Home | About | Compare & Save | Insurance Company Ratings | Understanding Insurance | Articles | Links | Contact | Video Life insurance...because life is unpredictable. Auto Insurance Life Insurance Importance of Life Insurance Time Is Money Life Insurance For The Self Employed Life Insurance Needs Analysis Glossary of Life Insurance Terms Health Insurance Glossary of Life Insurance Terms 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 Definitions written so you can actually understand them. Browse alphabetically, or search for a word or term by typing it into the search field located in the top navigation by the GO button (above right). GAAP Reserves Reserves held by a life insurance carrier that are calculated in accordance with generally accepted accounting principles (GAAP). Back to Top General Account Prior to the mid-1960s, life insurance carriers recorded all incoming funds in a single account called the general account. General accounts are still in use and are still likely to be the carrier’s largest account, but other accounts are now used for recording incoming funds. See also separate account. Back to Top Generally Accepted Accounting Principles (GAAP) This is the set of accounting principles all accountants and bookkeepers are trained in and which most firms outside the life insurance industry employ. Within the life insurance industry, many carriers avoid using GAAP in that it is based on the going-concern concept of asset valuation, which doesn’t represent their business model or accurately rate a carrier’s success or shortcomings. Back to Top Generation Skipping Trust Estate Tax savings trust where the principal left in trust is for grandchildren, with one's children only to receive the income from the trust. Back to Top Gift Taxes Taxes levied by governments on gifts made during a person's lifetime. Back to Top Good Health Provision This is a provision contained in some group life insurance policies that states a policy is void if the insured was not in good health either when the application was signed or when the policy was delivered. Back to Top Grace Period In most cases this is the 31 day period that follows the date a premium was due and remains unpaid. During a grace period, the policy, including all riders, remains in force. If a premium is paid during the grace period, the premium is considered to have been paid on time. Back to Top Gross Premium Calculated as the “net premium plus loading”, the gross premium is the amount that policyholders actually pay for their life insurance. Back to Top Group Insurance Insurance, life or otherwise, that provides coverage for multiple policyholders under one master contract. Back to Top Group Permanent Life Insurance Any of the several group life insurance products which build a cash value and are underwritten on a group basis. Group permanent life insurance is often used to either fund group pension plans or to provide life insurance coverage that will continue after retirement. Back to Top Guaranteed Insurability (GI) Rider Also called a policy purchase rider, this is a life insurance policy amendment that gives the policyholder the right to buy more insurance of the same type at a later date. The amount of the additional insurance is capped by the rider, but it can be purchased at specified premium rates and at specified times without new evidence of insurability. Back to Top Guaranty Association Organizations in the insurance industry whose purpose is to protect policyholders from the losses they would face through the insolvency or dissolution of an insurance carrier. Back to Top   Life insurance...because life is unpredictable. InsureMeOnline.com Car Insurance Quotes Rate Your Insurance Company Car Insurance Tutorial Auto Insurance News Competitive Auto Insurance Quotes Life Insurance Tutorial Life Insurance News Save Money on Life Insurance Privacy Policy Terms of Use Site Map COPYRIGHT © 2008-2010 InsureMeOnline.com