What is tontine?
Tontine is a type of investment where the participants apply to the fund fund and get the same dividends from the fund. As the members die, dividends are divided among increasingly smaller people, resulting in greater payouts. When only one person is left, this person receives all the money from the fund, which makes unexpected payments in old age. This concept is named for Lorenzo de Tonti, a banker who lived in the 17th century and seems to promote this idea. Members of the Tontine Fund are betting to survive other members and have gained greater and larger dividends over time. Unfortunately, this setting also created motivation to cheat by the murder of other pool members to access larger dividends, and in many regions, the Banned Tontines governments have to solve this problem. Investors would get dividends during their lives, but surviving family members would not get anything after death. If Tontin was the only investment, it could leave families at a disadvantage unless the investor also imposes and the investmentVal dividends to secure the survivors.
The modern version of the tontine can be seen in some regions where it is used as a form of health insurance. Members buy in the pool and receive annual dividends to pay health care costs. As they begin to age, they require more care, gain larger dividends because the members of the pool die. This tontine arrangement can create motivation to save money on health care as much as possible so that members do not have to use their dividends that pay for health care.
Some workplaces use this option to provide health insurance services to employees. The creators carefully structure the legality to avoid laws prohibiting traditional tontins. Employees may also decide to initiate their own and in some cases the employer may agree to sponsor the fund with appropriate payments and other benefits. EmployeeI may want to discuss the possibilities of separating human resources to determine what they can do legally and how much support the employer would provide.