Segregated Funds

Segregated fund is a pool of money, invested in stocks, bonds or Treasury Bills held solely for the benefit of the unit holders of the fund and which cannot normally be touched by creditors. The main reason for it to be creditor proof is the fact that this is an individual variable annuity contract; thus it is governed by the law of the Insurance Act.

With a named beneficiary, your funds normally will be protected from your creditors. At death, with a named beneficiary, your funds go directly to your beneficiary, without probate fees.

Some mutual fund companies also now offer their funds in a segregated form to meet the demands of their clients for guarantees.

Segregated fund capital is guaranteed by an insurer and achieves capital gains just like a mutual fund. The minimum rule is 75% of capital is guaranteed after ten years even if the fair market value (FMV) is below this 75%. Some insurance carriers will even guaranteed 100% of the capital after ten (10) years.

Because this is an insurance contract, the death benefit guaranteed is 75%-100% of your capital with no time restriction.

Creditor Proof

With a named beneficiary, your funds normally will be protected from your creditors. This situation is in a state of flux.

Probate

With a named beneficiary, your funds go directly to your beneficiary, without probate fees.

Reset Feature

You can periodically "lock in" the protection on the principal when the policy has escalated in value. This resets your 10-year guarantee period.

Withdrawal

As we sell all our segregated funds without a "load" or fee, you are not "locked-in" to any Fund group. And this applies to registered or non registered funds.