Definition of "Synthetic guaranteed investment contract"
Brenda Cole, Real Estate Agent
Entourage Elite Real Estate
Modified guaranteed investment contract (GIC) in which the underlying assets of the synthetic contract are owned by the plan itself rather than the insurance company as is the case with the GIC. This ownership right is of particular importance if there is a concern about the long-term financial soundness of an insurance company. The synthetic plan segregates the plan's assets from the assets of the insurance company.
Have a question or comment?
We're here to help.