buy an individual
policy, you choose the company, the plan, and the
benefits and features that are right for you and your
family.
You might be
able to buy the policy from the same agent or company
representative who sells you property and liability
insurance for your home, auto or business.
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And
although you won’t qualify for any discounts by
buying your life insurance and other insurance
from the same representative, working with a single
advisor for all your insurance needs can make your
financial life simpler.
Individual policies are typically sold through
insurance agents or brokers. If you buy a policy
through an agent or broker, you will pay a commission,
also called a “load,” that is built into the
premium rate.
The commission compensates the
agent or broker for the time spent advising you on how much and what
type of life insurance to buy, for facilitating the application
process, and for any further service that’s needed in future years to
keep the policy up-to-date (such as changing beneficiary designations,
arranging policy loans or coordinating your financial plans with your
lawyer and accountant).
There are two other ways to buy individual life insurance. In
Connecticut, Massachusetts and New York, you can buy it from a savings
bank. Or you can buy a policy directly from an insurance company
or from a fee-only financial advisor—what’s known as a “no load”
or “low load” policy. Although there is no sales commission on these
policies, the company will still have charges built into the premium to
cover its marketing expenses, application processing expenses and
subsequent services. Finding an insurance company that will sell
you a no-load policy isn’t easy; typing in “no load life
insurance” on Internet search engines will in many cases lead you
to an agent or broker.
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