Guaranteed Investment Contract (gic)
Definition of "Guaranteed investment contract (gic)"
Institutional investment sold by life insurance companies that guarantees principal and offers withdrawal flexibility. This conservative investment, which can be used with a corporate qualified plan, became one of the most popular choices in such salary reduction plans as the 401 (k) plan. Many of these plans offered employees three choices for depositing their pre-tax retirement dollars: a stock fund, a bond fund, and a GIC. By 1987, about 40% of employees had elected GIC investments.
Popular Insurance Terms
Type of guaranteed investment contract in which funds for the contract are placed in the insurance company's separate account. ...
Legislation that provided temporary rules for implementing the employee retirement income security act of 1974 (erisa). ...
Effort by an individual to continue to receive disability income benefits by taking a continuing sickness or injury. ...
Stealing small amounts of property. Insurance coverage is available under a number of policies. ...
Return of a percentage of premium paid by a business firm if its loss record is better than the amount loaded into the basic premium. ...
Difference between the yield on earning assets and the cost of interest-bearing liabilities. ...
Latin phrase meaning "without which not," signifying a legal rule in tort and negligence cases. Under this rule, a plaintiff trying to prove that an injury was a direct result of a ...
Requirement that the deductible must be met for each separate illness or accident before benefits are payable under major medical insurance. ...
Conveying of assets from the donor to the beneficiary as a means of minimizing the legal tax obligation of the estate of the donor and avoiding probate. ...
Have a question or comment?
We're here to help.