How Are Surrender Charges Deducted In A Life Policy With A Rear-End Loaded Provision?

How Are Surrender Charges Deducted In A Life Policy With A Rear-End Loaded Provision?

A rear-end loaded provision in a life insurance policy allows the policyholder to pay higher premiums initially, and then lower premiums as the policy term progresses. To discourage policyholders from cashing out the policy early, the policy may include a surrender charge. This charge is deducted from the total policy value if the policyholder terminates …

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