Surrender Rights

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • policy surrender rights
  • insurance surrender rights

Definition of Surrender Rights

  1. The right for an individual to cancel a contract such as a life insurance policy or annuity and collect its cash value. In exercising their surrender rights, an individual may be forced to pay a surrender charge. In many cases, a viatical settlement will offer a life insurance policyholder a larger sum than a policy's cash value, but viatical settlements are not legal in all Canadian Provinces.

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 Charge Definition,
    • A charge levied when a life insurance policyholder cancels 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.
  • Spin-Life Definition,
    • A financial industry that specializes in buying life insurance policies from individuals or convincing individuals to take out new life insurance policies with an investor as a beneficiary.
  • 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.
  • Stranger Originated Life Insurance (STOLI) Acronym,
    • A life insurance policy purchased by someone without any insurable interests with the insured person.
    Illegal in many Canadian provinces.
  • 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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