Tontine

A tontine is a financial arrangement where a group of people pools their money together to invest, with each member receiving dividends from the investment. Over time, as members die, their shares are redistributed among the surviving participants. This can lead to larger payouts for those who live longer, creating a unique incentive to outlive others in the group. Tontines were popular in the 17th and 18th centuries but have become less common due to regulatory issues and concerns over fairness. They offer a mix of investment and insurance-like benefits, focusing on longevity.