Life Insurance and Life Settlement Terms - G
Gap Insurance
An automobile insurance choice, available in some states, that covers the difference among a car’s real cash value when it is stolen or wrecked and the amount the consumer owe the leasing or finance concern.
General Account
An undivided investment account in which insurers uphold funds that support contractual obligations for guaranteed insurance products like whole life insurance or fixed-rate annuities.
Glass Insurance
Coverage for glass breakage caused by all risks; fire and war are at times excluded. Insurance may be purchased for windows, structural glass, leaded glass and mirrors.
Grace Period
For insurance premium payments, a particular length of time following a premium due date within which the renewal premium might be paid without penalty.
Grace Period
The length of time (usually 31 days) after a premium is due and unpaid during which the term life policy, comprising 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 lets the policyowner to disburse a renewal premium within a stated grace period following the renewal premium due date.
Graded Premium Policy
A kind of modified-premium whole life policy that calls for three or more levels of annual premium payment amounts, rising at specified points in time - like every three years - until reaching the sum to be paid as a level premium for the rest of the life of the policy.
Graded-Premium Whole Life Insurance
A type of whole life insurance in which premiums increase at specified points in time, eventually reaching a level premium amount payable for the remaining life of the life insurance policy. Graded-premium whole life insurance normally features at least three levels of premium amounts.
Graduated Driver Licenses
Licenses for younger drivers that permit them to enhance their skills. Regulations vary by state, but frequently restrict nighttime driving. Young drivers get a learner’s permit, followed by a provisional license, before they can receive a standard driver’s license.
Gross Premium
The premium for partaking Life Insurance. If an insured elects to use his dividends to disburse premiums, this becomes the net premium when dividends are subtracted from it.
Group Insurance
A single policy covering a group of individuals, typically employees of the same company or members of the same association and their dependents. Coverage happens under a master policy issued to the employer or association.
Group Life
Policies, usually term, purchased through a group, generally an employer. To be sold in the life settlement market, a group policy must normally be converted to an individual policy.
Group Permanent Life Insurance
A form of Life Insurance under which members of a group are provided one of more than a few plans of Permanent Life Insurance on a group basis instead of the more normal plan of Term Life Insurance.
Guaranteed insurability (GI) benefit/GI benefit
A supplementary life insurance policy benefit that provides the policyowner the right to purchase additional insurance of the same kind as the basic policy without supplying evidence of the insured’s insurability.
Guaranteed investment contract (GIC)/GIC
A retirement plan funding vehicle under which the insurer accepts a single deposit from the plan sponsor and guarantees to disburse a specified interest rate on the funds deposited during a specified time period.
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.
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.
Guaranteed Insurability (GI) Benefit
A supplementary life insurance policy benefit frequently provided through a policy rider that gives the policy owner the right to buy additional insurance of the same type as the life insurance policy that provides the GI benefit on specified option dates.
Guaranteed-Issue Insurance
Term life insurance coverage for which there is usually no individual underwriting. All eligible members of a particular group of proposed insured who apply for the policy and who meet specific conditions are automatically issued a policy.
Guaranteed Living Benefit
A guarantee in a variable annuity that a some level of annuity payment will be maintained. Serves as a protection against investment risks. Several kinds exist.
Guaranteed Renewable Policy
An individual health insurance policy that the insurer is needed to renew—as long as premiums are paid—at least until the insured gets the age limit specified in the policy. The insurer might increase the premium rate for any class of guaranteed renewable policies.
Guaranteed Renewable Policy
An individual health insurance policy that needs the insurer to renew the policy—as long as premium payments are made—at least until the insured gets a stated age. The insurer may alter premium rates for broad classes of insured but not for an individual insured. Contrast with noncancellable and guaranteed renewable policy.
Guaranteed Replacement Cost Coverage
Homeowners policy that pays the complete cost of replacing or repairing a damaged or damaged home, even if it is above the policy limit.
Guarantee Period
Period during which the level of interest stated under a fixed annuity is guaranteed.
Guaranty Fund
The mechanism by which solvent insurers make sure that some of the policyholder and third-party claims against insurance companies that fail are paid.
Gun Liability
A legal concept that holds gun producers liable for the cost of injuries caused by guns. Many cities have filed lawsuits based on this concept.
