Generally Accepted Life Insurance Principles (GALIP™)

The model/acronym is borrowed from Generally Accepted Accounting Principles (GAAP). Since roughly 1940, GAAP has been the published standard for how accountants prepare financial statements — designed to ensure transparency, consistency, and comparability so users can trust the results. They made financial statements comparable. Provided through a method you could trust, intended to reveal what something is. GAAP made people trust the comparison. It wasn’t perfect. Progress not perfection.

GALIP applies the same aim to life insurance. Applications include acknowledging you understand what you just read. GALIP is what is there for the consumer who wants to understand more. GAAP turns financial reporting into a story. Every annual statement tells a story. To whom? Can you trust it?

Like GAAP, GALIP is a published standard. It consists of five principles.