An investment which combines simplicity, protection and growth.
Canadian may be gambling with their financial future by foregoing personal financial protection, especially during times of economic uncertainty. you can potentially put their personal property, investments, and even their retirement savings in jeopardy, if they fail to protect these assets.
As an investment solution, segregated funds help to grow your savings. But, as an insurance product, they also help to protect those savings – as well as your loved ones, your estate and your business.One way to protect these assets is through investing with segregated funds. Because segregated fund contracts are held outside of the estate, they offer privacy and discretion in passing assets to those you care about most. Segregated funds offer the potential for creditor protection on both registered and non-registered assets, which can be especially advantageous to small business owners and entrepreneurs.
Segregated funds can be a straightforward, all-in-one investing option. And while they’re only available through insurance providers like Co-operators, they’re not nearly as complex as their name might suggest. This may be the easiest way to give segregated funds meaning in terms of your situation
Segregated funds offer protection:
- 75% – 100% of your premiums (less withdrawals) are guaranteed when your contract matures or on your death.
- Bypass probate and associated fees by naming a beneficiary.
- No deferred sales charges at death.
- Quick payment to beneficiaries after you pass away.
- Private and confidential beneficiary designations.
- Creditor protection may be available in the event of bankruptcy or lawsuit.
Key Takeaways
- A segregated fund is an investment pool structured as a deferred variable annuity and used by insurance companies to offer both capital appreciation and death benefits to policyholders.
- Commonly found in Canada, segregated funds are private contracts between insurers and customers that must be held until contract maturity.
- Because these products offer better guarantees than traditional insurance or annuity products, they do come with higher fees and expenses.
- They are available in a variety of account types, including RRSPs, TFSAs, non-registered, RRIFs, LIRAs and LIFs.
I am always happy to provide free, no-obligation insurance quotes, consultations, or second opinion on your current policy. Please feel free to reach out!
Swinder Jodhka
Broker, SSJ Financial Services
416-825-3091
