tontine insurance Antonyms
No Synonyms and anytonyms found
Meaning of tontine insurance
tontine insurance (n)
a form of life insurance whereby on the death or default of a participant his share is distributed to the remaining members
tontine insurance ()
Insurance in which the benefits of the insurance are distributed upon the tontine principle. Under the old, or full tontine, plan, all benefits were forfeited on lapsed policies, on the policies of those who died within the tontine period only the face of the policy was paid without any share of the surplus, and the survivor at the end of the tontine period received the entire surplus. This plan of tontine insurance has been replaced in the United States by the semitontine plan, in which the surplus is divided among the holders of policies in force at the termination of the tontine period, but the reverse for the paid-up value is paid on lapsed policies, and on the policies of those that have died the face is paid. Other modified forms are called free tontine, deferred dividend, etc., according to the nature of the tontine arrangement.
tontine insurance Sentence Examples
- Tontine insurance is an archaic form of life insurance where policyholders contribute to a centralized fund and the last surviving policyholder inherits the entire accumulated amount.
- The concept of tontine insurance originated in 17th century France as a way for wealthy individuals to pool their resources and protect against financial hardship.
- Tontine insurance policies typically have long durations, often spanning decades or even centuries.
- In a tontine insurance scheme, the premiums paid by deceased policyholders are distributed among the remaining policyholders, increasing the value of their policies.
- Tontine insurance was initially embraced due to its potential for substantial returns, but it later became controversial devido to its speculative nature.
- The practice of tontine insurance faced ethical challenges as the extended duration of the policies could lead to unhealthy competition among policyholders.
- Modern insurance regulation generally prohibits the use of tontine insurance due to concerns about speculative practices and unfair treatment of heirs.
- Some modern investment vehicles, such as deferred annuities, share similar characteristics to tontine insurance but are designed to meet contemporary regulatory standards.
- Tontine insurance played a significant role in the development of insurance and risk management, despite its eventual decline in popularity.
- The term "tontine" is still used today to refer to any arrangement where the last survivor receives a disproportionately large share of the benefits.
FAQs About the word tontine insurance
a form of life insurance whereby on the death or default of a participant his share is distributed to the remaining membersInsurance in which the benefits of th
No synonyms found.
No antonyms found.
Tontine insurance is an archaic form of life insurance where policyholders contribute to a centralized fund and the last surviving policyholder inherits the entire accumulated amount.
The concept of tontine insurance originated in 17th century France as a way for wealthy individuals to pool their resources and protect against financial hardship.
Tontine insurance policies typically have long durations, often spanning decades or even centuries.
In a tontine insurance scheme, the premiums paid by deceased policyholders are distributed among the remaining policyholders, increasing the value of their policies.
