A cash refund annuity would have lower monthly benefits per $1,000 of premium than an installment refund annuity.

Question

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A cash refund annuity pays a lump sum to the beneficiary if the annuitant dies before receiving the full amount of the premium paid. This lump sum is typically smaller than the total premium paid, resulting in lower monthly benefits per $1,000 of premium than an installment refund annuity, which pays any remaining balance to the beneficiary in installments.

A Cash Refund Annuity Would Have Lower Monthly Benefits Per