Financial Jargon Buster - G
- Gilts
- An abbreviation for 'gilt-edged securities'. These are bonds, loans etc issued by the UK government or UK local authorities and are generally
considered to be one of the safer forms of investment. Although the interest rate on the underlying value and the price at maturity are guaranteed, the price will vary during the
lifetime of a gilt; so there is some element of risk.
- GIV
- Gift inter-vivos. A gift made during a person's lifetime as opposed to a legacy, which passes on death.
- GMP
- Guaranteed Minimum Pension.
- GPP
- Group Personal Pension.
- Grace Period
- The specified period after a premium payment is due, in which the policyholder may make such payment, and during which the protection of the
policy continues.
- Granny Bond
- A bond issued by the UK government with enhanced interest or tax privileges but restricted in availability to persons of pensionable age.
- Grant
- The award of funds to an organisation or individual to undertake charitable or tax-exempt activities.
- Grantee
- Individual or organization that receives a grant. Also called a donee.
- Grantor
- Individual or organization that makes a grant. Also called a donor.
- Gross
- A gross interest rate or dividend is one that doesn't take into account the tax you'll have to pay on that income.
- Gross Premium
- The actual premium paid by the policyholder before any tax relief or discount is taken into account.
- Group Contract
- A contract of insurance made with an employer or other entity not formed for the purpose of obtaining insurance that covers a group of persons
identified by reference to their relationship to that entity. Several different types of insurance may be arranged on this basis, including life, critical illness, income
protection, private medical, etc.
- Group Critical Illness Scheme
- A scheme that will pay a cash lump sum to members diagnosed as suffering from one of a range of specified illnesses and conditions.
- Group Health Insurance
- Health insurance written on a number of people under a single master policy, issued to their employer or to an association with which they are
affiliated.
- Group Income Protection
- Group Income Protection Insurance (also known as Permanent Health Insurance, or PHI) gives sick and injured employees a replacement income, and
provides the means for the employer to retain staff even when they are not contributing to the business. The benefit (typically) becomes payable when the company's sickness scheme
ends and continues as long as the employee's absence lasts, right up to normal retirement age.
- Group Life Insurance
- Group Life is designed to pay a benefit, in either lump sum form or as a dependants' pension, on the death of the member.
- Group Permanent Health Insurance
- An alternative name for Group Income Protection.
- Group Personal Pension
- An arrangement between a provider and an employer to offer personal pensions to employees. Charges may be lower because of the numbers involved,
and the employer may also agree to contribute. A GPP is not an occupational pension scheme.
- Guaranteed growth bonds
- Fixed term investments, typically between 3 and 5 years, where you invest a lump sum and are guaranteed either a minimum return or that you won't
lose capital.
- Guarantee Period
- The period for which an insurer will guarantee a quoted rate prior to it being accepted.
- The period for which a guaranteed annuity will continue regardless of the survival of the annuitant
- Guaranteed Income Bond
- A single premium insurance contract providing payments at regular intervals for a fixed period at the end of which the premium is
returned.
- Guaranteed Minimum Pension
- The minimum pension which an occupational pension scheme must provide as one of the conditions of contracting out in respect of pre April 1997 service.
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