Surrender Period


Surrender Period
The amount of time an investor must wait until he or she can withdraw funds from an annuity without facing a penalty. Withdrawing money before the agreed-upon holding period can result in a surrender charge.

Generally, but not always, the longer the surrender period, the better the terms of the annuity. After the surrender period has passed, the investor is free to withdraw the funds without being subject to a fee.


Investment dictionary. . 2012.

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