tontine

ton·tine  (tntn, tn-tn)

n.

1. An investment plan in which participants buy shares in a common fund and receive an annuity that increases every time a participant dies, with the entire fund going to the final survivor or to those who survive after a specified time.

2. Each member's share of a tontine.

3. The subscribers to a tontine.

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[French, after Lorenzo Tonti (1635-1690?), Italian-born French banker.]

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tontine [ˈtɒntiːn tɒnˈtiːn]

n

1. (Economics, Accounting & Finance / Banking & Finance)

a.  an annuity scheme by which several subscribers accumulate and invest a common fund out of which they receive an annuity that increases as subscribers die until the last survivor takes the whole

b.  the subscribers to such a scheme collectively

c.  the share of each subscriber

d.  the common fund accumulated

e.  (as modifier) a tontine fund

2. (Business / Insurance) a system of mutual life assurance by which benefits are received by those participants who survive and maintain their policies throughout a stipulated period (the tontine period)

[from French, named after Lorenzo Tonti, Neapolitan banker who devised the scheme]

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tontine

1. an annuity, or loan, based on a group of annuities that are shared among several people with the provision that as each person dies his share is spread among those remaining, and the entire amount accrues to the survivor of them all.
2. the members of the group collectively.
3. each member’s total share or annuity. — tontine, adj.

See also: Finance

Thesaurus

Noun	1.	tontine - a form of life insurance whereby on the death or default of a participant his share is distributed to the remaining members tontine insurance life assurance, life insurance - insurance paid to named beneficiaries when the insured person dies; "in England they call life insurance life assurance"
	2.	tontine - 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 annuity, rente - income from capital investment paid in a series of regular payments; "his retirement fund was set up to be paid as an annuity"