Surrender Charge

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • cash surrender value
  • surrender fee
  • policy surrender value
  • cash value
  • surrender value

Definition of Surrender Charge

  1. A fee charged to a life insurance policyholder if they cancel the policy. The insurer levies a surrender charge, also known as a "surrender fee", in order to cover the costs of keeping the policy on the books.

Related Terms and Acronyms

  • Life Insurance Definition, Very Important,
    • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
    CanEquity offers life insurance.
  • Valuation Clause Definition,
    • A clause in an insurance contract that states how much an insurer is willing to pay for an asset after an insured event.
  • Surrender Rights Definition,
    • The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
  • Living Benefits Definition,
    • The option for a life insurance policyholder to receive a portion of their death benefit in advance of their death.
  • Permanent Life Insurance Definition,
    • A class of life insurance policies, which include both universal and whole life insurance, with guaranteed death benefits at the end of their terms.
  • Viatical Settlement Definition,
    • A contract where an individual agrees to sell his or her life insurance policy to a third party before their death.
  • Cash Surrender Value (CSV) Acronym, Important,
    • The liquid value of an insurance policy if the policyholder voluntarily cancels the policy before maturity or an insured event.
  • Policy Loan Definition,
    • A loan where a life insurance policyholder's death benefit is used as collateral.
  • Annuity Definition,
    • A financial instrument that disperses a number of payments over a set period of time.
    • A regular periodic payment made by an insurance company to a policyholder for a specified period of time.
  • Accelerated Benefit Option Definition,
    • An option that allows the insured to receive insurance benefits before they would ordinarily be available.
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