New York Life

Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

GAAP
The body of principles that governs the accounting for financial transactions underlying the preparation of a set of financial statements in the United States of America. Generally accepted accounting principles are derived from a variety of sources, including promulgations of the Financial Accounting Standards Board and its predecessor, the Accounting Principles Board, and the American Institute of Certified Public Accountants.

Grace Period
The time between an insurance policy's premium due date and the date the policy will lapse if the premium remains unpaid. Typically, grace periods are 30 or 31 days, and no interest is charged on premiums paid during that time. A grace period protects insureds and their beneficiaries from having the policy terminate inadvertently.

Grantee
A person to whom property is transferred.

Grantor
One who transfers property.

Gross Estate
An individual's accumulated wealth and property (net premium plus expenses) at the time of his or her death.

Gross Premium
This is the premium paid by the policyowner.

Group Insurance
Insurance issued under a master contract offering coverage to a pre-selected group (such as employees of a company or members of an association). Coverage is offered to all qualified members of the group on a class basis, regardless of individual considerations or insurability.

Group Life Insurance
Life insurance usually offered without medical examination on a group of people through a master policy.

Guaranteed Cash Value
Insurance coverage for which there is no individual underwriting, i.e., no medical underwriting.

Guaranteed Death Benefit (Annuity)
For variable annuity contracts, a provision which provides that, should the annuitant or owner die before benefits begin, the beneficiary will receive no less than the amount originally invested (regardless of investment experience) or the actual value of the contract, if greater. In some annuities, the guaranteed amount is periodically increased.

Guaranteed Death Benefit (Life Insurance)
This is the minimum death benefit that will be paid. The death benefit is guaranteed in a whole life policy. With variable life and other non-traditional products, provisions are often available to provide limited death benefit guarantees.

Guaranteed Future Income Benefit
The minimum guaranteed income payable to you beginning on the GFIB Payment Commencement Date.

Guaranteed Future Income Benefit Commencement Date
The date shown on the Policy Data Page, or as subsequently changed by you, on which the first GFIB Payment under this Policy will be made.

Guaranteed Future Income Benefit Payment Mode
The mode on which Income Benefit Payments are made. The mode may be Monthly, Quarterly, Semi-Annual or Annual.

Guaranteed Insurability Rider
Allows for the purchase of additional insurance coverage without evidence of insurability. Please see your contract for specific details.

Guaranteed Issue
In group insurance, this is the maximum amount of insurance that will be issued without the need to provide evidence of insurability. If the group is acceptable, the insurance company dispenses with individual underwriting (For example, a whole life policy may offer a guaranteed amount of $10,000 for applicants under age 35.) The guaranteed issue feature reduces policy issuing costs and premiums.

Guaranteed Renewable
A provision included with some term life insurance policies that allows the insured to renew the coverage at the end of the term, generally at the insured's attained-age premium rate.

Guideline Violation
The Guideline Premium Test (GPT) is used to determine whether your policy qualifies as life insurance under IRC Section 7702. If the premiums paid during any Policy Year exceed the maximum amount permitted under the GPT, we will return to you the excess amount.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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