An annuitant owns an annuity that has been in force for 4 years. The policy has a 10-year surrender charge associated with it. If the annuitant suffered a long-term disability and used the funds from the annuity as a result, what surrender charges would be assessed?

Answer: No surrender charges would be assessed.

Explanation:

The reason no surrender charge would be assessed or applied is because annuity surrender charges are generally waived if the annuitant is hospitalized, placed in a nursing facility, suffers a long term disability, becomes disabled, or dies.