Northwestern Mutual surrender fees (or surrender charges) apply when you prematurely cancel a permanent whole life or universal life insurance policy, typically during the first 10 to 15 years of the contract. These charges are implemented by the insurer to recoup upfront administrative and agent commission expenses. The surrender fee starts at its highest level in the initial policy year and decreases incrementally each year until it eventually drops to zero, reducing the net cash payout you receive if you terminate the contract early.
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