Non-refund Annuity Law and Legal Definition
A non-refund annuity is a form of annuity which guarantees payment for the annuitant’s life time, but will not make any refund to anyone at the death of the annuitant. It is also called as straight life annuity, or pure annuity.
In Mahoney v. Metropolitan Life Ins. Co., 1982 U.S. Dist. LEXIS 13554 (D. Ill. 1982),the court observed that “Although a refund annuity guarantees periodic payments for a fixed term, such as ten years or more, a non-refund annuity assures payments only as long as the beneficiary or annuitant is alive.”
