Refund Annuity

Also called life income with refund annuity, a contract that guarantees payments equal to the premiums paid, even if the annuitant dies.

Form of annuity returning premiums plus interest to a beneficiary if the annuitant dies during the accumulation period. A refund annuity costs more than a pure annuity. If the annuitant dies during the liquidation period, benefits paid to any beneficiary depend on whether the refund annuity is in the form of a Life Annuity Certain, Installment Refund Annuity or Cash Refund Annuity.