Segregated Funds
Growth potential of the markets with the safety guarantees of an insurance contract.
Key Benefits
Principal Guarantee: Guarantee 75% or 100% of your investment at maturity or death.
Probate Bypass: Proceeds flow directly to beneficiaries, saving time and probate fees.
Creditor Protection: Potential protection from bankruptcy and lawsuits (ideal for business owners).
Estate Privacy: Transfers remain private and outside the public will.
"Exclusive to life insurance companies, Segregated Funds are ideal for estate planning and conservative investors. They offer the peace of mind of a "floor" value on your investment, ensuring that market crashes do not destroy your principal or your legacy."
Segregated Funds: Frequently Asked Questions
Segregated funds are investment contracts offered exclusively by insurance companies and include a maturity and death benefit guarantee, typically 75% to 100% of your deposits, regardless of market performance. Mutual funds offer no such guarantee. Segregated funds also bypass probate when a beneficiary is named and can offer creditor protection, features mutual funds do not have.
Segregated funds generally carry higher fees than comparable mutual funds because you are paying for the insurance guarantee and estate benefits. They tend to suit conservative investors nearing retirement, business owners wanting creditor protection, or anyone prioritizing capital preservation and probate savings over minimizing cost.
Yes. Because segregated funds are insurance contracts with a named beneficiary, proceeds pass directly to that beneficiary outside of your will, avoiding probate fees and the delays and public disclosure that come with the probate process.
When a segregated fund names a beneficiary from the preferred class defined under provincial insurance legislation, typically a spouse, child, grandchild, or parent, the funds can receive potential protection from creditors in the event of bankruptcy or lawsuit, which makes them a common estate tool for business owners and professionals.
Ready to secure your Segregated Funds?
Book a complimentary 15-minute discovery call to see if this solution fits your portfolio.
