What does a contract owner receive if they terminate an annuity before the income payment period starts?

When a contract owner terminates an annuity before the income payment period begins, they typically receive the cash surrender value. This cash surrender value is the amount available to the contract owner if they decide to withdraw from the annuity before it matures or before the income payments are scheduled to start.

The cash surrender value represents any accumulation of funds after deductions for fees, expenses, and any necessary surrender charges. This value may not be equivalent to the total amount that has been invested in the annuity, as it reflects the net amount available after costs are accounted for.

Understanding this option highlights the fundamental nature of annuities, which are designed to provide income over time, but must also offer liquidity options for contract owners who may need to access their funds before the agreed payout period commences. The other potential answers, such as full value of future payments or an investment return, do not apply because these are not guaranteed to be accessible upon termination prior to income payout, and no benefits would mean a total loss of investment, which is generally not the case.