What is the payout option for a life annuity where the beneficiary receives the balance of premiums plus interest minus benefits paid in a lump-sum?

A cash refund life annuity ensures that if the annuitant passes away before receiving total payouts that equal the amount they invested in premiums, their beneficiary will receive the remaining balance. This payout option includes the total premiums paid plus any accumulated interest, minus any benefits already distributed to the annuitant. This structure provides a level of financial security for beneficiaries, ensuring they do not lose the initial investment made into the annuity if the annuitant dies early in the payment phase.

This choice is distinguished from other options because a fixed period annuity guarantees payments for a set number of years regardless of the annuitant's lifespan, while a life income annuity focuses on providing income for the lifetime of the annuitant without a refund feature for beneficiaries. The installment refund option, on the other hand, pays out any remaining balance in installments rather than a lump-sum, differentiating itself from the immediate full payout that a cash refund provides.