An annuity that makes fixed payments to the annuitant throughout his/her life, but, more importantly, guarantees the return of the original amount paid into the annuity. Thus, if the annuitant dies before the original amount is paid out, his/her survivors receive the remaining amount. Premiums for refund annuities are usually higher than for other annuities.
An annuity that provides fixed payments as long as the annuitant lives and that guarantees repayment of the amount paid in. If the annuitant dies before receiving the amount paid in for the annuity, the balance is paid to the beneficiary.