Segregated Fund Contracts

Segregated funds pool money from thousands of investors with a life insurance company, which employs professional investment managers to invest in a variety of individual securities.

Because they’re only available through an insurance contract, segregated fund contracts have several features and benefits that make them different from mutual funds.

Capital guarantees – Segregated fund contracts protect part or all of your capital investment. There are two types of capital guarantees—death and maturity guarantees.

Estate bypass – When you designate a beneficiary, the value of your segregated fund contract flows directly to your beneficiary, bypassing the estate and potential probate fees.

Creditor protection possibilities – Laws may protect a segregated fund contract in the event of bankruptcy or other action by creditors. It’s important to note that potential creditor protection depends on court decisions, which can be subject to change and can vary for each province. This protection cannot be guaranteed.

For more information on Segregated Funds and how they might be right for you contact Barrons for more information today