refund annuity

noun

Definitions of refund annuity

English

an annuity (=type of investment where an investor pays an initial principal in return for cash payments each year, usually for a specified period or for the lifetime of the annuitant) that returns funds back to a beneficiary if the annuitant dies before annuity payments are made

When dealing with immediate fixed annuities, the installment refund annuity ensures that a specific dollar amount will be returned.