Скачать или смотреть What Do Surrender Charges Mean For Life Insurance?

Considering changes to your life insurance policy? Be aware that some changes, especially with permanent policies, can come with a hidden cost: surrender charges. Understanding these fees is crucial before making any decisions.

Here's what you need to know about surrender charges:
► Surrender charges are fees applied when you cancel certain permanent life insurance policies (like whole or universal life) or withdraw a large portion of their cash value early.
► These charges help the insurance company recover upfront costs like agent commissions and underwriting expenses, which they haven't recouped if you cancel prematurely.
► Your policy document details the surrender charge schedule, which typically decreases over time and may disappear after 10-15 years.
► The 'net surrender value' is the actual cash you receive, calculated as your policy's cash value minus any applicable surrender charges.
► Knowing about these charges empowers you to make informed decisions about your policy, avoiding surprises and aligning changes with your financial goals.


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