SEGREGATED FUNDS

SEGREGATED FUNDS

A Segregated funds policy is similar – like mutual funds, there’s a pooling of investments.

But unlike mutual funds, a segregated fund policy includes insurance guarantees that can protect much or even all your original investment.

Mutual funds often have lower management expense ratios (MERs) because there are no guarantees on your investment.

• Advantages of segregated funds

1-Maturity and death benefit guarantee

Segregated fund policy is that they include guarantees for your original investment. You can usually choose between 75% or 100%, so even if the market drops, you’ll get most or all your original investment back when your policy reaches its maturity date.

2-Estate planning

Segregated funds allow your beneficiaries to receive your money without having to pass through probate.

In other words, the money in your policy won’t be reduced by taxes and the fees associated with settling an estate and your beneficiaries will get the money faster since seg. fund policies are usually paid out to beneficiaries within a few weeks of the paperwork being filed.

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