Premium load is the set of charges deducted from each premium payment before it is credited to the cash value of a life insurance or annuity contract. Also called a front-end load or premium expense charge, it typically covers commissions, underwriting costs, policy issue expenses, and certain taxes. The load may be a flat percentage of each premium, a declining schedule over early policy years, or a combination of percentage and per-policy fees. Because premium loads reduce the amount that actually goes to work inside the contract, they have a direct impact on early cash value accumulation and surrender values. Understanding premium loads is crucial when comparing products, interpreting illustration assumptions, and setting realistic expectations about near-term access to funds. While all permanent products have costs, the structure and transparency of premium loads vary by carrier and product design.

In practice, advisors and case designers review premium load details in product guides, prospectuses, and illustration expense pages. They may highlight that a portion of every premium is used to cover acquisition and administration costs before the remainder is invested or credited. When clients are focused on early surrender values or short-term horizons, significant premium loads can make certain designs less attractive. In advanced planning, advisors compare premium load structures across carriers when designing large cases or premium finance strategies, since high loads may require more funding to achieve target cash values. Clear explanation of premium loads helps clients see the difference between gross premiums paid and net amounts actually allocated to their policy's cash value, reducing confusion when reviewing early statements and in-force illustrations.