Inside a registered plan (an RRSP, RRIF or TFSA), the normal rules for that plan apply. In a non-registered contract, income and capital gains earned by the fund are allocated to you each year and reported on a tax slip, as with a mutual fund.
Unlike mutual funds, segregated funds can also allocate capital losses to you, which may be used to offset gains. If a guarantee tops up your value at maturity or on death, the top-up is generally taxable. We recommend confirming the tax implications with your accountant.