surrender charge

Definition

A fee imposed for terminating an annuity contract prior to its maturity.

Use surrender charge in a sentence

Since they were ending their annuity early they needed to pay a surrender charge. While small, they required it to recoop losses.

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The surrender charge that Mimi was facing was quite great because she was financially unable to honor her end of the annuity contract.

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The firm imposed a hefty surrender charge for all of its clients who attempted to terminate their contracts upon the news of the CEO's arrest.

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surrender surrender period