Dictionary

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Growing-Equity Mortgage (GEM)

A fixed-rate mortgage that provides scheduled payment increases over an established period of time, with the increased amount of the monthly payment applied directly toward reducing the remaining balance of the mortgage.

Guarantee Mortgage

A mortgage that is guaranteed by a third party.

Guaranteed Insurability

A rider in Life and Health contracts that permits the insured to buy additional prescribed amounts of insurance at prescribed future time intervals without evidence of insurability.

Guaranteed Issue

A policy that the insurer must issue. Under the Affordable Care Act health insurance policies are as of January 1, 2014 guaranteed issue. That means that the insurer must issue the policy, no matter the person’s health. Medicare Supplement Plans purchased in the open enrollment period are guaranteed issue. Medicare is also guaranteed issue.

Guaranteed Loan

Also known as a government mortgage.

Guaranteed Renewable

A contract that gives the insured the right to continue in force by the timely payment of premiums for a period of time as set forth in the contract. During that period of time, the insurer has no right to make any change in any provision of the contract other than a change in the premium rate for all insureds in the same class.