An individual investor will receive interest or dividends from the tontine based on the investment's performance.As each investor dies, their shares or proportional ownership of the tontine are redistributed to the survivors.
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Thus, the remaining shareholders receive larger dividends as more of the tontine members die.
Although the concept of life insurance can be morbid in itself, with traditional life insurance the payout on Jeff's policy is entirely dependent on whether or not he dies while covered.
They've been the subject of sitcoms and murder mysteries.
Jeff got the idea from an old TV show to start one since he's distrustful of Social Security.