In a group of investors (tontiniers; tontiners) – each pays a one-time sum into an account. – The money collected, usually invested in high-yield government bonds, is paid out to the surviving participants (beneficiaries) after a contractually fixed period of time with interest and compound interest. – The share of those who have died up to that point goes to the survivors (upon the death of each beneficiary his share is enjoyed by the survivors). – The last or, depending on the contract, the last of the investors finally receive the entire accumulated capital. – This form of retirement provision through mutual inheritance probably goes back to the Italian Lorenzo Tonti (1602-1684?). It was very popular in the past and is regarded in specialist literature as the forerunner of today’s life insurance. – See pension funds, insurance. – Cf. Financial Stability Report 2011, p. 64 (in note 6, definition of tontine insurance).
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