Instalment Refund Annuity is characterized by:

• A. Payments stop at death.
• B. Payments to beneficiary until total amount has been paid.
• C. Payments increase annually.
• D. It pays only for a fixed term.

Answer: (B)

Instalment Refund starts with a guaranteed return of the original investment to a beneficiary, paid in installments after the annuitant’s death. The defining feature is that the beneficiary continues to receive payments until the total amount paid equals the original purchase price. This distinguishes it from a pure life annuity (which ends at death with no beneficiary continuation) and from a term-certain or cash-refund variant (which either ends after a fixed period or pays out a lump sum instead of installments).