Perhaps you have been introduced to Indexed Universal Life and liked the idea of acquiring a policy. However, you may need your hard-earned money for something else in the near future. A Surrender Value Enhancement Rider gives you immediate access to almost all of the premiums you have paid into the contract in the early years of the policy. It also limits risk should your policy get off to poor start.
Surrender Value Enhancement Rider (SVER)
Indexed Universal Life policies can be designed in many ways to best fit the needs of each client. For a client that is looking to minimize risk and maximize liquidity, the Surrender Value Enhancement Rider (SVER) can be a great feature to utilize. The SVER boosts early year surrender values, often to a value equaling 90-100% of premiums paid into the policy. This means that you can surrender your policy and not lose a significant portion of your already paid premiums. For example, if you paid $20,000 into your Indexed Universal Life policy the first year, with the SVER feature, you could surrender the policy and likely have the $18,000 - $20,000 back into your bank account. Whereas without the SVER feature, you may be looking at a significantly lower sum. With the SVER feature, you do not have to pay surrender charges, whereas without it, you will incur substantial surrender charges.