Surrender Rights

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Dictionary Says

Definition of 'Surrender Rights'

A right to cancel an annuity or life insurance contract in exchange for its cash value. Surrendering such a contract early can incur surrender charges (fees charged by the company upon cancellation) as well as income tax liability. Before exercising a contract's surrender rights, contract holders should determine the contract's cash value, what fees and taxes will be incurred upon surrender, and how much cash they will ultimately net from canceling the contract.
Investopedia Says

Investopedia explains 'Surrender Rights'

In the case of life insurance, getting a life settlement in exchange for the life insurance contract may be a more lucrative option than surrendering the policy. Contract holders should also keep in mind that if they choose to repurchase a similar contract later on, the new contract may be more expensive. Not all annuities and life insurance policies have surrender rights.
Search results for

'Surrender Rights'

  • Series 26 Study Guide - Variable Contracts - Annuity Distributions ...

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/annuity-distributions-charges.asp
    ... if the investor withdraws money from the account during the early years of the
    accumulation phase, he or she may have to pay surrender charges (discussed below ...

  • Taking The Bite Out Of Annuity Losses

    http://www.investopedia.com/articles/pf/05/AnnuityLosses.asp
    ... lack of full disclosure and falsification of variable annuities) led to the rapid
    education of many investors, as they learned about surrender charges, fees ...

  • Series 6 Study Guide - Variable Contracts - Variable Annuity ...

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/variable-annuity-charges.asp
    ... apply in the first year after a purchase payment, 6% in the second year, 5% in the
    third year, and so on until the eighth year, when the surrender charge no ...

  • Update Your Variable Annuity With Section 1035

    http://www.investopedia.com/articles/retirement/08/section-1035-exchange.asp
    ... When you surrender a variable annuity: You will owe ordinary income tax (up to 35%
    federal tax and state tax if applicable) on any profit you have within the ...

  • Cashing In Your Life Insurance Policy

    http://www.investopedia.com/articles/pf/08/life-insurance-cash-in.asp
    ... insurance offers the opportunity to access cash accumulations within the policy
    either through withdrawals, policy loans, or partial or full surrender of the ...

  • Converting An IRA Annuity To A Roth: Know The Rules

    http://www.investopedia.com/articles/retirement/10/rules-converting-ira-annuity-to-roth.asp
    ... Legislative History Before August of 2005, annuity contracts were valued according
    to either their cash surrender value or current market value, if the back ...

  • Life Insurance: How To Get the Most Out Of Your Policy

    http://www.investopedia.com/articles/pf/06/lifeinsurance.asp
    ... Cash Surrender Value Permanent life insurance policies like universal life insurance,
    whole life insurance and variable life insurance are more attractive ...

  • Getting the Whole Story on Variable Annuities

    http://www.investopedia.com/articles/04/111704.asp
    ... and inadequate disclosure, there are some worthy annuity products out there that
    are commission-free and have low expenses, no surrender charges, and are great ...

  • How To Avoid Taxation On Life Insurance Proceeds

    http://www.investopedia.com/articles/pf/06/transferlifeinsurance.asp
    ... In transferring the policy, the original owner must forfeit any legal rights to
    change beneficiaries, borrow against the policy, surrender or cancel the policy ...

  • I made involuntary contributions to a retirement plan while ...

    http://www.investopedia.com/ask/answers/05/InvoluntaryContributions.asp
    ... If the penalty is a surrender charge or another penalty that would apply to an annuity
    or insurance product ... All Rights Reserved | Terms Of Use | Privacy Policy.

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