refund annuity

Refund Annuity

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.

refund annuity

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.
References in periodicals archive ?
MassMutual Inflation Protector is not available for cash or installment refund annuity income payment choices.
Revenue Ruling 61-201 states, "In determining the amount of loss sustained by the original purchaser upon his surrender of a single premium refund annuity contract for a cash consideration, the basis of the contract is its cost less the amounts previously received under the contract which were properly excluded from the gross income of the recipient under the law applicable at the time of receipt.
Currently, a 65-year old male can expect annual income payments in excess of 7 percent of premium guaranteed for life from a $100,000 Cash Refund annuity.