• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Tontine effect

V

Viki2010

Member
I have come across this concept while doing some past papers. Can someone please explain when can we talk about a "tontine effect" in insurance business?
 
Hi

I have come across this concept while doing some past papers. Can someone please explain when can we talk about a "tontine effect" in insurance business?
Click to expand...


The phrase "tontine effect" refers to a fund where a large windfall goes to the last survivor. For example this could happen with the inherited estate of a with-profits fund. However it will depend on how well the estate was managed and this will be described in the PPFM.
Hope this helps.

Thanks
Em
 
You must log in or register to reply here.
Back
Top