Cash Refund Annuity


  • A type of annuity that returns some or all of an annuity's funds if the annuitant dies before the end of the annuity contract. A cash fund annuity will pay the difference between the payments made and received by the annuitant. For example, if an individual has paid $250,000 into a cash refund annuity but has received only $100,000 before their death, the beneficiaries of the annuitant or the annuitant's estate would be entitled to the remaining $150,000. Also known as a "lump sum refund annuity."

lump sum refund annuity

Related Terms and Acronyms

  • Annuity Certain Definition,
    • A type of annuity that makes payments to the annuitant for a set term; payments stop when the agreed upon term ends, even if the annuitant is still alive after the term ends.
  • Annuity Contract Definition,
    • A contract that outlines each party's responsibilities as they relate to an annuity.
  • Fixed Annuity Definition,
    • An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
  • Guarantee Period Definition,
    • A time period where income payments from an annuity are guaranteed.
  • Joint and Survivor Annuity Definition,
    • An annuity with multiple annuitants (usually spouses) that makes payments as long as either of the annuitants are alive.
  • Life Annuity Definition,
    • An annuity that will continue to make payments until the death of the annuitant.
  • Refund Definition,
    • To give back, return, or repay.
  • Split-Funded Annuity Definition,
    • Two annuities purchased together, one with a deferred payout and the other with an immediate payout.
  • Straight Life Annuity Definition,
    • An annuity that stops all payments upon the annuitant's death.
  • Substandard Health Annuity Definition,
    • An annuity with increased income payments for people with shorter life expectancies due to medical conditions.
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