TONTINE
Tontine
A tontine is an investment plan for raising capital, devised in the 17th century and relatively widespread in the 18th and 19th. It combines features of a group annuity and a lottery. Each subscriber pays an agreed sum into the fund, and thereafter receives an annuity. As members die, their shares devolve to the other participants, and so the value of each annuity increases. On the death of the last member, the scheme is wound up. In a variant, which has provided the plot device for most fictional versions, on the death of the penultimate member the capital passes to the last survivor.The above text is a snippet from Wikipedia: Tontine
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tontine
Noun
- A form of investment in which, on the death of an investor, his share is divided amongst the other investors.
The above text is a snippet from Wiktionary: tontine
and as such is available under the Creative Commons Attribution/Share-Alike License.