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Surrender value - Definition |
| Related Words: Abandon, Abandonment, Abdicate, Abdication, Abjuration, Accommodation, Alien, Alienate, Alienation, Amortization, Amortize, Appeasement, Arrangement, Assignment |
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Surrender value is a term used in the financial industry to reflect the value of an investment after a surrender charge is imposed. A surrender charge offsets the costs associated with selling investments and allows these investments to be sold with little or no up front fees. Surrender charges are imposed when an investment is surrendered within a set time frame. Any surrenders after that time frame are not subject to a surrender charge. Typically surrender charges decrease on an annuual schedule until they disappear altogether. Surrender charges are common in deferred annuity contracts and permanent life insurance policies.
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