AAA Life Term Insurances

Life Insurance and Policy Fees?

I just purchased life insurance from banner life. A 10 year $100,000.00 policy. I received my paper work and there is a $50.00 policy fee that I was not told about!!! Is this standard?? Can I cancel the policy in a grace period time frame?? I'm UPSET I was not told about the fee. THANK YOU I'm not sure what the fee is for yet....I left a voice mail and will talk to her tomorrow. I'm so mad now that she was not up front with me that I plan on canceling!

Public Comments

1. A policy fee is not unusual. It is not inbuilt in every plan, but you may find it varying on the administrator of the plan or product type. If there was a broker involved or a sales agent, express your disappointment to them and advise them that you'd like to void the policy. Be convincing. They're the only ones that can help you.
2. Policy fee??? for what? I assume you mean Banker's Life? Umm. I have been in the insurance business for awhile. Never heard of it. I'd question it, for sure. When did u buy it? You can cancel it w/in 30 days and get your premium back.
3. The policy fee is normal for term life policies. They typically range from $25 - 100 depending on the policy. The premium you were quoted originally should have included the cost of the policy fee. The fee is non-negotiable and does not vary with different distribution channels. I would only be upset if the quote did not include the policy fee. Oh, and remember this factoid next time you hear someone say "term life is pure insurance."
4. I found a VERY (V_E_R_Y) good article about term life insurance vs. Whole life insurance here:http://all-insurance-online.blogspot.com/2007/09/term-life-insurance-vs-whole-life.html
5. The policy fee is built into the price of coverage and is part of the rates quoted. It goes to the insurance company and no one else as agents don't receive commissions on policy fees for Banner Life. I wouldnt worry about it unless your agent didnt quote this as part of the quote.