A financial contract between an INSURER and an individual or PENSION PLAN (as BENEFICIARY) that provides the beneficiary with a specific return on CAPITAL invested over the life of the contract. The insurer bears the investment RISK associated with the securities in the GIC portfolio but is generally able to retain any excess it earns over the guaranteed return. See also NONPARTICIPATING GUARANTEED INVESTMENT CONTRACT, PARTICIPATING GUARANTEED INVESTMENT CONTRACT, SYNTHETIC GUARANTEED INVESTMENT CONTRACT.

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