Could tontines work in modern day America?

[AnimeGirlConnoisseur]

Basic information: https://en.wikipedia.org/wiki/Tontine
Ever since I saw that one Archer episode where Woodhouse was in a tontine with his WW1 buddies I found the concept interesting. Do you think that this could work in modern day America? I think that it could be a useful tool for investment and incentivize some people to live more healthy lives, but then there is the issue of people killing each other so that they can claim the money for themselves...

 

[Steelersfan22]

it sounds like an even shittier timeshare.

 

[Irrational Exuberance]

You know, The Simpsons actually made an episode centered around that very concept. I think it would lead to some very unpleasant things occurring: keeping track of the other members and rejoicing when they die, wanting to live longer just to "spite" the other members of the tontine, and of course, the ever-present threat of out-and-out murdering the others and successfully making it look like an accident (although this would no doubt invite greater scrutiny towards the survivors).

 

[heathercho]

As the poster above said, The Simpson's episode perfectly demonstrated the pros and cons of a tontine and why human greed is always an insurmountable obstacle.

Tho I'd like to see a member of a tontine kill the other members by smothering them with a Tontine. Perhaps that's why they named their company that...

 

[Titty Figurine]

A few people would probably enter them with good intentions and stay the course, a good deal more would end up in murder mysteries.

Mostly though I think it has TLC potential as entertainment. It would be kind of a stretch to imagine five years or more of filming per episode to follow each story (and they'd have to start with some pretty old folks to heighten the drama naturally), but I'd get a kick out of that 600lb life music over each funeral and the interviews after each. A murder scandal or two a season, plenty of backstory filler, some tears and disapproving families, "Where Are They Now?" potential... I'd watch the hell out of it.

 

[YW 525]

You know, The Simpsons actually made an episode centered around that very concept.

It also led to the creation of the best Steamed Hams video.

Spoiler

The episode that "steamed hams" is from is called "22 Short Films About Springfield" and the following episode is in fact 'Raging Abe Simpson and His Grumbling Grandson in "The Curse of the Flying Hellfish"'

 

[Kulee Baba]

I feel to prevent the paranoia of feeling someone would try to bump you off to get one step closer to their fortune you would need a decent level of anonymity. Just for an example we all could feasibly do a Tontine, e.g get a hundred kiwis to put $200 dollars each into a fund, be a nice $20000 bonus that would be stuck in Index funds.

But then you'd have to believe that a trusted benefactor like Null would keep tabs making sure we're all alive, and then believe he wouldn't just steal the money for himself. So ultimately no it would fail.

 

[Clop]

I think the quote in the wiki said it best: "When Equitable Life Assurance was establishing its business in Australia in the 1880s, an actuary of the Australian Mutual Provident Society criticised tontine insurance, calling it "an immoral contract" which "put a premium on murder"."

Fuck no, let's not. It's bad enough that it's really easy to rip off retirees, which they fucking did in the early 1900's.