Surrender Charge

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Dictionary Says

Definition of 'Surrender Charge'

A fee levied on a life insurance policyholder upon cancellation of his or her life insurance policy. The fee is used to cover the costs of keeping the insurance policy on the insurance provider's books.

Also known as a "surrender fee".
Investopedia Says

Investopedia explains 'Surrender Charge'

If the insured party informs the insurer in advance of the cancellation of his or her policy, and then continues to pay for a period of time before the actual cancellation, the surrender charge is usually waived.
Search results for

'Surrender Charge'

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

    http://www.investopedia.com/exam-guide/series-26/variable-contracts/annuity-distributions-charges.asp
    This section deals with taxation on annuity earnings, variable annuity charges
    (surrender charge, mortality and risk expense charge etc.) and 1035 exchange. ...

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

    http://www.investopedia.com/exam-guide/finra-series-6/variable-contracts/variable-annuity-charges.asp
    This section is about charges on Variable annuity: surrender charge, mortality and
    expense risk charge, administrative fees, fund expenses and 1035 Exchange. ...

  • Taking The Bite Out Of Annuity Losses

    http://www.investopedia.com/articles/pf/05/AnnuityLosses.asp
    ... another contract. This is commonly used to exchange the portion of the
    contract that has no surrender charge remaining. It allows ...

  • Series 7 Study Guide - Packaged Securities - Purchasing Variable ...

    http://www.investopedia.com/exam-guide/series-7/packaged-securities/purchase-variable-annuities.asp
    ... Generally, the surrender charge is a percentage of the amount withdrawn, and it
    declines gradually over a period of several years, known as the surrender period ...

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

    http://www.investopedia.com/ask/answers/05/InvoluntaryContributions.asp
    Your options depend on the type of penalty that would apply. If the penalty is a
    surrender charge or another penalty that would apply to an annuity or. ...

  • Introduction To Annuities: Advantages And Disadvantages ...

    http://www.investopedia.com/university/annuities/annuities2.asp
    ... Annuity Withdrawal Penalties As mentioned previously, most annuity contracts have
    a back-end declining surrender charge schedule that usually expires anywhere ...

  • Update Your Variable Annuity With Section 1035

    http://www.investopedia.com/articles/retirement/08/section-1035-exchange.asp
    ... The annuity company might hit you up with a surrender charge (which could be as
    high as 15%); ... Surrender Period - What is the surrender charge? ...

  • A Look At Single-Premium Life Insurance

    http://www.investopedia.com/articles/pf/05/SinglePremLife.asp
    ... The amount you can take out each year without paying a surrender charge might be
    10% of the premium paid in or 100% of the policy's gains, whichever is greater ...

  • Should Your 401(k) Be In An Annuity?

    http://www.investopedia.com/articles/retirement/10/401k-annuity.asp
    ... Annuity contracts also usually contain a back-end surrender charge schedule that
    can last for several years and charge as much as 7-10% in the first year ...

  • How Your Annuity Company Determines Renewal Rates

    http://www.investopedia.com/articles/pf/07/renewal-rates.asp
    ... Each annuity has the same initial interest rate, the same minimum guarantee rate,
    the same surrender charge and the same withdrawal features as the other in ...

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