What are the contractual rights that allow the owner of a deferred annuity to surrender the cash value several years before the annuity date called?

The contractual rights that allow the owner of a deferred annuity to surrender the cash value before the annuity date are known as nonforfeiture options. Nonforfeiture options are provisions that ensure that the policyholder retains certain benefits or cash value even if they choose to discontinue premium payments or surrender the policy. They provide a level of security to the annuity owner, ensuring they do not lose all benefits accrued over the years.

These options often enable the owner to receive the accumulated cash value as a lump sum or possibly as a reduced paid-up amount if they wish to keep the contract but stop making new contributions. Nonforfeiture options help protect the consumer’s investment in the annuity, making them a vital aspect of annuity contracts.

Other concepts like withdrawal provisions, loan options, and cash settlement options serve different functions. Withdrawal provisions may allow partial withdrawals from the policy's cash value but do not necessarily guarantee access to the full cash value, especially in the early years. Loan options pertain to the owner's ability to borrow against the accumulated cash value rather than surrendering it. Cash settlement options refer to the method by which the annuity pays out, rather than accessing cash value before the contract matures.