A Policy Fee is a fixed charge that insurance companies apply to cover the administrative costs of managing your life insurance policy. This fee is typically added to your premium and can vary depending on the insurer. Knowing about policy fees is important because they can affect the total amount you pay each year for your insurance.
These fees can sometimes be overlooked, but they contribute to the overall cost of your policy. By being aware of policy fees, you can make more informed choices when selecting a life insurance policy and better understand how much you’re actually paying for your coverage. This knowledge helps you manage your budget and plan for future expenses.