New Jersey Life & Health Insurance Guaranty Association 11 Wharf Avenue, Suite One / Red Bank, NJ 07701 Home About Us FAQs Receiverships Additional Info Links Terms of Use Contact Us Frequently Asked Questions      What is the difference between cash surrender value and present value with respect to annuity benefits? Deferred annuities, (those annuities which are in the accumulation phase and earn interest at some declared rate for a period of years) and which may be surrendered to the insurance company for cash subject to any applicable surrender charges, have a cash surrender value. The $100,000 limit is applicable with respect to these deferred annuities. Annuity benefits are subject to the higher $500,000 limit when they are in the payout or “on-benefit” stage, such as when you have elected to take a monthly payment stream from an annuity upon retirement.   NOTE: This information is not intended as legal advice, and no liability is assumed in connection with its use. The applicable state guaranty association statute is the controlling authority, regardless of any information presented on this site. Users should seek advice from a qualified attorney and should not rely on this compilation when considering any questions relating to guaranty association coverage.   [ Back to FAQ list ]