Gift Tax A graduated tax imposed by the federal government (and most provincial governments) on transfers of assets over a certain amount.

Gifting Strategies Gifting strategies are estate planning techniques that allow a donor to transfer assets to heirs during the donor's lifetime with the intention of reducing federal and state estate taxes.

Grace Period A period of time in most loan contracts and insurance policies during which default or cancellation will not occur even though payment is due. This term also refers to the number of days (typically 25) between when a credit card bill is sent and when the payment is due without incurring interest charges.

Gross Estate The total value of all property in an estate before liabilities (i.e., debts and taxes) are deducted.

Group Disability Insurance A disability insurance policy that covers a group of individuals who are affiliated in some way, either through an employer, trade association, or other organization. Group disability coverage is generally less expensive than individual disability coverage, however, benefits are limited to a stated length of time and the maximum monthly income benefit is usually no more than 50 to 60 percent of earnings.

Group Insurance An insurance contract that covers a group of individuals who are affiliated in some way, either through an employer, trade association, or other organization.

Guaranteed Insurability Rider An addition to an insurance policy that guarantees the insured can purchase more insurance at specified ages without providing proof of insurability.

Guaranteed Renewable A provision in an insurance contract that guarantees that the contract is renewable for the period stated in the contract provided that premiums are paid in a timely fashion. The insurer cannot make any changes in the provisions other than a change in the premium rate for all insureds in the same class.