Question

A contract owner terminates an annuity before the income payment period begins. The owner will then receive:

- half of the current surrender value
- current contract surrender value
- premiums paid to date
- nothing

Answer 1

A contract owner who terminates an annuity before the income payment period receives the current contract surrender value.

Step-by-step explanation:

When a contract owner terminates an annuity before the income payment period begins, they will receive the current contract surrender value. This value represents the amount the owner will receive if they choose to cancel the annuity early. It is based on factors such as the length of time the annuity has been in force, any applicable surrender charges, and the performance of the underlying investments.