What is the name of the charge that compensates the company for loss of investment value due to early surrender of a deferred annuity?

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When you take money out of a deferred annuity before the surrender period ends, the contract often imposes a surrender charge. This fee is designed to offset the insurer’s costs and the loss in investment value the company incurs from early withdrawal, including upfront commissions and the guarantees made at issue. Surrender charges typically decrease as the surrender period passes and then disappear after it ends. Other terms describe different features: a waiver is not a withdrawal penalty, a bail-out provision relates to contract termination or modification, and interest rate guarantees refer to guaranteed credited rates rather than a withdrawal fee. So the charge that specifically compensates for early surrender is the surrender charge.