(MONEY Magazine) – The adage that ''life insurance isn't bought, it's sold'' carries an equally cautionary corollary: insurance agents are primarily salesmen, not unbiased advisers. That's bad news for buyers, says financial analyst Glenn Daily, 37, author of the Individual Investor's Guide to Low-Load Life Insurance, due out this month (Probus Publishing, 800-426-1520; $19.95). When it comes to the cash-value policies that account for two-thirds of the market, he asserts, ''agents' commissions are so high that most cash-value policies turn out to be scams.'' In selling you a policy, an agent will normally make much of the fact that part of your premium goes into a tax-deferred investment account. This is true of all three types of cash-value policies -- universal, variable and whole life -- which differ in their payment schedules and investment choices. Unfortunately, says Daily, these policies have another thing in common that the agent won't explain: typically, a year's worth or more of your premiums go for his commission. ''Your agent gets his return right away,'' Daily warns. ''You wait years for yours.'' Cash-value policies vary enormously, but this example of an actual universal policy will give you an idea of the sums involved: a 45-year-old nonsmoker . pays $3,750 a year for $250,000 of coverage. The first 1 1/2 years of premiums go entirely to commissions and other sales charges. Not until the policy has been in force for eight years does the cash value build up to the sum of the premiums, which he could borrow against or withdraw, say, at retirement. In fact, a policyholder's payday from cash-value insurance may never come. If you drop your policy within five years, which about 40% of buyers do, commissions, surrender charges and other fees will absorb most or all of the money you put in. Surrender charges alone often run 100% the first year, declining gradually to zero over 15 to 20 years. Daily's solution: low-load policies sold directly to consumers. Because there are no agents' commissions, selling costs drop to 15% to 30% of the first year's premium, and there are often no surrender charges. Even more important, cash value builds up far faster in a low-load policy. Take our hypothetical nonsmoker. According to Daily, a low-load universal life policy with a $250,000 death benefit might cost him $1,500 a year. Over 10 years, he would get $3,500 more in cash value than if he lost part of his investment to an agent's commission. Over 20 years, he'd be nearly $9,000 ahead with a low- load policy. But don't you need an expert's advice when buying life insurance? ''Most agents aren't experts,'' scoffs Daily, ''and even the experts aren't impartial. That's probably one reason why so many policies are canceled. They were oversold to begin with.'' You're better off reading up on cash-value insurance in personal-finance publications, he says, to understand your options; then, if you want advice, consult a fee-only financial planner. The $100 or so an hour he'll charge for an insurance review is far cheaper than a commission. But Daily thinks you really will be better off doing it yourself. ''No one, not even a specialist, can give you more than an educated guess on how much insurance you need or how any one policy will perform,'' he says. ''Why pay for that?'' To come up with a quick estimate on your own, he says, figure that inflation and after-tax investment growth cancel each other out, so that you can work in current dollars. Then just multiply the amount of after-tax income it takes right now to support your dependents and how many years they will need it -- say, $35,000 a year for 10 years, or $350,000. To that sum, add your mortgage balance and the current cost of college for each child. As an extra cushion, add 10% to 20%. Subtract from this total the resources that will be available at your death, including investment income, salable assets, Social Security and pension benefits (see the Money Guide to Retirement, published in November, for help in making these estimates). ''You'll have as decent a ballpark figure as any expert is going to come up with,'' says Daily, a bachelor who evaluates insurance plans out of his Manhattan apartment. As for the merits of specific policies, he suggests you get quotes from a few low-load companies and simply compare them. For quotes, phone two or three of the seven companies that sell low-load insurance nationwide and are graded A or better for financial soundness by A.M. Best, the industry's rating service (see the box on page 189). Tell the representative right off that you want to buy low-load insurance direct. This will prevent your being shuttled to an agent who sells these products and who will quote you prices that include commissions. Daily acknowledges that some people are not candidates for low-load insurance. ''If you're a poor health risk,'' he says, ''an agent's knowledge of the industry, connections and good will can sometimes be a big help in getting the coverage you need.''

BOX: Money Tip

Where to buy low-loads These seven companies write low-load life insurance policies sold nationwide: -- John Alden (813-874-5662) -- American Life of New York (212-581-1200) -- Ameritas (800-255-9678) -- Colonial Penn (813-874-5662) -- Fidelity Investments (800-544-6666, ext. 2327) -- Lincoln Benefit (800-525-9287) -- USAA (800-531-8000) In addition, savings banks in Connecticut, Massachusetts and New York sell low-load life insurance to residents of those states.