What types of insurance policies usually allow for partial surrenders?

Partial surrenders are a feature typically associated with certain types of insurance policies that provide cash value accumulation. Annuities, universal life policies, and variable life policies all allow policyholders to access a portion of the cash value without needing to surrender the entire policy.

In the case of annuities, individuals can often withdraw funds based on their needs, which can assist in financial planning during retirement. Universal life policies offer flexibility in terms of premiums and allow for partial withdrawals of accumulated cash value. Variable life policies, similar to universal life, include an investment component where the cash value can fluctuate, and partial surrenders can be made based on the performance of the investments.

Term policies typically do not have a cash value component, as they are intended to provide pure life insurance coverage for a specified period without an accumulation of cash value. As a result, they do not offer the option for partial surrenders.

Group life insurance usually provides coverage for a group of people, often through an employer, and does not have the structure that supports cash value accumulation, meaning they also do not allow for partial surrenders.

Therefore, the answer aligns with the nature of annuities and certain flexible life insurance options that are designed to support partial