Non-Rolling Surrender Charge

A Non-Rolling Surrender Charge in life insurance policies, particularly in Indexed Universal Life (IUL) policies, is a fee applied for early withdrawals or surrenders. Key aspects:

• Fixed Schedule: It's based on a pre-set timeline from the policy's start date.
• Decreasing Over Time: The charge reduces gradually, eventually dropping to zero.

Differences from Rolling Charges:

• No Reset: Unlike rolling surrender charges, it doesn't reset with new premiums or at each policy year.

Policyholder Consideration:

• Understanding the Schedule: Awareness of this schedule is crucial to comprehend potential costs for early fund access.

This provision is designed to discourage early withdrawals, while gradually offering more flexibility as the policy matures.