tontine
Sign in to savethumb|Tontine Hotel sign, Ironbridge, Shropshire, UK A tontine () is an investment linked to a living person which provides an income for as long as that person is alive. Such schemes originated as plans for governments to raise capital in the 17th century and became relatively widespread in the 18th and 19th centuries.
Article
13 sectionsContents
- History
- Concept
- Patent
- Uses and abuses
- Projects funded by tontines
- Tontine pensions in the US: 1868–1906
- Modern regulation
- Variant uses of the term
- In popular culture
- See also
- References
- Sources
- External links
thumb|Tontine Hotel sign, Ironbridge, Shropshire, UK A tontine () is an investment linked to a living person which provides an income for as long as that person is alive. Such schemes originated as plans for governments to raise capital in the 17th century and became relatively widespread in the 18th and 19th centuries.
Tontines enable subscribers to share the risk of living a long life by combining features of a group annuity with a kind of mortality lottery. Each subscriber pays a sum into a trust and thereafter receives a periodical payout. As members die, their payout entitlements devolve to the other participants, and so the value of each continuing payout increases. On the death of the final member, the trust scheme is usually wound up.