A surrender period is the length of time after purchase during which the insurer charges a penalty fee if you withdraw more than the allowed amount or cancel the contract. Surrender charges typically start in the 7–10% range and decline by one percentage point per year until they reach zero. For example, a 7-year surrender schedule might start at 7% in year one and drop to 1% in year seven. After the surrender period ends, your full account value is accessible without penalty.