tontine

/'tɔnʃə/

Thân thiện

A group of investors reviews a tontine agreement at a table.

Definition

1. Noun:
   • A financial arrangement involving an annuity or life insurance scheme: A "tontine" is a type of investment plan or life insurance policy where participants contribute money to a common fund. Each participant receives periodic payments (an annuity). When a participant dies, their share of the benefits is redistributed among the surviving participants. The scheme continues until the last surviving member receives the entire remaining fund or until a predetermined period ends.

Examples of Usage

• Noun:

Advanced Usage

• "to be part of a tontine": to be a member or participant in such a scheme.

Variants and Related Words

• Tontine annuity (n): A specific type of annuity structured as a tontine.

Synonyms

• Survivorship annuity: An annuity where payments increase for survivors.
• Last-man-standing policy: An informal term describing the tontine's outcome.

Related Phrases

• Tontine insurance: A life insurance policy operating on tontine principles, where dividends are forfeited by members who lapse their policies and redistributed to those who persist.

Học thuật

Noun

1. an annuity scheme wherein participants share certain benefits and on the death of any participant his benefits are redistributed among the remaining participants; can run for a fixed period of time or until the death of all but one participant
2. a form of life insurance whereby on the death or default of a participant his share is distributed to the remaining members

Từ đồng nghĩa

• tontine insurance