Annuities are used to guarantee a constant stream of income over a specified period of time. Depending on the annuity features, the payments will either continue or stop when you die. In a cash refund annuity, your beneficiary receives a lump sum. For example, assume a retiree purchases an annuity for $100,000, and receives $60,000 in annuity payments before passing away. The beneficiary, in this case, would receive $40,000 as a lump sum cash refund from the insurance company. An installment refund annuity would return the $40,000 in payments over a period of time instead of a lump sum.