What is the difference between cash surrender value and present value with respect to annuity benefits?
Deferred annuities, (those annuities which are in the accumulation phase and earn interest at some declared rate for a period of years) and which may be surrendered to the insurance company for cash subject to any applicable surrender charges, have a cash surrender value. The $100,000 limit is applicable with respect to these deferred annuities. Annuity benefits are subject to the higher $500,000 limit when they are in the payout or “on-benefit” stage, such as when you have elected to take a monthly payment stream from an annuity upon retirement.
