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32 your premium payments and when you make them. For example, you can pay premiums for six months and then stop paying them for the next six months. There may be minimums and maximums that apply to your payments. Fraternal society/Fraternal benefit society. A not-for-profit organization that operates for fraternal, benevolent or religious purposes, including providing insurance to its members and their families. G Grace period. A period in which an insurance policy is effective even though the premium is past due. Group annuity. A workplace savings plan that provides a regular income, typically at retirement. Pension plans and group registered retirement savings plans often use group annuities. Group insurance. A type of insurance that provides coverage for a group of people (for example employees or members of an association) under one contract called a group plan or group policy. Group policyholder. An organization (for example an employer or association) that enters into a group insurance contract with an insurance company. (See "Group insurance".) Group Registered Retirement Savings Plan (GRRSP). See "Registered Retirement Savings Plan". Guaranteed death benefit. The minimum amount an insurance company pays to the beneficiary when the insured person dies. Guaranteed insurability benefit. An option in a life insurance policy. It gives you the right to buy additional insurance coverage at set future ages without having to give proof of good health. It's also called "Guaranteed Insurability Option" (GIO). (See "Evidence of insurability".) Guaranteed maturity benefit. The amount that your insurance company guarantees to pay you on the policy maturity date. This benefit is most common with "Segregated fund" contracts. (See "Maturity date".) Guaranteed Minimum Withdrawal Benefit (GMWB). An option within a segregated fund contract that guarantees to pay you a stated income as long as you live, or for a specified period, even if the cash surrender value of the contract drops. If the cash surrender value grows, then the income paid to you can increase. Guaranteed renewable policies. A feature of an individual insurance policy where the insurance company guarantees to renew the insurance at the end of a certain period, regardless of any changes in your health. Premiums may increase at renewal times. H Health care spending account. An arrangement in a group plan where the plan member gets a number of credits in an account. The member can use the credits to pay for health and dental expenses not covered elsewhere in their plan. Health insurance. A type of insurance that covers medical expenses (such as drugs, dental expenses, vision expenses) or loss of income if you're sick or injured. Types of health insurance include accident and sickness insurance, disability income insurance, and accidental death and dismemberment insurance. Hospital expense insurance. A feature of extended health care insurance that covers hospital expenses not covered by your provincial health plan during your stay in hospital. It can include the cost of private or semi-private hospital rooms and other prescribed hospital services. Hospital indemnity. A health insurance benefit that pays a flat amount for each day a covered person is in hospital. The number of days covered is set and the daily amount paid does not vary, regardless of the medical expenses the covered person incurs. Also called "hospital cash plans". I Illustration. A document you may get from your advisor when you are thinking about buying insurance. It explains how the policy would work. It shows the costs and values of the policy under different conditions. It should also clearly show what's guaranteed and what's not. A policy illustration is for your information only and isn't part of a legal contract. Immediate annuity. An annuity product you buy with a single lump-sum payment and that starts paying a guaranteed amount almost immediately. Impaired annuity. Someone who has a serious medical condition may qualify for an impaired life annuity. This means the amount they receive may be higher than a healthy person making the same purchase. The greater the severity of their condition, the shorter their life expectancy will be, so the annuity can pay a higher income. Impaired risk. In life and health insurance, a person who has physical or health problems, or who has a risky occupation or hobby, is known as an impaired risk. A person who presents an impaired risk may not qualify for coverage. If they do qualify they may pay higher premiums for their coverage. For example someone with a history of strokes would be an impaired risk. Individual insurance. Insurance you buy as an individual from an advisor or insurance company. This differs from group insurance, which you may have through your employer. (See "Group insurance".) Individual variable insurance contract. A contract, usually an annuity, where your premiums are invested in segregated funds managed by the life insurance company. The value of the plan will vary over time based on the value of those investments. These contracts guarantee to pay at least 75% of what you've paid into the plan on death or maturity, even if the investments are worth less. Information folder. The document your advisor gives you before you buy a segregated fund contract. It provides details about the contract and your investment options. Insured. See "Policyholder". Insurer. An insurance company that issues policies and promises to pay benefits. Integration of benefits. The process where an insurance company takes into account disability income you receive from other benefit plans, such as the Canada and Quebec Pension Plans, when determining your benefit amount. For example, your insurance benefit will be "off-set", or reduced, by the amount of CPP benefits that you receive while disabled. Irrevocable beneficiary. A type of beneficiary designation where you need written permission from the beneficiary before changing the beneficiary or making certain other changes to your coverage under the policy. J Joint and last survivor annuity. See "Annuity". K Key person insurance. A type of insurance on the life of a key employee in a business. It's designed to provide cash to hire and train a replacement and replace lost revenues and profits, if the key employee dies.