A Surrender Charge is a fee imposed by the insurance company if the policyholder decides to terminate or partially withdraw from the policy before a specified period, typically within the first 10 to 15 years of the policy.
A Surrender Charge is a fee imposed by the insurance company if the policyholder decides to terminate or partially withdraw from the policy before a specified period, typically within the first 10 to 15 years of the policy. This charge is designed to help cover the insurer's costs associated with underwriting and issuing the policy. The surrender charge is usually a percentage of the policy's cash value or a fixed amount, and it generally decreases over time until it eventually phases out. Policyholders should carefully review the terms of their IUL policy to understand the surrender charge schedule and how it may impact their ability to access funds.
A Surrender Charge is a fee imposed by the insurance company if the policyholder decides to terminate or partially withdraw from the policy before a specified period, typically within the first 10 to 15 years of the policy.
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