Guaranteed investment certificate
Guaranteed Investment Certificate
A guaranteed investment certificate is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, most commonly issued by trust companies or banks.
Due to its low risk profile, the return is generally less than other investments such as stocks, bonds, or mutual funds.
It is similar to a time or term deposit as known in other countries.
Offers a range of GIA options with the following features and benefits:
- Guaranteed rates of return
- Estate planningSecurity of
- principalRedeemable/non redeemable option
- A wide choice of terms and investment options
- Potential creditor protection
- Protected by Assuris, up to limits set by Assuris. More information on the coverage can be found at
Advantages & Characteristics
GIC accounts are simple investments that can bring an important element of securityto a financial plan because there’s no exposure to the market. The basic GIC account offers two investment options: cashable, which provides the flexibility to cash in if the need arises, and noncashable, which offers a high rate as compared with the standard term in the cashable account.
- Offer an advantageous interest rate that is guaranteed for the duration of the term
- Investment terms ranging from one to five years
- Choice of interest payment frequency: annual or at maturity
- Type of accounts available: Non-registered, RRSP, RRIF and TFSA
- Deposit guaranteed by the Canada Deposit Insurance Corporation
- Are not repayable prior to maturity, except in case of death
Frequently Asked Questions
What is the meaning of insurance?
Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection and losses are paid out of the premiums collected from the insuring public.
Why do I need Insurance?
Insurance is a hedge against the occurrence of unforeseen incidents. Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.
Why should one cover oneself immediately ?
Accidents and mishaps can occur anytime and anywhere. It is important to identify the risks faced and insure oneself against these at the earliest.
How to Choose the Best Term Plan?
While selecting a term plan, you need to look for the following and ensure that your family has the best financial protection with the term plan: Claim settlement record of a life insurance company indicates the ultimate moment of truth for the customer. Claim settlement record can be assessed through a percent number (Claim Settlement Ratio) released by IRDAI (Insurance Regulatory and Development Authority India) every year.
How much life cover do I need?
The life cover you need depends on your current annual income. We recommend that a life cover equivalent to 10-15 times your annual income is sufficient to provide for a safe future for your family. If budget is a problem, you could go for monthly premium payment option over a yearly commitment. However, it is important to have a sufficient life cover so that your family’s financial security is not compromised.
What is Critical illness benefit ?
If you are ever diagnosed with a critical illness, it can affect you physically, emotionally and financially. The optional benefit of covering 34 Critical Illnesses such as cancer, heart attack and kidney failure for a maximum of 30 years without any change in premium. But here’s the best part – It gives full claim payout on the first diagnosis of any of the covered 34 Critical Illnesses. No Hospital Bills required. This amount can also safeguard your family against the loss of income arising out of the illness.