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Insurance

  Insurance   |   Terms
  • 755
  • June 13, 2022
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Front-End Loaded

A situation where most of the management fees/ charges/ commissions (for underwriting, brokerage, and marketing, etc.) arising in connection with an insurance contract are incurred in the immediate period (e.g., first 3 months, 6 months, year, etc.) and are not allocated over the whole life of a contract. The front-end load is assessed by the insurance firm based on the investor-insured’s initial contribution.


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