refund annuity

noun

, Insurance.

1. an annuity providing for a lump-sum payment or installment payments to the beneficiary for the amount remaining of the purchase price at the death of the annuitant.

Example Sentences

One exception is a cash refund annuity, which has a clause that says if the policy holder dies before the annuity payments received equal the annuity payments made, the insurance company will pay the difference to the beneficiary.

From New York Times