Definitions for "Refund life income option"
A method of receiving life insurance policy proceeds under which the insurer uses the policy proceeds to purchase a life income with refund annuity for the beneficiary/payee. See also life income with refund annuity and settlement options. TO TOP
Similar to the life income settlement option, except that if the sum of the payments made to the primary payee during his or her lifetime is less than the proceeds of the insurance policy, the difference is paid in a lump sum to a secondary payee. (See also: life income option.)
A type of life income settlement option in which the insurer guarantees that if the beneficiary dies before the total amount paid under the option equals the proceeds of the policy, then the insurer will pay the difference to a contingent payee.