Segregated Funds

Yes, due to their ability to bypass probate, offer potential creditor protection, and allow for direct beneficiary designations, segregated funds are often used as a tool for efficient estate planning and wealth transfer.

Segregated funds generally have higher fees than comparable mutual funds because they include insurance guarantees and estate planning features. Fees vary by contract, fund option, and insurer.

Some segregated fund contracts include a reset feature that allows the guaranteed value to be adjusted upward if the market value increases. Reset rules, frequency, and age limits vary by contract.

Yes. Segregated funds allow you to designate beneficiaries directly within the contract. In many cases, this can allow proceeds to pass outside the estate, which may help simplify estate settlement. The treatment can vary by province and beneficiary designation.

Segregated funds may offer potential creditor protection when certain beneficiary designations are in place and applicable legal conditions are met. Creditor protection is not automatic and depends on provincial legislation, the type of beneficiary named, and individual circumstances.

Segregated funds typically include maturity and death benefit guarantees that protect a portion of the amount invested, subject to the terms of the contract. The guaranteed percentage and conditions vary by policy and insurer.

Segregated funds are insurance contracts that invest in underlying market-based funds. Unlike mutual funds, they typically include features such as maturity and death benefit guarantees and the ability to name a beneficiary directly. These features can provide estate planning and risk-management advantages that mutual funds do not offer.