Noun: tontine 'tón,teen
- A form of life insurance whereby on the death or default of a participant their share is distributed to the remaining members
"Tontine insurance was popular in the past but is now rarely offered due to ethical concerns";
- tontine insurance
- An annuity scheme wherein participants share certain benefits and on the death of any participant their benefits are redistributed among the remaining participants; can run for a fixed period of time or until the death of all but one participant
"The group of investors entered into a tontine agreement, with the last survivor receiving the entire fund"
Derived forms: tontines
Type of: annuity, life assurance [Brit, Cdn], life insurance [N. Amer], rente [rare]
Encyclopedia: Tontine