refund annuity

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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Refund annuities promise to pay the difference between the amount invested in the contract (generally the total of the premiums paid) and the annuity payments actually paid out before the death of the annuitant.
The other chapters (15 to 19) develop special topics, that are nevertheless of extreme importance to practicing actuaries: nonforfeiture benefits, dividends, special policies (such as installment refund annuities, mortgage protection, products whose benefits are linked to the performance of an investment fund, options to modify benefits, reversionary annuities), as well as the major actuarial cost or funding methods for defined benefit pension plans.