(GICS) Deposit-type products that guarantee a minimum rate of return, which may be fixed or floating.
Deposit-type products (including funding agreements) that provide a stated interest rate on funds deposited with the insurer for a stated period. These products are generally purchased by institutionally accredited investors and defined contribution plans qualified under ERISA (the Employee Retirement Income Security Act of 1974).
A single lump-sum deposit that earns a guaranteed interest until a known maturity date. GICs are issued by insurance companies.
Product offered by life insurance companies to pension funds which pay investors a stated rate of return, usually approximation the current yield on high grade Bonds, for a stated term (usually not exceeding ten years).
Accounts that are invested in interest-bearing contracts purchase directly from banks, insurance companies, or mutual funds, which guarantee to maintain the value of the principle and all accumulated interest. Also called stable value funds, these accounts do not go down in value.
Accounts with an insurance company at a fixed rate of interest.
Contract between an insurance company and a company-sponsored or government-sponsored retirement plan that guarantees a specific rate of return on the invested capital over the life of the contract. For pension and profit-sharing plans, guaranteed income contracts are a conservative way of assuring beneficiaries that their money will achieve a certain rate of return. GIC's are not guaranteed by the government; rather, they are an obligation of the issuing insurance company.
