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These are typically around 10. C The surrender value will be based on current interest rates. Annuity Vs Life Insurance Similar Contracts Different Goals A partial surrender refers to the withdrawal of only a portion of your contract value and allows you to retain the benefits of the annuitys tax. . Its common for a fixed-rate annuity to include a decreasing surrender fee if you cancel the contract or remove more than the penalty-free. Choose the length of the payout period c. Surrender charges for annuities are the penalty a contract owner will receive if they surrender cancel their deferred annuity contract before the agreed surrender charge period or withdraw a portion of their account balance above their allotted penalty-free withdrawal amount. The pre-set number of years to which a surrender charge applies is called the surrender charge period For most annuities the surrender charge period begins at the start of an an...