Definition

A financial arrangement where people invest money together, and the money is paid out to the last surviving member or members after others have died.

Example

The tontine was designed to provide financial support to the last surviving participant.

Conversation

Have you ever heard of a tontine?

No, I haven't. What is it?

It's a kind of investment plan where people share a fund and the money grows as participants pass away.

That sounds interesting, but a bit morbid too!

Synonyms & Antonyms

Root Explanation

Tontine → The word 'tontine' originates from the name of Lorenzo Tonti, an Italian banker who devised this financial arrangement in the 17th century. It refers to a system where participants contribute to a common fund and receive payments until their death, with the remaining funds going to the surviving members.

Memory Tip

Imagine a group of people pooling their money together, where each person receives payments until they pass away, and the remaining funds are shared among the survivors — that's the essence of a tontine.

Visually Confused Words