Tontine (Noun)
Meaning 1
A form of life insurance whereby on the death or default of a participant his share is distributed to the remaining members.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The group of friends decided to create a tontine, pooling their resources and sharing the returns among the surviving members as the others passed away.
- A tontine was proposed as a way to incentivize employees to remain with the company, as the surviving participants would benefit financially from the departure or death of their colleagues.
- In the 19th century, some tontines were formed as a means of funding business ventures, with the investors sharing the profits and absorbing the losses among themselves.
- As the years went by, the number of participants in the tontine dwindled, and the remaining members reaped a larger share of the profits with each passing of a fellow member.
- The tontine was carefully managed to avoid any disputes over the distribution of shares, ensuring that the remaining members would receive their due without any controversy.
Synonyms
Hypernyms
Meaning 2
An annuity scheme wherein participants share certain benefits and on the death of any participant his benefits are redistributed among the remaining participants; can run for a fixed period of time or until the death of all but one participant.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The tontine was established in the 18th century as a means for a group of investors to share in a lucrative business venture.
- As a member of the tontine, John stood to gain a significant increase in his annual payout upon the death of one of his fellow participants.
- The group of friends had formed a tontine, pooling their resources to purchase a large property that would be divided among the survivors.
- When Henry joined the tontine, he was told that the scheme had been running for over 20 years and that several members had already passed away.
- The last surviving member of the tontine would ultimately inherit the entirety of the trust fund, making the scheme a high-stakes gamble for its participants.