Refund annuities provide yet another alternative and allow the investor's beneficiary to receive all or a portion of the amount that the investor placed into the annuity prior to death.
If the insured person dies during the time when the insurance policy is in effect, the insurance company pays the amount of the death benefit to the beneficiary of the policy.
Most people choose children, spouses, family members, or most trusted friends to be a life insurance beneficiary, someone who will be able to distribute everything that you own properly.
The person insured is the one whose life the policy covers, while the beneficiary or beneficiaries are the people who receive income when the insured person dies from causes covered under the policy.
The Random House Unabridged Dictionary defines, it as "insurance providing for payment of a sum of money to a named beneficiary upon the death of the policyholder or to the policyholder if still living after reaching a specified age."