Surrender Charge
/ˈsɜːrəndər ʧɑːrdʒ/
Definitions
- (n.) A fee imposed on an insurance policyholder for withdrawing or terminating the policy before a specified date.
The policyholder incurred a surrender charge when cashing out the life insurance policy early.
Forms
- surrender charge
Related terms
See also
Commentary
Typically applies to life insurance and annuity contracts; understanding the timing and amount of the charge is crucial for policyholders considering early termination.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.