surrender penalty
noun[C]
ukus(alsosurrender charge)INSURANCE
achargemade by aninsurancecompanyforendinganinsurancepolicyearly, beforeitsoriginalenddate:
Thecompanywilllevyasurrenderpenalty, which is 3% of thepremiumspaidfor aplanthat hasrunfor sixyears.
If thepolicyis less than 10yearsold, there may besubstantialsurrendercharges.