A segregated fund is a pool of money managed by experts and helps you diversify your savings and protect them from dips in the market.

They also offer a life insurance death benefit if the owner dies before the contract matures. Most segregated funds offer a guaranteed payout of at least 75% to 100% of the premiums paid, which is an advantage over standard mutual funds where the investor has the risk of losing all of their investment. This provision usually applies to both the death benefit and the annuity payouts.