Life Insurance Without Built-in Commissions

“Bernstein…has introduced what are essentially no-load and low-load policies to the life insurance business…That could mean huge savings for policy buyers.” Forbes

“Low-load Life Performs Better For Clients, Companies” National Underwriter

Thirty years ago, I created, designed and introduced permanent life insurance policies without built-in commissions to the U.S. life insurance market. The concept quickly became known by several different names such as “no-load life insurance”, “low-load life insurance”, “fee-based” life insurance and “non-commissioned life insurance”. Although the concept was simple and straight-forward, it was well ahead of its time and perceived to be very disruptive for the distribution system of life insurance. Guided by a very prominent actuarial consulting firm, we created life insurance products that eliminated the traditional selling costs that were historically priced into life insurance policies. The first year commissions (often 100%-200%), renewal commissions (totaling another 100%), overrides, expense reimbursements and numerous others were ALL eliminated from the products I introduced to the market. The impact of no commissions can be better performance seen by lower premiums, immediate cash surrender value and complete transparency.


Originally published at Don’t Outlive Your Wealth!.