What Is A Policy Fee On Life Insurance? 
A policy fee is the life insurance companies way of covering their administration expenses and the cost of underwriting the policy at the point of purchase . Their fees can be as low as $ 1.00 to $ 9.00 per month included in your monthly premiums . A client may notice them more on a cheaper plan than a more expensive plan . For example , someone can purchase a policy with a $ 100,000 face amount for just a couple of more dollars than a $ 50,000 face amount policy because the fee is included in the baseline premium . 