The LIFE payout options available from an annuity or life insurance policy are of two types: (A) Life Only and (B) Life with Refund
(A) Life Only - the contract guarantees an income (at least annually) for the life of the "annuitant" (the person whose age and sex determines the amount payable). At the annuitant's death, the contract ceases, without value.
(B) Life with Refund - Like Life Only, this option will pay an income for the life of the annuitant. If the annuitant dies before the expiry of a specified period, such as 10 years (this is known as a "life and 10 Year Certain" payout) or before the annuitant has received a specified total amount (this is called "life and Cash Refund"), the remaining "refund" amount will be paid to the beneficiary. In the case of "Period Certain" options, the beneficiary will receive the remaining payments (e.g.: if annuitant died having elected a Life and 10 Year Certain and died after five years, the beneficiary will receive payments for the next five years. In a Cash Refund payout, the beneficiary will receive the lump sum difference between the specified lump sum and the cumulative value of income payments paid to the annuitant.
It should be noted that NO annuity payout arrangement can EVER guarantee ANY amount to the beneficiary, as all such arrangements will terminate without value if the annuitant lives past the "refund feature" guarantee.
LIFE payout are not the only way that annuities can provide income. A non-life payout, called "Period Certain", guarantees payment of income for a specified period of time (e.g.: 20 years), whether the annuitant is living or not. If the annuitant outlives the Period Certain, no further payments are made.
annuity
premium
In this scenario, the investor receives periodic payments (annuity payments) and a lump sum when the debt instrument matures.
As you have described it, this sounds very similar to an annuity.
annuities....
Annuity
One can obtain cash for structured settlement payments from any of the legal financing companies. Structured settlements is a periodic payments of funds. It is received as a claimant of injured party.
That could be an annuity, or a permanent life insurance policy.
Whole Life, Universal Life, as well as Annuities can be used for this purpose.
Periodic payments against an outstanding loan balance that do not pay off the entire outstanding loan balance.
Running Account Bills: Raised for periodic payments for an ongoing projects, example for construction projects
Some features of a structured annuity include: periodic payments instead of lump sum payments, reduced legal fees and court costs, and higher interest rates.