Do Fixed Annuities Have Surrender Charges? 
That is a great question ! In almost every case , yes they will . The deferred annuities are designed to have that period of time for the money to grow , and removing it early removes that possibility . Since the insurance company is banking upon that money to make their money on , they are going to recoup some of that loss by imposing the surrender fee on you . The fee generally is highest in the first year , and lowers as time goes on . There are also policies that will allow the surrender of the funds without fees , if certain conditions are met , so be sure to ask if your annuity has , or will have a `` bailout '' clause . Please be aware that if there is a reasonable belief that you might have a need for the cash you are investing in an annuity before its maturation date , then it may not be the right investment for you . An investment that costs you money to get your own back is not a suitable one . A good agent will have discussed this thoroughly with you . Thank you for asking ! 