Course Outline
Policy Surrender
Policy Surrender
- May be surrendered at any time prior to the maturity date for the surrender value
Payment Options at Surrender
- Available as lump sum
- Available as annuity benefits – life income, fixed period, life income with guaranteed period and other options upon request
- If no option is selected, the surrender value will be paid out as lump sum
- Payment may be deferred six months
Surrender Value
- Annuitant’s account reduced by any applicable surrender charge
Surrender Charges
- Calculated by multiplying excess over “withdrawals free of surrender charge” by factor according to year of surrender:
Withdrawals Free of Surrender Charge
- Up to a percent of the annuitant’s account less any amount withdrawn in the prior 12 months
Plus One – 10 percent; Encore – 12 percent
- Under special circumstances, up to 100 percent of annuitant’s account may be withdrawn free of surrender charges: (circumstances vary by state):
- after the surrender period;
- the annuitant is totally disabled as defined by policy;
- selecting a payment option after the first policy year providing payment for life or at least five years; or
- after being confined in a nursing home for a number of consecutive days after the issue date
Plus One – 30 days; Encore – 45 days
