last-survivor policy

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1 An assurance policy on the lives of two or more people, the sum assured being paid on the death of the last to die. See also joint-life and last-survivor annuities.

2 A contract (formerly called a tontine) in which assurance is arranged by a group of people, who all pay premiums into a fund while they are alive. No payment is made until only one person from the group is left alive. At that point the survivor receives all the policy proceeds. Contracts of this kind are not available in the UK because of the temptation they provide to members to murder their fellows, in order to be the last survivor.

Subjects: Financial Institutions and Services.

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