Last Survivor Annuity

(redirected from Tontine Annuity)

Last Survivor Annuity

An annuity between two or more persons in which benefits increase for surviving members as the annuitants die. For example, if there are two persons in a last survivor annuity, each receiving $500 per month, and one of them dies, the remaining annuitant receives $1,000 per month. Payments stop after the last annuitant finally passes away. A last survivor annuity is also called a tontine annuity.
References in periodicals archive ?
A similar pooling scheme is presented by Sabin (2010) known as Fair Tontine Annuity, or FTA, in which "fairness" is achieved by ensuring that pool members' expected benefits did not depend on the mortality experience of others in the pool.