Short

Annuity Surrender Charges: What They Mean

0:17 · Uploaded 2025-12-08 · 73 views (YouTube)

Summary

In this 0:17 Annuities Explained YouTube Short, Jeffrey Scott McLeod, LUTC, covers “Annuity Surrender Charges: What They Mean.” Surrender charges in an annuity decline and disappear over time. To surrender your annuity means to send it back to the insurance company and they might charge a fee. Let's say you're in the third year. After your accumulation value and after your interest, they charge a fee Insurance education only—not securities advice.

Key takeaways

  • To surrender your annuity means to send it back to the insurance company and they might charge a fee.
  • Surrender charges in an annuity decline and disappear over time.
  • After your accumulation value and after your interest, they charge a fee.
  • This Short is a quick overview—confirm features, rates, and charges in the insurance contract and NAIC Buyer’s Guide.

From the NAIC Buyer’s Guide

You usually have to pay a surrender or withdrawal charge if you take some or all of your money out of a deferred annuity during a stated period. Some contracts allow a limited free withdrawal each year (for example, 10% or less of account value).

Fees, surrender charges, and any market value adjustment can reduce what you receive. Read the contract for how charges work in your state.

The 2022 NAIC Buyer’s Guide for Deferred Annuities explains that an annuity is a contract with an insurance company. With an annuity, the insurer promises to pay income on a regular basis for a period you choose—including the rest of your life.

Source: NAIC Buyer’s Guide for Deferred Annuities (2022). The guide does not endorse any company or policy. For your state insurance department, see www.naic.org.

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Insurance-only disclaimer

Jeffrey Scott McLeod, LUTC, is a licensed insurance producer. Content on this page is educational and discusses insurance products only—not securities, brokerage, or investment advisory services. Texas license 901162. Arkansas / National Producer Number 558629. Product availability, rates, and features vary by state and insurer. Read the NAIC Buyer’s Guide and the insurance contract before you buy.

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Insurance products only. Not securities or investment advice. TX #901162 · NPN 558629.

Jeffrey Scott McLeod, LUTC — Licensed insurance producer. Texas license 901162. Arkansas / National Producer Number 558629. Insurance products only; not securities or investment advisory services.
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