What is an insurance GIC?

Life insurance companies offer a unique way to save money that's safe and guaranteed. It's called an insurance GIC, or an accumulation annuity. 

Simply put, an insurance GIC provides the security of knowing you can protect your savings and guarantee your rate of return with the additional benefits of an insurance contract.

  • Find out how much you’ll need to save for retirement and if you're on track to meet your retirement savings goal. Use our Retirement savings calculator

How does an insurance GIC work?

To start, you choose the amount to invest and how long you want to invest it. Your insurance GIC grows with interest until the end of the term you set, called the maturity date. At the maturity date, you get back your original investment, plus all the accumulated interest.

With an insurance GIC:

  • your money is safe, 
  • its growth is predictable, and 
  • you don't have to worry about market ups and downs.

What are the benefits of an insurance GIC?

An insurance GIC has many of the same features as a regular GIC. Like a GIC, it provides a guaranteed rate of return over a fixed period. But because it's an insurance contract offered by an insurance company, there are additional benefits.

With an insurance GIC:

  • You can name a beneficiary even on non-registered funds. That way, when you die, the money will go directly to your loved ones. This helps avoid potential delays and costs involved in settling an estate.
  • Beneficiary names are kept private. Normally, money that flows through an estate becomes public record. But, with an insurance GIC, money is paid directly to the beneficiary. This helps families avoid having to make decisions about how the money is divided. 
  • Your deposits are protected. Since an insurance GIC is an insurance contract, you’re covered by Assuris, a not for profit organization that protects policyholders if their life insurance company fails. You can learn more about Assuris by visiting assuris.ca. 

There are many other benefits to insurance GICs. An advisor can show you how an insurance GIC can benefit you. 

Need help getting started? 

A Sun Life Financial advisor can help you understand how different products can best meet your particular needs. Most advisors now offer to meet Clients virtually by video chat. Find an advisor.

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