Surrender Charge Applicable to a Surrender. The Surrender Charge upon a surrender of this contract is equal to the Surrender Charge percentage applicable to each Chargeable Premium as shown on the Contract Data page multiplied by that Chargeable Premium. Chargeable Premiums are only reduced when premiums that are subject to a Surrender Charge are withdrawn. Earnings that are withdrawn or premiums that are no longer subject to a Surrender Charge or are part of a Free Withdrawal Amount that are withdrawn will not reduce the Chargeable Premium. It may happen that Chargeable Premiums exceed the Accumulation Value. In this case, if you surrender the contract, we will calculate the Surrender Charge based on the full amount of Chargeable Premiums, even though the Chargeable Premiums exceed the Accumulation Value. In the case of a surrender of the contract, the Free Withdrawal Amount is not applicable.
Appears in 2 contracts
Sources: Annuity Contract (Guardian Separate Account R), Annuity Contract (Guardian Separate Account R)