Partial Surrender

In the context of life insurance policies, Partial Surrender is an action by policyholders involving:

• Cash Value Withdrawal: Taking out a portion of the policy's accumulated cash value
• Policy Retention: The policy remains active despite the withdrawal.

Impacts and Considerations:

• Reduction in Value: Results in a decrease in both the cash value and the death benefit.
• Potential Charges and Taxes: May incur fees, surrender charges, or tax consequences.

Policyholder Action:

• Contract Review: Essential to understand the specific terms and implications.
• Financial Advisory Consultation: Advised to seek guidance for informed decision-making.

Partial Surrender is a significant decision, affecting the policy's value and future benefits, and requires careful consideration of the terms and potential repercussions.