Life with Refund Payout

Life with refund payout is a term that refers to how payments are made to the owner of an annuity. The life with refund option provides a refund of the amount of principal the annuity owner paid into the annuity in the event that the owner dies before receiving payments that equal or exceed this full amount of principal. For example, let’s say that Bob put $100,000 into an annuity, and that Bob only received $50,000 in annuity payments by the time he passed away. With the life and refund option, Bob would receive the additional $50,000 as a refund.