After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. the insurer returns all the premium payments to the owner, except for a predetermined percentage. what is this percentage called?

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01-01-2018
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After three years of making payments into a flexible premium deferred annuity, the owner decides to surrender the annuity. the insurer returns all the premium payments to the owner, except for a predetermined percentage. what is this percentage called?

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meerkat18 meerkat18 · Answer 1 · 2018-01-15T10:22:07+01:00

meerkat18 meerkat18

15-01-2018

The percentage is called the surrender charge. These are penalties that you must pay if you end your policy or withdraw your funds prior to its maturity. The maturity date is the length of time you agreed to when you started your life insurance policy.

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