Insurance Terms

Gain

The profit made on a securities transaction realized when a stock, bond, mutual fund, futures contract, or other financial instrument is sold for more than its purchase price. When the security has been held for more than one year, the gain is taxable at more favorable capital gain rates. If the asset is held for less than one year the gain is taxed at regular income tax rates.
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Generation Skipping Transfer (GST)

A transfer of property made to a family member who is more than one generation below the donor, that occurs either during life as a gift or at death by will or bequest.
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Generation-Skipping Transfer Tax (GSTT)

A federal tax on transfers of property made to a family member who is more than one generation below the donor, that occur either during life as a gift or at death by will or bequest.
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Gift Tax

A graduated tax imposed by the federal government (and most state governments) on transfers of assets over $10,000 per year per donee.
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Gifting Strategies

Gifting strategies are estate planning techniques that allow a donor to transfer assets to heirs during the donor's lifetime with the intention of reducing federal and state estate taxes.
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Grace Period

A period of time in most loan contracts and insurance policies during which default or cancellation will not occur even though payment is due. This term also refers to the number of days (typically 25) between when a credit card bill is sent and when the payment is due without incurring interest charges.
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Gross Estate

The total value of all property in an estate before liabilities (i.e., debts and taxes) are deducted.
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Group Disability Insurance

A disability insurance policy that covers a group of individuals who are affiliated in some way, either through an employer, trade association, or other organization. Group disability coverage is generally less expensive than individual disability coverage, however, benefits are limited to a stated length of time and the maximum monthly income benefit is usually no more than 50 to 60 percent of earnings.
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Group Insurance

An insurance contract that covers a group of individuals who are affiliated in some way, either through an employer, trade association, or other organization.
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Guaranteed Insurability Rider

An addition to an insurance policy that guarantees the insured can purchase more insurance at specified ages without providing proof of insurability.
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Guaranteed Renewable

A provision in an insurance contract that guarantees that the contract is renewable for the period stated in the contract provided that premiums are paid in a timely fashion. The insurer cannot make any changes in the provisions other than a change in the premium rate for all insureds in the same class.
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Guarantor

An individual who is responsible for another person's loan or other debt in the event that the principal debtor defaults and cannot meet the debt.
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Guardian

An individual who has the legal right to care for a minor or act as an administrator of the assets of another who is incapacitated or declared incompetent.
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Guardianship

A formal, court-appointed method of substitute decision making on behalf of an individual who is a minor or who has been declared legally incapacitated or incompetent. Guardians of the estate are sometimes referred to as conservators. Guardianship can be general, limited, or temporary and can act on behalf of the person, the estate, or both (plenary).
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