Term Life Insurance Glossary

Guaranteed insurability (GI) benefit

A supplementary life insurance policy benefit that gives the policyowner the right to purchase additional 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

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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