What Are Annuity Surrender Charges? 
An annuity is a long term cash accumulation product . The rate of interest being promised by the insurance company is geared to the companys long term investment program . When an annuity is surrendered it interrupts the companys 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 . 