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	<title>New answer on: What Are Annuity Surrender Charges?</title>

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		<title>By: Jim Winkler</title>

		<link>https://insurancelibrary.com/annuities/what-are-annuity-surrender-charges</link>

		<dc:creator>Jim Winkler</dc:creator>

		<pubDate>Wed, 30 Jul 2014 22:12:14 +0000</pubDate>

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		<description><![CDATA[That is a great question! The idea behind a deferred annuity is that it sits for a period of time so that the money can grow. While your money is in that account growing, the insurance company is counting on it to make investments with, and if you pull that money early it defeats the purpose, so the company charges you for doing it. These charges are the surrender charges.  They are usually highest in the first year that you have the annuity, and lessen as time goes on, until you have reached the contracted limit. These fees often start at 10%, so they can be very costly. Hopefully your agent explained this to you very clearly, and did a suitability study with you before you bought the annuity. I hope this helps, if you have questions, please drop me a line, okay? Thanks for asking!]]></description>

		

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		<title>By: David Pipes</title>

		<link>https://insurancelibrary.com/annuities/what-are-annuity-surrender-charges</link>

		<dc:creator>David Pipes</dc:creator>

		<pubDate>Wed, 30 Jul 2014 21:20:24 +0000</pubDate>

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		<description><![CDATA[An annuity is a long term cash accumulation product.  The rate of interest being promised by the insurance company is geared to the company’s long term investment program.  When an annuity is surrendered it interrupts the company’s plan forcing it to liquidate assets.  This could come at an inconvenient time.  Much like any other long term accumulation vehicle the company requires a surrender charge.  This charge normally reduces to nothing over a period of years. ]]></description>

		

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