Tontine

What does tontine?

A system for the raising of capital in the individuals in a shared pool of deposit money, and get then a dividend based on their share and the performance of investments, which the pooled money made. The principle in the tontine invested is never repaid the investor; rather, the investor receives dividends to death. When a "holder" dies, his or her shares among survivors investors.

Investopedia explains tontine

This system is century attributed to Lorenzo de Tonti, Italian banker. Government-funded tontines dividends paid the remaining capital, while investors were alive, but all that would absorb all investors that Government died. Tontines served fallen in the United States as a way of increasing sales of life insurance in the nineteenth century, but from the use and are illegal in many parts of the country.