What initial costs must be paid when a client purchases a policy on a monthly payment plan?

When a client purchases a policy on a monthly payment plan, the initial costs typically include the first month's premium, the last month's premium, and any applicable policy fees.

The first month's premium is necessary to activate the coverage right away. The last month's premium acts as a kind of security deposit, ensuring that the insurer has some upfront payment to cover part of the future monthly premiums. Policy fees are often associated with administrative costs and processing the policy, and these are generally required at the time of purchase to establish and maintain the policy effectively.

In this way, the correct answer encompasses all the necessary upfront costs required to start the policy smoothly and maintain its active status from the very beginning.