Definitions for "Surrender Charges"
a charge deducted from the accumulated value at the time of full or partial surrender of an annuity contract.
(All except WL) Charge deducted had the policy been surrendered, or lapsed on the previous business day. On universal and variable life policies charges are usually calculated by formula based on age, sex and issue class (a straight line percentage charge, like those found in fixed annuities, was formerly more common). To gauge the net charge deduct the illustrated cash vale (net of surrender charge) from the policy's accumulation value. Participating whole life policies have no surrender charge. See also Partial Surrenders.
Charges an insurance company may deduct if you cash in--or surrender--your life insurance policy or annuity. Companies also deduct these charges if you borrow money on your policy or your policy lapses for nonpayment. Skip alphabetic navigation to T