Term Life Insurance Glossary
G
General account
An undivided account in which life and health insurers maintain funds from guaranteed insurance products such as ordinary life insurance.
GI benefit
See guaranteed insurability (GI) benefit.
GIC
See guranteed investment contract (GIC).
Grace Period
The length of time (usually 31 days) after a premium is due and unpaid during which the term life policy, including all riders, remains in force. If a premium is paid during the grace period, the premium is considered to have been paid on time.
Grace Period Provision
A policy provision that allows the policyowner to pay a renewal premium within a stated grace period following the renewal premium due date.
Graded-Premium Whole Life Insurance
A type of whole life insurance in which premiums increase at specified points in time, ultimately reaching a level premium amount payable for the remaining life of the life insurance policy. Graded-premium whole life insurance generally features at least three levels of premium amounts.
Group Insurance
Life insurance that provides coverage for a number of people under one contract, called a master contract.
Guaranteed Insurability (GI) Benefit
A supplementary term life insurance policy benefit that gives the policyowner the right to purchase additional term life insurance of the same type as the basic policy without supplying evidence of the insured’s insurability.
Also known as guaranteed insurability option (GIO).
Guaranteed Investment Contract (GIC)
A retirement plan funding vehicle under which the insurer accepts a single deposit from the plan sponsor and guarantees to pay a specified interest rate on the funds deposited during a specified time period.
Also called a guaranteed income contract or a guaranteed interest contract.
Guaranteed Renewable Policy
An individual health insurance policy that the insurer is required to renew—as long as premiums are paid—at least until the insured attains the age limit specified in the policy. The insurer may increase the premium rate for any class of guaranteed renewable policies.
Guaranteed-Issue Insurance
Term life insurance coverage for which there is usually no individual underwriting. All eligible members of a particular group of proposed insureds who apply for the policy and who meet certain conditions are automatically issued a policy.
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