Question

The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called?

1) Surrender rights
2) Cash value rights
3) Deferred annuity rights
4) Annuity date rights

Answer 1

Surrender rights are the contractual rights that allow the owner of a deferred annuity to surrender the cash value before the annuity date.

Step-by-step explanation:

The contractual rights which allow the owner of a deferred annuity to surrender the cash value several years before the annuity date are called surrender rights. Surrendering a deferred annuity refers to the act of cashing out the policy before its maturity date. These rights provide flexibility and options for policyholders to access their cash value earlier if needed.