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
Penalties imposed by issuing insurance company for early withdrawal from an annuity contract.
Charges that are deducted if your life insurance policy or annuity is cashed in (surrendered). These charges also are deducted if you borrow money on your policy or if your policy lapses for non-payment.
Fees for terminating a certificate of deposit (CD), insurance or annuity contract before maturity.
An amount of money deducted from some life insurance policies when the owner of a policy cancels the policy for its cash value.
The price you have to pay to redeem an investment. Typical with annuities and insurance policies.
Fees for terminating a CD, insurance or annuity contract before it matures.
(1) Charges applied to a life policy when a policyowner surrenders a life policy. (2) Charges applied to an annuity if the contract owner surrenders a deferred annuity policy before the period stated within the policy.
(go to top) A term normally used for life insurance funds (bonds) and pension funds. Instead of making their charges when investors buy, some offshore funds levy charges when holdings are sold or surrendered.
The charge for withdrawing money from an annuity before the date agreed upon in the contract. Surrender charges typically are a percentage of the total premium deposited, and the charge decreases to zero over time, as the annuity gets closer to the maturity date.