A rolling surrender charge is a fee structure commonly associated with annuities and some types of life insurance policies. It refers to a period during which the policyholder is subject to a charge if they surrender the policy, typically decreasing annually until it reaches zero.
A rolling surrender charge is a fee structure commonly associated with annuities and some types of life insurance policies. It refers to a period during which the policyholder is subject to a charge if they surrender the policy, typically decreasing annually until it reaches zero.
This charge is designed to discourage early withdrawal of funds and to allow the insurance company to recover the costs associated with establishing the policy.
The rolling surrender charge is a key consideration for policyholders because it affects the liquidity of their investment. If a policyholder needs to access their funds quickly due to an emergency or a change in financial circumstances, they may have to pay a significant fee to do so.
A rolling surrender charge is a fee structure commonly associated with annuities and some types of life insurance policies. It refers to a period during which the policyholder is subject to a charge if they surrender the policy, typically decreasing annually until it reaches zero.
Capital For Life ©2024 All Rights Reserved.
