A surrender charge is a tax owed the government on the amount withdrawn from the cash value accumulated on a life insurance policy.

Name: A surrender charge is a tax owed the government on the amount withdrawn from the cash value accumulated on a life insurance policy.
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Quizplus · Accepted Answer

A surrender charge is a fee charged by the insurance company when a policyholder surrenders or cancels their life insurance policy early, usually within the first few years of the policy. It is not a tax owed to the government.

A Surrender Charge Is a Tax Owed the Government on the Amount