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Glossary

This glossary is intended as a general aid to help you understand some of the commonly occurring phrases and jargon used in the insurance world.  If you have any questions about the use or meaning of a term or expression in any particular product or literature, you should raise them with the provider concerned.

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General insurance
General insurance is non-life insurance cover for damage or loss. It includes products such as motor, travel, pethealth and home insurance.
Glass replacement
A clause in your home or motor insurance policy that allows you to claim for the replacement of glass in your windscreen, sunroof, windows, doors, skylights, etc.
Gross
The amount before costs are deducted.
Gross interest
Total annual rate of interest on an investment, security or deposit account before taxes or other charges are taken out.
Gross premium
The total amount you pay for cover – your premium plus any charges or commission.
Group personal pension
A type of personal pension scheme (also called group personal pension plan or GPP) set up by an employer on behalf of its employees. Although arranged by the employer, who can also make contributions, each pension contract is between the pension provider and the employee.
Guarantee period
The retirement income from your annuity will normally stop when you die, but you can opt for your annuity to be paid out over a number of years, usually five or ten, even if you die within this period of time. If you die before this period ends, the annuity will continue to be paid to a nominated person or your estate for the rest of the guarantee period. If you live past this period, the annuity will continue to pay you a retirement income until you die.
Guaranteed annuity rate
A fixed rate offered with some pension policies, to turn a pension fund into a retirement income and which does not alter with changing investment conditions. It can be very valuable and will often provide a higher income than an annuity bought via the open market option.
Guaranteed bond
You pay a lump sum into a guaranteed income fund and receive a guaranteed sum at the end of each year or after a set number of years. This is based on single premium, non-qualifying, without-profit endowment policies.
Guaranteed equity product
A single premium investment policy where the funds are linked to the equity index (a stock market index). In many cases ‘lock in’ points are incorporated into the policy, so that once a fund reaches a certain level the policy is guaranteed to pay out that dividend at the end of the term.
Guaranteed minimum pension
People who were contracted out of the State Earnings Related Pension Scheme (SERPS) at any time between 1978 and 1997 were entitled to Guaranteed Minimum Pension, which meant that there were certain conditions on how the pension was paid. For more information, see the Gov.UK website.
Guaranteed premiums
These are premiums that will stay the same over a set time frame.