Is a company: no
Is a proper noun: no
- cash surrender value
- surrender fee
- policy surrender value
- cash value
- surrender value
Definition of Surrender Charge
- 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,
➥ CanEquity offers life insurance.
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
- 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.