What Happens To An Annuity When You Die? 
This depends on what is happening with the annuity when someone dies and what type of annuity -LRB- owner or annuitant driven -RRB- we 're talking about . For an annuity that is not paying income and the owner is the annuitant -LRB- i.e. the type of contract wo n't matter -RRB- , the cash value of the annuity will be paid to the named beneficiary -LRB- ies -RRB- in the contract . If the annuity have been annuitized -LRB- i.e. is paying an income stream -RRB- the chosen option will determine what happens . For life only annuity payments , the payments will stop and no further money will be paid out . For period certain annuities , the income will continue until the period certain has ended . For life with a refund -LRB- installment or lump sum cash -RRB- than the refund will pay the the named beneficiary -LRB- ies -RRB- until the cash value of the annuity has been paid out in full to the beneficiary -LRB- ies -RRB- . 