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Definition of "tontine" [ton•tine]

  • An investment plan in which participants buy shares in a common fund and receive an annuity that increases every time a participant dies, with the entire fund going to the final survivor or to those who survive after a specified time. (noun)
  • Each member's share of a tontine. (noun)
  • The subscribers to a tontine. (noun)

American Heritage(R) Dictionary of the English Language, Fifth Edition. Copyright (c) 2011 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Use "tontine" in a sentence
  • "*A tontine is a financial arrangement whereby a fixed group takes shares in an investment—in this case the coffeehouse—paying out pro rata as each dies or drops out; the last one standing gets the whole shebang."
  • "The tontine is a scheme for raising money on a long-term basis by weighting rewards in favour of the longest lasting contributors."
  • "They work, I am told, with a kind of tontine -- it is, in fact, a lottery."