PSI Life Exam Practice Test 2026 - Free Life Insurance Exam Questions and Study Guide

The policyowner is the individual who has the legal rights to make decisions regarding the annuity, including the ability to surrender it during the accumulation period. By definition, the policyowner is the person or entity who has purchased the annuity and is responsible for premium payments and other aspects of policy management.

During the accumulation period, the policyowner may choose to surrender the annuity for various reasons, such as needing access to funds or changing financial goals. It's important to note that surrendering an annuity may entail specific consequences, such as surrender charges or tax implications.

This choice reflects the fundamental principle of ownership, as the policyowner holds the authority to make binding decisions on the annuity contract. Other parties, such as beneficiaries, the insurance company, or the annuitant, do not possess the same rights regarding the surrender of the annuity during this phase.