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Stewart Financial Services
- Protecting Your Financial Health
Segregated Funds
Segregated Funds are Investment products that are also Insurance policies. They are well suited for investors who are seeking both growth potential and the protection of their principal.
The term “segregated” refers to the fact that assets in these funds must remain separate from all other assets of the Insurance company. Segregated Funds, also referred to as variable contracts, are contracts of Life Insurance under which the reserve, or a part that varies in amount depending upon the market value of a specified group of assets held in a separate and distinct fund.
Segregated funds have many similarities to mutual funds including:
- Professional management.
- Diversification.
- Types of funds available (e.g. money market, bond, balanced, equity, international , global, etc.).
- Unit prices that are based on the net asset value.
- Redeemable at any time.
- Generally are RRSP and RRIF eligible.
However, Segregated Funds have several advantages compared to mutual funds. These include:
- A maturity guarantee (usually after 10 years) of at least 75% and up to 100% of the original investment.
- A guarantee of at least 75% and up to 100% of the original investment at death.
- Probates fees can be bypassed if a beneficiary is named other than the contract holder’ estate.
- Segregated Funds are generally protected from creditors in the event of bankruptcy.
| Contact Stewart Financial Services for more information about Segregated Funds and other Investment with Guarantees opportunities to meet your current and future needs and lifestyle. |
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