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tontine

Syllabification: ton·tine
Pronunciation: /ˈtänˌtēn, tänˈtēn
 
/

Definition of tontine in English:

noun

1An annuity shared by subscribers to a loan or common fund, the shares increasing as subscribers die until the last survivor enjoys the whole income.
Example sentences
  • The later we leave it, the more the pension becomes a tontine in which the survivor takes all.
  • If you own a house with others in a tontine - so that on death your share goes automatically to the others - where do you stand with regard to inheritance tax?
  • Here one finds the treatment of joint annuities on several lives, the inheritance of annuities, problems about the fair division of the costs of a tontine, and other contracts in which both age and interest on capital are relevant.
1.1A scheme for life insurance in which the beneficiaries are those who survive and maintain a policy to the end of a given period.

Origin

mid 18th century: from French, named after Lorenzo Tonti (1630–95), a Neapolitan banker who started such a program to raise government loans in France (circa1653).

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