What is it?
As the name suggests, a guaranteed interest option (GIO) is an investment in which the principal – or the original amount invested – is protected and a rate of return is guaranteed. By guaranteeing a rate of return on your investment, a GIO can provide you with a clearer picture of your financial future.
A guaranteed interest option may be more attractive to investors who are concerned about market swings and want to ensure their investment principal remains safe.
How does it work?
GIOs feature a variety of interest options and investment terms. The term of your GIO can range from 30 days to several years, with interest rates based on the original amount invested.
Unlike many other investment types, GIOs can be liquidated – or “cashed out” – at any time, giving you easy access to your money when it’s needed.1 To learn more about how a GIO can help you plan for the future, talk to your financial security advisor.
How will it benefit me?
Unlike a guaranteed interest certificate (or GIC) offered through a bank, Great-West Life’s guaranteed interest option can help you bypass (or avoid) estate and probate fees when your investment is paid directly to a designated beneficiary following your death. It’s an effective way of seamlessly passing your investment – including the principal and interest – to your loved ones.
Because it’s classified as an annuity policy, your investment may be protected from creditors in the event that you file for bankruptcy.
We're backed by Assuris
The Great-West Life Assurance Company is a member of Assuris, a not-for-profit corporation, funded by the life insurance industry, that protects Canadian policyholders against loss of benefits due to the failure of a member company. Details about the extent of Assuris’s protection are available at www.assuris.ca or in its brochure, which can be obtained from your financial security advisor, life insurance company or Assuris via firstname.lastname@example.org or by calling 1-800-268-8099.
1 A penalty may apply if a GIO is cashed out prior to the end of the investment term.
2 Creditor protection depends on legislation and court decisions, which can be subject to change and vary by province. It can never be guaranteed. Please consult your lawyer to find out more about potential creditor protection, current legislation and case law in your province.
Talk to an expert
Not feeling confident in your finances? You can talk to one of our financial security advisors who will work with you to craft a financial plan tailored to your needs.