G

General Clauses
Provisions found in insurance contracts of the same type. A few examples of this are clauses regarding incontestability of a contract, suicide, transfer of rights, and currency of payment.
Synonym: General Provisions.

Grace Period
A specified period granted to the policyowner to make payment after the premium is due. This does not apply to the first premium.

Group Insurance Contract
An insurance contract entered into by an organization buying insurance for a designated group of people. (e.g., employees of a company or members of an association).

Group Registered Retirement Savings Plan (GRRSP)
An employer-sponsored RRSP under which each participating employee has an account. Both the employer and the employee can contribute to the plan up to a certain maximum. The employer's contributions are considered taxable income for the employee who may, however, obtain an RRSP tax deduction for the amount involved. For the employer, the contributions are tax-deductible as payroll expenditures.

Guaranteed Insurability
A contractual provision that gives the policyowner the right to purchase additional stated amounts of insurance at stated times in the future without further evidence of insurability.

Guaranteed Investment Certificates
A certificate issued by most financial institutions requiring a small investment be made for a given period of time at a fixed interest rate. This type of certificate is generally not reimbursable before the maturity date.

Guaranteed Minimum Withdrawal Benefit (GMWB)
Means the Optional Guarantee described later in this document under “Optional Guarantees – Guaranteed Minimum Withdrawal Benefit (GMWB)” of the Contract and Information Folder and which provides for a series of payments of a GMWB Amount.

Guarantor
Individual who undertakes to a creditor (e.g., a financial institution) to meet the obligation or discharge the liability of the debtor (borrower) if the latter fails to do so.

H

Health Insurance
A type of insurance that assumes a portion or all of the costs paid by the insured party for medical care.

Synonyms: Accident and Sickness, Health Care, or Supplemental Health Care Insurance or Health Care, Hospitalization and Convalescent Care.

Heirs at Law
Individuals who have a right, in law only, to the estate of a relative who dies without a will. Where there is a will, the heirs are said to be legatees or heirs under a will.

Helios Contract
Means the Contract contained in the present Document and which is offered under the Desjardins Financial Security Guaranteed Investment Funds Plan.

I

Illustration
A document presented to the customer showing the amounts or graphic projections of premiums and the related future value or features of an individual life insurance contract. The purpose of this document is to inform the customer about the terms and features of the policy. An illustration is not a contractual undertaking by the insurer; it is simply a projection based on the various financial terms of the contract.

Immediate Annuity
An annuity that begins its payment stream after a single premium is paid. Synonym: Current Annuity, Annuity Paid.

In a defined benefit pension plan, the immediate annuity is the amount payable by the plan to a retiree.

Incontestable Clause
Provision whereby the insurer, after a fixed period of time and subject to certain conditions, renounces the right to contest the validity of an insurance contract due to an irregularity in the declaration of risk.

Indemnity
Amount payable by the insurer to the insured person following a loss; compensation paid by benefit insurance policies: hospitalization, medical expenses, surgical expenses, wage replacement, etc.
Synonym: Benefit

Index Fund
A fund whose investment objectives require it to a) hold securities included within an index or indexes and weighted to accurately reflect the index or indexes in question, or b) make investments that exactly reflect the performance of the index or indexes.

Indexation
The adjustment of a financial obligation according to an objective benchmark index such as the price index.

Individual Insurance Contract
An insurance contract established to insure the life or health of one or several designated persons.

Inflation
A rise in the average price of goods and services in an economy. In Canada, the consumer price index compiled by Statistics Canada is generally used to measure inflation.

Inforce business
Portfolio of inforce, i.e. all the insurance policies taken out by clients of the company that have not expired of been cancelled.

Insurability
Determination by the insurance company as to the eligibility of an individual to be insured. Insurability is based on a report made to the insurer, which enables the insurer to evaluate the risk associated with insuring the proposed insured. This report mainly covers the proposed insured's age, gender, health, possible hereditary illnesses, and lifestyle.

Insurance Contract
A contract whereby the insurer agrees to pay a benefit to the policyholder, the insured party, or to the beneficiary in the event of the realization of a determined risk, in return for payment of a specific sum, called a premium. The contract may comprise the insurance policy, the application, proof of insurability as well as all riders and appendices amending or updating the contract.

Insured Person
Individual whose life or health is insured under an insurance contract.

Insurer
Refers to the insurance company that bears the risk associated with an insurance policy.

Integrated Life Annuity
A life annuity that takes into account the income the annuitant will be receiving from the public pension plan as of age 65. Under such a contract, the benefits normally payable are reduced at age 65 when the annuitant starts receiving public plan benefits. The contract may provide for payments to a survivor and may or may not include a guarantee in case of death.

Irrevocable Beneficiary
Individual designated as beneficiary of an insurance contract who can not be removed from the contract without his/her consent.