Can someone explain how surrender charges work?
My understanding is that if the policy holder withdraws money from his account, he must pay a penalty to the company. If that's the case, I'm not understanding why the formula for after-tax profits has "amounts paid on surrender" as negative.
Thanks
My understanding is that if the policy holder withdraws money from his account, he must pay a penalty to the company. If that's the case, I'm not understanding why the formula for after-tax profits has "amounts paid on surrender" as negative.
Thanks
Eom6 Surrender Charges