The Investment Strategy That Rewards Outliving Peers

A tontine is a unique investment where the survivors inherit the shares of those who die. As members pass away, the remaining investors receive larger payouts, creating a morbid incentive to live longer than everyone else.

Originally designed by 17th-century governments to raise quick cash, these plans grew wildly popular in the 18th and 19th centuries. Investors pooled their money to receive lifelong annual payments, but the annual income increased for the survivors each time a member expired. The system often led to bizarre social tensions since your financial gain was directly tied to the demise of your neighbors. Today, these schemes are mostly restricted due to the extreme conflicts of interest they create.