A debt instrument such as a note that is issued by an insurance company, usually in a large denomination, which is often bought for retirement plans. The investor pays money upfront and then the principal and interest rate payments are guaranteed.
guaranteed investment contract - Investment & Finance Definition
An investment product issued by an insurance company. The investor pays the issuer and in turn receives regular interest payments. The terms of a GIC vary significantly. Some offer a high initial return guarantee, which imposes some restrictions on the investor’s ability to withdraw funds. Similar contracts offered by banks are called bank investment contracts or bank deposit agreements.