Definitions for "SURRENDER CHARGE"
A charge applied at the time of a withdrawal from the contract for deferred unamoritized expenses attributable to that contract. Click here to go to top of page.
An amount of money deducted from a policy's Total Accumulation Value to arrive at the policy's Cash Surrender Value.
The surrender charge varies from company to company and contract to contract. The penalty only applies if the policyholder takes out a certain amount of money from the contract above the policy limits within a set number of years.