A is a specific type of insurance contract designed to provide guaranteed income while ensuring your original investment isn't lost if you die early. Unlike a standard annuity, where the insurance company might keep the remaining balance upon your death, this version pays a lump sum to your beneficiaries for the difference between what you paid in and what you received. How the "Cash Refund" Works
: This structure ensures you at least "break even" on your initial contribution, addressing the fear of "losing" money to the insurance company. cash annuity
: Because the insurance company takes on more risk by guaranteeing a refund, the monthly payment you receive is typically lower than it would be with a "life-only" annuity. Core Benefits vs. Drawbacks Before You Buy an Annuity — Watch This First A is a specific type of insurance contract