What Are Segregated Funds?

Segregated Funds

 segregated fund is like a mutual fund but it is an insurance product that offers certain benefits that mutual funds do not.    

First, when you invest in a segregated fund, 75% - 100% of the principle amount you invest is guaranteed to be returned to you no matter how well your investment performs.  In order to benefit from this guarantee, you have to hold your investment for a certain length of time (usually 10 years).  Also, some contracts may offer a guaranteed death benefit in the event you pass away.  

Second, you can name a beneficiary with a segregated fund.  This is beneficial because the money you’ve invested will bypass probate and go directly to the beneficiary. 

Finally, the money in your segregated fund may be protected against creditors in case of bankruptcy or an unexpected lawsuit.

By working with us, we can explore which type of investment product(s) might be right for you and can help you build a suitable financial plan.  Click here to book your free consultation with one of our financial planners today.