Tontine

A species of life annuity, the invention of which is ascribed to Lorenzo Tonti, an Italian, by whom it was propounded at about the middle of the seventeenth century, as a mode by which the governments of the day might obtain loans. There seem to be several forms in which, from time to time, tontines have been arranged; but the general idea is that property is loaned or owned or invested for the benefit of a number of persons, who at first receive its income divided among all; but, when any one dies, his share goes not to his heirs or representatives, but to increase the sum divisible among the sui-viving members. As the number of members diminishes by successive deaths (no new members are created), the annuity of each is increased, until at length the last siurvivor takes the whole income, or, it may be, the whole principal, if such were the terms of the foundation.