Guaranteed investment contract

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Guaranteed investment contract (GIC)

 A pure investment product in which a life company agrees, for a single premium, to pay at a maturity date the principal amount of a predetermined annual crediting (interest) rate over the life of the investment.

Guaranteed Investment Contract

A pension plan purchased through a bank or an insurance company for a lump sum in which the principal is guaranteed by the issuer. One may receive payments from a GIC either in installments or as a lump sum after retirement. A GIC provides the pensioner with a small interest rate that is not guaranteed, but the fact that the principal is guaranteed makes it a relatively low-risk investment.

guaranteed investment contract (GIC)

An investment product sold by life insurance companies that guarantees a return for a specific length of time on a large, lump-sum premium. Most GICs are funded by transfers from some other pension plan. The return of principal is dependent on the insurance company's ability to satisfy its obligation.

Guaranteed investment contract (GIC).

A guaranteed investment contract, or GIC (pronounced gick), promises to preserve your principal and to provide a fixed rate of return when you begin to withdraw from the contract, typically after you retire.

You can invest in a GIC through a salary reduction plan, such as a 401(k) or 403(b) sponsored by your employer, provided that investment option is offered.

Because of their fixed rates, GICs are vulnerable to inflation. And you may have to pay a penalty if you decide to change from a GIC to a different investment.

Insurance companies that offer GICs assume the risk that the rate they earn on their investments will outperform the rates they've guaranteed on the GICs.

References in periodicals archive ?
Manulife Investments, a division of Manulife Asset Management Limited - the global asset management arm of Manulife Financial Corporation (NYSE: MFC) , is one of Canada's leading integrated financial services providing a variety of products and services including segregated fund contracts, mutual funds, annuities and guaranteed interest contracts.
As one of Canada's leading integrated financial services providers, Manulife Investments offers a variety of products and services including segregated fund contracts, mutual funds, annuities and guaranteed interest contracts.
The insurance company guaranteed interest contracts (GICs) that emerged from earlier "portfolio rate" products remain a mainstay of stable value today.
The MetManaged GIC, the first separate account guaranteed interest contract (GIC), offers an integrated approach to asset/liability management and combines institutional investment management with a strong book value guarantee.
Manulife Investments, a division of Manulife Asset Management Limited - the global asset management arm of Manulife Financial Corporation (NYSE: MFC), is one of Canada's leading integrated financial services providing a variety of products and services including segregated fund contracts, mutual funds, annuities and guaranteed interest contracts.
The company uses a variety of distribution channels to offer a broad product line including fixed and variable annuities, guaranteed interest contracts, life insurance, and long-term care and supplementary accident and health insurance.
United will serve as the underwriter of funding agreements and indexed guaranteed interest contracts (GIC).
In addition, Travelers Life & Annuity is a leading provider of guaranteed interest contracts and payout annuities.
Manulife Mutual Funds is part of Manulife Investments, which offers personal wealth management products and services, such as mutual funds, segregated fund contracts, annuities and guaranteed interest contracts.

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