A segregated fund is a type of investment vehicle commonly used by Canadian insurance companies to give you the freedom to invest while offering insurance protection to preserve your savings.
A segregated fund offers investment capital appreciation and life insurance benefits.
How it works?
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.
Guaranteed savings protection
Potential creditor protection