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A no-load life insurance policy is a cash value building life insurance policy life whole life, except the premiums are lower and your cash value grows faster. This is because the parts of the traditional whole life insurance policy premium that pay for advertising, agent commissions, and corporate overhead are cut out--hence, it is "no-load".

No-load life insurance policies are almost always sold by life insurance brokers. Because these agents are licensed to dozens of companies, they don't depend on making a killer commission with every sale just to put bread in their mouth. What's more, the insurance companies who offer the no-load life policies can still find it profitable to sell these policies through brokers because the companies don't have to pay for the broker's advertising, telephone bill, training, any base pay, office supplies, benefits, or utility bills.

Insurance brokers are usually compensated on no-load life insurance sales by receiving a flat, one-time fee from the company. Their fee is part of the one-time set up fee that you will pay should you buy such a policy.

These no-load (sometimes referred to as "low-load") life insurance policies aren't sold in every state, so if you consider buying one you'll first have to check to see if you can even get one in your state. And, don't think that any of the usual other stipulations are waived. There are still medical questions to be answered and, if the face amount is high enough, a medical exam.

No-load life insurance policies are variations on the theme of traditional whole life insurance the one great appeal of which has always been its ability to grow cash value totally tax-sheltered, meaning you pay no income tax and no capital gains taxes unless and until you withdraw some of the cash value. With the rise of more sophisticated life insurance consumers thanks to increased knowledge spread by modern financial advisors and the Internet, the faultiness of whole life has been revealed.

Whole life takes many years before the cash value inside it even equals the premiums you've paid in, and then many more years before the cash value is anything to get remotely excited about. And the returns are only like those of a good corporate bond--very stable, yes, but today's financial consumer knows about the power of Variable Universal Life Insurance which is a tax-sheltered and payment-bundled way of "buying term and investing the difference", which has always been the countervailing answer of whole life skeptics and critics to whole life lovers. These VUL policies have premiums as cheap as those for term of the same face value but the rest of the premium, which is flexible, gets invested in general vehicles of your choice--and they can make substantially more money for you than the best corporate bond.

Therefore, people looking for stable cash value returns that amass more quickly while they also seek the lowest quality life insurance premiums might find no-load life insurance appealing. However, they should keep in mind that these policies have next to zero customer service attached to them.

While there are many critics of this, financial advisors and planners generally agree that the right kind of life insurance policy is a magnificent part of a good investment portfolio. You should consult with such a professional on such matters as tax bracket, your needed face amount, amount of premiums you can afford, and so on to determine if you should try to take advantage of the tax-sheltered growth that life insurance can offer you.

The author lives with her husband in Maryland, with their two dogs and cat. She put together the website http://www.affordable-life-insurance-guru.com in order to help the everyday person navigate the often confusing world of life insurance