Previous TopicTopic MenuNext TopicSet BookmarkNav bar

Surrender Charges

Most fixed annuity contracts impose a contract surrender charge on partial and full surrenders from the contract for a period of time after the annuity is purchased. This surrender charge is intended to discourage annuity holders from surrendering the contract and to allow the insurance company to recover its costs if the contract does not remain in force over a specific period of time.


Go to next section in this lesson

Copyright © Broker Educational Sales & Training, Inc.