What can be charged against a partial withdrawal from a policy?

When a policyholder makes a partial withdrawal from a life insurance policy, a surrender or withdrawal charge may apply. This charge is meant to cover the insurance company's costs associated with processing the withdrawal and adjusting the policy. Such fees are common in policies that have cash value components, like whole life insurance or universal life insurance.

It's important to understand that while partial withdrawals provide access to funds, they can also impact the policy's cash value and death benefit. This charge is typically outlined in the policy's terms and conditions, helping to ensure that policyholders are aware of any potential costs associated with accessing their funds.

While options like interest on the loan, penalties for early withdrawal, or the absence of charges may seem relevant, surrender or withdrawal charges are specifically tied to the act of withdrawing a portion of the cash value from the policy. Thus, the correct answer emphasizes this specific fee mechanism associated with partial withdrawals.