What are common reasons for surrendering an annuity?

Surrendering an annuity typically occurs when the policyholder encounters immediate financial needs or is dissatisfied with how the annuity is performing. The need for immediate cash can arise from unexpected expenses such as medical bills or home repairs, prompting individuals to access the funds tied up in their annuitized investment. This situation often outweighs the benefits of leaving the annuity intact, especially if liquidity is a pressing concern.

Dissatisfaction with the annuity's performance can stem from various factors, such as lower than expected returns or poor service from the insurer. If the investment is not meeting the policyholder's financial goals or expectations, they may seek to surrender the annuity in favor of alternatives that could be more beneficial.

Ultimately, these reasons are rooted in the immediate financial circumstances of the policyholder and their investment objectives, illustrating why option C stands out as a common rationale for surrendering an annuity.