---
title: "What Is Surrender Charge? Definition | Epic Life Glossary"
description: "A surrender charge is a fee an insurer charges if you withdraw more than the allowed amount from an annuity, or cancel the contract, during the..."
url: https://epicline.preview.multisites.ai/glossary/surrender-charge
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Annuity terms

# Surrender Charge

A surrender charge is a fee an insurer charges if you withdraw more than the allowed amount from an annuity, or cancel the contract, during the surrender period. It is usually a percentage that declines each year.

## Why it matters

Surrender charges let insurers recover costs and invest for the long term. A common schedule starts at a higher percentage in year one and drops each year until it reaches zero. Most contracts allow a free withdrawal each year, often about 10 percent, but the amount varies. Buyers should read the schedule before committing money they might need soon. Charges differ by carrier, and some states limit them. A market value adjustment may also apply.

Source: [investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/surrender-charge)

[Read next, for familiesAnnuities explained: fixed, fixed-index, MYGA, income riders and surrender charges](https://epicline.preview.multisites.ai/annuities)

## Where we use this term

-   [Fixed vs fixed index annuity: how do they work and who do they fit?](https://epicline.preview.multisites.ai/guides/fixed-vs-fixed-index-annuity)
-   [Indexed universal life (IUL) explained: caps, floors, costs, and risks](https://epicline.preview.multisites.ai/guides/iul-explained)
-   [Indexed universal life insurance: how it works, what can go wrong, and who it fits](https://epicline.preview.multisites.ai/life-insurance/indexed-universal-life)
-   [Whole life insurance: how cash value works, what it costs, and who it fits](https://epicline.preview.multisites.ai/life-insurance/whole-life)

## Start your climb.

Tell us where you are today and request a call about licensing, training and the calls.

[Apply to join](https://epicline.preview.multisites.ai/apply)

Shopping for coverage instead? [Get a quote](https://epicline.preview.multisites.ai/get-a-quote)