Unlike its more popular cousin, the no-load mutual fund, it has failed to catch on with many consumers. But that may be about to change. And last year, GE Capital bought Wholesale Insurance Network, a direct marketer of low-load insurance. With the marketing muscle of those financial giants, discount life insurance could be poised for takeoff. But low-load life insurance must overcome some tough obstacles.
Life insurance is complicated.
Many people don't have the basic knowledge or motivation to seek out a low-load policy on their own. Many consumers still don't know that they can bypass an agent and buy life insurance directly from some companies. It is generally comparable to no-load mutual funds. Low-load policyholders usually pay no sales commission. And there may be no surrender charge, or penalty, for cashing in a whole life or universal life insurance policy.