Annuity surrender value is the amount an annuity owner would receive if they fully surrender the contract, after deducting any applicable surrender charges, market value adjustments, and fees. Surrender value may differ from account value, especially during early years when surrender charges are highest. For some products, surrender value also reflects bonus recapture or rider termination adjustments. Surrender values are central to liquidity planning and to assessing the economic impact of replacing or exiting an annuity.

Advisors review annuity surrender values on client statements and request up-to-date surrender quotes from carriers before recommending withdrawals, exchanges, or replacements. They explain why surrender value can be lower than the headline account value and how charges change over time. In regulatory and compliance reviews, surrender-value analysis is key to demonstrating that a replacement does not unreasonably disadvantage the client. Advisors also use surrender values in emergency planning conversations, acknowledging that while penalties are undesirable, access to cash may sometimes be necessary. Understanding annuity surrender values helps advisors give clients a realistic picture of available liquidity and tradeoffs.