Final answer:
Sales loads of single-premium variable policies are lower because of the greater initial investment and no recurring premium charges.
Step-by-step explanation:
The reason why sales loads of single-premium variable policies are lower is because they have greater sum of initial money to invest compared to other normal life insurance policies. Sales loads are charges deducted from the initial premium payment to cover administrative costs and the agent's commission. Since single-premium policies require a larger initial investment, the sales loads can be lower.
Additionally, single-premium policies do not have recurring premium charges which can also contribute to lower sales loads. Other normal life insurance policies typically require ongoing premium payments and may have additional administrative fees.
Lower fixed interest rates and only one premium is required to be paid are not reasons why sales loads of single-premium variable policies are lower.